Market Analytics and Considerations
Key Points
This previous week, market volatility remained the primary concern. The Dow Jones, S&P 500, and Nasdaq 100 all experienced declines on Wall Street of roughly 1.8%, 2.3%, and 2.9%, accordingly.
In Europe, things did not seem to be getting any easier. The declines in the FTSE 100 and DAX 40 were about 3.3% & 1.5%, correspondingly. The Hang Seng Index and Nikkei 225 both had drops in the Asia-Pacific area of 1.7% and 2.3%, respectively.
Considering a milder US inflation data for November, this was the case. However, the attention remained on central banks. The Federal Reserve increased interest rates by 50 basis points while reiterating that more needs to be done to combat price pressures. Markets were caught off guard by the European Central Bank’s surprising adoption of an assertive stance.
The other resulted in the Euro having a fairly good week. Consequently, risk aversion led to a decrease in efficiency for the view Australian and New Zealand Dollars. A slightly firmer US Dollar was countered by declining Treasury rates, resulting in a largely flat finish for gold. The price for crude oil increased despite the decrease in appetite for risk.
As we get closer to the end of 2022, economic incident risk noticeably decreases. The favorite inflation indicator of the Fed, PCE core, will break through the wires next week. A more beneficial conclusion might highlight a less aggressive Fed. For the USD/JPY rate of exchange, the Bank of Japan’s interest rate pronouncement is scheduled.
Fundamental Predictions
Outlook for the Upcoming Week for the S&P 500, Nasdaq, and Dow Jones – Fundamentally
With a steely concentration on the price movements in 2023, bears made a noteworthy comeback this week. But will they drive through the year’s finish or will they stand in line in 2023?
Prediction for the British pound: BoE rates divide and strikes batter the GBP
The British Pound is now under strain heading into the weekend after traders were disappointed with last week’s BoE rate hike announcement.
Australian Dollar Perspective: A Reviving US Dollar
The US Dollar gained ground after central bankers reiterated their aggressive attitude after a series of increases, crushing the Australian Dollar.
Still Important Event Risk and Technical Pressure in the Dollar Perspective
The coming week may see the beginning of vacation trading conditions for the Dollar and wider markets, however the range of key event risk may start turning sparse liquidity into heated volatility. Trading professionals would keep a close eye towards this market given the discussion about a pivot in the fundamental and technical implications with this benchmarking.
Future Gold Price Predictions: XAU/USD Is Still Bearishly Biased.
Although gold prices were largely unchanged last week, the overall fundamental picture is still unsavory. This is happening as XAU/USD exhibits more and more technical indicators of a looming bearish inversion.
