Sentiment was simply beginning to discover its steadiness this previous week when one other US-China commerce warfare headline involving the US President hit the wires. Will this theme return to prominence subsequent week or will we fall again on scheduled occasion threat?
The US Dollar backtracked final week however a sturdy upshift in Fed rate of interest hike expectations and the specter of renewed threat aversion might put it again on the offensive.
The European Central Financial institution is sticking to its preset coverage course as uncertainty round its inflation forecasts is receding, however with Italy again within the information, any goodwill injected into the Euro from the current coverage choice will probably be neutralized.
Brent crude oil traded to the best ranges since Could breaching $80/bbl, up almost $10/bbl because the August low exhibiting that worth might transfer larger consistent with longer-term fundamentals.
Gold continues to behave out of character, buying and selling decrease when dangers come up and better when markets climb. Retail positions are net-long, so gold might fall additional.
The Australian Dollar has swooned this yr regardless of a powerful home financial efficiency. Its fall might pause into this week nevertheless it’s in all probability not over
The USD/CNH approaches 6.9, a key threshold as soon as once more; whether or not it might maintain or break could also be decided by the progress of resumed commerce talks in addition to the outlook of China’s financial system.
See what stay protection is scheduled to cowl key occasion threat for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail merchants are positioning within the majors utilizing the IG Client Sentiment readings on the sentiment page.