Financial markets spent most of last week unwinding “Trump trade” bets but December’s US jobs data seemed to rekindle the late-2016 narrative. Will it continue in the week ahead?
US Dollar Forecast: US Dollar May Turn Defensive Anew on Cautious Fed Comments
The US Dollar found a lifeline in upbeat wage growth data having been battered by the unwinding of the “Trump trade”. Upcoming Fed-speak may put it back on the defensive.
British Pound Forecast: BOE: Economic Forecasting in a World ’Tipped Upside Down’
This week, the Bank of England’s Chief Economist, Mr. Andy Haldane issued a mea culpa around the bank’s forecasts and expectations around Brexit, saying ‘it’s a fair cop to say the profession is to some degree in crisis.’
Australian Dollar Forecast: Australian Dollar Uptrend Should Survive Light-Data Week
The nascent Australian Dollar uptrend should remain intact through a relatively light week for scheduled economic data on both sides of the Pacific.
Chinese Yuan Forecast: USD/CNH Eyes on HIBOR, Onshore Policy
The Chinese Yuan was on a roller-coaster ride this week: the offshore CNH gained over 1% against the U.S. Dollar on both Wednesday and Thursday, and then lost -0.6% as of 11:00am EST on Friday. The offshore Yuan also traded higher than the onshore Yuan, which was uncommon.
Gold Forecast: Gold Recovery Faces First Hurdle Ahead of Fed Speak; Retail Sales
Gold prices continued to march higher for a second consecutive week with the precious metal rallying more than 3% to trade at 1176 ahead of the New York close on Friday. The advance comes amid weakness in the greenback and alongside continued gains in global equity markets.