Nasdaq 100, US Dollars, NFPs, Canadian Dollars, Bank of Canada, China PMI data

Market sentiment rose to the top over the past week. On Wall Street, futures that track the Nasdaq 100 are up 7.28%, the best 5-day performance since March. This is where S&P 500 and Dow Jones futures are up 6.76% and 6.39% respectively, the most since November 2020. Things also looked good in Europe with the DAX 40 up 3.44%. The Hang Seng Index is up 2.89%.

Almost all G10 currencies outperformed the US dollar, including the New Zealand dollar, the Australian dollar, the euro, the British pound, the Canadian dollar and the Japanese yen. The DXY Dollar Index is down 1.32% over the past two weeks, the biggest drop since April 2021. What could explain this dynamic? Look no further than the Federal Reserve.

In recent weeks, we’ve seen the markets Materially withdrawing Fed rate hike expectations for 2023. Cautious comments from the central bank cooled chances of a 50bp rate hike in September. Traders seem to have shifted their focus from inflation concerns to stagnation. Data since early May indicate that Markets are witnessing the Federal Reserve increasingly Lag in handling the consumer price index One year.

This has led to a broad drop in Treasury yields. The combination of this and a weak US dollar has also been beneficial to gold prices. Now, next week, all eyes will be on Friday’s non-farm payrolls. Can the markets get ahead of themselves? Job creation is expected to slow, but the unemployment rate and wages are seen as robust.

Outside the world’s largest economy, the Bank of Canada is expected to raise interest rates by 50 basis points on Wednesday. Australia releases first-quarter GDP figures. China will also closely watch the May manufacturing PMI data. The muted data could amplify concerns about a global economic slowdown, and possibly put pressure on the yuan. What does the market hold for the future?

The performance of the US dollar against. coins and gold

Basic expectations:

GBP/USD Weekly Forecast: Sterling cheers, EUR/GBP upside risks remain

Looking back to the weekly gains for GBP/USD. EUR/GBP Looks to EU Inflation

AUD Outlook: Swing in Risk Sentiment Pushes and Pushes AUD

The Australian dollar has a strong fundamental background at the moment, but external factors continue to influence the currency. Will AUD/USD Take Its Own Way?

Bitcoin Weekly Outlook: Price Continues to Hold Major Support – Breakout on the Cards?

Bitcoin continues to break above a major support level as JP Morgan says there is a massive upside to the space. Is the hack in the making?

Stock Market Outlook: S&P 500, DAX 40, FTSE 100, Nikkei 225

There was some much-needed relief among the major global stock indices last week, but that relief was likely a byproduct of the drain on liquidity ahead of the weekend. With growth expectations collapsing and central banks committed to cutting inflation, a further downward slide appears inevitable.

Gold prices may rise as US recession fears calm Fed rate expectations

Gold prices may continue to recover in the coming days if US economic data worsens and bets are eased for a more aggressive Federal Reserve monetary policy outlook.

Next week for the euro: EUR/USD recovery under the microscope, but a total reversal looks unlikely

The euro saw its best performance in two weeks since January as markets boosted the European Central Bank’s bets on a rate hike and eased the Fed’s hawkish outlook. The EUR/USD pair still faces multiple hurdles after that.

Technical Outlook:

S&P 500, Nasdaq, Dow Technical Forecast: Stock Reversal Levels

Stocks snapped a seven-week losing streak as indicators responded to support the major downtrend. Important levels on the weekly technical charts SPX500, Nasdaq and Dow.

The US dollar eases its two-decade rally, and key levels appear

The DXY Dollar Index recorded a relentless rise throughout the year; But the currency appears to have taken a breather. With a pullback from 105 – or a bounce from 1.0350 in EURUSD – we now find the dollar in an immediate struggle with important support levels.