Rates have been cut higher globally in the past as the ‘risk-forward’ tone in financial markets rebounded after a slight slump in late January. On Wall Street, the Dow Jones, S&P 500 and Nasdaq Composite rose 1.00%, 1.23% and 1.73% respectively. Meanwhile, the FTSE 100 and Nikkei 225 rose 0.94% and 2.72% respectively.
The rosy sentiment certainly made its way into foreign exchange markets, where the U.S. Dollar against risk and the Japanese Yen were similarly some of the worst performing G10 currencies. At the same time, the growth-based Australian Dollar outperformed its major competitors. Looking at commodities, crude oil prices rose 4.67% as gold traded relatively flat.
U.S. fiscal stimulus remains a key focus for investors, with President Joe Biden aiming to deliver his $ 1.9 trillion Covid relief package using a budget settlement due to a lack of Republican support in the UK. Assembly. Treasury yields have been on the rise further, with the 30-year rate climbing to its highest level since February 2020.
Recommended by Daniel Dubrovsky
What are the main trading opportunities this year?
Exchanges in China and Hong Kong are offline for the Lunar New Year, with Wall Street closed Monday for the Presidents Day holiday. A lower-than-normal meltdown is expected, which raises the risk of variability around breaking headlines. Speaking of which, the economic calendar label is still pretty light ahead.
The risk of a specific event ahead includes minutes of an FOMC meeting where the central bank can immediately repeat their position position to extend the current QE measures. U.S. retail sales are also on tap. Japan and Eurozone GDP data will cross the wires as Australia releases their latest jobs report. What else is planned for markets in the coming week?
Recommended by Daniel Dubrovsky
What does it take to trade around data?
Euro Forecast: EUR / USD forecast to develop as US dollar slides
U.S. inflation data last week and bearish comments from Jerome Powell of the Federal Reserve have weakened the U.S. Dollar and improved expectations for EUR / USD accordingly.
Equalities forecast: S&P 500 May Rally extend Stimulus Hopes and Weaker US Dollar
Three major U.S. charts could widen their broader upward trend, driven by fiscal stimulus expectations, a better fundamental outlook, positive earnings guidance and a weaker U.S. dollar.
British pound forecast: Sterling continues to move higher, hitting vaccine program
Sterling continues to move higher, with 13 weeks positive in the last 15, on slightly better-than-expected GDP data and a successful vaccination program.
Australian dollar forecast: Iron Ore prices go against Dovish RBA
The Australian Dollar may continue to gain ground behind rising iron ore prices, despite the RBA’s decision to expand its current $ 100 billion bond purchase program.
Mexican Peso Forecast: Short-Term Guide to be Tested as a Key Stage Wealth
USD / MXN to move in line with overall market sentiment as economic data dries up.
Gold price forecast: Can the US dollar save gold from bankruptcy?
Gold prices brought down, experienced defense captain. There are downside risks if USD key support does not break.
US dollar forecast: Downtrend to resume course as stocks climb?
The U.S. Dollar weakened against risk last week as the Dow Jones, S&P 500 and Nasdaq Composite rallied. Has the dominant downtrend restarted?
Crude oil forecast: prices extended further. Have prices gone too far, too fast?
Crude oil rally is expected to expand further after the EMI exposed near-term risks for 2021 in an updated report. However, a short-term withdrawal may be required before higher ground is seen.
AUDUSD Weather: Taste of Risk The Aussie Dollar Costs for New Highs
The Australian Dollar has bounced back last week, but the jump in currency for new multi-year highs has not yet offset a larger gluasad bull movement.
Crude oil forecast: WTI extended, but typically has a bullish technical outlook
WTI crude oil remains in a delicate channel structure that remains a guide for its panoramic view.
Equality forecast: Nasdaq 100, S&P 500, FTSE 100 Projections for the week ahead
Risk appetite remains strong as shares push higher and U.S. corporations begin to creep into the cryptocurrency space, strengthening digital assets like Bitcoin and Ethereum.
U.S. dollar forecast: Technical damage not to progress
The reversal of the DXY Index a few weeks ago did little to reverse the major technical damage that has been recovered in recent months.
Gold price forecast: Losing Uptrend’s main support
Gold prices are still struggling, even as the U.S. Dollar falls back. Risk appetite increases, reducing the demand for safe haven.