Last week witnessed a surge in volatility across various assets, leading to significant breakouts and breakdowns. Notably, U.S. Treasury yields experienced a widespread decline, with the 2-year yield dropping below its 200-day simple moving average, marking its lowest level since early June at 4.54%.
The decrease in U.S. bond yields, combined with optimistic sentiment on Wall Street, propelled stocks higher, with the Dow Jones 30 surpassing its July peak and nearing its all-time high. Although the Nasdaq 100 also saw gains, it fell short of overcoming resistance around 16,100.
Precious metals benefited from the market dynamics, initiating a robust rally. Gold spot prices, for instance, surged by 3.5%, approaching the record near $2,075. Simultaneously, silver gained 4.7%, reaching its highest level since May.
In the foreign exchange realm, USD/JPY experienced a significant decline of 1.77% for the week, breaking below its 100-day simple moving average—an ominous technical signal that may suggest potential further losses for the pair. On the other hand, EUR/USD remained relatively flat, influenced by lower-than-expected Eurozone inflation, diminishing the appeal of the single currency.
FUNDAMENTAL AND TECHNICAL OUTLOOKS
British Pound Weekly Forecast: US Rate Sentiments to Dictate, Uptrend Faces Challenges
The British Pound has maintained a consistent upward trajectory against the United States Dollar since late September, primarily attributed to a narrative of ‘Dollar weakness’ rather than a robust vote of confidence in Sterling.
Japanese Yen Weekly Forecast: External Factors Continue to Steer Yen’s Fortunes
The Japanese Yen achieved significant gains against both the Euro and the Greenback in the previous week, driven predominantly by fundamental factors associated with the Euro and USD. This trend is expected to persist in the upcoming week.
Oil Weekly Forecast: Crude Oil Markets Express Discontent Following OPEC+ Announcement
Crude oil prices experienced a decline last week after OPEC+ disclosed voluntary cuts extending into 2024. Short-term market guidance is heavily influenced by U.S. factors, contributing to dissatisfaction in crude oil markets.
Euro (EUR) Forecast: EUR/USD, EUR/GBP Face Headwinds Amid Growing Rate Cut Speculations
The Euro encountered selling pressure against various currencies in the recent week as expectations of an ECB rate cut intensified alongside a slump in bond yields.
Gold Weekly Forecast: XAU Set to React to NFP After Powell’s Remarks
Gold prices rallied at the close of the week, comfortably surpassing the $2000 mark as XAU/USD enters the overbought zone. The upcoming focus will be on the Non-Farm Payrolls (NFP) report, which is expected to influence gold market dynamics.
US Dollar’s Trajectory Hinges on Jobs Data, Technical Setups for EUR/USD, USD/JPY, GBP/USD
This article delves into the technical outlook for major U.S. dollar pairs, including EUR/USD, USD/JPY, and GBP/USD. It also analyzes critical price levels that could come into play in anticipation of the November U.S. jobs report.