Last week witnessed a surge in volatility across various assets, leading to significant breakouts and breakdowns. A notable development was the widespread decline in U.S. Treasury yields, where the 2-year yield dipped below its 200-day simple moving average, hitting its lowest point since early June at 4.54%.
The drop in U.S. bond yields, coupled with a positive sentiment on Wall Street, propelled stocks higher, with the Dow Jones 30 surpassing its July peak and nearing its all-time high. The Nasdaq 100 also saw gains but faced resistance near 16,100, hindering further upward movement.
The market dynamics proved advantageous for precious metals, sparking a robust rally. Gold spot prices, for instance, climbed by 3.5%, coming close to surpassing the previous record near $2,075. Similarly, silver experienced a 4.7% gain, reaching its highest level since May.
In the foreign exchange realm, USD/JPY saw a significant decline of 1.77% for the week, breaking below its 100-day simple moving average—a bearish technical signal that suggests 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: Sterling’s Uptrend Faces Challenges Amid Shifting US Rate Sentiments
While the British Pound has demonstrated a consistent upward trend against the United States Dollar since late September, much of the rally appears rooted in ‘Dollar weakness’ rather than a resounding vote of confidence in Sterling.
Japanese Yen Weekly Forecast: External Factors Continue to Dictate Yen’s Fortunes
In the past week, the Japanese Yen has made notable gains against both the Euro and the Greenback. This movement is primarily attributed to Euro and USD fundamentals, and this trend is anticipated to persist.
Oil Weekly Forecast: OPEC+ Decision Leaves Crude Oil Markets Unsettled
Last week witnessed a decline in crude oil prices following OPEC+’s announcement of voluntary cuts extending into 2024. The short-term guidance for this week remains influenced by U.S. factors, contributing to the dissatisfaction in crude oil markets.
Euro (EUR) Forecast: Mounting Rate Cut Speculations Dent EUR/USD, EUR/GBP Performance
The Euro experienced a decline against various currencies in the past week, fueled by growing expectations of an ECB rate cut and a simultaneous slump in bond yields.
Gold Weekly Forecast: XAU Sets Sights on NFP After Powell’s Remarks
Gold prices concluded the week on a high note, comfortably surpassing the $2000 mark as XAU/USD enters the overbought zone. The upcoming Non-Farm Payrolls (NFP) report will likely be a focal point for gold market participants.
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. Additionally, it examines critical price levels that could come into play leading up to the release of the November U.S. jobs report.