Monetary policy was the key theme of the past week with the Fed following in the ECB’s footsteps with a rate cut and other extraordinarily dovish authorities held steady in QE and negative rates. There is a run of high level central banker speeches in the week ahead, but wavers in US-China trade relations and a steady wave of growth fear headlines will compete for our attention.
The US Dollar may catch a haven bid if US GDP data beats forecasts and cools Fed rate cut bets against the backdrop of fragile US-China trade talks.
The Euro may continue to fall as local data bolsters dovish rhetoric from ECB President Draghi while US-China trade talks and Brexit risk rattle broader sentiment.
Fresh comments from a slew of Federal Reserve officials may influence the price of gold as there appears to be a growing dissent at the central bank.
The Australian Dollar took knocks last week from several directions, both foreign and domestic. This week may be better for the bulls, if only a little.
The UK Supreme Court will rule next week if PM Boris Johnson’s prorogation of Parliament was legal or not. A negative ruling would stop the latest Sterling rally in its tracks.
Oil = Black
DXY = Green
XAUUSD = Gold