Dow Jones, S&P 500, US dollar, gold, British pound, US CPI
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Global market sentiment improved entering the first week of 2023. The financial worldthe dow jones, S&P 500 Y nasdaq 100 rose 1.23%, 1.19% and 0.87%, respectively. On the other side of the Atlantic, the FTSE 100 Y DAX 40 it gained 2.49% and 4.93%, respectively. Meanwhile, in the Asia-Pacific region, the Hang Seng Index and ASX 200 they rose 6.33% and 1.28%, respectively.
Switching to coins, it was a mixed bag for the American dollar. He Euro Y japanese yen poor performance while Australian dollar Y british pound Outperformed You’d have to look at Treasury yields to see where the real story was. The 10-year rate fell the most since February 2022. Falling bond yields helped Prayed they shoot up 2.38%, the highest amount since the end of November.
Traders focused on slowing average hourly earnings and a failure in US ISM services data, which cooled the Fed’s long-term hawkish policy bets. Meanwhile, improving confidence in China’s economy helped boost the yuan, as the Hang Seng Index closed at its highest level since July 2021. Warm weather in Europe helped boost Raw oil lower.
Go ahead, all eyes will be on America. inflation report for Thursday. Softer average hourly earnings are likely to set expectations for further cooling in the CPI. Meanwhile, sterling traders will be waiting for the latest UK GDP figures. What else is in store for the markets in the coming week?
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How the markets behaved: week of 1/02
Fundamental Forecasts:
S&P 500, FTSE 100, Hang Seng Outlook Varying levels of delusion
Depending on which benchmark ‘risk’ asset you are referring to, it might appear that the fundamental outlook for global markets was encouraging, almost exceptional. The reality is higher rates, likely recession and other problems that follow. So what to make of the S&P 500 holding, the FTSE 100 close to records and the Hang Seng rising?
Fundamental GBP Forecast: Festive cheer ends and UK PM seeks end to strikes
Sterling remains vulnerable as companies issue a trade warning for 2023. Unions continue strike action and government plans to reduce energy relief for companies.
Australian Dollar Outlook: Volatility kicks in for 2023
The Australian dollar had a bumpy ride into the new year with Chinese policy tightening and US dollar fluctuations running amok. Will AUD/USD find your own way?
6-week Euro winning streak ends, will softer US CPI EUR/USD revive?
The six-week EuroCup winning streak came to an end. However, disappointing US hourly earnings and ISM services data set a sour tone for key CPI data ahead. EUR/USD can go up
Gold Price Fundamental Outlook: XAU/USD Poised for Next Leg Higher
The precious metal continues to be a slave to US rate expectations and with yields starting to pull back from their recent highs, gold could soon attempt to hit a new multi-month high.
Technical Forecasts:
US Dollar Technical Forecast: EUR/USD, GBP/USD, USD/CAD, USD/JPY
The US dollar posed a bullish break out of the three-week range but rallied aggressively after a disappointing PMI release, highlighting the growing impact on the Fed. rate hike strategy.
Gold (XAU/USD) Rises Higher: $1,850 Support Holds at Previous Resistance
Gold has benefited from milder weakness despite a slight pullback ahead of the US. NFP‘s. As XAU/American dollar rally above $1,850, the next resistance barrier has started to form.
Japanese Yen Technical Forecast: Mixed Bag for Japanese Yen Technical Data
Technical patterns are giving mixed signals; Will the BoJ’s continued support for the yen encourage the JPY bulls to come back?
— Body of Article Written by Daniel Dubrovsky, Senior Strategist at DailyFX.com
— Individual articles composed by members of the DailyFX team
To contact Daniel, follow him on Twitter:@dubrovskyFX