2022-12-15 • Updated
Last week brought a selloff in markets. Stocks, crypto, gold, and euro – assets were under heavy pressure amid the upcoming recession in the US. Some assets reached the most crucial support levels and are likely to reverse in a short term. Others weren't so lucky and are now in danger. Be ahead of trends and make the most out of this week!
Forex
On May 5, the Bank of England raised the interest rate to 1%. It's the fourth consecutive rate hike, and BoE will probably continue the monetary tightening policy. Moreover, BoE will release its annual CPI reading on Wednesday and retail sales data on Friday. As the releases come out, the GBPUSD pair is closer to the two-year low of 1.2000. The chance for a reversal from the 1.2000-1.2100 support area is high, so look closely for the reversal patterns on daily and H4 charts. Even though the pound is weak amid the tricky situation with Russia's oil & gas supplies, the currency may feel better. The main reason for a possible GBP boost is slowing down inflation. On the other hand, if the CPI is bigger than expected, the GBP will continue falling because it will mean rate hikes don't help.
Oil & Gold
Oil has been moving sideways for more than two months, but the breakout is near. There are many bullish factors for the price, including a possible embargo on Russian export. Another notable thing is OPEC which can't increase oil output at a faster pace. We expect oil to realize a bullish scenario at the end of consolidation and reach $150 per barrel.
Gold is in a shaky situation. The metal broke through the support trendline at $1840 and approached $1800. It's the barrier between the bullish and bearish outlook for the following weeks, if not months. Further strengthening of the USD may bring happiness for all XAUUSD bears as the metal may fall significantly.
Stocks
S&P500 (US500) index had closed last week below the 100-weekly moving average. It's the first time for the US500 since March 2020, and generally, it's the start of a bearish market for the stocks. S&P500 may reach 3500, the 200-weekly moving average, before trying to revive the uptrend. However, the index will have to surpass the 3800 support line, which is the bearish channel's lower border.
The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
