The monetary policy actions of central banks are again dominating changes to market sentiment. The strong dovish steer from the European Central Bank which implies further easing at the December meeting, in addition to an unexpected rate cut from the People’s Bank of China has had a profound impact on markets. The improvement in sentiment was sharp but it will be interesting to see if this momentum can last into the new week. The meeting of the Federal Reserve looms large this week, but that is not the only central bank set to announce. The table of economic announcements layout out the key data releases that you need to be aware of this week, but the Fed is certainly the one key release that traders need to be aware of when setting up for their strategy.
The big impact has come across currency markets with the dollar strengthening sharply. The big question is, how this impacts the outlook across the dollar major pairs and whether this mean there needs to be a reassessment of strategy. There is a key technical analysis of two major forex pairs with the direction of the euro and sterling considered.
Looking at the equity markets, the impact of earnings season seems to be somewhat muted when the big macro news dominates direction. With the central bank announcements continuing this week, it could continue to be the case. We look at the key changes to market outlook and the levels that need to be watched. There is also a technical analysis of two major markets, with the German DAX Xetra and FTSE 100 considered from a medium term perspective.
How have the key commodity and bond markets been impacted by recent events? We take a technical analysis view of Gold and Brent Crude.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.