The volatility through financial markets has been significant in recent weeks. Driven by concerns over the oil price, China and also the speed of rate hikes by the Federal Reserve markets have been thrown around from pillar to post. It is Chinese New Year this week so there could be a slight calming of volatility in the near term, however the uncertainty driven by Friday’s payrolls report should ensure that volatility remains elevated going forward. We look at how markets have been focusing on the US economy with economic data changing expectations. Although the Chinese New Year will take China equities out of the equation this week, the world’s second largest economy will still impact on sentiment this week. However, focus will quickly turn to Janet Yellen and her Congressional testimony to the House Financial Services committee, but how could it impact on market sentiment this week? Also what are the other key drivers of financial markets this week?
How are forex markets set up moving into this week and what are the key drivers? What should we make of the dollar rally in the wake of the Payrolls report and what are our expectations of how markets will move? There is also a technical analysis of two key forex markets that signal sentiment with Euro/Dollar and Dollar/Yen so crucial. For equity markets the big question investors need to know is when will the oil price bottom but also what are the prospects for the Fed rate hikes. What is driving equity markets coming into the new week and what are the key levels to watch out for? There is also a technical analysis of the German DAX Xetra and the FTSE 100. Can the huge run higher in gold in the past couple of weeks continue, and what is the outlook for oil? Also what is to be made of the moves in bond markets? We finish with a technical analysis of gold and the all important oil chart, Brent Crude.