There is a burgeoning fear and concern in the markets that central banks have lost control of how to manage the global economy. Monetary easing policies are clearly not working but that is unlikely to prevent the Bank of Japan from panicking into another loosening move in the coming days/weeks. The question of whether negative interest rates are the answer to the market woes remains decidedly unanswered for now, despite the fact that more and more central banks are pushing ahead with this policy. The volatility that greets market moves on almost a daily basis is a reflection of the fear. Markets are trying to engage in a recovery now, but will the bulls wilt quickly this week? Richard Perry looks ahead this week to find the key market drivers, with the Federal Open Market Committee meeting minutes on Wednesday as important for traders, but also what else should they be watching out for?
What is driving the moves on foreign exchange markets and what are the market trends that you should be aware of? Has the huge strength of the yen gone too far in recent weeks and are we about to see a retracement of the move? Richard also undertakes a technical outlook for key markets such as Euro/Dollar and Dollar/Yen to see what the charts are telling us about market sentiment. What are the key factors driving the key equity indices and what could it take to drive a sustainable improvement? Richard also gives his views on how he would be looking to play the rallies in these equity markets. He also includes a technical analysis of the German DAX Xetra and the UK’s FTSE 100 Index. Finally, Richard looks at the key commodity markets and what is driving precious metals and oil. What are the bond markets telling us at the moment? He finishes the report with a technical analysis of the key gold chart and also Brent Crude oil.