Plan your strategies for the trading week ahead with key insights from our team.
The US dollar tanked across the board, after the Fed downgraded its GDP outlook and cut the 2016 forecast from four to two rate hikes. The dovish Fed gave a boost to equities globally. The softer interest rate environment has increased appetite in US and European equity futures. LCG Analyst Ipek Ozkardeksaya says she will be closely watching out for a recovery in gold prices.
The Aussie surged to 8-month highs against the US dollar. As suspected, officials have started to voice their concern about the appreciation in the Aussie. Ozkardeskaya believes AUDUSD is now ready to test the critical 0.7655 level.
In the UK, inflation and retail sales will be in focus next week. The pound rallied 450 pips against the US dollar this week as the Bank of England once again, repelled speculations of a potential BoE rate cut. The cable is testing the 1.45 resistance and has the potential to extend gains towards the 1.4661 level.
- US GDP, gold prices
- Manufacturing and services PMI data
- UK inflation, retail sales, GBPUSD
- Technical outlook on AUDUSD