logo |

News

    Home   >     Industry    >     Main body

    Markets Week Ahead: Dow Jones, Nasdaq 100, US Dollar, Yen, AUD/USD, RBA, USD/CAD, BoC

    Abstract:Dow Jones, S&P 500 and Nasdaq futures slipped 0.89%, 1.42% and 2.25% respectively. The VIX market ‘fear gauge’ closed at its highest since February. In the Asia-Pacific region, the Nikkei 225
    Markets-Week-Ahead-Dow-Jones-Nasdaq-100-US-Dollar-Yen-AUDUSD-RBA-USDCAD-BoC_body_Chart.png

      Markets Week Ahead: Dow Jones, Nasdaq 100, US Dollar, Yen, AUD/USD, RBA, USD/CAD, BoC

      Global market mood soured last week, extending a slump since November. On Wall Street, Dow Jones, S&P 500 and Nasdaq futures slipped 0.89%, 1.42% and 2.25% respectively. The VIX market ‘fear gauge’ closed at its highest since February. In the Asia-Pacific region, the Nikkei 225, Hang Seng and ASX 200 dropped 1.98%, 1.27% and 2.20% respectively. Conditions were relatively tame in Europe, with the FTSE 100 gaining 0.39% as the DAX 40 fell 0.67%.

      Risk aversion meant that forex traders flocked into the safety of the highly liquid US Dollar, which soared against the Australian and New Zealand Dollars. The similarly-behaving Japanese Yen and Swiss Franc also outperformed. Taking a look at commodities, growth-linked crude oil prices softened, extending a bear market. Gold prices managed to hold some ground, capitalizing on a further decline in longer-term Treasury yields.

      Driving the worrying mood in sentiment appears to be a combination of the emerging Omicron Covid-19 variant and the Federal Reserve‘s hawkish pivot. This past week, Chair Jerome Powell retired the word ’transitory‘ from describing inflation estimates. Policymakers at the central bank have also expressed the possibility for tapering quantitative easing faster than anticipated. This follows persistently elevated inflation readings in the world’s largest economy.

      Speaking of inflation, the US will release the next CPI report on December 10th. Headline inflation is expected at a whopping 6.8% y/y in November, up from 6.2% in October. That would be the highest rate in almost 40 years. The core reading, which excludes energy and food items, is estimated at 4.9% y/y from 4.6% prior. Further upside surprise could increase hawkish Fed policy bets for 2022, risking volatility in markets.

      Outside of the US, AUD/USD traders will be eyeing the Reserve Bank of Australias last interest rate decision of the year. For USD/CAD investors, the Bank of Canada is also on tap. Both central banks are not expected to adjust benchmark lending rates, so investors will be tuning in to gauge their outlook for 2022 and how policy could shape up. Meanwhile, Chinese stocks that are listed on US exchanges continue bracing for volatility on delisting concerns. What else is in store ahead?

    Download

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.