Markets Week Ahead: Nasdaq 100, Dow Jones, US Dollar, Gold, Jerome Powell, RBA
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Global market sentiment ended on a cautious note at the end of last week. On Wall Street, the Nasdaq 100 and Dow Jones fell -1.59% and -0.38% Friday. Still, the former ended the period in the green. Across the Atlantic Ocean, the FTSE 100 and DAX 40 rose 1.76% and 1.91%, respectively. Things were more pessimistic in Asia, with the Hang Seng Index sinking by 4.53%.
Markets initially rallied on the Federal Reserve monetary policy announcement. Chair Jerome Powell seemed to struggle convincing markets that a pivot may not occur towards the end of the year. It took rosy jobless claims data and an absolute non-farm payrolls report blowout to bring markets closer to reality.
This meant the best week for the US Dollar (looking at DXY’s 1.05% rally) since the middle of September. Treasury yields also climbed. This combination proved to be challenging for gold, which plunged 3.24% over the past 5 trading sessions. Risk aversion meant that the sentiment-linked Australian and New Zealand Dollars underperformed.
With that in mind, all eyes turn to Fedspeak in the week ahead. Chair Jerome Powell will be speaking. Will policymakers continue rebuking dovish policy bets in the wake of the jobs report? Other notable event risk include the RBA rate decision, UK GDP data and a Canadian employment report. What else is in store for markets in the week ahead?
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— Article Body Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
— Individual Articles Composed by DailyFX Team Members
To contact Daniel, follow him on Twitter:@ddubrovskyFX