Market Overview - Page 28

The Canadian dollar may strengthen as the extended rally in USDCAD loses momentum. A corrective pullback of around 2% is expected, with potential for a long-term trend reversal.

Energy is expected to regain the attention of market speculators next year due to both technical and fundamental factors. WTI has repeatedly rallied on attempts to break below $67, which has been a turning point on dips since early 2023.

The recent declines in US indices may have broken the bullish trend, indicated by technical signals. The S&P500 and Nasdaq100 are still fighting to maintain their upward trends. The overall outlook will become clearer by the end of the year.

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed monetary policy. This short-term effect is unlikely to change the direction of the dollar's trend.

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary policy and market speculation are driving its rise. The dollar's strength is also impacting EURUSD, which may continue to decline.

The price of WTI crude oil is at risk of falling below $70, despite OPEC+ postpones a production increase. US production has reached a new record, making it difficult for OPEC+ to regain market share.

Bitcoin has surpassed resistance from sellers and the cryptocurrency market's capitalization reached $3.71 trillion. Institutional interest in Bitcoin is growing, with states in the US considering creating strategic Bitcoin reserves.

Key events include PMI business activity estimates for Europe, US retail sales and industrial production figures, Canadian inflation data, and the much-anticipated decisions by the Fed and the BoE.

he dollar's rise in the latest week weighed on the Dow Jones and Russell 2000 indices, but not hurt Nasdaq100

The US dollar is experiencing a new surge of growth, driven by positive macroeconomic data and expectations of a Fed rate cut. However, uncertainty over trade wars and inflation risks remain.

The Swiss National Bank has cut its key rate to 0.5% and is cautious in its actions due to subdued inflation. The franc's strength is evident in crosses, and FX intervention may be the next option. Active traders should monitor EURCHF for possible rate hikes.

USDJPY is rising due to changing rate expectations, as investors doubt rate hikes in Japan and expect fewer rate cuts from the Fed. Accelerating inflation in Japan is not supporting the yen.