Market Overview - Page 42

The period of currency turbulence may continue, but there is potential for the Canadian dollar to strengthen in the long term if oil prices increase.

Oil prices rose by over 7% in the past week, reaching above $70 per barrel. Factors driving the increase include the Russia-Ukraine conflict, speculation about the US returning its focus to oil and gas, and rumours of OPEC+ postponing production cuts.

The RBNZ's key rate decision, the release of the FOMC meeting minutes, and inflation estimates in Germany and the Eurozone will be important economic events to watch in the new week.

The decline in EURUSD was driven by weak PMI figures, with France and Germany both experiencing contraction in business activity. EURUSD reached a two-year low of 1.0330, with a risk of further decline.

Gold has reached record high in euro above 2600, and growing fast in dollar terms also, possibly reaching $3400.

UK inflation accelerated to 2.3%, its highest level since March, but this did not boost the Pound significantly. Producer prices also exceeded expectations, but remain disinflationary. The Pound's failure to hold above 1.2700 suggests a bearish outlook with a potential target near 1.23.

The dollar index is pulling back, potentially indicating the end of its range or a shakeout after a prolonged rally. The battle between bulls and bears may determine the trend in the coming weeks.

Oil prices have started the week at the lower end of the trading range, potentially leading to a sharp decline or rebound. Natural gas prices started the week near upper boundary of this year training range.

This week, we’re tracking the US Dollar’s powerful climb following Trump’s victory, hitting a crucial resistance level. Meanwhile, the British Pound and Euro face fresh challenges amid economic shifts. On the crypto scene, Bitcoin and altcoins are pushing the market.

Next week, several countries including Canada, the UK, and Japan will release their estimates of consumer inflation. Additionally, Flash PMI reading may determine the fate of the euro in the coming month.

Investors have been selling off gold, with this week's drop being the largest in three years. The decline could continue, with a potential pullback to $2,400 by the end of the year. If the price falls below the 50-week moving average, it could trigger further losses.

The Hang Seng Index has fallen 20% from its peak, marking the start of a bear market. The index has two peaks in the same area, indicating the possibility of further declines in the medium term.