Dow Jones, US Dollar, Gold, Japanese Yen, PCE, Bank of Japan

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Market volatility remained the focus this past week. On Wall Street, the Dow Jones, S&P 500 and Nasdaq 100 fell 1.8%, 2.3% and 2.9% respectively. Things did not look better in Europe. The DAX 40 and FTSE 100 fell by 3.3% and 1.5% respectively. In the Asia-Pacific region, the Nikkei 225 and Hang Seng Index fell by 1.7% and 2.3% respectively.

This was despite a softer US inflation report for November. Instead, the focus remained on central banks. The Federal Reserve delivered a 50 basis point rate hike and continued that more work needs to be done to combat price pressures. Meanwhile, the European Central Bank surprised the market with a more hawkish tone.

The latter means a remarkable week for the Euro. Unsurprisingly, risk aversion means the Australian and New Zealand Dollars are tied to sentiment. Gold ended lower as the US Dollar strengthened cautiously due to easing Treasury yields. Crude oil prices managed to rise despite worsening risk appetite.

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The risk of an economic event is especially chilling as we approach the end of 2022. Core PCE, the Fed’s preferred measure of inflation, will cross the lines next week. A softer outcome could indicate a less hawkish Fed. Meanwhile, the Bank of Japan interest rate decision for USD/JPY. What is next week for other markets?

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How To Do It – Week of 12/12

How To Do It - Week of 12/12

Basic predictions:

S&P 500, Nasdaq, Dow Jones Forecast for Next Week – Basics

The bears made a resurgent appearance this week with a focus on price action in 2023, but will the bears hold out for the rest of the year or wait for the opening of 2023?

British Pound Forecast – GBP Derailed by BoE Rate Split and Strikes

The British pound is under pressure heading into the weekend after indecision over yesterday’s BoE rate hike left traders indifferent.

Australian Dollar Outlook: US Dollar Back to Life

The Australian dollar was dusted off after the US dollar regained its gains amid central bankers reiterating their aggressive stance after a series of hikes. Will AUD/USD fall?

Dollar Outlook Still Bears Major Event Risk and Technical Pressure

Holiday trading conditions may begin next week for the Dollar and broader markets, but the risk factor of a significant event may actually turn thin liquidity into loaded volatility. With the discussion of a fundamental and technical line for this indicator, traders should keep an eye on this market.

Gold Price Forecast for Next Week: XAU/USD Remains Bullish, Where?

While gold prices remained largely subdued over the past week, the underlying landscape remains undeniably bullish. This is because XAU/USD is showing technical signs of a sharp reversal.

Technical Predictions:

Dollar Outlook Still Bears Major Event Risk and Technical Pressure

The dollar was in a dangerous technical position leading to the risk of last week’s high level event. Now that we are entering a period that usually sees a decrease in liquidity at the end of the year, the ‘big ones’ like EURUSD are still uncertain about their concept.

S&P 500, Nasdaq, Dow Jones Technical Forecast for Next Week

The S&P 500, the Nasdaq and the Dow all produced choppy formations after last week’s disappointing declines. Can the bears make it past the end of the year, or will they stick around as a 2023 theme?

EUR/USD Technical View: Upward Momentum Intact

The Euro’s upside against the US dollar remains intact after the European Central Bank (ECB) signaled a hike in rates more than expected by markets. What are the main views and viewing levels?

British Pound Technical Forecasts – GBP/USD, EUR/GBP, GBP/JPY

The British pound has been hurt this week by several central bank policy decisions. What’s in store for Sterling next week?

— The body of the article was written by Daniel Dubrovsky, Senior Strategist for

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To connect with Daniel, follow him on Twitter:@ddubrovskyFX


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