Trade of the Week: Gold set to breach $2000 again. What’s next?
As mentioned in our Week Ahead outlook (posted on Fridays), gold was expected to rise on a souring outlook for the global economy.
The precious metal duly started off the week by rising to within a whisker of the psychologically-important $2000 mark.
Week Ahead: Gold may climb higher on darkening global outlook
More Fed speak …
more US earnings …
and the freshest updates to the global economic outlook (via the latest IMF projection and GDP figure for China, the world’s second largest economy) …
Investors and traders can feast on these major data releases and events scheduled for the week ahead:
Monday, April 18
3 words that sank the euro today
Over an hour ago, the European Central Bank (ECB) wrapped up its latest policy meeting.
The ECB’s Governing Council, in describing its plans for removing support measures for the economy this year, stuck with using these 3 key words:
“optionality, gradualism, flexibility”.
And if re-arranged, those words offer the acronym: F.O.G. (look out for this again later in the article).
Mid-Week Technical Outlook: Dollar Bulls Dominate The Scene
This financial market is now more accessible than ever, as technology allows traders to buy and sell stocks anytime, anywhere.
The era of low interest rates is no more
Last week’s ECB and FOMC minutes made investors across the globe realise that the end of an unprecedented era is now definitely over. Much will no doubt be written about the past decade and longer, when interest rates were cut and remained at levels previously seen decades and even centuries ago.
But now, markets are looking warily at major central banks, and certainly the world’s most powerful one, which is set to front-load interest rate hikes in order to tame the inflation genie that has been let out of the bottle to try and get rates quickly back to neutral.
Week Ahead: Hawkish ECB may offer EURUSD support
The battle against inflation is set to take center stage across markets in the coming week.
Major central banks such as the European Central Bank, the Reserve Bank of New Zealand, and the Bank of Canada are set to make their respective policy decisions, and perhaps more crucially convey its future policy intentions to investors and traders worldwide.
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QT: The Fed wants to pull out US$1.1 trillion per year from markets! What could this mean for investors and traders?
Investors and traders worldwide for several months now have been obsessing over how the Fed intends to go about its 'quantitative tightening' a.k.a. QT.
Hold up! What even is QT?
To understand QT, first we must have an idea of QE (quantitative easing).
QE is when a central bank prints money, out of thin air, to support its economy. Recall that the Fed has pumped out trillions of dollars to support markets amid the pandemic.
