This week was marked by the ongoing “Trump Trade" narrative, though expectations around US interest rates also gained prominence. The upcoming week promises to be equally intriguing, with key events such as Nvidia's earnings release and several PMI and inflation reports from major G10 economies. Keep a close eye on the US100, GBPJPY, and GOLD markets.
US100
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Open real account TRY DEMO Download mobile app Download mobile appWall Street indices have soared to new heights following the election of Donald Trump as the next US president, fueled by the prospect of tax cuts and a bullish outlook for American businesses. However, we have witnessed a price pullback and consolidation, particularly for Nvidia, the world's largest company. While expectations point to a significant revenue increase, the company must exceed these projections to satisfy Wall Street's appetite. Nvidia's earnings release on Wednesday post-market is one of the final major events of the third-quarter earnings season.
GBPJPY
Key inflation readings from major economies will be in focus next week. The UK's CPI data is due on Wednesday morning, followed by Japan's on Friday. The Bank of England and the Bank of Japan are charting divergent paths. While the former is cutting rates and expressing concerns about potential inflationary pressures, the latter is pursuing a gradual tightening cycle amidst relatively subdued inflation. If inflation data aligns with central bank expectations, the pair's recent uptrend may continue. Conversely, a weaker-than-expected UK inflation reading and persistent inflationary pressures in Japan could extend the previous week's correction.
GOLD
The ongoing “Trump Trade” saga continues to influence the dollar, yields, and consequently, gold. After a significant correction in the past two weeks, gold's historical pattern suggests a potential consolidation period of 20-30 sessions post-US elections. Despite its long-term appeal, near-term sentiment will hinge on upcoming US economic data. Weak readings for jobless claims, real estate market indicators, and consumer sentiment could trigger a corrective rally in gold.
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