Nasdaq 100, Dow Jones, US Dollar, Gold, CPI, Canadian Dollar, BoC

Market sentiment improved last week, with information technology stocks leading the way. On Wall Street, the Nasdaq 100 gained 4.71% while Dow Jones futures gained just 0.87%. Things also looked good elsewhere. In Europe, the DAX 40 gained 1.58% while the Euro Stoxx 50 rose 1.69%. Meanwhile, Japan’s Nikkei 225 and Australia’s ASX 200 rose 2.24% and 2.11% respectively.

Despite improving sentiment, the safe-haven-linked US dollar outperformed its major peers. A notable exception was the commodity-linked Australian dollar, which rallied in the final days of the week as growth-linked copper prices rose. The euro notably underperformed as markets continued to lower hawkish expectations of ECB policy.

Markets initially rolled back hawkish expectations of Federal Reserve policy amid global growth concerns. However, this course reversed at the end of the week. Another strong report on US nonfarm payrolls, which also included higher-than-expected average hourly wages, continued to point to a scenario in which the central bank needs to maintain its rate hike path.

All of this did not bode well for the anti-fiat yellow metal, with the price of gold posting the worst weekly performance in 2 months. Now all eyes are on July’s US inflation report. Headline CPI is expected at 8.8% year-on-year on Wednesday, down from 8.6% in June. Notice that the June reading is what inspired the 75 basis point rate hike.

With this in mind, traders should remain vigilant. Another strong impression, especially in the middle of the latest jobs report, could easily restore market volatility. Outside of the CPI, the Bank of Canada’s rate decision is next week, where a 75 basis point hike is expected. The latest Australian jobs report will also cross the wires. China’s GDP in the second quarter will also be known. What else is in store for the markets?

PERFORMANCE IN US DOLLARS VS. CURRENCIES AND GOLD

Fundamental forecasts:

US Dollar Forecast: US Inflation Data in June May Add Bullish Momentum to DXY

Next week’s U.S. Consumer Price Index report may show June inflation accelerating to new multi-decade highs, a result that could boost Treasury yields and short-term US dollar

Market Week Ahead: Predictions for the S&P 500 and DAX 40

All or nothing on the US CPI. Russian gas flows are the key to Europe

Aussie Dollar Outlook: Low For Longer, The Good Times Continue

The Aussie dollar wobbled throughout the week, with RBA rate hikes and a runaway trade surplus. The strength of the US dollar keeps the AUD/USD low, boosting the domestic economy.

Bitcoin (BTC), Ethereum (ETH) Forecast – Rise in Calm Conditions

Bitcoin picked up a small supply this week and rose slightly. While the short-term outlook looks slightly more positive, the longer-term outlook remains negative.

British Pound (GBP) Weekly Forecast: NFP Beat Sets Pound for Further Fall

The pound appears to start next week on the backside after stronger than expected NFP results played into dollar strength.

USD/CAD Rate Outlook Hinges on Bank of Canada (BoC) Rate Decision

USD/CAD could face a bigger correction ahead of the Bank of Canada (BoC) interest rate decision as the central bank is expected to normalize its monetary policy at a faster pace.

Technical forecasts:

US Dollar Technical Forecast: At a Temporary Tipping Point

The dollar reversed on Friday against a generally bullish NFP report; some weakness in the days ahead seems likely.

S&P 500, Nasdaq 100, Dow Jones Predictions for the week ahead

Stocks rallied in the first full week of July and that momentum continued on the back of a strong NFP report. Next week brings the CPI and then the start of earnings season the following week.

British Pound Technical Forecast: GBP/USD faces tough odds in the week ahead

The British pound fell for a second week against the US dollar, setting a new multi-year low. A rebound may occur, but the chances of a trend reversal seem slim. Where is the GBP/USD going?

Gold Price Technical Forecast: Gold Plunges into the Last Line of Defense

Gold has tumbled more than 3.8% this week, with XAU/USD now testing multi-year uptrend support. The battle lines are drawn. Levels that matter on the weekly technical chart.

Crude Oil Weekly Technical Forecast: US Crude Oil Tests Key Levels

Oil prices rebounded from recent lows after the bears failed to push prices below the Fibonacci support at $93.5. Key technical levels continue to hold.

Japanese Yen forecast for the week ahead: USD/JPY, AUD/JPY, EUR/JPY, GBP/JPY

The Japanese Yen is starting to show some resistance against the US Dollar, Australian Dollar, Euro and British Pound. Where to find USD/JPY, AUD/JPY, EUR/JPY and GBP/JPY in the coming week?

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