Fundamental Forecasts News Today

Risk markets regained all their early losses this week and continue to press higher. A benign FOMC and a weak US Jobs Report boosted markets going into the weekend.

The Euro has shared in broad non-Dollar gains despite the prospect of ECB divergence from the Fed.

Risk assets continue to push ahead, albeit in quiet trading conditions, ahead of the latest Fed policy decision and the monthly US Jobs Report

Gold is struggling to move higher as haven assets remain in the doldrums. This week’s Fed policy decision and US Jobs Report are likely to wake up the precious metal.

Risk markets pushed higher over the week, spurred on by a lull in Israel/Iran hostilities. Next week the FOMC and tech heavyweights Amazon and Apple will dominate risk sentiment.

The precious metal has lost around 5% of its value since last Friday as risk assets benefit from the current pause in the Israel-Iran conflict

The European Central Bank has made it clear that interest rates are coming down, with the June meeting very much a live event, but the Middle East crisis and a slew of high US data will control EUR/USD next week.

The US dollar index opens higher in Europe, aided by a weak Euro, and is back at highs seen last November. Gold is unfazed by US dollar strength and continues to print new highs.

US inflation came in above forecast in March, sending the US dollar sharply higher, as US rate cut expectations are pared back further.

Japanese PM Fumio Kishida put the market on notice today that he will take action if there are any further excessive moves in the value of the Yen.