Market Outlook

“US blame China for spying after unidentified object enter US airspace.” Pair of AUD/USD continues to test at one-week low as market sentiment turned cautious over political jitter. According to reports, US has identified and shot down “unidentified objects” that were flying over US airspace, with White House alleging China over spying. Recent political turmoil caused anxiety in the

“Appeal for safe haven diminishes as market shifts their focus towards other risky assets.” Gold price hovers at one-month low following rising short-term yields while the market reassess their expectations towards Federal Reserve. The metal failed to recuperate its losses as investors poured into other risky assets. Such phenomena were sparked after Powell reiterates deflation standpoint

“Greenback enters into correction while other major currencies stood still to wait for further signals.” GBPUSD is seemingly quiet today while investors wait for the imminent release of key economic data from UK as well as Bank of England’s Treasury hearing session. Yesterday, greenback enters into corrective mode after propelling significantly over the backdrop of bullish Nonfarm

“Pound sterling tumbles as investors flock towards greenback prior to Nonfarm Payrolls.” GBPUSD capped at 1.2460, suppressed by immense selling pressure while investors turn their head towards US Nonfarm Payrolls report. Moreover, selloff on pound sterling was further emphasized as investors shrugged off Federal Reserve’s possibility in pausing policy tightening. In terms of Nonfarm

“EURUSD braces intraday high, on track to record its second weekly gains.” Bulls clings onto euro following broad weakness over the greenback and revived optimism towards the eurozone. Although European Commission for Economy commented that EU is entering into a period of economic contraction, ECB President Christine Lagarde noted that its current economic downfall would be minor. On the

“S&P500 droops as recent data shows looming recession in the US.” US equities tumbled down, seemingly on track to end the week in red as investors digest recently released economic data from the US. According to report, headline producer price index fell more than expected while a slump in retail sales despite holiday’s season sparks strong speculation of a possible recession. For

“Market remain cautious as they assess possible economic developments from recently released data.” USDJPY drifted higher during early European trading hours, mending some of its losses after greenback lost its appeal among investors. Risk sentiment remains vary as China releases their Q4 GDP data, which toppled forecasts but expanded at its slowest since 1970s. At the same time,

“Japanese yen cheers as US dollar selloff spurred by possibility of a change in Fed policy stance.” US dollar extended its losses during early European trading hours after US inflation data reemphasized market expectation towards Federal Reserve. For December, CPI shrank by -0.1%, in line with previous speculation for further slump in inflationary pressure. The data reaffirms possibility

“US inflation data to determine overall market structure, which may bring significant volatility.” XAUUSD stabilizes around 1880 as market participants wait for the release of US inflation data later today. The data, which will cement the expectation for less aggressive Fed may spur high volatility and a shift in all related assets. Such expectation was formed over the basis of

“Federal Reserve’s speech in focus as recent economic data from US shows substantial decline in its performance.” During late Asian trading session, the pair of USDCAD begins to stage a rebound, following the footprints on the US dollar index. Investors will now pay attention to upcoming speech by Fed Chair Jerome Powell after US economic activities and wage inflation shows substantial