Six of the nine markets I follow are setting up for trending price moves for this coming week. Gold, the euro and the Japanese yen are the most favorable for wide-ranging moves. The British pound, Aussie dollar and soybeans are also flashing trending pivots on the upcoming week.
U.S. equity markets are seen reversing Thursday’s losses at the open on Friday, even as investors prepare for the first government shutdown since 2013 if the Senate doesn’t pass a temporary spending bill.
Apart from the crypto carnage today and news of the Dow’s fastest 1000-point rally in history, there hasn’t been an awful lot happening in other markets today, with the major FX pairs and gold being fairly stable.
Many traders have been caught by surprise by the extent of the dollar’s decline over the last week. The USD Index fell below 91 for the first time since January 2015, and Friday’s 0.96% drop, was the second biggest since January 2017. More surprisingly, the U.S. data released over the last week certainly doesn’t justify a dollar selloff.
The big news today is that the dollar’s losses have sharply accelerated but without any fresh news. The economic calendar is light and U.S. stock markets will be closed in observance of Martin Luther King Day. This hasn’t stopped the Dow futures from melting up another 140 points.