The euro steadies as the market hopes for a hawkish turn in monetary policy. Inflation across the Euro zone saw a sharp retreat with the latest print at 2.4%, from over 10% just a year ago. More hawkish policymakers are joining the rank of the doves and advocate that further rate hikes could be off the table. The meeting might be uneventful in terms of rates but traders will certainly look for a change in the official rhetoric. The focus is now on betting on rate cuts next year, but with the US likely to lead the way, the dollar could trail behind the single currency. After hitting resistance at 1.1000, the price may look for support around 1.0660.
GBPUSD steadies as BoE may not blink
Prospect of easing fuels risk assets
EURUSD consolidates ahead of ECB meeting
The S&P 500 keeps the high ground as investors bet on increasing dovishness from the Federal Reserve. Growing expectations that the US central bank was done with its campaign of interest rate hikes and that it could start to cut rates in March have fueled the V-shaped recovery from the October bottom. While value names have benefited from the market’s eagerness to resume the bull run, upbeat sentiment compounds fresh catalysts in the AI area, boosting demand for tech-related stocks. The next set of CPI prints will be key in sustaining the climb above 4680 and towards a fresh all-time high. 4400 would be the first support
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SPX 500 recovers as rate cut bets rise
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. He went on to work as a senior analyst within the FX industry where he developed and refined his own trading and risk management strategies. Having a solid understanding of market dynamics, he founded his own research and asset management services and works with Orbex to provide timely market commentary on the global financial markets.
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منبع: https://www.orbex.com/blog/en/2023/12/the-week-ahead-return-of-the-bull
Cable holds onto gains as rates might remain high longer than elsewhere. Central banks have adopted the standard language of ‘seeing the full impact of higher borrowing costs passing through the economy’, and the BoE is no exception. Even with interest rates at their 15-year peak, Britain is still coping with the highest inflation rate among developed countries. Officials may acknowledge a slowdown in the economy but would push back rumours of cutting rates, especially with stronger-than-expected wage and income growth, they would refrain from loosening the grip too soon. 1.2400 is a fresh support and 1.2800 a key resistance.
UKOIL slides on China downgrade
