Last week’s market movements remained confined to a narrow range. However, global inflation is still the main concern after last week UK CPI, and FED hawkish speculation have caused a slight rebound in US yields and the USD over the last two weeks. If stocks experience a descent from resistance levels, it is likely that we may see further growth in these markets.
This week’s market behavior will be significantly influenced by forthcoming GDP data, earnings reports, and BOJ decisions. Based on the latest Elliott wave price action, we can anticipate that these factors will favor the USD. Additionally, the DXY shows a strong intraday bullish impulse, signaling more upside potential after the current consolidation phase.
If a sharp break higher occurs, it may trigger a sell-off on the EUR, GBP, and already weak commodity currencies like AUD and NZD. Overall, the market outlook remains uncertain, and investors should keep a close eye on these key indicators for further insights into potential market trends.
