VIX Collapse Lifts the Equities, EURUSD Extreme Range with Limited Time

VIX, S&P 500, Recession and EURUSD Talking Points:

The Market Perspective: EURUSD Bearish Below 1.0550; GBPUSD Bearish Below 1.2100While the S&P 500 earned a 1.5 percent rally and the Dow a 1.6 percent climb, this is likely a by-product of the VIX drop rather than a bullish coupThere is still the capacity for volatility moving ahead, and the extreme technical curbs on EURUSD make for acute – if truncated – setups

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True to form, the markets are seeing the pull of holiday liquidity kicking in and having its expected influence over the top benchmarks. Historically, the 51st week of the year sees a market slowing of implied (‘expected’) volatility which is well established through the averages from the VIX volatility index. And, that tempo only fades further moving into the final week. There remain a number of open threads in the speculative conversation (interest rate speculation, recession fears, etc) that can disrupt the market with limited prompt or even no warning; but the seasonal trends are seasonal for a reason. Taking a look to the popular ‘fear index’ this past session, there was a 1.4 point drop (-6.6 percent) from the measure to just above the 20 handle. That is both a measure that significantly neutralizes many traders’ fear that an unseasonable conditions are lurking without being so low as to suggest there is extraordinary complacency that can suddenly catch the market off guard – and thereby prompt a ‘mean revision’. Perhaps a little more remarkable is the VVIX ‘volatility of volatility’ measure which has dropped back to the general lows seen stretched back over the past 8 years. That doesn’t necessitate the market normalize, but it does add to the ill-prepared picture of how markets may react when liquidity is restored.

Chart of the VIX Overlaid with the VVIX Volatility of Volatility Index (Daily)

Chart Created on Tradingview Platform

Normally, the reflection between the S&P 500 and VIX starts with the view of the index marking a move and the derivative implied volatility measure drawing from its development. That makes sense mathematically; but thematically, I believe the relationship to have inverted. The lack of surprise through scheduled event risk or speculative intent allows for the seasonal norms to play out. That temperance would throttle back on the market’s ability to turn the fundamental run of this past week (FOMC and PMIs particularly) into a lasting bear trend. Without that self-sustaining concern to keep the decline under power, the overlapping Fibonacci support around 3,800 (the 38.2% of the post-pandemic range, 38.2% of the August – October leg and 50% of the October – December rebound) managed to hold up. The path of least resistance from there is a move back into range. The question on my mind is how strong is the restriction on activity as to escalate the influence of technical levels. The previous range floor through much of November and December complimented by the mind point of the August-October range is above around 3,910. Will it hold against this bounce? Volume’s slide suggests it is a good probability.

Chart of the S&P 500 with Volume (Daily)

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Chart Created on Tradingview Platform

As restricted as the technical picture looks with something like the S&P 500, there are even more extreme conditions in the deeper waters – the kind of quiet that could force a ‘normalizing’ in activity that translates into a short-term break. The Dollar has witnessed activity drop off in a technically precarious point. The Greenback has drooped these past few months to potentially change a long-term bull trend that led to multi-month highs. Yet the bearish wedge that has created on the Dollar has tightened to the point of reaching a virtual ‘terminal point’ where a break is almost a necessity as it runs out of room. For a few of the USD-based majors like GBPUSD and NZDUSD with head-and-shoulders patterns, we have seen a slip that tentatively slips the ‘necklines’. However, if you project this technical event as a clear sign of follow through, you are not working with the market’s given probabilities. We won’t know the balance of follow through or false-break-reversal until liquidity is reliable restored. Meanwhile, EURUSD has not given any relief – disputed or not. This past session, the benchmark currency pair dropped recorded its narrowest daily range 0.5 percent of spot since the July 4th holiday. A break – even one of necessity – is likely, but keep in mind the capacity of follow through.

Chart of the EURUSD with 20-Day SMA, 30 Period ATR and Historical Range (4 Hour)

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Chart Created on Tradingview Platform

Looking for meaningful events on the docket ahead, Thursday is not sporting the most productive events. There are a few stand outs with the US National Activity Index from the Chicago Fed and US Lending Index from the Conference Board which will be on my radar. They will speak to recession risks going forward, and the Conference Board’s consumer sentiment survey this past session offered some notably relief on that front – though we get none of that from market measures like the ‘2-10 spread’. The top event on the immediate horizon is the PCE deflator on Friday. That’s the Fed’s favorite inflation indicator which could generate some last minute volatility, but there is very limited time to make anything out of meaningful surprises (if they were to occur) before the liquidity drains for the holiday weekend.

Top Macro Economic Event Risk for the Next 72 Hours

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Collapse of the Carry Doesn’t Reach the S&P 500, Can EURUSD Fulfill Its Own Reversal?

USDJPY, BOJ Decision, S&P 500, Event Risk and EURUSD Talking Points:

The Market Perspective: EURUSD Bearish Below 1.0550; GBPUSD Bearish Below 1.2100; S&P 500 Bullish Above 3,800The biggest fundamental event so far this week was the surprise tightening of monetary policy from the BOJ, but the news didn’t transmit throughout the ‘risk’ spectrumAs we cross the halfway mark of the last full week of liquidity in 2022, the clock is ticking or the S&P 500 to extend its slide or for EURUSD to forge a break

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When it comes to generating volatility, there are two factors that tend to stage abrupt and dramatic market moves. The first is the scale of importance of the event or news that is released – or at least the suitability of the event to the asset in question. Second, consideration is how surprising the outcome in question. As far as that latter factor for the Bank of Japan’s unexpected policy tightening announcement this past session, it was clear there was little to no preparation for such an outcome from the market. The central bank announced a widening of its target band on the 10-year Japanese Government Bond (JGB) yield from +/- 0.25 percent out to +/- 0.50 percent.

The market wasn’t wholly unprepared because the possibility of even such a modest tightening move seemed impossible, it was simply a deeply held assumption after a relentless trajectory of easing. There was also very little messaging offered as to such a possibility which is highly unusual in this day and age. This was no rate hike or conventional policy move as far as western central banks have pursued in 2022, but it is normalization of an unorthodox and extremely dovish policy stance. The response from the Yen was incredible. USDJPY posted its biggest single-day loss (-3.8 percent) since October of 1998. Interestingly, the ‘surge’ in the Japanese 10-year yield was handily offset by the US equivalents ‘modest’ uptick. Can this trend sustain beyond the shock value?




of clients are net long.




of clients are net short.

Change in

Longs

Shorts

OI

Daily
27%
-17%
4%

Weekly
26%
-13%
6%

Chart of the USDJPY with 20 and 200-Day SMAs (Daily)

Chart Created on Tradingview Platform

As far as the ‘scale of importance’ aspect of the BOJ rate decision, seeing the most committed of the major central banks ease back from its extreme stance signals that the global fight against inflation is even more pressing than some may have expected. In FX circles, the Japanese currency has been the ‘funding currency’ for carry trade for three decades. To see their capitulation (modest as it may be) is to see the lower end of the range edge up. This adds to more macro considerations in the markets such as the central banks’ near constant reiterations that they will fight inflation even at the expense of market tantrums and mild economic contractions. If we were dealing with full liquidity market conditions, that message may have permeated wider.

Yet, with volumes starting to fade, we wouldn’t see the fallout from the Japanese Nikkei 225 spread much further beyond other major Asian benchmarks like the Shanghai Composite or Hang Seng Index. The S&P 500 put in for its smallest daily range since before last week’s fundamental fireworks and does so above some fairly prominent technical support. The overlapping Fibonacci levels of the October to November leg (50%), August to October leg (38.2%) and March 2020 to December 2021 leg (38.2%) all fall around 3,800. The path of least resistance is to hold that backdrop and return to a range. But some forthcoming data may make a go of the boundaries.

Chart of the S&P 500 with Volume, 100 and 200-Day SMAs, 5 to 20-day ATR Ratio (Daily)

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Chart Created on Tradingview Platform

For the final 72 hours of this trading week – and arguably the twilight of the year – there is a breadth of event risk that can generate meaningful localized volatility, but few of these listings have the capacity to tap into the global market’s undercurrent. From a general market structure perspective, the upcoming session’s expiration of international money market assets (Eurodollar’s, FX futures, options, etc), there could be some repositioning that is amplified thanks to significant changes in monetary policy stances and the higher general pace of volatility in the FX market relative to other asset classes. More accessible for more traders though will be the event risk on tap. There is still an opportunity to tap the monetary policy volatility button with Friday’s PCE deflator, but that comes in the very last session before the Christmas weekend. Instead, it would seem that soft landing / recession speculation will be the more active node. Yet another ad hoc survey was released from Bloomberg this past session saying 70 percent of economists expect a US recession in 2023. More tangible insight will come from the economic docket ahead with the Conference Board’s consumer sentiment survey due for release. Overall, this survey has faired much better than the UofM reading, so any negative surprises here may exact more response.

Top Macro Economic Event Risk for the Next 72 Hours

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Looking for the capacity of movement given our backdrop conditions, appreciating the liquidity situation and the events that can provoke volatility is important. Yet, there is also the natural influence that comes revision to means. That is just the statistician’s way of saying ‘markets tend to normalize’. That can manifest in volatility moving to an average from extreme highs or lows. It can also see markets that have exhibited strong one-way movements to correct as positions are reduced. I continue to monitor the productive one-sided slide from the Greenback these past six weeks and the recent consolidation is growing more extreme. The 30-period historical range and ATR on the EURUSD (4 hour chart) below shows how remarkable the restrictions on activity. There is potential for a typical break from such a narrow band, but follow through will be heavily influenced by liquidity expectations. If there is any chance of follow through though, I would expect it to be more probably in the ‘path of least resistance’ which is for a move lower back into the past month’s range. The same is also true of pairs like GBPUSD and NZDUSD.




of clients are net long.




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Change in

Longs

Shorts

OI

Daily
-4%
-6%
-5%

Weekly
13%
-1%
4%

Chart of the EURUSD with 20-Day SMA, 30 Period ATR and Historical Range (4 Hour)

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US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD, USD/CAD

US Dollar Talking Points:

The US Dollar printed a doji last week after running into a key spot of support at 103.82, which was the 2017 high in DXY.EUR/USD started to test a key spot of support today, along with a similar observation in GBP/USD. Commodity currencies have been beset by weakness of late, as illustrated in bullish breakout potential in USD/CAD and bearish breakdown potential in AUD/USD.The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

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We have but two weeks left in the year and this week, despite being the lead-in to the Christmas holiday set for this Sunday, still has some high-impact US data for traders to work with. Friday brings the release of PCE which is the Fed’s preferred inflation gauge. After last week’s FOMC rate decision, the emphasis remains on inflation data as markets try to read just how far the Fed will hike rates. And the answer to that question is likely related to how long inflation remains stubbornly above target.

While markets had started to price-in possible rate cuts for next year, there’s been a quick change as Powell did not sound very dovish last week and since that rate decision, the S&P 500 has been down while selling-off every day since. And really, we can span the weakness in US stocks back to the Tuesday before the FOMC, when a strong reversal showed in equities on the back of a CPI print. Initially price action jumped on the back of that announcement but mere minutes later sellers had went on the attack. Almost a week later and they’re still on the prowl in the S&P.

In the US Dollar, however, matters haven’t been as loud on the reversal front. Price ran into that spot of support as taken from the 2017 swing high at 103.82. I looked at that price last Wednesday, just after the Fed. And while it hasn’t exactly spurred a massively bullish response yet, it did help to build a doji for last week’s DXY candle after a strong sell-off pushed prices down to fresh five-month-lows.

US Dollar Weekly Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

US Dollar Shorter-Term

When a trend nears equilibrium, price will have a tendency to slow the trending move. This can be exhibited in the form of a wedge, as a support level helps to bring in buyers that could buffer the run at the lows while bears still continue to attack at highs or upon tests of resistance. As such, wedges are often tracked with aim of counter-trend price action, read from that very same deduction that sellers slowing their approach at the lows could, eventually, lead to a pullback or possibly a reversal.

From the daily chart of DXY, we can see where there’s actually two falling wedges that have been in-play, with some run after that support hit at 103.82 last week. The 105 psychological level remains as key resistance for now, and above that another key level sits at 105.86. This is a spot of support-turned-resistance but it’s also confluent with the top-side of that longer-term falling wedge formation. A break-above that opens the door for USD-strength scenarios into the end of the year.

US Dollar Daily Price Chart

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Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD

If USD is going to stage a reversal – it’s probably going to need some help from EUR/USD to make it happen. And the possibility of bearish EUR/USD scenarios is there after the bearish engulfing candlestick that printed on ECB Thursday. That move had follow-through on Friday with price action testing a key spot of confluent support around 1.0579. This is the 38.2% Fibonacci retracement of the May 2021 -Sept 2022 major move and it’s also a spot of prior resistance that’s come back in as support. There’s also a trendline projection in here, taken from the highs in May of 2021 and connected to the February swing-high.

It’s not all free running below that level, however, as there’s another Fibonacci level at 1.0515 and then the psychological level at 1.0500. This raises the possibility of false downside breakouts, so for those with a longer-term vantage point, they’re likely going to want to see prices first test below the 1.0500 big figure before confidently saying that the top may be in.

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EUR/USD Daily Chart

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Chart prepared by James Stanley; EURUSD on Tradingview

GBP/USD

Cable carries a very similar dynamic as EUR/USD above. Both pairs remain very near to recent highs and carry a backdrop that could be conducive for reversals. But, with that said, there’s also a similar spot of support that’s held the lows through a couple of different tests already, and would first need to give way for sellers to begin to re-take control.

At this point, there’s a spot of support around the 1.2100 handle, which is confluent with the 200 day moving average. If sellers can force a breach below that, the door opens for a breakdown into the 1.2000 psychological level. The big question there is whether sellers can do much beyond that point.

GBP/USD Daily Chart

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Chart prepared by James Stanley; GBPUSD on Tradingview

AUD/USD

Aussie held up fairly well through the FOMC rate decision last week, printing a doji at resistance on Fed day last Wednesday. The following Thursday saw a strong sell-off develop and that helped to form a bearish weekly bar on the heels of a doji printing in the prior week.

AUD/USD Weekly Chart

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Chart prepared by James Stanley; AUDUSD on Tradingview

AUD/USD Shorter-Term

That big outing on Thursday led into a doji on Friday, which kept the door open for a bounce into a morning star pattern to start this week. AUD/USD bulls haven’t been able to do much, however, and this keeps near-term support lodged just below current price at .6677. Near-term resistance is playing in from a trendline projection taken from late-November and early-December swing-lows.

The next spot of key support is an area of prior resistance, plotted at .6548.

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AUD/USD Daily Price Chart

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Chart prepared by James Stanley; AUDUSD on Tradingview

USD/CAD

The Canadian Dollar has remained very weak and for USD bulls, USD/CAD may be one of the more compelling markets to follow as oncoming USD-strength could be meshed with an already weak CAD. A quick comparison between DXY and USD/CAD since the middle of last month highlights that deviation well, as DXY has continued falling even as USD/CAD has remained fairly bullish. And at this point, the same 1.3700 level remains as resistance, with short-term support now showing at 1.3652 which was previously helping to provide resistance.

This keeps the door open for breakout potential although bulls likely want to focus in on the daily lows. So far, today’s daily candle has held above the swing-low from Friday. And given that both days had resistance at 1.3700, the failure over a two-day-period is not a bullish factor and can keep the door open for a larger pullback. The next spot of support on my chart is around 1.3579 after which the 1.3500 psychological level comes into the picture.

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USD/CAD Daily Price Chart

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Chart prepared by James Stanley; USDCAD on Tradingview

— Written by James Stanley

Contact and follow James on Twitter: @JStanleyFX

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Markets Week Ahead: Dow Jones, US Dollar, Gold, Japanese Yen, PCE, Bank of Japan

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Market volatility remained the focus this past week. On Wall Street, the Dow Jones, S&P 500 and Nasdaq 100 fell about 1.8%, 2.3% and 2.9%, respectively. Things were not looking much better in Europe. The DAX 40 and FTSE 100 sank roughly 3.3% and 1.5%, respectively. In the Asia-Pacific region, the Nikkei 225 and Hang Seng Index dropped 1.7% and 2.3%, respectively.

This was despite a softer US inflation report for November. The focus remained on central banks instead. The Federal Reserve delivered a 50-basis point rate hike and continued to stress that more work needs to be done on fighting price pressures. Meanwhile, the European Central Bank surprised markets with a more aggressive hawkish tone.

The latter meant a relatively solid week for the Euro. Unsurprisingly, risk aversion meant that the sentiment-linked Australian and New Zealand Dollars underperformed. Gold ended relatively flat as a cautiously stronger US Dollar was offset by softening Treasury yields. Despite the deterioration in risk appetite, crude oil prices managed to push higher.

Economic event risk notably cools off as we approach the end of 2022. PCE core, which is the Fed’s preferred inflation gauge, will cross the wires in the week ahead. A softer outcome could underscore a less-hawkish Fed. Meanwhile, the Bank of Japan interest rate decision is due for USD/JPY. What else is in store for markets in the week ahead?

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How Markets Performed – Week of 12/12

Fundamental Forecasts:

S&P 500, Nasdaq, Dow Jones Forecast for the Week Ahead – Fundamental

Bears made a noticeable re-appearance this week with a steely focus on 2023 price action, but will bears make a push into the end of the year or wait for the 2023 open?

British Pound Forecast – GBP Pummeled by BoE Rate Split and Strikes

The British Pound is under pressure going into the weekend after yesterday’s BoE rate hike indecision left traders unimpressed

Australian Dollar Outlook: US Dollar Roars Back to Life

The Australian Dollar got dusted after the US Dollar regained its ascendency amid central bankers re-iterating their hawkish stance after a series of hikes. Will AUD/USD go lower?

Dollar Outlook Still Carries Important Event Risk and Technical Pressure

Holiday trading conditions may start for the Dollar and broader markets in the coming week, but the range of important event risk may actually turn thin liquidity into charged volatility. With the debate around a pivot in fundamental and technical bearing for this benchmark, traders should keep a wary eye on this market.

Gold Price Outlook for the Week Ahead: XAU/USD Remains Bearish Biased, Where to?

While gold prices were left mostly flat last week, the fundamental landscape arguably remains bearish. This is as XAU/USD shows increasing technical signs of an impending bearish reversal.

Technical Forecasts:

Dollar Outlook Still Carries Important Event Risk and Technical Pressure

The Dollar was in something of a precarious technical position heading into the high-level event risk of last week. Now as we move into a period that typically sees a drop in liquidity through year end, the ‘majors’ like EURUSD are still unclear about their bearing.

S&P 500, Nasdaq, Dow Jones Technical Forecast for the Week Ahead

The S&P 500, Nasdaq and Dow all produced bearish engulfing formations after failed breakouts last week. Can bears push into year-end, or will that have to wait as a 2023 theme?

EUR/USD Technical Outlook: Upward Momentum Intact

Upward momentum in the Euro remains intact against the US dollar after the European Central Bank (ECB) indicated a much higher rise in rates than anticipated by markets. What is the outlook and the key levels to watch?

British Pound Technical Forecasts – GBP/USD, EUR/GBP, GBP/JPY

The British Pound has been rattled by a range of central bank policy decisions this week. What’s the outlook for Sterling next week?

— Article Body Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com

— Individual Articles Composed by DailyFX Team Members

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Dollar Outlook Still Carries Important Event Risk and Technical Pressure

US Dollar Fundamental Forecast Talking Points:

This past week, US inflation cooled further, the Fed hiked 50bps while raising its terminal rate forecast and economic activity measured by the PMI sunk deeper into negative territoryOut of the fundamental mix, the Dollar struggled to find a clear direction; which may reinforce expectations for holiday conditions aheadHowever, thin liquidity can readily transmit unexpected volatility ahead with event risk like the PCE deflator, consumer confidence and housing data ahead

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Fundamental Forecast for the US Dollar: Neutral

There are a few competing fundamental themes working on the US Dollar at the moment. Between interest rate speculation and the currency’s safe haven role, we have seen bearish pressure level out to uncertainty for the market this past week. These will absolutely be the top matters to watch moving forward, but it is also important to have a perspective of the general market environment through the next few weeks to gain a better appreciation for how the currency (and other assets) will interact with fundamentals as they hit the tape. Historically, the final two weeks of the year typically see a significant drop off in liquidity (volume and open interest) as the last salvo of major global event risk and policy decisions are usually cleared. It is possible to reverse this norm, but it is very unusual; and generally, it tends to occur when there is a charged sense of ‘fear’. If the markets do quiet, it will likely work against the development of trends – in both fundamental views and price action. That said, thinner markets can also lead to more dramatic swings in volatility as surprises have less market depth to absorb shock.

Whether or not full-fledged trends that can carry over into 2023 develop over the coming week requires a watchful eye. On the other hand, even protracted volatility from the Dollar and the majors could generate some noteworthy technical breaks. The DXY Dollar Index has worked its way into a very prominent descending wedge which is like essentially throwing the breaks on what was a very prominent bull trend breakdown back in early November. The charge behind that move seems to directly link to the October CPI release, which notably capped 2023 interest rate expectations. Ever since that peak, we have seen the market and Fed live at odds over what the monetary policy path would be for the coming year. The FOMC decision made it clear that they believe the benchmark rate will rise to 5.1 percent (the median) and stay there through the entire year. Fed Funds futures on the other hand are unrelating in calling for a peak around 4.80-90 percent and then pricing in two rate cuts in the second half of the year. This will be a battle ground for the Dollar going forward. The question is whether we can see any progress on it this week.

Chart of DXY Dollar Index Overlaid with the Fed Funds Futures Forecast for June 2023 (Daily)

Chart Created on Tradingview Platform

The other major fundamental theme that I will be monitoring closely through the coming week is the ebb and flow of risk trends. The correlation between the DXY and the S&P 500 is particularly strong and ‘negative’ – meaning they tend to move together but in opposite directions. This caters to the Greenback’s role as a safe haven asset based largely in its place as the most liquid currency backing the largest economy in the world. Notably, this relationship has waned somewhat over the past week. As the US equity market dove following the failed breakout after the CPI release, the Dollar’s own reaction was more restrained. Here is where liquidity will be more important. Should holiday conditions kick in, it will likely throttle the S&P 500’s progress to new lows, which will in turn cap the Dollar’s safe haven bid. That said, there is still an opportunity for the currency to close the gap it has recently opened up in its relationship.

Chart of DXY Dollar Index (Daily)

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Chart Created on Tradingview Platform

For catalysts to either of these core fundamental themes, it would be wise to look to the economic docket. ‘Sentiment’ can be amorphous and can turn and accelerate without provocation. However, waiting for the unknown is not an approach I usually take to the markets. In contrast, the economic calendar is conveniently demarked with dates and times as well as a good guideline as to what can tap a stronger fundamental theme behind the market’s ebb and flow. For the most provocative event, there is a very inconvenient release time on Friday when we are almost into the Christmas weekend. The PCE deflator is the Fed’s favorite inflation reading, so it carries a lot of weight. That said, it is unlikely to redefine the market’s view just before the weekend – or we won’t realize that adjustment until liquidity is restored. Instead, I will be looking for Fed commentary as more timely provocation on this front. Otherwise, recession concerns will also be something to measure in the data run. We have the Conference Board’s consumer confidence survey on tap Wednesday, but the run of housing data through the week will give another broad sector insight.

Top US Macro Event Risk Next Week

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Crude oil price action setting it up for a big move

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GBPUSD panic and reversal carves out short-term trading levels

Hey everybody. This is Paul Robinson here at dailyfx, I’m going to take a quick look at cable in the wake of its panic down, move and Recovery. Before we get started, though the trading disclaimer all right. So here we go. You know I pointed out at the beginning of this week after we had had that 1985 level the lows we went to New lows, here, just on Sunday night, but we started this Panic move on Friday and then we went down and Sunday And and things really got dicey, the recovery bounce, this kind of worked out as I had outlined, early in the week.

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Eurozone economic sentiment rose to 93.7 in Nov, first increase since Feb


Eurozone Economic Sentiment Indicator rose from 92.7 to 93.7 in November, the first increase since February. Industrial confidence dropped from -1.2 to -2.0. Services confidence rose from 2.1 to 2.3. Consumer confidence rose from -27.5 to -23.9. Retail trade confidence was unchanged at -6.7. Construction confidence dropped from 2.6 to 2.3. Employment Expectation Indicator rose from 105.4 to 107.4. Economic Uncertainty Indicator dropped from 30.7 to 28.4.

EU ESI rose from 91.2 to 92.2. Amongst the largest EU economies, the ESI increased strongly in Italy (+4.1) and, to a lesser extent, the Netherlands (+1.2) and Germany (+1.1), while it eased in Spain (-1.7) and France (-1.6). Sentiment in Poland stayed broadly flat (+0.3). EEI rose from 104.9 to 106.3. EUI dropped from 29.8 to 27.8.

The Markets Are still Absorbing The Aftermath Of The US CPI Data Release

The markets are still absorbing the aftermath of the US CPI release and the Dollar continues to feel the pain. Meanwhile, the S&P 500 and other risk assets have seen post-release enthusiasm throttled quickly. DailyFX’s John Kicklighter discusses the course post-CPI with a look out to event risk next week.

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Our Top Events and Markets for the Week Ahead! US Inflation Rate, Japan Foreign Reserves & More

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