A week ahead preview: Another crazy volatile week in Markets with ups and downs, Cryptos selling off and Stocks in yoyo action. Get ready for the upcoming week by looking at the past week's Market performance, what changed and the key events to expect in next week)
Forex
USD/JPY trims early losses on Friday, with the pair rebounding toward nine-month highs as the US Dollar (USD) stabilizes. At the time of writing, USD/JPY is trading around 154.60, recovering from an intraday low near 153.62 and remains on track for modest weekly gains.
Crypto
Bitcoin falls sharply below $95,000, marking its lowest level in six months. Massive ETF outflows, weak liquidity, and growing macro uncertainty are pressuring the crypto market. Strategy Inc. faces valuation concerns, while traders brace for heightened volatility.
Commodities
Precious metals faced intense volatility in the morning session, with gold failing to attract safe-haven inflows despite a sharp deterioration in risk sentiment. An unusual positive correlation between gold and equities is adding uncertainty to market behaviour, leaving traders unsure where capital is rotating during widespread outflows. After plunging nearly $150 overnight, mean-reversion is stepping in. Explore Gold levels and technical analysis.
Forex
NZD/USD trades higher around 0.5680 on Friday, up 0.60% on the day at the time of writing. The pair benefits from a softer US Dollar (USD) as investors remain cautious ahead of the resumption of key US macroeconomic releases, which were delayed due to the recent government shutdown.
Commodities
In today’s episode, we discuss the changing narrative surrounding a Fed rate cut in December, and the associated sell-offs in US equity, precious metals, and crypto markets. Otherwise, we discuss the potential for a major equity correction and the recent upside offered by AI.
Indices
After months of relentless gains, U.S. equities are showing signs of strain. Stretched valuations, overbought conditions, insider selling, and shaky leveraged flows are triggering sharper pullbacks from all-time highs. With volatility returning and sentiment turning cautious, we break down the key intraday levels on the Dow, Nasdaq, and S&P 500.
West Texas Intermediate (WTI) US Oil trades around $59.50 on Friday at the time of writing, up 1.60% on the day, after hitting a daily high at $60.47.
Commodities
Gold (XAU/USD) is heading lower on a choppy trading session on Friday, weighed by a firmer US Dollar amid the risk-averse sentiment.
Forex
Outlook is mixed; AUD could trade in a range between 0.6510 and 0.6560. In the longer run, for the time being, AUD is likely to trade in a 0.6490/0.6580 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
