Good morning everyone.
We can be headed into potentially another volatile week, based on the significant movements we observed last week, particularly in the metals market. Both gold and silver surged, largely due to a drop in U.S. yields following the latest CPI figures, which showed inflation cooling to 3.4% in the US. This has fueled speculation that the Fed might cut rates later this year. Furthermore, the ECB is also expected to cut rates before the summer, highlighting a global shift towards lower interest rates. While geopolitical tensions in the Middle East continue to influence the markets. Crude oil also saw some slight uptick possibly linked to the tragic death of Iran’s president in a helicopter crash. Israel official also said they are not involved which is one of the major risk for the markets going into the start of the week.
There are no major releases scheduled in the U.S for this week., but housing data will be closely watched. Attention will likely shift towards inflation reports from Canada, Japan, and the UK.
Loooking at dollar, prices came down last week, now testing the trendline support. If line is out then stocks and metals may continue their recovery. However, many assets are at extended Fibo projection levels, so it might be wise to wait for pullbacks rather than chasing the market now.
Join me in webinar later today at 15:00 CET where I will cover some of the markets. For webinar click here
Grega
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