What to expect in the next trading week?

We send the week with positivism and hope. Perhaps not in all directions, but on the issue of the trade war for sure. Brexit, the obvious signs of a slowdown in the global economy, the cracks in China and the US still hover over the minds and hearts of investors. But the market priority is the so-called trade deal. Markets respond positively, seeing a good index rally in Asia, Europe and the US. Oil and precious metals also enjoyed good demand and appreciated. "Green money" did not lag, as "Dollar is King" appears to be an abbreviation that is not easy to leave and the currency fights "with teeth and claws" to win top positions.

What's next? Monday ... Holiday in Canada - Family Day. US Holiday - President's Day. The US stock and bond market will be closed for the day, the government and the banks too. However, FX markets will work with full steam, but we can rightly expect quite low activity and thin liquidity. In the other days of the week everything will work as a clock, as we have a FOMC meeting on Wednesday, and on Thursday we will receive the latest report from the ECB meeting. Friday, the President of the Australian National Bank will have a statement. From any "trader" continent to a statement, meeting, or report, it's a good idea to tag them in your calendars.

We expect the positive mood to stay, as long as things are fundamentally right. Trump seems to be able to make a deal with his own colleagues, which means eliminating an obstacle, will be able to concentrate fully on China and win an agreement for both sides. While news from trade talks is good, and markets will react positively. Everything about Brexit - news or rumor we expect in the media to bring the turmoil on the financial markets in Europe and affect the FX markets and cable crossings. The Dovish position of the Fed suggests that gold will continue to grow, and industrial precious metals will continue to rise in any positive development around trade negotiations. Because that means less risk to the world economy. We expect the rise in oil to continue against the backdrop of the apparently declining yields, but Venezuela still remains a risk factor for the "supply" of the market.

We wish you a pleasant weekend!

Photo: Unsplash

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