The week ahead contains a couple of notable economic event risk, most importantly the Bank of Canada and European Central Bank interest rate announcements for USD/CAD and EUR/USD respectively. The former may begin to unwind its emergency pandemic response programs, but rising local Covid-19 cases and Ontario’s lockdown remain a fundamental headwind.
Most global equities ended this past week on an upbeat. On Wall Street, the Dow Jones, S&P 500 and Nasdaq Composite all rallied over 1%. Equities in Europe outperformed, the DAX 30 and FTSE 100 climbed 1.48% and 1.5% respectively. The Asia-Pacific region was a mixed bag, with the Nikkei 225 down 0.28% as the ASX 200 rallied 0.98%.
The Dollar plummeted for a second consecutive week after turning from technical resistance breakout. Gold is rising nicely off support and in the process of taking out its first level of resistance; overall trading bias in the near-term is higher. Crude put in a strong week of price action after a month of digestion. The Dow Jones, Nasdaq 100 and DAX 30 will look to continue their hot streak and dive deeper into record territory amid a broader swell in risk appetite.