Markets Week Ahead: Nasdaq 100, Dow Jones, US Dollar, Gold, Jerome Powell, RBA

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Global market sentiment ended on a cautious note at the end of last week. On Wall Street, the Nasdaq 100 and Dow Jones fell -1.59% and -0.38% Friday. Still, the former ended the period in the green. Across the Atlantic Ocean, the FTSE 100 and DAX 40 rose 1.76% and 1.91%, respectively. Things were more pessimistic in Asia, with the Hang Seng Index sinking by 4.53%.

Markets initially rallied on the Federal Reserve monetary policy announcement. Chair Jerome Powell seemed to struggle convincing markets that a pivot may not occur towards the end of the year. It took rosy jobless claims data and an absolute non-farm payrolls report blowout to bring markets closer to reality.

This meant the best week for the US Dollar (looking at DXY’s 1.05% rally) since the middle of September. Treasury yields also climbed. This combination proved to be challenging for gold, which plunged 3.24% over the past 5 trading sessions. Risk aversion meant that the sentiment-linked Australian and New Zealand Dollars underperformed.

With that in mind, all eyes turn to Fedspeak in the week ahead. Chair Jerome Powell will be speaking. Will policymakers continue rebuking dovish policy bets in the wake of the jobs report? Other notable event risk include the RBA rate decision, UK GDP data and a Canadian employment report. What else is in store for markets in the week ahead?

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How Markets Performed – Week of 1/30

How Markets Performed – Week of 1/30

Fundamental Forecasts:

S&P 500, Nasdaq 100 Forecasts For The Week Ahead

US equity markets are battling back to keep this week’s gains after the latest NFP report showed 517k new jobs created in January, hitting risk markets in early trade.

GBP Fundamental Forecast: BoE Expects the UK to Narrowly Avoid a Recession

The Bank of England may have paused rate hikes on Wednesday but opened the door to hike if required. BoE forecast now sees a narrow escape from a technical recession.

Australian Dollar Outlook: US Dollar Dominates Ahead of RBA

The Australian Dollar has sprung back to life as the demise of the US Dollar gathers steam after markets interpreted the Fed as not overly hawkish. Will an RBA hike see AUD/USD go higher?

Dollar Ends Busy Week with Rate Boost, Could Its Safe Haven Appeal Kick In?

The economic calendar this past week was loaded with high profile event risk that generated serious volatility in assets and themes. Collectively, the event risk seems to have bolstered market-based Fed forecasts, which has helped the Dollar. That said, its safe haven properties likely carry far more potential ahead.

Gold Price Forecast: XAU/USD Awaits Fedspeak after Absolute Blowout Jobs Report

Gold prices are bracing for another volatile week with the focus shifting to Fedspeak after an absolute blowout jobs report. Will dovish expectations erode, plunging XAU/USD?

Technical Forecasts:

US Dollar Technical Forecast: USD Prints Hammer Candle Following Blockbuster NFP Report

US Dollar Index comes to life, finding support of the May 2022 swing low. More upside ahead?

S&P 500 and NASDAQ 100 INDEX Technical Outlook: How Much More Upside?

While the key central banks’ interest rate decision may have been in line with expectations, it has left US equities in a bullish state. How much more upside for the S&P 500 index and the Nasdaq 100 index?

— Article Body Written by Daniel Dubrovsky, Senior Strategist for

— Individual Articles Composed by DailyFX Team Members

To contact Daniel, follow him on Twitter:@ddubrovskyFX