Ultima MarketsMarket Review and Outlook: The Palestinian Israeli conflict remains the main theme, don't worry...

Last week's review

As stated in last week's market outlook, the conflict between Palestine and Israel has boosted recent weaknessgoldandcrude oilThe key. Risk aversion sentiment drove gold to soar nearly last week100US dollars. At one point during the week, crude oil gave up most of its gains, but ultimately the risk of escalation of the Israeli Palestinian conflict intensified, with both crude oil and US oil closing near a one week high.

In addition, the United StatesCPIThe unexpected increase in data has once again boosted expectations of interest rate hikes this year, and the US Composite Index closed at the end of the week106Above this critical juncture. However, the continuous rise in 10-year US Treasury yields has tightened the financing environment and reduced the necessity for the Federal Reserve to raise interest rates again. Overall, the Federal Reserve's monetary policy is still full of uncertainty, with the market mainly speculating on various commodity prices in a safe haven sentiment.

Market outlook

If the conflict between Palestine and Israel escalates further this week, the market will continue to hype up safe haven sentiment. In addition, numerous financial data also require investors to pay attention. Major economies such as Canada, the UK, and Japan will release their latest inflation data this week, and the UK and Australia will also announce the current state of the labor market. After entering the fourth quarter, any expected price increase data will affect the final monetary policy decisions of central banks this year.

The pound may further depreciate

On Tuesday, the UK will announce9Monthly unemployment rate data, announced on Wednesday9monthCPIMonthly rate, announced on Friday9Monthly retail sales rate after seasonal adjustment. This week, there are many important financial data in the UK, and as the pound is about to depreciate, the related negative economic data may further catalyze the pound's decline.

The Australian dollar enters a critical juncture

Australia will release the latest minutes of its central bank meeting on Tuesday and on Thursday9Unemployment rate after seasonal adjustment. The Federal Reserve of Australia has remained silent on interest rates for five consecutive months, and the market is paying attention to the meeting minutes regarding future interest rate forecasts. If Thursday's employment data shows a tight labor market, it may increase the probability of tightening monetary policy, and the continued depreciation of the Australian dollar may be hindered.

There is still a chance that the US dollar will soar

U.S.A9Monthly retail sales rate as the futureA forward-looking indicator of economic trends, this week's data may have a short-term impact on the trend of the US dollar. Under the conflict between Palestine and Israel, risk aversion has to some extent driven the rise of the US dollar. Amidst the interweaving of bullish and bearish news, the outlook for the US dollar this week depends more on the current market sentiment.

Disclaimers

The comments, news, research, analysis, pricing, and other information contained in this article can only be considered as general market information and are provided solely to assist readers in understanding the market situation and do not constitute investment advice.UltimaMarketsReasonable measures have been taken to ensure the accuracy of the data, but the accuracy of the data cannot be guaranteed and can be changed at any time without notice.UltimaMarketsWe will not be responsible for any losses or losses (including but not limited to any loss of profits) that may arise from the direct or indirect use or reliance on such information.