CPI

GBPUSD, EURJPY: Inflation indicators between the eurozone and the Japanese economy are due this week, following the jump in UK’s inflation rates next week, adding reversal potential to the dollar’s rally ahead of Trump’s presidency.

USDJPY Forecast: The bull run of the US Dollar Index has pushed the USDJPY back in the borders of its primary uptrend, and further volatility risks are on the horizon with the US CPI results.

With Kashkari throwing the word ‘pause’ into the mix ahead of a US CPI report, traders should brace themselves for further USD gains should it come in hotter than expected.

The Fed is seen as nearly 50/50 to cut interest rates again in December after Donald Trump and the Republicans secured a “Red Wave” last week - see what to expect from US CPI!

The update to the US CPI is anticipated to show the headline reading widening to 2.6% in October from 2.4% per annum the month prior.

EURUSD, Bitcoin Forecast: With Republicans in the lead, the dollar’s bull run and growing speculation around a deregulated crypto market are pushing Bitcoin toward the 100,000-checkpoint while pressuring EURUSD to 7-month lows.

Dow Jones Forecast: With renewed market optimism across indices, cryptocurrencies, and the US dollar following Trump’s win, the Dow Jones is hitting record highs, prompting analysis of potential upcoming resistance levels and the sustainability of this bullish momentum.

Crude Oil Week Ahead: With volatility still restrained post-US election and FOMC week, crude oil markets remain poised for a potential breakout as key events from OPEC, the IEA, and economic data from China and the US are on the horizon. The longer the price remains within this tight range, the more significant any upcoming breakout may be.

EUR/USD trades near the monthly low (1.0683) as it gives back the advance following the Federal Reserve rate-cut.

EUR/USD may further retrace the decline from the start of the month as the Relative Strength Index (RSI) continues to recover from oversold territory.

With the US dollar momentum gathering pace, the risks remain skewed to the downside in so far as the short-term GBP/USD outlook is concerned. The greenback is likely to remain supported as we near the US presidential election, partly because the market will want to factor in a potential win for Donald Trump, as the national lead in the polls that Kamala Harris had enjoyed has been shrinking in recent days.