Markets sold off as risk-off sentiment continue to seep into investors and traders’ heads.

The pound is down 2% against the U.S dollar in the past couple of days, on growing prospects that the United Kingdom will leave the European Union without a trade agreement.

Last week was a bloody week in the markets, with US equities selling off on fears that the market has been overstretched. The NASDAQ, Dow Jones, and the S&P 500 were down 4.52%, 3.66%, and 3.28%, respectively.

As we approach election season in the United States, traders should be looking out for changes in future policies which may whipsaw the market.

Investors and traders are heading into a turbulent start of the week, with Hong Kong/ China Tensions increasing as we get close to election season. This may incentivize countries like Australia and the United States to implement policy changes that many move the markets.

Leshgo! Here is your week ahead.

All dates are in NZDT.

We’ve recently talked about the potential demise of the U.S. Dollar. What currency is poised to benefit the most from the devaluation of the dollar? Euro is the first thing that comes to mind.

Shortly after the safe-haven trade that pushed the dollar up against major currencies, the Euro started to rally over the U.S. dollar. After strongly piercing through 1.10, a relatively strong downtrend alongside piercing 1.15 with relative strength, It is eyeing up a similar push up on these factors.

The dollar has seen better days.

In the past 124 trading days, only 46 has been in the green for the dollar index. 

Many factors have catalyzed this risk off-trend, and unfortunately, I believe even the key fundamental strength for the dollar has slowly diminished away during this pandemic.

Busy week ahead as September kicks in. As New Zealand and the United States elections slowly approach, the Coronavirus pandemic will most likely be the center focus for many parties and how they handle the post Coronavirus world. Here is your week ahead.

Prime Minister of Japan, Shinzo Abe is set resign to after worsening health conditions.

Shinzo Abe, 65 years old, has been battling Ulcerative Colitis, a chronic digestive condition that also forced him to step down as Prime Minister in 2006-2007. During the announcement, the Japanese TOPIX pulled back with the Japanese Yen strengthening against the U.S. dollar by 0.5%.

Rising inflation has been the question many analysts, investors, and traders want answers to. Fortunately, these answers may come soon as Federal Reserve Chairman Jerome Powell is set to take the stage (virtually, of course) to address the future of US Monetary Policy post Coronavirus and, hopefully, answer the myriad of questions regarding the Fed’s stance on inflation.​

Cyclical or Value stocks? There’s a common saying when, well-buying anything really – Buy low sell high. However, with the NASDAQ and the S&P 500 at all-time highs, we’ve all been guilty of doing the opposite, Buying the tops and selling (or ignoring) the lows. With the Teslas and the Apples of the World continually beating analysts estimates, is it time to buy up the beaten up stocks? Or, you know, buying low?

Central banks, central banks, central banks. This week ahead, central bankers from all around the world will conduct their annual Jackson hole meeting in which historically they discussed the macro-environment and, of course, monetary policy. However, due to Coronavirus restrictions, they cannot meet at Jackson Hole for the first time in 40 years. The main focus? “Navigating the Decade Ahead: Implications for Monetary Policy.”  Here is your week ahead.