Weekly Fundamental Forecast: Risk Aversion Threatens to Define October with Capital and FX Markets on Edge

A notable sense of fear spread through the financial system this past week. Where concern could be attributed to certain asset classes or a fleeting swoon previously, there was little denying the storm brewing through Friday. Now, as stability hangs in the balance, the masses are recognizing the long list of threats we have accumulated these past months.

Japanese Yen Forecast – Yen Price May Rise, Look Past BoJ, Eye Vulnerable Stock Markets

A lull in key event risk exposed stocks to bigger adverse fundamental themes as the Japanese Yen rose. It may keep going, looking past the BoJ as the SP 500 still remains vulnerable.

Australian Dollar Forecast – Australian Dollar Might Get Some Respite If Inflation Holds Up

The Australian Dollar remains very short of fundamental support but, with AUD/USD close to 2018 lows again, may not be hammered any harder this week

Oil Forecast – Crude Oil Set For Third Weekly Decline Chasing Stock Markets Lower

Crude oil is working on its worst month since 2016 as risk sentiment soured significantly as October comes to a close and a mixed signal is coming from OPEC on potential production.

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2018/10/26/Weekly-Fundamental-Forecast-Risk-Aversion-Threatens-to-Define-October-with-Capital-and-FX-Markets-on-Edge.html