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The upcoming week could kick off with a bang, even though Wall Street will sit Monday out due to Martin Luther King Day. Donald Trump is set to begin his second term as US President on the same day, ensuring a headline-filled start to the trading week.

Investors are closely monitoring key macroeconomic indicators, including jobless claims and retail sales data today, for clues about the health of the US economy and the Fed’s policy trajectory. For as long as we don’t see big surprises, mildly positive surprises in these areas could reinforce the market’s optimism and provide further fuel for the S&P 500.

FTSE rises as the pound sinks and growth stalls. EUR/USD holds below 1.03 ahead of ECB minutes, US retail sales & jobless claims.

The market was already repricing US interest rates higher in recent days and week, amid expectations of inflationary policies under Donald Trump, when he takes office later this month. But the surprising strength of US labour market means traders have now shifted the full pricing of the next Fed rate cut to October.

GBP/USD tumbles to a 13-month low as government bond yields surge. FTSE rises as the pound plunges.

EUR/USD rises on trade tariff doubts & ahead of EZ CPI data. FTSE falls as house prices fall and Next raises profit guidance.

Stocks continued with strength in 2024 and with a market-friendly administration taking over in the United States, the backdrop is open for continuation of equity gains.

EUR/USD falls to a 2024 low ahead of a busy calendar. FTSE holds steady ahead of BoE’s Bailey & US PPI.

EUR/USD falls to a 7-month low ahead of US inflation data. FTSE inches cautiously higher from a 3-month low

The US Dollar was very strong in October as rising odds of a Trump win started to get priced-in to markets, but can equities avoid a pullback if longer-term US rates continue to fly-higher?

GBP/USD rises ahead of a key week with election, BoE & Fed rate decisions. FTSE rises, boosted by energy stocks as OPEC+ delays production increases.

S&P 500 futures pulled back again last week and as yields have continued their run-higher, there’s more potential for greater pullbacks ahead. Both the election and FOMC can bring impact on both fronts.

GBP/USD falling ahead of the UK Budget & US GDP data. FTSE falls to a 6-week low ahead of the Budget.

As we head deeper into a pivotal week and a half, several high-impact events could shape market direction. Investors are bracing for a series of earnings reports from major companies, often referred to as the "Magnificent 7" stocks, alongside the US monthly jobs report. These, combined with the US election on November 5, represent a series of risk events that could sway investor sentiment and thus impact the Dow.

As we head into a pivotal week and a half, several high-impact events could shape market direction. Investors are bracing for a series of earnings reports from major companies, often referred to as the "Magnificent 7" stocks, alongside the US monthly jobs report. These, combined with the US election on November 5, represent a series of risk events that could sway investor sentiment and thus impact the Dow forecast.

The S&P 500 has shown resilience, with US stocks rebounding on the back of strong earnings reports today. Positive surprises from major companies, such as Tesla, and strong performances in Europe are helping to stabilise sentiment.