There was no stopping the US Dollar through the third quarter as the world’s most liquid currency drew on the benefits of a striking yield advantage on an aggressive Federal Reserve rate hike regime.
After a wild ride in the third quarter, the S&P 500 is bracing for more volatility in the fourth quarter as the Federal Reserve is being forced to engineer an economic slowdown to bring down inflation.
Gold prices suffered heavy losses during the third quarter, pressured by rising real yields and a strong U.S. dollar. The fourth quarter may also be challenging for the precious metal.
Coming into 3Q’22, the Euro was facing a litany of issues that prevented any sort of significant rebound: slowing economic growth; the Russian invasion of Ukraine; energy inventories; and concerns around a potential fragmentation of European bond markets..
The cost of covid, soaring energy prices, rampant inflation, insipid growth and the ongoing Brexit rancour are just some of the problems the new PM must solve quickly.
Crude oil prices may fall as slowing global growth erodes demand while the evolution of the conflict between Russia and Ukraine offers hope for easing geopolitical supply risks.
The Japanese Yen may continue to underperform against its US counterpart as the Bank of Japan (BoJ) votes unanimously to maintain its easing program.
All things considered, 3Q’22 wasn’t that bad for cryptocurrency markets and Bitcoin prices in particular, which fell by around -4.5% over the past three months.
USD has both the rate advantage while also being the safe-haven, positioning the Greenback for continued gains into the end of the year.
Not too long ago ‘parity’ appeared unlikely. Now, it represents a rather ambitious level. Key levels to consider for a bearish continuation
US equities are approaching year-to-date lows and there are no signs of a reversal.
The gold (XAU/USD) outlook for the coming quarter is a tricky one. At the time of this writing, it is sitting on a major level of support around the 1670 line.
Not much has changed from Q3 with the Japanese Yen extending its weakness against the U.S. dollar as the Bank of Japan (BoJ) continues its dovish stance on monetary policy to stimulate economic growth.
Despite a strong start in July, the Australian Dollar fell against the US Dollar in August and September, extending the downward trend established in April when prices hit the highest level since June 2021 before selling off.
The outlook for BTC/USD this coming quarter to put simply is, lower before higher. As it currently stands there is the dollar and everything else, meaning that as the dollar propels higher just about everything else suffers, except volatility.
Downside pressure remains, parity to the US Dollar still in play.
Crude oil prices plunged a staggering 25% in the third quarter as WTI fell towards its yearly lows in late September.
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