Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Markets week ahead: Dow Jones, S&P 500, US dollar, gold prices, Japanese yen, British pound

The Dow Jones and S&P 500 plunged on a still-hawkish Fed last week and the US dollar roared as Japan had to intervene in the yen as sterling dropped to a 1985-low.

Source: Bloomberg

Volatility remained the key theme for global stock markets this past week. On Wall Street, Dow Jones, S&P 500 and Nasdaq 100 futures fell about 4%, 4.6% and 4.6% respectively. Across the Atlantic Ocean, the DAX 40 and FTSE 100 fell 3.59% and 3.62%, respectively. In the Asia-Pacific region, the Nikkei 225 and Hang Seng dropped 2.39% and 4.42%, respectively.

Most of this could be traced back to the Federal Reserve. The central bank didn’t just raise rates by 75 basis points, but Chair Jerome Powell basically in no uncertain terms said that the economy will have to go through some pain to get past the highest inflation in 40 years. And yet, markets continued to underprice how hawkish the central bank is expected to be in the coming years.

Meanwhile, Japan’s government had to step in and physically intervene to prop up the Japanese yen. This followed another status-quo Bank of Japan interest rate decision, opening the door for a divergence to continue growing between it and the Fed. This was the first time the government had to intervene in 24 years!

The British pound especially suffered against the US dollar. GBP/USD fell about 3.6 percent on Friday, the worst single-day outcome since March 2020 and the 2016 Brexit Referendum. This brought Sterling’s exchange rate to its lowest since 1985. Gold prices also suffered as Treasury yields rallied across the board, dampening the anti-fiat yellow metal.

In the week ahead, all eyes turn to a slew of Fedspeak and the central bank’s preferred gauge of inflation. The latter, PCE core, is expected to rise to 4.7% y/y from 4.6% prior. Presidents from the Boston, Atlanta and Cleveland branches are on top. ECB President Christine Lagarde will also be speaking on Monday.

Meanwhile, Russia is attempting to quickly stage votes on annexing captured regions in Ukraine. Italians also head to the polls to elect their 70th government. What else is in store for markets in the week ahead?

US dollar performance vs. currencies and gold

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps
Find out more

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off
Log in now

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform
Log in now

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Take advantage

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.