Market Sector Scanner: Risk Appetite Improves as Markets Steady Ahead of Fed Decision and Powell’s Speech
Global markets stayed calm last week as equities recovered and the U.S. dollar weakened ahead of the expected Fed rate cut. With Powell offering no new signals, traders now look to this week’s Fed statement and the 2026 rate outlook for direction.
Markets were calm last week, and equities continued to recover as risk appetite improved despite light trading volumes. Powell offered no new comments on the economy or interest rates, while U.S. data was slightly positive with stronger manufacturing, better consumer sentiment, and inflation in line with expectations. Ukraine peace talks had little impact. The U.S. dollar weakened as traders expect a Fed rate cut this week, and Japan’s 10-year bond yield continued to rise without major market effects.
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Key Events Calendar for December 8 – 12
Market Sector Scanner
Forex Market
USD/JPY
Last Week Recap
USD/JPY drifted lower last week as markets priced in a likely U.S. rate cut at the upcoming FOMC meeting. Selling pressure also increased after comments from the Bank of Japan governor suggested a December rate hike is becoming more likely, narrowing the U.S.–Japan yield gap and supporting yen demand.
Technical Picture
The daily chart has turned mildly bearish, with the 10-day moving average now pointing lower. However, downside momentum may be limited. The rising lower Bollinger Band is approaching price and could act as support, while previous highs around 154 remain an important support zone.
Outlook This Week
Range trading is expected ahead of the FOMC statement. The tone of the announcement—especially any clues about the timing of further U.S. rate cuts—could trigger sharp moves in USD/JPY toward the end of the week in either direction.
GBP/JPY
Last Week Recap
GBP/JPY posted another strong week, supported by better-than-expected U.K. economic data and expectations of an upcoming U.S. rate cut, both of which improved overall risk sentiment. Despite yen strength elsewhere, the pound outperformed, lifting GBP/JPY back toward recent highs.
Technical Picture
The technical outlook remains constructive. The 10-day moving average is trending higher, and the upper Bollinger Band sits comfortably above current price levels. The main concern is repeated resistance around 207.5, where the market has struggled to break higher in recent sessions.Outlook This Week
Buying dips continues to look attractive for swing and day traders, with support from the 10-day moving average likely to remain important. Very short-term traders may also look to sell near resistance if the pair again fails to clear the 207.5 level
EUR/USD
Last Week Recap
Stronger-than-expected retail sales and GDP figures from the eurozone helped EUR/USD push above 1.1600, with the U.S. dollar weakening ahead of this week’s FOMC meeting. The pair briefly reached its highest level in over a month before momentum slowed.
Technical Picture
The upper Bollinger Band generated a sell signal late last week, suggesting that the recent rally may be overstretched. A pullback toward support at the 10-day moving average looks likely as the market consolidates.
Outlook This Week
Short-term weakness is expected early in the week. This could create an attractive risk-reward buying opportunity if the FOMC signals additional U.S. rate cuts heading into 2026. However, traders should stay cautious near resistance given the still-fragile medium-term trend
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Equities
U.S. Stock
Last Week Recap
The Nasdaq moved higher again last week as risk sentiment continued to improve. With no major negative headlines and an expected U.S. interest rate cut coming up, investors were more willing to buy tech stocks.
Technical Picture
The short-term uptrend looks healthy. The 10-day moving average is pointing higher and providing reliable support, and there is still room for price to move toward the upper Bollinger Band.
Outlook
Buying on weakness remains a straightforward strategy for traders who want to follow the existing trend. The main focus this week will be the FOMC statement. Any hints about the pace of future rate cuts could decide whether the Nasdaq continues pushing higher.
Commodities
Gold
Last Week Recap
It was a relatively quiet week as the market consolidated earlier gains and traders waited for the upcoming FOMC decision. Buyers continued to step in on dips, supported by expectations of lower U.S. interest rates, which kept overall sentiment positive.
Technical Picture
Attempts to push higher were capped by resistance at the upper Bollinger Band and last month’s highs. Even so, the 10-day moving average is still trending upward, offering steady support and indicating that underlying demand remains firm.
Outlook This Week
Gold still looks bullish overall, and with conditions no longer heavily overbought, buying on weakness may offer good opportunities. Unless the FOMC signals a dela
The focus this week will be the Federal Reserve meeting and expectations for interest rates in 2026, with markets awaiting the Fed’s statement after an expected 0.25% rate cut. Traders will look for clues on future rate cuts and the Fed’s view on the economy and inflation. With few major data releases, the key question is whether risk sentiment can continue to improve.
