Market Sector Scanner: Risk Sentiment Continues to Weaken Ahead of Key U.S. Economic Data

Global markets fell last week as weak U.S. data and rising uncertainty reduced investor confidence. The Federal Reserve’s minutes showed a 10–2 split vote to approve a quarter-point rate cut, but doubts about future policy remained. Despite expectations for another rate cut rising to around 70%, the U.S. dollar strengthened. The U.S. unemployment rate climbed to 4.4% in September, its highest in four years, while the Japanese yen continued to weaken sharply despite government warnings. Stock markets and Bitcoin both fell as investors moved away from riskier assets.

Scan for opportunities on:

• Forex market (major currency pairs)
• Equities
• Commodities (gold)

Key Events Calendar for November 24 – 28

Market Sector Scanner

Forex Market

USD/JPY

Last Week Recap
USD/JPY surprised many traders by easily breaking above the 156 resistance level, as the market saw no sign of Bank of Japan intervention to support the yen. Ongoing concerns about Japan’s government finances also added to yen weakness throughout the week.

Technical Picture
The uptrend remains strong, holding above the 155 resistance area. However, the upper Bollinger Band triggered a sell signal toward the end of last week, suggesting short-term consolidation may follow.

Outlook This Week
The market is expected to test lower toward 156 early in the week. Upcoming U.S. economic data will be key for direction, but the best strategy remains to buy on weakness near the 10-day moving average support.

GBP/JPY

Last Week Recap
GBP/JPY hit new highs for the year as stronger-than-expected U.K. data supported the pound, while significant yen weakness continued as the Bank of Japan chose not to intervene in the market.

Technical Picture
The uptrend remains strong, with the 10-day moving average still pointing higher. However, the upper Bollinger Band triggered a sell signal on Friday, and the market has since pulled back below the highs reached in October.

Outlook This Week
Further yen weakness could push GBP/JPY to test higher levels early in the week, but a move back below 205 would signal the potential for a deeper correction.

EUR/USD

Last Week Recap
Concerns over slowing growth in European economies continued to weigh on EUR/USD, while expectations that the U.S. Federal Reserve may delay further interest rate cuts added additional downward pressure.

Technical Picture
The downtrend has resumed, with the 10-day moving average turning lower again. The recent trading range remains narrow, and the nearby lower Bollinger Band continues to provide short-term support.

Outlook This Week
EUR/USD is expected to stay under pressure, with traders looking to sell on strength if the market remains below 1.1600. A break below 1.1450 would signal further downside momentum.

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Equities

U.S. Stock

Last Week Recap
The Nasdaq fell more than 2% last week as investors remained concerned about an overvalued market and a worsening technical outlook. Although NVIDIA’s earnings beat expectations, the rally was short-lived as sellers stayed aggressive throughout the week.

Technical Picture
The current downtrend remains strong, with the 10-day moving average acting as resistance last week. Support is still found near the lower Bollinger Band, which triggered a buy signal at the end of the week, along with last month’s lows helping to limit further declines.

Outlook
The market is expected to stay under pressure, so selling opportunities near the 10-day moving average remain preferred. However, key U.S. economic data this week could influence sentiment — a higher probability of a Fed rate cut next month might help the Nasdaq break its current downtrend.

Commodities

Last Week Recap
Gold traded surprisingly quietly last week, moving sideways around the key $4,000 level. Despite weakness in U.S. equities — typically a bullish sign for gold — some traders chose to sell, concerned that future U.S. interest rate cuts could be delayed.

Technical Picture
Prices have slipped back below the 10-day moving average, making it difficult for the market to push higher in the short term. The narrowing Bollinger Bands indicate range-trading conditions are likely to continue.

Outlook This Week
With a busy week of U.S. economic data ahead, volatility is expected to pick up again. For now, range trading between $3,950 and $4,150 remains the preferred approach.

Volatility may increase this week as key U.S. data gives traders a clearer view of the economy after the shutdown. Markets are hoping for positive results to stop the sell-off in risky assets. In Japan, inflation data could signal whether the BoJ will raise rates, while the yen remains volatile amid intervention risks and concerns over government finances after the new stimulus package. Toward the end of the week, U.S. Thanksgiving holidays are expected to slow market activity.