Week Ahead: Treasurys, Gold, Dollar To Climb As Markets Discount Fed

U.S. stocks show signs of weakness but mostly eke out gains to close the week Demand for Treasurys and gold shows that investors elected to believe foreign central bankers over the Fed Oil slumps on outlook for economic slowdown and rising U.S. production

U.S. stocks managed to mostly eke out gains on Friday, rebounding from losses earlier in the day and throughout the week. A rally in tech shares during the final minutes of the session boosted averages both for the day and the week.

The manage to squeeze out a meager 0.07% increase on the final day of last week’s trade. The benchmark’s initial weakness was triggered by the Australian Central Bank, the Reserve Bank of Australia (RBA), which announced it was lowering growth expectations from 3.25% to 2.75%.

UST 10-Y Daily

The yield on the U.S. Treasury note fell on Friday for the fourth straight day, the result of growing fears of an economic slowdown. Technically, the yield closed . It’s also the third straight week during which yields have been falling, as investors amass Treasury holdings, perhaps on fears that equities will be heading lower too.

DX Daily

The climbed for a seventh straight session—its longest rally since U.S. President Donald Trump won the election in 2016—to its highest level since Jan. 2. It was also the USD’s biggest weekly percentage gain in six months. Technically, the price, which found support off the 200 DMA from Jan. 31, for the second time, since Jan. 9, jumped back over the 100 and 50 DMAs during the week.

In case investors are confused as to why the dollar would have its longest winning streak since the Trump bump over two years ago, specifically after the Fed , it’s because markets don’t seem to

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