Macro & FX Outlook
Morgan Stanley forecasts a 9% decline in the US dollar by mid-2026, driven by a slowing US economy and expected Fed rate cuts.
Trading implication: Long positions in EUR, GBP, and other G10 currencies may benefit as USD weakens. Watch for renewed momentum in carry trades and emerging market FX.
Geopolitics
Ukraine-Russia conflict escalates with Ukrainian drone strikes hitting deep into Russia (including Siberia) and Moscow launching one of its most sustained aerial attacks.
Peace talks are expected in Turkey today.
Trading implication: Elevated geopolitical risk could support safe havens (gold, CHF, USD short-term) and oil prices, depending on energy infrastructure vulnerability.
UK Defense Spending
The UK will allocate £15 billion to expand its nuclear warhead program, new attack submarines, and build munitions factories.
Trading implication: Likely to support defense sector stocks and raise questions around fiscal policy ahead of elections; may contribute to upward pressure on gilts if deficits widen.
Poland Political Shift
Nationalist Karol Nawrocki wins presidential election, a setback for Poland’s pro-EU coalition government.
Trading implication: Potential increase in EU policy friction. May weigh on Polish assets and zloty (PLN) in the short term.
US Debt Ceiling & Diplomacy
Treasury Secretary Scott Bessent assured markets the US will not default but gave no timeline on cash exhaustion.
Also noted a Trump–Xi call is imminent, aiming to ease US-China tensions.
Trading implication: Uncertainty over Treasury liquidity may raise short-term bill yields. Any improvement in US-China relations could lift global risk sentiment and Chinese equities.
Key Support and Resistance Levels
Resistance Level 1: 6010
Resistance Level 2: 6070
Resistance Level 3: 6160
Support Level 1: 5780
Support Level 2: 5740
Support Level 3: 5700
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Morgan Stanley forecasts a 9% decline in the US dollar by mid-2026, driven by a slowing US economy and expected Fed rate cuts.
Trading implication: Long positions in EUR, GBP, and other G10 currencies may benefit as USD weakens. Watch for renewed momentum in carry trades and emerging market FX.
Geopolitics
Ukraine-Russia conflict escalates with Ukrainian drone strikes hitting deep into Russia (including Siberia) and Moscow launching one of its most sustained aerial attacks.
Peace talks are expected in Turkey today.
Trading implication: Elevated geopolitical risk could support safe havens (gold, CHF, USD short-term) and oil prices, depending on energy infrastructure vulnerability.
UK Defense Spending
The UK will allocate £15 billion to expand its nuclear warhead program, new attack submarines, and build munitions factories.
Trading implication: Likely to support defense sector stocks and raise questions around fiscal policy ahead of elections; may contribute to upward pressure on gilts if deficits widen.
Poland Political Shift
Nationalist Karol Nawrocki wins presidential election, a setback for Poland’s pro-EU coalition government.
Trading implication: Potential increase in EU policy friction. May weigh on Polish assets and zloty (PLN) in the short term.
US Debt Ceiling & Diplomacy
Treasury Secretary Scott Bessent assured markets the US will not default but gave no timeline on cash exhaustion.
Also noted a Trump–Xi call is imminent, aiming to ease US-China tensions.
Trading implication: Uncertainty over Treasury liquidity may raise short-term bill yields. Any improvement in US-China relations could lift global risk sentiment and Chinese equities.
Key Support and Resistance Levels
Resistance Level 1: 6010
Resistance Level 2: 6070
Resistance Level 3: 6160
Support Level 1: 5780
Support Level 2: 5740
Support Level 3: 5700
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.