A final path to peace? Markets Weekly Outlook

• Discover our Weekly Market Outlook, exploring themes and events that forged financial flows throughout the week.
• Participants went through a rollercoaster of emotions in the past week between a rejected Iranian offer to a severe hawkish repricing and finally, a promising path to peace
• Traders are getting ready for next week's important bet for peace
• Get ready for next week's action by exploring upcoming events across global Markets.

Market participants endured an absolute rollercoaster of emotions over the past five sessions, navigating a landscape that violently whipsawed between extreme fear and sudden euphoria. The week kicked off with intense anxiety as the United States firmly rejected an initial Iranian diplomatic offer, a move that immediately spiked crude oil prices and threatened to reignite severe inflationary pressures.

Compounding this geopolitical dread was a severe, hawkish monetary repricing. Following the official confirmation of Kevin Warsh as the incoming Federal Reserve Chairman, institutional capital aggressively scrambled to price in a revolutionary, austere era of balance sheet reduction.

This emerging trade unleashed a ruthless wave of US Dollar dominance, temporarily suffocating equities, precious metals, and crypto beneath the weight of surging bond yields.

However, just as the technical charts looked their bleakest, the narrative completely flipped. A sudden, highly promising path to peace emerged, supported by strategic Middle Eastern mediation.

This breakthrough triggered a massive, risk-on relief rally heading into the weekend.

As the geopolitical clouds finally begin to clear, traders are aggressively recalibrating their portfolios, getting ready for next week's incredibly important bet on global stability.

With Oil tumbling 7%, the rest of the Market shines – European Stock Markets are once again at the top of global assets.

Keep an eye on the huge outflows in Cryptos towards the end of the week.

Discover:

• ECB between fighting inflation and weaker growth
• Stock Markets dance towards new records ahead of a long weekend – Dow Jones, Nasdaq and S&P 500 Intraday Levels
• USD/JPY trades close to 160.00 after Japan's CPI – More interventions required? – FX Analysis

The entire action in Asia will be focused on Wednesday and Thursday, with a key inflation release for Australia, shortly followed by the RBNZ Rate Decision, where a hike is mostly priced.

And don't forget the Japanese (Tokyo) CPI on Thursday evening.

The action will be relatively dull in Europe with only Central Bank Speeches, all the way to Friday with the German CPI.

Expect European traders to focus on US Dollar flows and the entire Iran peace process.

Next week will be focusing on the American and Canadian GDP releases, in between a few lower tier numbers.

Don't forget to keep a close eye on US Markets and the entire US-Iran peace process, with huge expectations for an actual entente.

Safe Trades and keep an eye on US-Iran developments!

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