The Dow Jones FXCM Dollar Index (ticker: USDOLLAR) strengthened for the fifth-consecutive week as the Japanese Yen continued to tumble, and the coming week brings a flurry of central bank activity as well as a highly-anticipated G20 meeting sure to cause further price moves.
The euro was little changed this past week despite a heavy round of event risk that wore away the foundation of the currency’s six-month bull trend. Having advanced nearly 11 percent over the past seven months, EURUSD’s bullish progress is increasingly difficult to sustain.
What a difference one week makes. After the briefest of reprieves, the Japanese Yen was bank in the gutter, weakening across the board in the second full trading week of February, but for against the British Pound, which it gained +0.92% against.
The coming week begins with the markets digesting the weekend’s G20 summit in Moscow and follows with the minutes from February’s BOE meeting coming into focus.
The Australian Dollar will see the outlook for RBA monetary policy return to the spotlight in the week ahead. First, the central bank is due to release minutes from its February meeting.
The decline that we have warned about for some time in these weekly forecasts began early this week with bullion breaking back below the 200-day moving average before plunging through key support at $1626.