Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Charts to Start a Critical Week for the US Dollar

Charts to Start a Critical Week for the US Dollar

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- Significant Euro-Zone and US event risk dots the calendar this week.

- European currencies among weakest performers versus greenback.

- See the DailyFX economic calendar for Monday, June 1, 2015.

To say it's an important week for the US Dollar is an understatement. With the Euro and the Japanese both on the skids - the Euro due to concerns about Greece and the pace of the ECB's QE program, the Yen due to concerns that the BoJ won't be able to meet its inflation target - the moment is ripe for seizure by the US Dollar.

This week is under a microscope because of the sheer amount of USD-specific event risk on the table, never mind several key Euro-Zone and German data prints and an ECB meeting that's sure to provoke even greater volatility in EURUSD over the coming days.

The big test is whether or not the initial round of May economic data, with the May Nonfarm Payrolls report capping off the week, picks up the data momentum baton from the past few weeks. Several key April indicators met or beat expectations, including the CPI, Durable Goods Orders, Housing Starts, and Nonfarm Payrolls reports. A robust week of economic data (starting today with the May US ISM Manufacturing gauge) will do wonders to a) convince investors that the Q1'15 growth lull was transitory, b) boost hopes for a stronger Q2'15 GDP reading, and c) stoke speculation that the Fed could raise rates in Q4'15.

See the above video for technical considerations in EURUSD, USDJPY and the USDOLLAR Index.

Read more: EUR/USD Faces Week Flush with Event-Driven Volatility

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES