Forex Trading Weekly Forecast 04.08.2013
The dollar’s performance this past week was something of a mixed bag given the heavy fundamental crosswinds from other central bank decisions.
What a week for the Japanese Yen. The JPY traded to fresh monthly highs ahead of the heavily-anticipated Bank of Japan rate decision, but a shocking BOJ result forced the USDJPY to its biggest two-day surge since the heights of the financial crisis in 2008.
The British Pound broke out of the range carried over from the previous week, with the GBPUSD climbing to a fresh monthly high of 1.5362, and the sterling may continue to retrace the sharp decline from earlier this year as the Bank of England (BoE) maintains a neutral stance for monetary policy.
Gold is softer at the close of trade this week with the precious metal off by nearly 1.5% to trade at $1573 in New York on Friday. Price action this week saw a surge in volatility with bullion testing the critical support range between $1550- $1555 noted last week.
Australian Dollar volatility was relatively subdued last week compared to the other major currencies but a pickup in activity seems likely.
The New Zealand Dollar gained for the fourth consecutive week, rallying by 0.8 percent against the Greenback from a week ago.
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