Record S&P and Bad NFPs, But The Dollar Continues to Be Bought
The US Dollar looked to take out key highs versus the Japanese Yen, Euro, and other counterparts. Yet a disappointing US Nonfarm Payrolls reportleft Dollar bulls wanting and yet the S&P 500 finished at record-highs – what might we see in the week ahead?
An absence of overriding themes like ‘risk trends’ can open the euro pairs up to influence from the local docket. That can generate fireworks for pairs like EURUSD or EURJPY prone to breakouts as top tier event risk like the Italian 2Q GDP release cross the wires.
The Japanese Yen wasn’t the best performer last week, but it could be in the week ahead if the Bank of Japan applauds recent gains in growth and inflation data.
The British Pound struggled to hold its ground even as the Bank of England (BoE) retained its current policy in August, and the sterling may face additional headwinds in the week ahead amid growing speculation that the central bank will adopt forward-guidance for monetary policy…
Gold prices were softer at the close of trade this week with the yellow metal sliding 1.5% to close at $1312 in New York on Friday…
Use the DailyFX-Plus Technical Analyzer to identify possible trade setups.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.