Weekly Forex Trading Forecast: Looking for Trend in Heightened Dollar, Euro Volatility
The outside expectation of an ECB rate cut became reality this week, sinking the Euro to mult-month lows across the major currencies. Will incoming economic data support the change in policy and keep the Euro pinned lower?
The Australian Dollar is looking to economic reforms set to emerge out of China’s third Plenum to guide domestic growth and RBA policy expectations.
The Japanese Yen finished the week almost exactly where it began, but an impressive Dollar surge leaves the USDJPY exchange rate at major technical levels.
The British Pound may continue to track sideways next week as it retains the range-bound price action carried over from the previous month, but the Bank of England’s (BoE) Inflation Report may ultimately spark a more meaningful run at the 1.6300 handle should the central bank show a greater willingness to implement it exit strategy ahead of schedule.
Gold prices plummeted again this week with the precious metal off by nearly 2.3% to trade at $1285 ahead of the New York close on Friday.
How does a Currency War affect your FX trading?
Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.