Weekly Forex Trading Forecast: Will the Dollar's Post NFP Slip Turn into a Full Bear Trend?
The euro ended this past week little changed as key event risk failed to stir deeper fundamental waters.
The British Pound was able to recover on Friday no thanks to its own doing, leaving it in a precarious positioning amid a softening near-term economic backdrop. A weak CPI report on Tuesday could welcome a new wave of selling.
Gold prices were modestly firmer this week with the precious metal rallying 0.67% to trade at $1244 ahead of the New York close on Friday.
The USDJPY looks poised for a larger pullback as it fails to maintain the bullish trend from back in October, and the pair may ultimately probe below the 102.00 handle as the dismal Non-Farm Payrolls report dampens the outlook for the dollar.
We’ve argued that the Australian Dollar has room to correct higher in early 2014 as the fundamental argument for Aussie weakness becomes increasingly flimsy while speculative traders remain heavily net-short (per futures market positioning data from the CFTC).
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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.
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