Forex Weekly Trading Forecast: Markets Prepared for Volatility, FOMC Rate Decision
The Dow Jones FXCM Dollar Index (ticker = USDollar) recovered its footing through the end of this past week, but the benchmark currency notably suffered through a period defined by severe spasms of risk aversion.
The Euro proved resilient this past week as January PMI data beat consensus forecasts. As short-term interbank lending rates start to rise in the Euro-Zone, the ongoing “deflation” debate and its potential impact on ECB policy may be coming into even greater focus.
The Japanese Yen took the forex world by storm as it rallied against all major currency counterparts, finishing the week at monthly highs versus the US Dollar and Euro.
Gold rallied for a fifth consecutive week with the precious metal advancing 1.14% to trade at $1267 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.