Forex Weekly Trading Forecast: Risk Trends Breakout before a Week of NFPs and ECB
The dollar’s recovery effort fell apart this past week as a record push for the S&P 500 spawned ‘risk appetite’ headlines and the market’s Taper interests continued to fade.
The Euro is back at yearly highs against the US Dollar as deflation fears continue to be misguided, recent EZ CPI data showed. Now, any additional aggressive policy action in the near-term looks less likely from the European Central Bank.
The British Pound looks well on its way to fresh highs as we see a growing number of Bank of England (BoE) officials prepare U.K. households for an imminent rise in borrowing costs.
The Japanese yen put in for a mixed performance this past week versus its major counterparts. Yet, such a performance is much more disconcerting than the benign picture it seems to put on.
The week ahead promises to be action-packed for the Australian Dollar, with a slew of catalysts on the domestic and the global front due to cross the wires.
Gold prices were virtually unchanged on the week with prices holding just below key resistance to trade at $1322 ahead of the New York close on Friday.
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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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.