Forex Weekly Trading Forecasts: Dollar and Yen Threaten Rally but Where is the Risk Trend Support?
The US Dollar finally showed signs of life as a surprisingly-upbeat Federal Reserve sent it sharply higher versus major counterparts. Yet key headwinds remain, and a number of factors suggest that buying USD makes little sense at these levels.
Half of the most liquid Yen crosses closed out this past week in the green. Though, that should provide long-term bulls little relief. So far in 2014, this once high-flying group is under water.
The British Pound may face a larger correction in the week ahead as the headline reading for U.K. inflation is expected to narrow to an annualized 1.7% in February.
Gold saw the largest weekly decline in four months this week with the precious metal off by more than 3.4% to trade at $1335 ahead of the new York close on Friday.
The Australian Dollar continues to look to external factors for direction cues, with US economic data and a busy Fed-speak docket highlighted in the week ahead.
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