Weekly Trading Forecast: Will the Turn in Risk Trends Develop into a New Trend?
The US Dollar is a favored safe haven currency. That is a good role to play given the slide in US equities and other ‘risk’ benchmarks to close this past week.
The USDJPY pulled back from a fresh monthly high of 104.11 as the weaker-than-expected U.S. Non-Farm Payrolls report dragged on the dollar, and the pair may face a larger decline in the week ahead should the Bank of Japan (BoJ) continue to scale back its willingness to further expand its asset-purchase program.
The European Central Bank’s (ECB) patience with the region’s lackluster recovery may be running out, if one is to believe the rhetoric deployed by President Mario Draghi at the April press conference.
The British pound offered up an unflattering performance this past week. While the currency was unable to mount a meaningful advance, neither would it loose substantial ground against most counterparts.
Gold prices are firmer on the week with the precious metal rallying 0.5% to trade at $1302 ahead of the New York close on Friday.