Weekly Trading Forecast: Can USD and S&P 500 Maintain Their Bull Trends?
It was a week of contrasts. Through Friday’s close, the S&P 500 surged to a record high. Yet, at the same time as this ‘risk’ benchmark made its move higher, the traditional safe haven US Dollar strong-armed a bullish reversal.
With respect to the Euro, we are looking to sell rallies and cover excessive dips; the ECB has disappointed with action previously, and a lack of a mini-‘bazooka’ could very-well see the Euro scream back towards its yearly highs.
The USD/JPY pared the decline following the Bank of Japan (BoJ) interest rate decision, with the pair working its way back towards former support (101.80-102.00), but the economic developments due out next week may instill a more bearish outlook for the dollar-yen should the data prints spark a greater deviation in the policy outlook.
Gold prices are virtually unchanged on the week with prices off by a mere 0.1% to trade at $1291 ahead of the New York close on Friday.
The Australian Dollar is expected to continue lower after dropping the most in four months last week as markets come to terms with the looming end of Fed QE
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