Weekly Trading Forecast: Key Events to Decide Euro, Dollar Direction
The US Dollar rally showed signs of slowing as the DJ FXCM Dollar Index failed to hold multi-month highs. Traders look to a critical European Central Bank decision and US Nonfarm Payrolls report to decide direction in Dollar pairs through the week ahead.
The Euro showed signs of life as it bounced off of fresh multi-month lows and ended a three-week losing streak. Yet traders await a critical European Central Bank interest rate decision to drive volatility in the week ahead.
The GBP/USD looks poised to resume the bullish trend carried over from the previous year as the Bank of England (BoE) shows a greater willingness to normalize monetary policy sooner rather than later.
The Australian Dollar is likely to find its bearings in high-profile US economic data as the RBA sticks to a familiar wait-and-see monetary policy stance.
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.
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