Weekly Forex Trading Forecast - Risk and Yield Forecasts Key Themes
Article summary: Widening divergences in interest rate forecasts and the reality that volatility cannot continue to tread levels this low for much longer has traders on edge and looking for opportunity.
The most effective means for leveraging a significant rally from the US Dollar is for a shock to resonate through the global financial system. Yet, hoping for volatility is just that – hope.
Driven by a weaker US Dollar after the Fed meeting this week, EURUSD was able to settle back above its pre-ECB range lows, signaling that the market isn’t quite ready to offer the Euro lower just yet.
British Pound rallies may gather pace as a growing number of Bank of England officials show a greater willingness to normalize policy sooner than later.
The Japanese Yen remains locked in a tight trading range versus the US Dollar. A breakout seems inevitable, but when, where, and how?
A reversal of the risk-positive response to the FOMC decision this past week may set AUDUSD up for a change in bearing moving forward.
Use the DailyFX-Plus Technical Analyzer to identify possible trade setups.
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