Weekly Trading Forecast: Key Event Risk and Volatility Ahead
Dollar momentum looks self-sustaining, and few things seem as if they could curb this move much less reverse it decisively. But, it just so happens that one of the most capable fundamentals cues is dead ahead.
The operative question for the Euro going forward is whether this precedes a period of consolidation before a reinvigorated push downward or a correction upward.
The Japanese Yen broke convincingly lower versus the US Dollar as the USDJPY set its single-largest weekly advance on the year. We believe the currency pair remains an attractive buy on the impressive break higher.
The British Pound is likely to face heavy volatility in the week ahead as the Bank of England (BoE) publishes the policy meeting minutes, while Scotland takes to the polls to vote for independence on September 18.
The dam wall may have finally broken for the Australian Dollar following the currency’s plunge below the 92 US cent handle..
While the broader outlook for gold remains weighted to the downside, near-term the metal is coming into support as investors shift their focus to next week’s key event risk from the Fed.
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.