Weekly Trading Forecast: Will the Dollar and Euro Maintain Their Trends?
The trends amongst the majors are arguably the most remarkable performances across the financial system. Yet, on the back of an 11-week USDollar rally and EURUSD drive to two year lows, can these trends survive key event risk ahead?
We are only a few days from the close of the US Dollar’s best quarterly performance since the third quarter of 2008 – at the height of the financial crisis.
Euro weakness persisted versus the most liquid major currencies this past week, while the rising tides of risk aversion from high yield/high beta names at least allowed the 18 member currency to stay buoyant versus the commodity currency bloc.
The Australian Dollar faced another week of heavy selling pressure as traders likely unwound carry trades amid of a surge in market volatility.
Gold prices are virtually unchanged this week with the precious metal off just a fraction of a percentage point to trade at $1213 ahead of the New York close on Friday.
How does a Currency War affect your FX trading?
Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.