Weekly Trading Forecast: Dollar Hits a Record Before the ECB Weighs Further QE
We are coming off a holiday trading week, and December is know as the best month historically for capital market returns. However, fear and monetary policy may mean different trends and volatility levels than seasonal norms suggest.
Like the US equities, the US Dollar reached to for a fresh high to close out this past week.
Even if the ECB doesn’t announce a sovereign bond-buying program this week, there are still €1 trillion reasons why the Euro might not see a major rally.
The Japanese Yen may rebound from six-year lows as US economic data outcomes fuel Fed rate hike bets, amplifying risk aversion triggered by year-end capital flows.
The British Pound finished lower for the sixth-consecutive trading week versus the US Dollar, and a busy week of economic event risk ahead points to GBP volatility and potential losses.
The Australian Dollar plunged to a fresh 2014 low against its US counterpart during the week as volatility levels rose and its yield advantage detiorated.
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