Volatility soared this past week with both the Dollar and S&P 500 suffering. With a round of high level event risk - the Fed decision included - this week is unlikely to be the typically quiet year-end liquidity drain.
The Dow Jones FXCM Dollar Index (ticker = USDollar) dropped this past week for the first time since the mid-October, market-wide slump.
Euro bulls shouldn’t get too comfortable, as short covering is only producing a mild upswing in price – for now.
The near-term outlook for USD/JPY remains mired by Japan’s December 14 snap election, but the ongoing deviation in the policy outlook should continue to produce a further advance in the exchange rate as a growing number of Fed officials show a greater willingness to normalize monetary policy in 2015.
Gold prices are markedly higher this week with the precious metal rallying 2.5% to trade at $1222 ahead of the New York close on Friday.
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