Weekly Trading Forecast: How Far can the Dollar Go in 2014?
The Dollar trades near major highs versus the Euro and other FX counterparts. Why might key currencies hit fresh extremes in the final two weeks of the year?
The US Dollar finished at fresh multi-year highs versus the Euro and near key peaks versus other currencies, boosted by a sharp improvement in US interest rate expectations on a highly-anticipated Fed interest rate decision.
Euro bulls shouldn’t be too comfortable, seeing as short covering has only produced a mild upswing in price.
The outcome of Japan’s snap election passed without making much noise in the financial markets last week as expected.
The Gross Domestic Product (GDP) reports coming out of the U.K/U.S. may spark a further decline in GBP/USD as market participants see the Federal Open Market Committee (FOMC) normalizing monetary policy ahead of the Bank of England (BoE).
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