Weekly Trading Forecast: Dollar Strength, Greece Negotiations, BoE and BoJ Policy at Risk
Though there are fewer high-profile indicators on tap this week, a range of deeper fundamental currents are set to ignite volatility and perhaps even turn trends.
The Dollar’s relative fundamental appeal is strong. Backed by a pace-setting rate forecast, a comparatively-robust growth outlook and a market depth that can offer a buffer in case clouds gather; there is considerable appeal.
With Greek and pan-European leadership locking horns, the Euro remains stuck between the near-term pull of better than expected economic data and the tail-risk of an existential crisis.
Japan’s 4Q Gross Domestic Product (GDP) report may heighten the appeal of the Yen and encourage the Bank of Japan (BoJ) to soften its dovish tone for monetary policy as the region is expected to return to growth during the last three-months of 2014.
The British Pound will face challenges to its nascent recovery Greek debt negotiations and UK inflation data capture the spotlight in the week ahead.
Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.