This past week's EURUSD rally was the biggest in over three years. Has the Fed turned major FX trends or is this a bout of volatile indigestion?
The Federal Open Market Committee (FOMC) meeting this past week certainly set off fireworks in the financial market.
In light of the market reaction to the Federal Open Market Committee’s (FOMC) March 18 meeting, the fundamental developments coming out of the world’s largest economy may continue to dictate the near-term price action for USD/JPY as Janet Yellen and Co. shows a greater willingness to retain the zero-interest rate policy (ZIRP) beyond mid-2015.
The British Pound showed signs of life as it rallied for the first week in three versus the US Dollar, but concerns over the future of UK interest rates may continue to weigh on the domestic currency through the foreseeable future.
The Australian Dollar will look to evolving Federal Reserve rate hike bets to drive continued recovery but soft Chinese PMI data may reduce scope for gains.
Gold prices are sharply higher this week with the precious metal advancing 2.14% to trade at 1183 ahead of the New York close on Friday.
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