Forecast: Dollar Battered by NFPs, Euro Worryingly Blasé on Greece
The FX market's best performing currency took a fundamental hit this past week which may turn into a speculative blow when liquidity returns.
There is little doubt that the US Dollar maintains a fundamental advantage over most of its counterparts.
The market remains heavily short EURUSD, even as investors have started to reprice the likelihood of the Fed raising rates into early-2016.
The Bank of Japan (BoJ) interest rate decision may heighten the appeal of the Japanese Yen and spur a further decline in USD/JPY should Governor Haruhiko Kuroda continue to endorse a wait-and-see approach following the April 8 meeting.
The Australian Dollar is likely set for a pickup in volatility as conflicting cues ahead of the RBA policy announcement compound tumult on the external front.
Gold prices are higher for a third consecutive week with the precious metal advancing nearly 0.4% to trade at 1202 into the close.
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