Weekly Trading Forecast: Beware the Calm before the Storm
A critical two-week stretch for the US Dollar and broader financial markets promises big moves. Here are the key themes to watch.
Another volatile week across global financial markets left the US Dollar trading near key highs versus the Australian Dollar and other commodity-linked currencies.
Outside of weak performances by EURJPY (-2.62%) and EURUSD (-0.32%), the Euro had quite a strong week during the latest period of high yield FX and emerging market FX liquidiation. EURAUD (+2.46%) and EURNZD (+3.38%) led the way higher as concerns over Chinese growth and central banks’ collective ability to keep markets in check continued to roil investor sentiment.
It was an interesting week for Canadian economic data: On Tuesday we received a messy GDP report that saw the country slip in to ‘technical recession’ territory; marked by two consecutive quarters of declining GDP growth.
The Australian Dollar suffered steep losses last week, tumbling to the weakest level in six years against its US counterpart.
The New Zealand Dollar has remained above its ‘Black Monday’ low of 0.6198.
Gold prices fell for the second consecutive week with the precious metal off by 1.3% to trade at 1118 ahead of the New York close on Friday.
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