Weekly Trading Forecast: NFPs and Market Volatility Threaten to Break Ranges
The ranges developed around the FX Majors and equity indexes this past week will be in jeopardy with key event risk like NFPs ahead.
The US Dollar posted an impressive advance this past week, but it conspicuously fell short of breaking the 12-year high on the Index and clearing key range boundaries with major counterparts.
Inflation data from Germany and the Euro-Zone could prove to be significant to the Euro over the coming days, especially against a backdrop of falling inflation expectations and depressed energy prices.
The long-term outlook for USD/JPY remains bullish amid the deviating paths for monetary policy, but the range-bound price action in the exchange rate may unravel in the days ahead as market participants continue to treat the Japanese Yen as a ‘funding-currency.’
The Australian Dollar continues to look to external developments for direction cues, with prices at the mercy of US and Chinese news-flow in the week ahead.
Fonterra raised their milk payout forecast on Thursday giving NZD an end-of-week boost.
Gold prices are firmer for the second consecutive week with the precious metal up 0.57% to trade at 1145 ahead of the Ney York close on Friday.
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