The ECB rate decision generated an incredible rally from EUR/USD this past week. Will the RBNZ, SNB and BoE leverage the same this week; or is the market holding its breath for the Fed?
A lot has changed for the Dollar this past week.
The European Central Bank may have met our expectations, but with markets broadly disappointed, EUR/USD has laid the groundwork for a significant short-term low.
The Australian Dollar peaked over the October 12th high on Friday.
NZD/USD may continue to retrace the decline from the October high (0.6896) as subdued wage growth in the world’s largest economy drags on the Fed outlook, but the outcome of the Reserve Bank of New Zealand’s (RBNZ) December 10 policy meeting may drag on the exchange rate should Governor Graeme Wheeler and Co. show a greater willingness to further embark on its easing cycle in 2016.
The Chinese Yuan Offshore Exchange Rate (USD/CNH) saw little volatility despite a much larger breakdown in the US Dollar, and traders were reminded that CNH remains closely correlated to the onshore Yuan exchange rate (USD/CNY).
Gold prices snapped a six-week losing streak on Friday with the precious metal rallying 2.55% to trade at 1084 ahead of the New York close.
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!
What are the Traits of Successful Traders? See what our studies have found to be the most common pitfalls of retail FX traders.