Weekly Trading Forecast: Fed Decision, BoJ Intervention, 1Q GDP Top Event Risk
The week ahead is the antithesis of what we leave behind. The docket is stocked with major market movers - event risk that can do much more than generate a little volatility.
Finally, a bit of a reprieve for the USDollar. Having found itself under moderate but persistent pressure since its recent peak at the beginning of February, the Greenback finally managed a technical feat of strength.
The Yen has put in a significant movement so far on the day, weakening against the US Dollar by as much as 2.32%; and this is the largest movement of weakness in the Yen since January 29th, when the currency weakened by 2.7% against the Greenback after the Bank of Japan had, surprisingly, made the move to negative interest rates at the January BoJ meeting.
With a light calendar over the past week, the offshore Yuan rate (CNH) extended losses against the US Dollar for the third consecutive week, testing a key support level at the 38.2% retracement level of the January decline.
The New Zealand Dollar hit 2016 highs this week as the commodity train continued to roll on the back ofan increasingChina Demand. Unfortunately, spot NZD/USD ended the week on a soft note after falling for three straight days.
Gold prices continue to consolidate the gains from the beginning of the year as the yellow metal has traded sideways for 10 weeks.
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