Weekly Trading Forecast: Systemic Changes Afoot for Risk, EURUSD, USDJPY?
Though still early yet, there have been some remarkable change in trend recently. Dollar is in retreat with the S&P 500 starting to slip. The Yen has surged while Gold has hit 15-month highs. Is something bigger stirring in the markets?
The Dollar dove to end this past week at its lowest level in 11 months. The extension of the currency’s slide from its 13-year high set back in late January (now down over 4.5 percent) was fueled by a distinct loss of traction in rate forecasts.
The slew of fundamental developments coming out of the U.S. economy may play a larger role in driving GBP/USD volatility especially as the U.K. docket remains fairly light for the first full week of May.
Both the onshore (CNY) and offshore Yuan (CNH) closed at a slightly higher levels against the US Dollar on Friday, following the biggest move in Yuan’s daily reference rate set by China’s Central Bank in over 10 years.
A perfect storm has developed for Canadian Dollar bears. In addition to Oil having risen ~70% from the February 11 low and the US Dollar falling to levels not seen since June, the Canadian economy continues to outperform rivals in terms of economic new releases relative to economists’ expectations.
The Australian Dollar looks set for another week of breakneck volatility as another round of high-profile event risk comes across the wires.
Gold prices surged to the largest weekly gain of the past 11 weeks on the heels of the Fed doing nothing.
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