Weekly Trading Forecast: Trump Inauguration Takes Center Stage
Financial markets face the return of high-profile event risk in the week ahead but US policy uncertainty may keep all eyes on the nearing Trump inauguration.
The US Dollar may continue to weaken as disillusioned traders continue to scale back exposure to the so-called “Trump trade” ahead of the nearing Presidential inauguration.
A further improvement in the Euro’s fundamental drivers in the short-term continues to shield the single currency from longer-term political concerns. This week, attention turns to the ECB for their first meeting of 2017.
The failed run at the December high (118.66) keeps the near-term outlook for USD/JPY tilted to the downside, but the key developments coming out of the U.S. economy may prop up the exchange rate next.
Ever since the Brexit referendum in June, markets have volleyed the various prospects that might come from the actual execution of the split from the European Union.
Is the Australian Dollar in a sweet spot? Well, that might be premature optimism but it’s certainly in a better place than it was back in November.
Gold prices are higher for a third consecutive week with the precious metal up 1.8% to trade at 1194 ahead of the New York close on Friday.
This week, the offshore Yuan remained stronger than the onshore Yuan and the PBOC’s guidance. On Friday, the USD/CNY closed at 6.8984, slightly weaker than the Yuan fix set on Friday of 6.8909.
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