Weekly Trading Forecast: G7, German Vote, US Politics in Focus
The outcomes of a G7 meeting and a key German state election as well as worries about the direction of US politics are in focus in the week ahead.
The US Dollar proved itself more responsive to negative versus positive news-flow last week. This may translate into losses if market-wide sentiment unravels.
The Euro has been strengthening throughout 2017 while the European Central Bank has remained rather dovish and passive. This divergence is unlikely to last for long; but in which direction might it resolve?
Risk sentiment may play an increased role in driving USD/JPY price action as the economic docket stands fairly lightly for the week ahead.
USDCAD has been pretty much a one-way bet in the last year, rising from around 1.2600 in early May 2016 to a 1.37940 high last week
Data on the UK economy released last Thursday were uniformly weak, with industrial production, manufacturing output, trade and construction figures all coming in lower than economists had predicted.
The Australian Dollar may continue to drift lower this week, if only because the market momentum clearly points that way and the scheduled data slate seems too thin to plausibly counteract it.
Gold prices snapped a three week-losing streak with the precious metal rebounding off support late in the week. Here are the updated targets & invalidation levels that matter.
This week the USD/CNH continued to test 6.8980, the 61.8% retracement of the 2017 open range, but failed to break above the key level.
Crude oil this week has focused on rising US supply and talks of a deeper and longer OPEC cut that some hope will pull Oil higher, but that many doubt its long-term effectiveness.
A light week ahead in terms of event risk, more new highs look likely in the week ahead.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail traders are positioning in the majors using the DailyFX SSI readings on the sentiment page.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.