Euro Faces Skepticism, AUDUSD Enjoys Hope
The major event risk for the second half of this week (Fed and ECB decisions) can materially change the the bearing of sentiment. Given that weight, the fundamentally-troubled Euro and high-yield currencies will likely find speculative participation recede to curb trends while uncertainty leverages volatility. Yet, as we await key event risk; market participants will have time to second guess the surge in expectations built up this past week. Can the Fed and ECB cure the global market's and economy's ills, or will pessimism once again overwhelm officials' persistent efforts to offer capital markets relief?