Taper Speculation, Event Risk Offer AUD/USD, GBP/USD and USD/JPY Trades
Fed Chairman Bernanke managed to avoid setting off a heavy dollar or S&P 500 selloff this past week - leaving the market increasingly vulnerable to volatility-inducing fundamental rebalancing moving forward. As the S&P 500 charges to record highs on some of the lowest levels of demand in decades and the USDollar struggles to hold three-year highs despite cooled Taper hopes, the conditions for a collapse from one leg of this unnatural union grow perilous. In this weekend video, we discuss the conditions and triggers for the Taper-Risk connection; key event risk to monitor; and trade setups for AUDUSD, EURUSD, USDJPY and GBPUSD.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.