Forex: Dollar, Euro and Pound Face NFP, ECB and BoE Breakouts
• The Dollar is struggling to keep its momentum on Taper alone, and the S&P 500 is not breaking new lows
• Euro is the most at-risk currency Thursday with an ECB decision that the market is speculating on
• Pound traders may have to wait until next week for real BoE updates, but surprises will be bearish
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Though the dollar has yet to relent against most of the majors, its strength is visibly flagging. EURUSD and other USD-backed pairs are facing imminent breakout risk. For the greenback, the focus is on risk trends as the currency losses its Taper buoyancy as we tip from 'buy the rumor' to 'sell the news'. However, the S&P 500 (as a benchmark to sentiment trends) isn't the only thing that can jump start the most liquid FX pairs. The upcoming ECB decision has a significant chance of introducing fresh stimulus - which could in turn bolster the dollar's relative appeal. And, a little further out, we have Friday's January NFPs. We discuss this important round of event risk and its implications for the market and our trading in today's Trading Video.
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