Talking Points:
• The USDollar has extended its run - on pace for a 9-week rally - but momentum is moderating
• While pairs like USDJPY and FX Volatility keep pacing higher, neither is a particular 'risk' measure
• Expectations for trend and activity-defining event risk ahead fuels the market and awaits the match strike
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The USDollar is working on its fifth consecutive daily advance - which is shaping the currency's ninth straight weekly climb. This FX benchmark is reflecting the same kind of trend of familiarity and comfort - rather than conviction - that equity markets have epitomized for months. Positive turns for volatility, economic developments and yields are all sourced from the same well: interest rate expectations. Yet, with the market still heavily discounting the FOMC's own rate forecasts through products meant to hedge the change; we are counting down to an definitive event risk that can secure or reverse the greenback's impressive trend. In fact, we are heading into a week that can redefine the primary driver for most of the majors. What will the markets do between now and that critical round of event risk, we discuss that in today's Trading Video.
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