Trading Video: Dollar Pulls Up from Dive while Euro Week’s Top Bull
• Dollar and Equities corrections never caught traction this past week, will conviction set in this week?
• The Euro was the past week's top performer despite ongoing Greek negotiations and the ECB's QE
• Given market trends; Greece, the UK elections and the RBA rate decision are key event risk ahead
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Has market focus and sentiment changed so dramatically that the US Dollar and equities are correcting while the Euro emerges as the top performer? That was the mix we were confronted with this past week. The Greenback's slow correction was plagued by breaks which would eventually leave the currency little changed on a week of a particularly week US 1Q GDP release. Global equities were driven back from record and multi-year highs, but momentum failed to take on the turn. These two performances remain critical measure of primary fundamental currents and should be followed closely - whether there is clear trend or not - heading into the new trading week. Meanwhile, there will be high-level event risk stirring volatility for particular currencies and regions ahead. Implied volatility levels suggest the Greek negotiations, RBA rate decision and UK election will command a substantial market move ahead. We review the big picture and distinct catalysts in this weekend Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.