EURUSD and GBPUSD Will Decide Make-or-Break In Holiday Trading Conditions
• An uptick in core CPI and persistent remarks from Yellen sent the Dollar on a week-ending rally
• EURUSD and GBPUSD stand at critical levels (1.10 and 1.55) that may prove key for momentum
• Yet, with multiple countries offline for holidays Monday, a move may prove anything but decisive
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Fed Chairwoman Janet Yellen closed our trading week with remarks that suggest the central bank is still looking for a rate hike this year. Given the unfavorable drift from the Dollar these past few months under the prospect that Fed Funds futures may be correct it projecting a liftoff in January of 2016, the Dollar's rally is not surprising. However, this move is provocative for other reasons. The Dollar rally has pushed EURUSD to 1.1000, GBPUSD to 1.5500 and USDJPY to 122 - all key technical levels that have held back the tide for a more progressive Greenback move lately. Now, we face a new trading week with a critical barrier tested immediately amid thinned liquidity due to holiday conditions for various US, European and Asian countries. We focus on the Dollar as well as the Euro's Greece troubles, risk trends, the BoC rate decision and other themes in this weekend's Trading Video.
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