Video: Dollar Break Likely Awaits Fed and GDP, Kiwi Rally Stalls
• The USDollar was forced into a technical breakout pattern, but there wasn't enough to motivate follow through
• With so much event risk next week, traders will likely hold back on major positions until key data crosses
• After its rally on a rate cut, the excess premium on the Kiwi short exposure may have already been exercised
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Pushed into a position to break from tight technical constraints, the Dollar simply trickled below support. For traders, a break means little without follow through; and there is a looming storm cloud with high level event risk scheduled for next week. Looking at the docket after the weekend, there are high profile events like the FOMC rate decision; US, UK, Spain and Austria 2Q GDP; Japanese inflation statistics and much more. These are the kinds of updates that can change market trajectory and pace. In the meantime, tentative moves on themes like the S&P 500 slip - an indication of sentiment - will keep our attention. Discrete moves from data-spurred currencies like the New Zealand Dollar and British Pound will struggle to fight the pensive sentiment in the market. We look at what lies ahead through the end of the week and into next week in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.