Trading Video: Pound At Risk of BoE Breakout, Dollar Awaits NFPs
• Equities and Yen crosses show risk appetite struggling for traction
• Dollar may trip into a break, but follow through will be difficult before NFPs crosses the wires Friday
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Once again, we are facing plenty of technical potential while fundamentals present a very distinct hurdle. Good setups will depend on a strong combination of both elements converging. Some of the greatest potential ahead is centered on the British Pound. The normally-quiet Bank of England rate decision will be leveraged for market influence by the the Quarterly Inflation report - a well-known volatility and trend charging event. The probability of a BoE hike in 2015 is about even to that priced in by the market for the Fed. That said, the hawkish view for Sterling has picked up markedly the past three months which has in turn led to a consider run. Was that move justified, too restrained or has it over reached? We will soon find out. Meanwhile, the Dollar continues to carve out a tight range that is destined to break, but a break without a catalyst is likely to turn into a failed drive. NFPs will play a big role in Greenback movement in the lead up and reaction Friday. We look at the market movers and appetizing setups in the FX market 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.