Fundamental Forecast: Dollar and Euro Face Critical Event Risk
• The Euro is the most fundamentally burdened currency this week
• Top event risk honors however go to the Dollar which is hosting a FOMC rate decision Wednesday
• Beyond just influencing the Euro or Dollar, ECB results and FOMC policy will shape the big picture
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Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. The two most liquid currencies in the FX market are facing event risk that can redefine their respective trends. The Euro has monetary policy updates (stimulus results), economic releases (Eurozone labor and inflation, lending data) and financial reports (stress test results). For the US Dollar, the FOMC rate decision can snap divergent policy forecasts onto a single track between hawkish or dovish forecasts. Through this range of event risk though, it is important not to lose sight of the big-picture ramifications. Is global stimulus and investor sentiment enough to keep the markets rising?
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