Forex Trading Weekly Forecast 04.08.2013
Dollar Overbought but Weak Yen, QE3 Tapering May Keep it That Way
The dollar’s performance this past week was something of a mixed bag given the heavy fundamental crosswinds from other central bank decisions.
Euro Tone Changes as ECB Flexes Muscles Once Again
The Euro finished the week strong, posting a massive gain of +4.70% against the Japanese Yen, while adding a less but still commendable +1.32% against the US Dollar.
Japanese Yen Meltdown Sets us Up for Good Trades Ahead
What a week for the Japanese Yen. The JPY traded to fresh monthly highs ahead of the heavily-anticipated Bank of Japan rate decision, but a shocking BOJ result forced the USDJPY to its biggest two-day surge since the heights of the financial crisis in 2008.
British Pound Breaks Out- BoE Policy Fosters Bullish Outlook
The British Pound broke out of the range carried over from the previous week, with the GBPUSD climbing to a fresh monthly high of 1.5362, and the sterling may continue to retrace the sharp decline from earlier this year as the Bank of England (BoE) maintains a neutral stance for monetary policy.
Gold Saved by Dismal NFPs- Opening Range Threaten March Highs
Gold is softer at the close of trade this week with the precious metal off by nearly 1.5% to trade at $1573 in New York on Friday. Price action this week saw a surge in volatility with bullion testing the critical support range between $1550- $1555 noted last week.
Australian Dollar Aims Higher as Data Dents Rate Cut Outlook
Australian Dollar volatility was relatively subdued last week compared to the other major currencies but a pickup in activity seems likely.
New Zealand Dollar Could Extend Gains on China Growth
The New Zealand Dollar gained for the fourth consecutive week, rallying by 0.8 percent against the Greenback from a week ago.
How does a Currency War affect your FX trading?
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