The 2013 trading year was a mixed one for the US dollar as the chase for yield and persistent stimulus push by the Federal Reserve curbed the support from the economy’s underlying strength.
The Euro has certainly had a better 2013 than most expected. Momentum is strong headed into 2014.
Gold remains at risk as we head into 2014 against a backdrop of improving US economic news-flow and a reduction in Federal Reserve stimulus.
USDJPY has climbed to a fresh yearly high but a strong pickup in inflation readings may weigh on BOJ stimulus expansion bets and spur a correction.
The Australian Dollar looks likely to launch a recovery in the weeks ahead as stable RBA policy expectations are complimented by a correction in US yields.
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Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.
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