Conditions are ideal. That would be the simple interpretation of our circumstances if we were to take the S&P 500’s record highs and the collapse in volatility at face value.
The Euro was the second best performing major last week and closed above $1.3800 against the US Dollar for the first time since November 2011. With incoming economic data steady and now showing expectations of improvement, the Euro’s rally may extend through the end of October.
The Australian Dollar may come under pressure amid market-wide risk aversion absent a discernible dovish shift in next week’s FOMC monetary policy statement.
How does a Currency War affect your FX trading?
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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