The US Dollar bounced sharply off of recent lows as a fresh round of “Taper” from the US Federal Reserve boosted outlook for the Greenback.
A mild slip by the euro this past week started to evolve into a serious tumble through Friday’s close.
Ongoing fears of an emerging crisis in emerging markets as investors fleeing to the Japanese Yen for safety, Recent capital flow figures suggest that sentiment is turning negative globally, which has previously been a positive for the Yen.
The British Pound appears to be carving a higher low ahead of the Bank of England (BoE) February 6 meeting as the central bank is widely expected to normalize monetary policy ahead of schedule.
The outlook for the Australian Dollar is clouded in the week ahead as the currency faces a perfect storm of domestic and external fundamental event risk.
Gold is markedly lower this week with the precious metal down 2.36% to trade at $1240 ahead of the New York close on Friday.
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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.