Advertisement
U.S. markets open in 2 hours 56 minutes
  • S&P Futures

    5,305.00
    -3.25 (-0.06%)
     
  • Dow Futures

    40,130.00
    -14.00 (-0.03%)
     
  • Nasdaq Futures

    18,490.00
    -13.75 (-0.07%)
     
  • Russell 2000 Futures

    2,136.60
    -1.80 (-0.08%)
     
  • Crude Oil

    81.94
    +0.59 (+0.73%)
     
  • Gold

    2,225.40
    +12.70 (+0.57%)
     
  • Silver

    24.69
    -0.06 (-0.25%)
     
  • EUR/USD

    1.0792
    -0.0037 (-0.35%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.97
    +0.19 (+1.49%)
     
  • GBP/USD

    1.2615
    -0.0023 (-0.18%)
     
  • USD/JPY

    151.3920
    +0.1460 (+0.10%)
     
  • Bitcoin USD

    70,349.14
    +212.62 (+0.30%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,960.54
    +28.56 (+0.36%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ECB Stimulus

DailyFX.com -

This past week's calm optimism was likely an interlude for a bigger shift in market conditions. With a FOMC decision, US GDP, ECB Stress test and much more ahead; stability will be put to the test.

US Dollar Forecast- Dollar and Market Confidence Ride on FOMC Decision

The US Dollar managed to muscle out a modest advance this past week despite favorable winds for investor sentiment (through benchmarks like S&P 500 and volatility indexes) as well as a persistent dovishness in rate forecasts.

Short-term Euro Rebound Due as Data Improves, Stress Tests Pass

If there was ever a chance for the Euro to take advantage of near-term conditions, the moment may be ripe for the elusive Euro short covering rally. The fuel here, of course, is the stretched futures market positioning.

Japanese Yen Forecast – USD/JPY to Eye Fresh Highs on Less-Dovish FOMC, More BOJ Easing

The fundamental outlook for USD/JPY remains bullish as Federal Open Market Committee (FOMC) moves away from its easing cycle, but the dollar-yen may struggle to press fresh highs next week should the Bank of Japan (BoJ) refrain from further expanding its asset-purchase program.

New Zealand Dollar Forecast - New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC

The New Zealand Dollar may fall if the RBNZ withdraws its promise of future rate hikes while a status-quo FOMC statement sees Fed tightening bets rebuild.

Australian Dollar Forecast – AUD Faces A Potential “Breakout” On US Heavy Event Risk

The Aussie may remain under pressure over the coming week as elevated volatility caps carry demand, while US-centric event risk offers potential “breakout” catalysts.

Gold Forecast - Gold Losses to Accelerate on Less Dovish FOMC- Support Break Eyes 1206

Gold prices are softer this week with the precious metal off by 0.55% to trade at $1231 ahead of the New York close on Friday.

Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ECB Stimulus
Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ECB Stimulus

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Advertisement