The US Dollar finally showed signs of life as a surprisingly-upbeat Federal Reserve sent it sharply higher versus major counterparts. Yet key headwinds remain, and a number of factors suggest that buying USD makes little sense at these levels.
A sudden shift in rhetoric from the European Central Bank and the Federal Reserve put the EURUSD and the Euro more generally, in a potentially vulnerable spot for the coming days.
Half of the most liquid Yen crosses closed out this past week in the green. Though, that should provide long-term bulls little relief. So far in 2014, this once high-flying group is under water.
The British Pound may face a larger correction in the week ahead as the headline reading for U.K. inflation is expected to narrow to an annualized 1.7% in February.
Gold saw the largest weekly decline in four months this week with the precious metal off by more than 3.4% to trade at $1335 ahead of the new York close on Friday.
The Australian Dollar continues to look to external factors for direction cues, with US economic data and a busy Fed-speak docket highlighted in the week ahead.