Is the Fed’s fledgling Taper policy in jeopardy?
A lack of a dovish policy move by the European Central Bank this week has given the Euro room to reverse its recent losses. European QE is looking less likely now.
The British Pound fell against most major FX counterparts as the Bank of England left interest rates unchanged.
The USDJPY climbed to a freshly month high of 102.57 following the dismal Non-Farm Payrolls report, but the pair may reverse course next week should the Fed’s Humphrey-Hawkish Testimony raise bets of seeing another $10B taper at the March 19 meeting.
The Australian Dollar will look to testimony from newly-minted Federal Reserve Chair Janet Yellen to establish direction cues in the week ahead.
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.