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