Forex Weekly Trading Forecast – 01.14.2013

Dollar Suffers Critical Breaks but Risk Trends May Salvage It

After three consecutive weeks of advance, the Dow Jones FXCM Dollar Index (ticker = USDollar) finally closed on a bearish footing through this past Friday.

ECB Surprises, Boosts Confidence in Euro; Data Offers Support as Well

After a rough start to the week that had the Euro eying exchanges rates below 1.3000 versus the US Dollar, the common currency turned around rapidly after a decidedly more positive European Central Bank policy meeting on Thursday.

Japanese Yen at Risk for More Losses as BoJ Mulls 2% Inflation Target

The Japanese Yen continued to lose ground against its major counterparts as Prime Minister Shinzo Abe pushes the Bank of Japan (BoJ) to adopt a 2% target for inflation, and the low-yielding currency may face additional headwinds over the near to medium-term as the central bank continues to carry out its easing cycle.

Australian Dollar May Fall After US “Fiscal Cliff” Deal

A bare-bones domestic economic calendar once again leaves the Australian Dollar at the mercy of broader risk appetite trends.

Gold Rebound Finds Few Bids- Bears In Control Sub $1693

Gold was firmer at the close of trade this week with the precious metal advancing 0.23% to trade at $1659 at the New York close on Friday.

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Source: Daily fx