Volatility soared this past week with both the Dollar and S&P 500 suffering. With a round of high level event risk – the Fed decision included – this week is unlikely to be the typically quiet year-end liquidity drain.
US Dollar Forecast– Dollar’s Six-Month Bull Trend Rides on FOMC
The Dow Jones FXCM Dollar Index (ticker = USDollar) dropped this past week for the first time since the mid-October, market-wide slump.
British Pound Forecast – British Pound May Finally Mount a Sustained Recovery versus USD
The British Pound finished the week modestly higher but continued to trade in a tight range versus the US Dollar.
Japanese Yen Forecast – USD/JPY Outlookto Remain Bullish on Fed, BoJ Policy Divergence
The near-term outlook for USD/JPY remains mired by Japan’s December 14 snap election, but the ongoing deviation in the policy outlook should continue to produce a further advance in the exchange rate as a growing number of Fed officials show a greater willingness to normalize monetary policy in 2015.
Australian Dollar Forecast – Australian Dollar May Drop Out of Range on FOMC, RBA Minutes
The Australian Dollar may break out downward as the FOMC policy announcement and minutes from December’s RBA meeting fuel policy divergence bets.
Gold Forecast – Gold Rally Vulnerable to Hawkish FOMC – $1237 Key Resistance
Gold prices are markedly higher this week with the precious metal rallying 2.5% to trade at $1222 ahead of the New York close on Friday.
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.
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.
Source: Daily fx