Fundamental Weekly Forecasts for EURUSD, GBPUSD, USDJPY and GOLD
EURUSD - "The long-term bearish outlook for EUR/USD may come back into light should the Fed keep a 2015 liftoff on the table, and signs for an looming rate hike may put the exchange rate under pressure as interest rate expectations pickup."
GBPUSD - "With inflation due on Tuesday, expect markets to begin focusing on inflationary forces within the British economy. The expectation is for headline CPI to come in at .1% with Core CPI at 1.2%. Beats on either of these numbers could bring considerable strength into the Sterling, especially if the Federal Reserve backs off of the September rate hike, and begins to point at even more accommodative policy."
USDJPY - "We’ll see three other key data points that will be looked at as fuel for the BoJ to increase stimulus on a disappointing print and likely irrelevant on a beat. The data points are the Tertiary Industry Index, Industrial Production (Finalized), and Capacity Utilization with expectations of .3%, -0.6% MoM, and 0.7% respectively."
GOLD - "Note that gold has continued to trade within the confines of a well-defined descending median-line formation and although prices are coming into key support, the broader outlook remains weighted to the short side sub-1151. We’ll be looking for the FOMC reaction to offer further near-term guidance as the dollar reacts to adjustments in interest rate expectations."
