Weekly Trading Forecast: US and UK GDP Look to Charge Fed and Brexit Speculation
Volatility has picked up for the FX market these past weeks, but keeping the charge will require further fundamental winds. Will event risk like US and UK 3Q GDP readings step up the task?
US Dollar Forecast - Is This A Dollar Rally or EUR/USD Tumble – It’s Not the Same Thing
The ICE Dollar Index (DXY) posted another impressive week’s advance through this past Friday. That marksthree consecutive weeks that the benchmark currency has climbed to eight-month highs – and at the fastest pace since the November rally back to 12-year highs.
British Pound Forecast – GBP/USD Range Vulnerable to 3Q GDP Reports, BoE/Fed Rhetoric
The 3Q Gross Domestic Product (GDP) reports coming out of the U.K. and U.S. along with a fresh wave of central bank rhetoric may spur increased volatility in GBP/USD, but the pair may continue to consolidate within a narrow range as British Prime Minister Theresa May increases her efforts to avoid a ‘hard Brexit.’
Australian Dollar Forecast – Australian CPI to set the Tone in Aussie
while the Australian economy has now went 25 years without an actual recession, a lack of inflation as global growth has cooled has raised some very serious questions about sustainability of Australian growth.
Canadian Dollar Forecast – BoC Talk, “Impossible” Trade Pact, and Weak Retail Sales Hurt CAD
The Canadian Dollar lost ground across the board last week as the fundamental hits keep coming. The Canadian Dollar fell to its lowest level since March 16 when the Federal Reserve dashed hopes of an interest rate hike in the near future to complement their December hike.
Chinese Yuan Forecast -USD/CNH Eyes All-Time High as PBOC Tolerance Grows
Both the offshore and onshore Yuan dropped to six-year lows on Friday: The USD/CNH hit 6.7756 and the USD/CNY touched 6.7635.
Gold Forecast –Gold Price Bounce, Rebound in Questions Ahead of US GDP
Gold priceswere on a firmer footing this week with the precious metal up 1.15% to trade at 1265 ahead of the New York close on Friday. The gains come despite continued strength in the greenback with the USDIndex (DXY) rallying back into the 2016 open at 98.69 (highest levels since February).