Tag Archives: markets

Australian Dollar Volatility to Return on RBA, Fed Policy Speculation

DailyFX.com –

Australian Dollar Volatility to Return on RBA, Fed Policy SpeculationAustralian Dollar Volatility to Return on RBA, Fed Policy Speculation

Fundamental Forecast for the Australian Dollar: Neutral

  • Upbeat 3Q Inflation Data May Undermine RBA Rate Cut Speculation
  • Aussie Dollar to Fall in With Risk Trends After FOMC Rate Decision
  • Find Key Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar edged lower for a second week after finding resistance below the 0.74 figure against its US counterpart. Momentum has proven to be lackluster however, yielding the tamest price action in a month. Volatility looks likely to return in the week ahead however amid a steady stream of high-profile event risk of the home-grown and external varieties. read more

Oil Prices Could Drive the CAD Lower Before the Recession Ends

DailyFX.com –

Oil Prices Could Drive the CAD Lower Before the Recession EndsOil Prices Could Drive the CAD Lower Before the Recession Ends

Fundamental Forecast for CAD: Bearish

The Canadian Dollar continued to slide lower to start the week, furthering the return of the up-trend in USD/CAD led by a precipitous drop in Oil prices. But a surprise decrease in Oil supplies on Wednesday helped to strengthen Crude prices to finish off the week, and this led to CAD strength for the past three days. But after extended down-trends in both Oil and Cad, the prospect of trend resumption may be near and an attractive entry in both of these markets may be near. read more

US Dollar’s Bid for 12-Year High Will Hinge on Fed’s Decision

DailyFX.com –

US Dollar’s Bid for 12-Year High Will Hinge on Fed’s DecisionUS Dollar’s Bid for 12-Year High Will Hinge on Fed’s Decision

Fundamental Forecast for Dollar:Neutral

  • An active or expectd dovish shift from the ECB, PBoC and BoJ leverage the Dollar’s remarkably monetary policy bearing
  • Depending on whether the Fed maintains course, abandons a 2015 hike view or pulls the trigger; the impact will be wide
  • Find help with your trades and trading strategy from DailyFX analysts with DailyFX on Demand

The Dollar posted its best week performance in five months with this past Friday’s close. The rally was derived less from the currency’s own fundamental improvement rather than slump amongst its major counterparts. As we frequently experience, the FX market is one of relative strength. If the entire field of currencies is sliding into a fundamentally adverse situation – in this case dovish – then all the outperformer needs to do is to hold its bearing. While the Greenback rose on the backs of its most liquid alternatives, that indirect leverage would struggle to keep momentum, especially with the 12-year highs in site. Yet, we may find the next move is decisive and made with US event risk as the Fed prepares to wade back into monetary policy. And, volatility does not have to fall in currency’s favor. read more

Australian Dollar May Fall Further as Fed, RBA Divergence Deepens

DailyFX.com –

Australian Dollar May Fall Further as Fed, RBA Divergence DeepensAustralian Dollar May Fall Further as Fed, RBA Divergence Deepens

Fundamental Forecast for the Australian Dollar: Bearish

  • Aussie Dollar at Risk as Jobs Data Amplifies RBA Rate Cut Probabilities
  • China Data Unlikely to Offset Pressure from Fed Rate Hike Speculation
  • Find Critical Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar continued to sink, registering a fourth consecutive week of losses and hitting a monthly low against its US counterpart. External factors conspired against the currency even as the RBA shied away from an interest rate cut and signalled it is not in a rush to ease in the near term. Upbeat US jobs data inspired the bulk of the losses, with a swell in December Fed rate hike expectations amplifying policy divergence headwinds and sinking the Aussie as expected. read more

Traders Believe USD/JPY Could Rally Further – What Could Change?

DailyFX.com –

Traders Believe USD/JPY Could Rally Further – What Could Change?Traders Believe USD/JPY Could Rally Further – What Could Change?

Fundamental Forecast for Yen:Bearish

The Japanese Yen finally showed signs it might break its long-standing trading range as it fell to multi-month lows versus the resurgent US Dollar. But will the post-NFPs USD rally be enough to take the USD/JPY to fresh decade-plus peaks? read more