Tag Archives: markets

US Dollar Fundamentally Moored Until Fed or Fear Decides Its Fate

DailyFX.com –

US Dollar Fundamentally Moored Until Fed or Fear Decides Its FateUS Dollar Fundamentally Moored Until Fed or Fear Decides Its Fate

Fundamental Forecast for Dollar: Bullish

  • November NFPs haven’t steered the Fed off course for a rate hike before year end though the ECB reaction alters the view
  • Anticipation for the December 16 FOMC meeting will curb trend development but not dampen volatility
  • See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot

A lot has changed for the Dollar this past week. Technically speaking, the Greenback has tumbled from its 12-year highs and now finds itself in a comfortable range. Proximity to critical highs or lows creates tension and can subsequently spur speculative runs for trend development. Fundamentally, the ECB decision and NFPs have wrung some tension from positioning. And, while the week ahead carries more than its fair share of important event risk, the systemically important catalysts are further out on the horizon. These circumstances will shape trading conditions for the Dollar and the broader financial markets. Anxiety will support volatility, but fostering trends will be far more difficult. Active traders should adapt to the environment while investors (longer term) should mark the change in tempo for the currency’s monetary policy advantage post-ECB and pre-FOMC. read more

Gold Holds Range Despite Fed Rate Hike- Shorts at Risk Above 1047

DailyFX.com –

Gold Holds Range Despite Fed Rate Hike- Shorts at Risk Above 1047Gold Holds Range Despite Fed Rate Hike- Shorts at Risk Above 1047

Fundamental Forecast for the Yuan: Neutral

Gold prices are down for the second consecutive week with the precious metal off by 0.84% to trade at 1065 ahead of the New York close on Friday. A historic week saw the Federal Reserve move to the raise the benchmark interest rate for the first time since 2006, fueling a rally in the USDOLLAR which tested the 2015 close high on the heels of the release. Gold saw the largest single day drop in five months on Thursday but pared a bulk of the declines into the close of the week. read more

Australian Dollar May Drop as Fed Rate Hike Sinks Risk Appetite

DailyFX.com –

Australian Dollar May Drop as Fed Rate Hike Sinks Risk AppetiteAustralian Dollar May Drop as Fed Rate Hike Sinks Risk Appetite

Fundamental Forecast for the Australian Dollar: Bearish

  • Australian Dollar Looks to Fed Policy Announcement for Guidance
  • Risk Aversion After FOMC Rate Hike May Drive Aussie Downward
  • Find Key Turning Points for the Australian Dollar with DailyFX SSI

The Federal Reserve monetary policy announcement is firmly in focus for the Australian Dollar in the week ahead. Chair Janet Yellen and company are widely expected to deliver the first post-QE interest rate hike, nudging the target range for the benchmark lending rate higher by 25 basis points into the 0.25-0.50 percent territory. read more

Australian Dollar Volatility Risk Remains Amid Thin Liquidity

DailyFX.com –

Australian Dollar Volatility Risk Remains Amid Thin Liquidity

Fundamental Forecast for the Australian Dollar: Neutral

  • Australian Dollar Lacking for Discrete Drivers After Fed Rate Hike
  • Thin Liquidity in Pre-Holiday Trade May Amplify Knee-Jerk Volatility
  • Find Key Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar faced selling pressure last week as expected, with prices dropping to their lowest in a month against the greenback. The Aussie’s slump was matched by a drop in share prices as risk sentiment soured in the days following the FOMC monetary policy announcement, where Chair Yellen and company issued the first post-QE increase in the benchmark lending rate. The S&P 500 – a benchmark for global risk appetite – ended the week with the weakest close since mid-October. read more

Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30

DailyFX.com –

Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30

Fundamental Forecast for CAD: Bearish

A Bank of Canada rate cut is now the preferred bet as the Loonie seems in near free-fall. Against the JPY, the Canadian Dollar is off over 8% and is among the weakest currencies within the G10 as Chinese economic data continues to discourage risk sentiment and oversupply in Oil continues to push down the price of Oil to 12-year lows. All of this pressure amounts toward the Bank of Canada potentially easing again like they did last January. read more