Recommended by Daniel Dubrovsky
How to trade EUR/USD
The US dollar largely underperformed against major currencies last week, particularly the Chinese yuan, Canadian dollar, and Australian dollar. Meanwhile, the greenback fared well against the British pound and the euro. EUR/USD confirmed its ninth consecutive week of decline, the longest losing streak since 1997.
Turning to commodities, oil continues to rise, with WTI up about 4.6% last week. This represented the highest closing price since early November. Crude oil is just shy of a one-year high. Meanwhile, gold prices rose cautiously, taking advantage of the gradual decline in the US dollar.
The coming week is fraught with risks from economic events, including interest rate decisions from several central banks. They are the Federal Reserve, the Bank of England, and the Bank of Japan. The central bank is widely expected to keep interest rates on hold, according to the CME FedWatch tool. However, more importantly, attention will be focused on the possibility of further interest rate hikes by the end of this year.
Meanwhile, the Bank of England is poised to raise interest rates by 25 basis points, which could provide stimulus for the pound. Focusing on the yen and the Bank of Japan, there has been increased attention to what central banks can do about the gradual rise in government bond yields despite yield curve control. What other important events should we watch over the coming week?
Recommended by Daniel Dubrovsky
How to trade USD/JPY
Market Movement – Week of 9/11
prediction:
British pound (GBP) forecast: Focus on Bank of England interest rate decisions
The Bank of England (BOE) plans to raise interest rates by another 25 basis points (bp) next week. However, a dovish rate hike could expose the pound to further losses.
Australian dollar prediction: The battle between AUD/USD and AUD/NZD continues
The Australian dollar has staged some kind of rally last week with volatility remaining subdued ahead of Wednesday’s Fed meeting. There may be some headwinds ahead for AUD/USD and AUD/NZD.
Nasdaq 100, S&P 500 forecast: US indexes still undecided ahead of big week
US indexes remained indecisive this week as they ended the week flat due to a reversal in sentiment. The US Federal Reserve and the impending UAW auto strike may provide much-needed direction.
Euro Forecast: EUR/USD’s fate is in Fed’s hands as EUR/JPY opens a falling wedge
In this article, we will delve into the technical aspects of EUR/USD and EUR/JPY and explore key price support and resistance levels that deserve significant attention in the upcoming trading sessions.
Gold, silver forecast: Precious metals rally under threat
Gold rose late on Friday as risk sentiment weakened. This week, a hawkish Fed could cap any modest gains this week, with strong US indexes, US yields and the US dollar remaining bullish.
Technical outlook for the Japanese yen: USD/JPY and EUR/JPY exchange rates to watch
The Japanese yen remains generally bearish against the US dollar and euro. What are the key technical levels to watch for USD/JPY and EUR/JPY in the coming week?
Will crude oil test $100?Natural gas is not out of the woods yet.
Crude oil broke above a key resistance level, triggering a bullish pattern and hinting at further upside. Natural gas slipped into a narrow area. What’s next for crude oil and natural gas?
— Article written by Daniel Dubrovsky, Senior Strategist at DailyFX.com
— Individual articles written by DailyFX team members
