Monetary policy isn’t the straightforward fundamental driver it once was. This past week, the Dollar struggled despite strong NFPs and a certainty of a FOMC hike while the Euro rallied after reports the ECB discussed the future of hikes. Be prepared for unusual response to the Fed, BoE, BoJ and even SNB decisions ahead.
US Dollar Forecast: Dollar Will Find Less Lift in Next Fed Hike, Policy Promise
Despite a remarkably robust set of economic data – that included strong February payrolls – and a rise in rate expectations to the point of certainty that the Fed will hike Wednesday, the Dollar lost ground this past week.
Japanese Yen Forecast: Narrowing Fed Interest Rate Forecast to Curb Bullish USD/JPY Outlook
USD/JPY stands at risk of facing increased volatility over the coming week as the Federal Open Market Committee (FOMC) is widely expected to deliver a March rate-hike, while the Bank of Japan (BoJ) continues to pursue its Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control.
Australian Dollar Forecast: Australian Dollar Likely To Struggle if Fed Delivers
The Australian Dollar seems likely to continue lower if US interest rates rise this week, but the prevalent idea that Australian rates won’t rise this year faces new challenges.
Chinese Yuan Forecast: PBOC, Fed Remain Key Drivers to Yuan
The USD/CNH fell to a major support zone around 6.8845 on Friday after the non-farm payroll report failed to inspire a bullish-run in the Dollar. Earlier in the Asian session, PBOC’s officials’ talks on exchange rates added strength to the Yuan as well
Gold Forecast: Gold Prices Cling to Support as Markets Await Fed
Gold prices fell for the second consecutive week with the precious metal down 2.67% to trade at 1201 ahead of the New York close on Friday. Bullion is down more than 5% off the yearly high and has been fueled by expectations for higher borrowing costs from the Fed.
Equities Forecast: S&P 500 & Nikkei 225 at Risk with FOMC, BoJ on the Docket
Global equity indices ended neutral to slightly off for the week. The ECB met on Thursday and held on their path for monetary policy as expected, with Mario Draghi saying nothing to spark any significant volatility in European markets.
Oil Forecast: Testing Week Ahead for Crude Oil Prices
Crude oil prices have broken to the downside over the past few days, finally reflecting the ongoing imbalance between plentiful supply and limited demand.
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See the DailyFX 1Q 2017 forecasts for the Dollar, Euro, Pound, Equities and Gold in the DailyFX Trading Guides page.