This week, there will be 4 monetary policy announcements and, with the European Union’s Summit & a U.S. tax conference, a highly volatile trading week can be expected and, yes, even anticipated by the forex market.
Last week, the USD ended the week stronger against all major currencies with the CAD & AUD leading losses. Despite generally healthy data, the EUR/USD fell every day of the past week . Though this could be attributed to the rise in the USD, the single currency is also pressured by Germany’s political troubles and a dovish central bank.
I think that even though the USD will rally into FOMC and year-end, it could still fall on the rate announcement giving investors the opportunity to buy at lower levels.
So, I will be looking out for EUR/USD for signs of that happening before jumping into some short trades.
Last week, the USD ended the week stronger against all major currencies with the CAD & AUD leading losses. Despite generally healthy data, the EUR/USD fell every day of the past week . Though this could be attributed to the rise in the USD, the single currency is also pressured by Germany’s political troubles and a dovish central bank.
I think that even though the USD will rally into FOMC and year-end, it could still fall on the rate announcement giving investors the opportunity to buy at lower levels.
So, I will be looking out for EUR/USD for signs of that happening before jumping into some short trades.
