ForEx Forecast for the Week – Dollar in a Recovery Stage

This week, as being forecasted, dollar is seen to be on its way to recovery while Euro, Pound and Yen are stumbling. The risk trends are seen improving as well as Dollar gaining too. In the midst of NFPs, the G20 go over again the risks while expecting volatility along the way.

US Dollar’s Best

Since November’s significant break to 12-year highs, this week US Dollar has rallied in the market as the currency’s best performance. This is a move proving a hasty exhaustion.

Euro’s Sinking

On Euro forecast, the currency is seen to be sinking this week while investors are waiting for the action of ECB. Well, there’s no other way to describe the scene – but, Euro is experiencing déjà vu. If what has been said is true, then the classic situation “buy the rumor, sell the news” could happen.

GB Pound to Dominate Headlines

Nearly end of the week, the news had Mr. David Cameron had struck a deal with European leadership allowing British leadership rally for an ‘in’ vote in the Brexit referendum. Well, we can see another picture of Pound this week and it would really be different.

Japanese Yen Awaiting

On the other hand, the Japanese Yen is said to be waiting for the status quo to be changing for it to gain well. Yen is said to be rallying in the market for fourth consecutive week now against Euro and British Pound. However, with the great state of US Dollar and US economic data and the stumbling of Japanese Yen, the USD and JPY exchange rate has made its exchange rate losing streak brought to an end.

Canadian and Australian Dollar

A number of market participants are on the watch for the oil market against the Canadian Dollar movements. This is after the Bank of Canada is observed eyeing a top spot in the G10.

On the other hand, Australian Dollar faces shocking storm of domestic and external pressure. The AUS Dollar may fall into significantly selling pressure as prices are facing a great storm of risk between local and international market.

Chinese Yuan Gets Slightly Weak

Both the local and external Yuan rates are moving slightly this week. Both are getting lower against the US Dollar last Friday.

Gold to Go

The gold forecast is seen as gold consolidation is breaking to clear the way ahead of NFPs. The prices of gold for the second time in a row slid with the precious metal backing a bit of 0.2% to trade at New York last Friday.

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