Financial markets eye confirmation hearings for two new Fed officials as well as CPI and GDP data from Europe and Japan in the week ahead.
The US Dollar may return to the offensive as incoming Fed officials voice support for rate hikes and external news flow cools bets on hawkish policy outside the US.
Yen weakness becomes a theme of interest for FX traders again, as next week brings the release of April inflation numbers out of Japan. March saw inflation fall back after an earlier spike in January and February. Continued calm from inflation keeps the door open for Yen bears.
The Australian Dollar has benefitted from the US Dollar rethink which came with last week’s weaker inflation print. It may continue to do so, for a while at least.
New Zealand Forecast: NZD/USD Awaits Fed Speak, Positioning and Perhaps Profit Taking