Talking Points:
- This week saw another extension in the topside run in the US Dollar[1], as the Greenback gained Monday-Wednesday, and started to pullback over the final two days of the week. The Dollar ran into a big Fibonacci level on Tuesday and after pushing ahead on Wednesday, fell back-below on Thursday and Friday after a support test was unable to hold. The US Dollar[2] remains with bullish structure as we move to close out this week.
- This week’s move in the Dollar appears to be more-driven by risk aversion than rate policy, and this can be evidenced by the fact that the outlier amongst major currency pairs showing USD[3] strength was the Japanese Yen[4], which has outpaced USD-strength so far this week. Next week’s economic calendar is back-loaded, as the lone high-impact items on the docket are FOMC[5] meeting minutes from the July rate decision set to be released on Wednesday, and the Jackson Hole Economic Symposium lined up for the latter-portion of the week. Notable – Turkish markets are closed for all of next week in observance of Sacrifice Feast.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[6] or the Euro[7] are available from the DailyFX Trading Guides page[8]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[9]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[10].
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