Fundamental Forecast for the US Dollar[1]: Neutral
- The forex economic calendar is supersaturated during the last week of January, leaving the US Dollar (via the DXY Index) exposed to greater event-based volatility over the coming days.
- December US durable goods orders, January US consumer confidence, December US advance goods trade balance, the January Fed meeting, Q4’19 US GDP, and December US PCE core reports are all due out in the coming days.
- The IG Client Sentiment Index[2] shows that retail traders are net-long EUR/USD[3] and net-short USD/JPY[4].
US Dollar Rates Week in Review
The US Dollar had a mostly positive week, gaining ground against all but two of its major counterparts. With the China coronavirus outbreak stoking fears over global trade and growth, the safe haven currencies tended to outperform, led by the Japanese Yen[5]: USD[6]/JPY fell by -0.79% over the week, the worst preforming USD-pair. Elsewhere, GBP/USD[7] added 0.44%.
Gains for the US Dollar were modest elsewhere versus the other five major currencies. AUD/USD[8] was the worst performer, losing -0.68%, while EUR[9]/USD was close behind, dropping by -0.60%. With crude oil prices[10] continuing their plunge, the Canadian Dollar[11] proved weaker: USD/CAD[12] gained 0.59% on the week.
US Economic Calendar Supersaturated in Last Week of January
The forex economic calendar is supersaturated during the last week of January, leaving the US Dollar (via the DXY Index) exposed to greater event-based volatility over the coming days. On Tuesday, we’ll see the December US durable goods orders and January US consumer confidence reports. On Wednesday, the December US advance goods trade balance will be
