USD dollar strengthened in the past week breaking below the key levels against EUR, GBP, CAD and NZD.
Next week there will be several important data releases in the US: core durable goods orders and consumer sentiment on Tuesday and advance GDP for Q4 on Friday – we’ll see whether American economy has managed to maintain its impressive growth momentum in the final months of 2014. All in all, US economy remains in good shape, but the December decline in retail sales and the low inflation are a negative sign.
On Wednesday, Jan. 28, watch the outcome of the Fed’s meeting. As other central banks from Europe to Canada do monetary easing, the Fed may become more cautious and deliver mild, dovish comments. In this case we may see some correction down in USD.
Note, however, that the ECB’s massive quantitative easing will make a positive impact on the European and global economy, so after all the Fed may decide to stick to its course of normalizing policy. In this case higher yielding commodity currencies will get another blow. We think that the USD buying in case of a hawkish Fed could be more intense than its selling if the Fed sounds dovish.
Next week there will be several important data releases in the US: core durable goods orders and consumer sentiment on Tuesday and advance GDP for Q4 on Friday – we’ll see whether American economy has managed to maintain its impressive growth momentum in the final months of 2014. All in all, US economy remains in good shape, but the December decline in retail sales and the low inflation are a negative sign.
On Wednesday, Jan. 28, watch the outcome of the Fed’s meeting. As other central banks from Europe to Canada do monetary easing, the Fed may become more cautious and deliver mild, dovish comments. In this case we may see some correction down in USD.
Note, however, that the ECB’s massive quantitative easing will make a positive impact on the European and global economy, so after all the Fed may decide to stick to its course of normalizing policy. In this case higher yielding commodity currencies will get another blow. We think that the USD buying in case of a hawkish Fed could be more intense than its selling if the Fed sounds dovish.
Recommended Content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.