FXstreet.com (Córdoba) - BBH analyst team expects the dollar to trade with a stronger tone against most major foreign currencies in the week ahead. "We believe the euro zone crisis and the global growth slowdown will remain the dominant market drivers over the medium-term and this should support the dollar, especially against European currencies", they say.
Next week the market will focus on Bernanke's Semiannual Report to the US House for clues about the policy outlook, according to BBH. "The price action leading up to testimony may follow a familiar script, where the dollar softens into the event only to firm afterward given no hints of QE3. We believe that QE3 remains on the table but that the bar is likely higher than many observers anticipate".
Next week the market will focus on Bernanke's Semiannual Report to the US House for clues about the policy outlook, according to BBH. "The price action leading up to testimony may follow a familiar script, where the dollar softens into the event only to firm afterward given no hints of QE3. We believe that QE3 remains on the table but that the bar is likely higher than many observers anticipate".
