Forex Flash: USD looks for triggers to sustain momentum – Westpac (Barcelona) - According to Sean Callow, a Global FX Strategist at Westpac, “The USD is still struggling to build a compelling multi-week case for a sustained upside movement as a slowdown in the Fed’s $85B p/m asset purchase program would be one key trigger, however the US labor market is unlikely to generate a string of 200k+ monthly jobs prints amid building fiscal headwinds for the foreseeable future.”

That being said, peripheral EZ equities are trading on the back foot amid Berlusconi’s rise in the Italian polls and the slush fund scandal enveloping Spanish PM Rajoy. “The USD index may enjoy a short-term reprieve towards 80.5-81.0, though we prefer to open a short USD position at these levels looking for a test of 78.0.” Callow suggests.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.