FX: What to watch out for in the week ahead – TDS
Analysts at TD Securities draw attention to key developments on the trade front that will remain the market driver across the fx board this week.
Key Quotes:
“FX: Focus remains fixated on US-China relations though we view the confirmation that a delay in auto tariffs with Europe and Japan, alongside a settlement to lift steel/aluminum tariffs in Canada/Mexico as a welcome development. It may also signal that the US is preparing to harden its stance vs. China for the long. As a result, we remain bearish AUD, though election results may moderate that, and still see dips towards 1.34 in USDCAD supported. We retain a defensive stance on cross/JPY as markets may not appreciate prolonged trade friction.
US Rates: Markets will remain focused on trade headlines, but will also look to FOMC minutes on Wednesday and a number of Fed speakers throughout the week for direction. We expect investors to remain skittish as trade concerns linger, keeping rates at the lower end of the recent range.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
