The Reserve Bank of Australia, Bank of Japan, Federal Reserve, and Bank of England will all meet this week for their respective November policy meetings. If you haven't turned on the TV recently, there's also the US Presidential elections the week after. In other words, buckle up: volatility is dead ahead.
What fundamental winds bode well for the US Dollar and which portend trouble? There are simplistic expectations set out for the world's most liquid currency, and that can lead to misconceptions and unwanted surprise for traders.
Rising inflation expectations and surprisingly positive economic data from the Euro-Zone may be behind the recent rise in core yields.
More of the same from the BoJ accompanied by another lackluster U.S. NFP report may undermine the recent advance in the exchange rate as it erodes the case for a further deviation in monetary policy.
The Australian Dollar may overlook a status-quo RBA rate decision as prices seek fuel for a breakout in the FOMC policy announcement and US employment data.
Gold prices were fractionally higher this week with the precious metal up nearly 1% to trade at 1275 ahead of the New York close on Friday.
In a world in which Central Banks have become the primary driver of most global economic trends, markets have built-in a tendency to draw inference from the slightest of suggestions.
The New Zealand Dollar has been in salvage mode since October 13 as it recovers from a near 6% drop over 26 trading days that began in early September.
The offshore Yuan dropped to record lows this week, with the USD/CNH touching 6.7984 on Friday.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.