The Dow Jones FXCM Dollar Index (ticker: USDOLLAR) rallied for its third week of the past four and finished near multi-month highs. A holiday-shortened week suggests the Dollar price action may slow, but why might the Greenback see big moves in the days ahead?
The USDJPY rally may gather pace during the final week of November as the slowing recovery in Japan undermines the Bank of Japan’s (BoJ) pledge to achieve the 2% target for inflation by 2015.
Gold plummeted more than 3.5% this week with the precious metal trading at $1244 ahead of the New York close on Friday. But with the November close and a shortened week ahead, can the sell-off be sustained?
The Australian Dollar is at the mercy of risk sentiment trends in the week ahead as with US economic news-flow feeds continued Fed QE “taper” speculation.
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Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.