General Commentary
Last week’s currency trading review:
The Dollar strength slowly picked up against most major currencies as the weather effect cooled down, improvements in data and hawkish statement from Yellen in the FOMC meeting which stated a possibility of an increase in interest rate in early 2015.
The Euro started off very strong, reached to a high of 1.3947 but closed off at 1.3796 due to strong USD, weak German ZEW Economic Sentiment down of 46.6 (forecast 52.8) and dovish statements from ECB member just in front of the 1.40 barrier.
The Yen initially came in strongly as tensions in Russia and Ukraine still remained. Investors moved into the safe heaven causing USD/JPY fell to a low of 101.27 but was unable to push further . However, all of these losses were erased by the Yellen’s surprising statement and the pair rallied all the way above 102.
The AUD was one of the major currency that finished off strongly against the USD as RBA statement and Monetary policies were relatively hawkish. AUD/JPY and heavy exporters bids helped the pair support above 0.8990 with a finish of 0.9138 for the week.
The Forex Trading Week Preview:
The States: Tuesday Consumer confidence 82.3 vs 78.3, New home sales 440k vs 455k previous. Wednesday, Core Durable Goods Orders forecast 0.3% forecast vs 1.1% previous. Thursday Unemployment Claims forecast 326k vs 320k previous, pending home sales forecast of 0.1% VS 0.1 previous.
The EZ: Monday French and German Manufacturing PMI (51.9 vs 49.7) (53.8 vs 54.8). Tuesday German Ifo Business Climate 110.7 vs 111.3, ECB President Draghi Speaks.
The BOJ: Friday Household Spending forecast 0.2% vs 1.1%, Tokyo Core CPI 0.9% vs 0.9%, Retail Sales forecast 3.4% vs 4.4% previous.
