Analysts at Bank of Tokyo Mitsubishi explained that the FOMC statement, forecast updates and press conference from Chair Yellen have all helped provide EUR/USD with support and the degree of Fed dovishness and the momentum in favour of dollar selling suggests upside risks from here for the week ahead.
Key Quotes:
“With the FOMC and ECB meetings now behind us there is no real toptier data next week that is likely to shift market expectations in regard to monetary policy. In our view, the important day might be tomorrow when Fed Vice Chair Dudley speaks (1300 GMT) followed by Fed President Rosengren (voter) (1500 GMT).
Then at 1800 GMT, Fed President Bullard (voter) will speak in Frankfurt. So we have three voting FOMC members speaking tomorrow and it will be interesting to see if there are any attempts to alter market perceptions or clarify Fed thinking after last night’s press conference and DOTS downgrade.”
(Market News Provided by FXstreet)