The euro crashed and the dollar regained its throne in an exciting week. Will this volatility continue? GDP data from the UK, the US and Canada, US Durable Goods Orders, and rate decisions in the US, Japan and New Zealand stand out. These are the top events on forex calendar. Here is an outlook on the market-movers for the coming week.
Draghi dealt a deadly blow to the euro: expectations were already high but he certainly surpassed them with talk about extending and expanding QE, surprising talk about a rate cut and a “vigilant” hint of imminent action. The worries expressed by Draghi were exacerbated by the Chinese rate cut and this already made the dollar king. The US also enjoyed positive housing and jobs data, keeping the door open for a Fed rate hike by the end of the year. Elsewhere, the loonie suffered from lower forecasts and lower oil, the kiwi from falling dairy prices and only the pound seemed sound, Will this positive trend continue? Let’s start:
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