Talking Points:
- It’s been a counter-trend kind of week across FX markets, as the US Dollar finally posed some element of pullback in the six-week bullish trend, and EUR/USD[1] began to recover after the recent politically-fueled sell-off. GBP/USD[2] posed a mild bounce, finding resistance at the 23.6% retracement of the recent bearish move; and this retains the appearance of a bear flag formation as we move towards next week.
- Next week brings a series of high-impact rate decisions from three of the world’s largest Central Banks with the FOMC[3] on Wednesday, the ECB on Thursday and the Bank of Japan on Thursday evening/Friday morning in Japan. Also of interest on the economic calendar[4] is British inflation for the month of May, set to be released on Wednesday morning.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10].
Central Banks on Deck: FOMC, ECB, BoJ Wait in the Wings
Next week is a big one for FX markets with a number of key themes on the radar[11], and that statement can likely be applied across a number of asset classes as we’re
