Fundamental Forecast for the US Dollar: Neutral
- While the DXY[1] Index added +0.07%, most of its gains were given back by the end of the week following the middling December US jobs report.
- Not only are there several ‘high’ ranked data releases due in the coming days, there are testimonies and speeches by several Federal Reserve policymakers that seem destined to introduce more volatility to financial markets.
- According to the IG Client Sentiment Index[2], the US Dollar has a mixed bias heading into mid-January.
US Dollar Week in Review
The first week of the year proved to be disappointing for the US Dollar. While the DXY Index added +0.07%, most of its gains were given back by the end of the week following the middling December US jobs report. EUR/USD[3] rates finished lower by -0.20%, while USD/JPY[4] rates added +0.33%. With risk appetite fading, high beta pairs like AUD/USD[5] and NZD/USD[6] fell back by -1.24% and -1.07%, respectively. GBP/USD[7] rates bucked the trend, gaining +0.39%.
US Economic Calendar in Focus
With the holidays official in the rearview mirror, the turn into the second week of January brings about a supersaturated US economic docket. Not only are there several ‘high’ ranked data releases due in the coming days, there are testimonies and speeches by several Federal Reserve policymakers that seem destined to introduce more volatility to financial markets in the wake of the December Fed meeting minutes.
- On Monday, January 10, the November US wholesale inventories report will be released in the morning. In the afternoon, are 3-month and 6-month bill auctions.
- On Tuesday, January 11, Kansas City Fed President George will give a speech preceding testimony by
