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IG, so you can try out trading with zero risk. We’ll email you login details shortly. Dollar Rate Talking Points The U. USD slipping to a fresh weekly low on Friday, but developments coming out of the U. September suggest that growth is slowing somewhat more than expected. December, and Chairman Powell and Co. However, the FOMC may have a difficult time in defending a dovish forward-guidance as the updated GDP report is also anticipated to show the core Personal Consumption Expenditure, the Fed’s preferred gauge for inflation, holding steady at 1.
Signs of sticky price growth may encourage Fed officials to retain a longer-run interest rate forecast of 2. Looking for a technical perspective on the USD? Are you looking to improve your trading approach? Want to know what other currency pairs the DailyFX team is watching? Fundamental analysis, economic and market themes. A burst of seesaw volatility ultimately left the Euro with a loss last week.
Follow-through was not in the cards however, with subsequent corrective pullback turning into an outright selloff courtesy of dismal PMI data. DATA FLOW, ECB COMMENTS MAY WEIGH ON EURO The week ahead offers ample opportunities for data-driven price swings. Germany’s IFO survey of business confidence as well as CPI updates from the Eurozone’s top-three economies are on tap. Downside surprises echoing the broad tendency of incoming news-flow to undershoot baseline forecasts over recent months might drive a dovish shift in ECB policy bets, weighing on the single currency.
As it stands, a new round of LTROs has been unveiled and interest rate hikes have been delayed at least through 2019. Sellers may be emboldened by language suggesting that even greater accommodation may be in tow as growth sputters. Looking for a technical perspective on the euro? ANOTHER BREXIT VOTE THREATENS VOLATILITY On the external front, the next chapter in the messy Brexit saga is probably the most potent of catalysts. Parliament will once again be asked to vote on a version of the withdrawal bill backed by UK Prime Minister Theresa May.
Two earlier drafts suffered crushing defeat. If not, the new deadline will be the uncomfortably closer April 12. If Mrs May falls short again, the government is likely to apply for a longer-term extension and plan for the UK to take part in the upcoming EU Parliament elections. JPY Flash-Crash Rebound Looks to U. JPY may face range-bound conditions ahead of the next Federal Reserve interest rate decision on January 30 as the central bank adjusts the forward-guidance for monetary policy, but fresh data prints coming out of the U.