Trading Video: Dollar, Euro and Equities Top Market Movers Next Week
Talking Points:
• Volatility is the primary concern this week as the market decides: another pullback or true trend change
• The Dollar's run at risk of stalling without a further speculative collapse or recharged rate forecasts
• An ECB rate decision anchors a stormy fundamental week for a troubled Euro
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The durability of two burgeoning fundamental themes will draw FX traders' attention this week: the permanence of the most recent swoon in risk trends and the dollar's charge on rate expectations. Following incredible momentum on both fronts this past week, tell-tale hesitation began to arise before terminal velocity was met. For the greenback, the NFPs and employment data may have knocked the currency off pace; and the lack of heavy event risk ahead may create trouble for bulls. Market-wide speculative positioning presents a much more comprehensive threat / opportunity. The transition from a backdrop of quiet congestion to one of trend development rests with on a particular bearing in sentiment. Will volatility hold out long enough to mark that evolution? We discuss these and other major trading themes in the Weekend trading video.
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