* Dollar will Feel Reverberations of FOMC Decision, Greek Referendum
* Euro: Greece Heading for the Door and the ECB Under New Management
* New Zealand Dollar Tumbles as Employment Figure Meets Risk Aversion
* Australian Dollar Sees Mixed Performance in the Wake of RBA
* British Pound Will Take in Service Sector Report, but Defer to Euro Health
* Japanese Yen at High Risk of Volatility as Sentiment Wavers, Azumi Watches
* Gold Consolidating as Financial World Awaits ECB Stimulus Options
|
Written by: John Kicklighter, Senior Currency Strategist
|
| Dollar will Feel Reverberations of FOMC Decision, Greek Referendum |
Risk trends have eased up on the wholesale capital withdrawal of the opening 48 hours of trading this week. And, after such a dramatic draw on sentiment, the market is left wanting for another catalyst to determine the next phase in its evolving trend. The same need for a driver exists for the US dollar. The extreme safe haven currency may need another shock to financial stability to maintain the 3.7 percent, 5-day rally for the Dow Jones FXCM Dollar (ticker = USDollar). There are a number of big ticket events through the final two trading days of this week; but the influence they have over underlying sentiment trends is questionable. That is not a strong fundamental position for dollar bulls. On the other hand, many of the market's favored sentiment gauges have backed up to meaningful and well-worn support - and when the speculative crowd comes sees the cliff, it doesn't take much of a push to encourage a mass exodus from already strained positions. To get a sense of the influence of this collective precipice; we note that the S&P 500 is holding at the frequently contested 1,215 level, the FTSE 100 hovers just above 5,375 and EURUSD is holding the line at 1.3650. Congestion equates to a fundamental balance, which is easily tipped by risk...
|
Best regards,
DailyFX Research Team
research@dailyfx.com |
21:41
AutoForexTradingPro
