ibtimes presents

Dollar Notches a Four Day Rally, Looking Ahead to Risk and NFPs

Though we couldn’t give the dollar top marks in its performance against all its counterparts to end this past week, the safe haven currency carried enough strength to outperform its fundamental obligations.

British Pound Outlook Calls for Mixed Performance vs. Top Currencies

Forex Trading Weekly Forecast - 05.28.2012

The sense of fear has eased for the financial markets this past week, and the relief is tangible for the fundamentally-troubled (like the euro) and high-yielding (like the Aussie dollar). That said, safe havens (the US dollar and yen) have yet to turn on this eased tension. Will this be the week of a true reversal in risk trends or will the breather end with another wave of panic?

US Dollar Can’t Keep Its Drive Alive Without Fear

If all that was necessary in developing a new trend was securing a meaningful breakout – say clearing the range high that had held the dollar back on multiple occasions over 16-months – then the greenback would be clear for takeoff. However, to drive a currency with negative real rates consistently higher, there is a far greater need for fundamentals to keep the currency bid against the natural current of risk and reward.