Make or Break Week for US Dollar as the Fed Decides the Taper
The Dow Jones FXCM Dollar (ticker = USDollar) endured a critical tumble this past week – a move that threatens to seismically alter a nine-month bull trend for the currency. Yet, both technical break and trend ambitions can be immediately reversed by one critical piece of event risk: the Federal Reserve’s June rate decision.
Euro and US Dollar Traders on Edge Ahead of Critical FOMC Decision
Yen’s Gains to Extend as BoJ Stands Pat, Fed Tapers Less than Expected
The Bank of Japan is firmly on hold despite recent volatility in Japanese financial instruments, which keeps the bull case for the Japanese Yen intact. Furthermore, with US Treasury yields set to fall and European peripheral yields set to rise, the Yen looks well-suited to gain further against the Euro and the US Dollar.
British Pound Eyes Fresh Highs on Faster Inflation, BoE Minutes
The British Pound extended the rebound carried over from the previous month, with the GBPUSD climbing to a fresh monthly high of 1.5736, and the sterling may continue to appreciate next week should the fundamental developments coming out of the U.K. further dampen speculation for additional monetary support.
Gold Break Out Imminent on FOMC Rate Decision- $1355 Key Support
Gold crept higher this week with the precious metal posting a modest advance of just 0.36% to trade at $1387 at the close of trade in New York on Friday. Bullion price action has remained rather subdued despite the wide spread volatility seen in FX and broader equity markets with prices continuing to hold steadily below the $1400-threshold. All eyes now turn to key event risk next week as prices continue to coil into a clearly defined range.
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Source Article from http://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2013/06/15/Weekly_Forex_Trading_Forecast_Fed_Decision_Expected_to_Rock_the_FX_Market.html