The week ahead: RBNZ expected to cut

By FXStreet FXStreet (Guatemala) – While the main theme has been a lead up to the Fed decision this month, the week ahead looks to be somewhat quieter and absent of US data events as we move in towards the FOMC showdown meeting in the following week. As noted by analysts at RBS, we have had all the worthwhile data in respect to the FOMC’s economic monitoring requirements and a Fed lift-off is expected now on the 16th Dec. Whether this will necessarily be a lasting bullish effect for the US dollar is debatable.

The major event that took place last week was the ECB not delivering what Draghi had been inciting and the subsequent volatility in a wrong footed market-place. The euro rallied the furthest in six years by 4% on the day in a short squeeze to make one and a half month highs just shy of the 1.10 handle. This week might be one where the sidelines get filled rather than exiting more shorts although further upside cannot be written off as Valeria Bednarik, chief analyst at FXStreet suggested when she explained, “The fact that the greenback was unable to gain on a good Payroll, suggest pair …read more

Source:: FX Street