Risk trends defined the dollar’s rally; and they can likely bring it to a close. Over the past week, the greenback’s status as a primary safe haven and funding currency was still in control; but the underlying currents of sentiment had shifted.

Be sure to join DailyFX Analysts in discussing their outlook for the Fed and its impact on the dollar in the DailyFX Forex Forum

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Line Changes:
None

Position Changes:
None. Short

Order Changes:
Stops moved to 10334 March

Talking Points
• Japanese Yen: Continues to Lose Ground
• Pound: U.K. Jobless Claims Rise 23.5K in January
• Euro: Trade Surplus Widens in December
• U.S. Dollar: Housing Starts, FOMC Minutes on Tap

Read more: DailyFX - British Pound Weighed by BoE Comments, Euro Tips Lower Ahead of FOMC Minutes DailyFX - British Pound Weighed by BoE Comments, Euro Tips Lower Ahead of FOMC Minutes

Line Changes:
> Raised angle of Stay Line
> all other lines are superfluous

Position Changes:
> None. Still short.

Order Changes:
> None…but ready

Comments:
> The Stay Line needs to be above the Trend Line at this point in time…

This week’s calendar may seem tame compared to last week’s but there are still some significant releases that can have an impact on price action, especially since we will have to wait until mid-week for the first major event risk. The U.K. inflation report should garner significant interest with rates near the central bank’s threshold. Consumption figures in the world’s largest economy and EZ GDP are also potential market movers that could have broader implications.

• BoE Quarterly...