Cautious language from Federal Reserve Chairman Bernanke sent risk sentiment reeling on Wednesday. While US rate hike expectations continue to deteriorate, markets are pricing in significant monetary tightening elsewhere, with the US Dollar caught between the opposing forces of risk aversion and a lackluster yield profile.



United States Federal...

US Dollar Struggles to Keep its Safe Haven Roots as Fundamentals Dim

Euro Strength at Risk Ahead of Stress Tests, Dow Jones Reversal

Japanese Yen May Strengthen Further As Risk Sentiment Falters

British Pound Looks to Improved Demand and Growth for Support

Canadian Dollar Looks to BoC Rate Decision, Inflation for Next Moves

Australian Dollar Momentum Turns Down, Risks of Further Declines

New Zealand Dollar At Risk As Pessimism Grows...

Price action is often deceiving. While there is little arguing that the market defines what is fair value for an asset or underlying risk premium itself; this is an assessment that is valid for only that particular point in time. While speculative interests are prevalent in the capital markets, their influence is biased and highly reactive.



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orex market volatility expectations have edged higher through the past week of trade, but relatively depressed absolute levels suggest that currencies will continue to see smaller moves in the week ahead. The Euro remains in a contained 200-point range against the US Dollar since June 14, and continued attempts at breakouts have been met with failure.

Market Conditions Summary

Forex market volatility expectations have edged higher through the past week of trade, but...

Forex Weekly Trading Forecast - 06.14.10

- Dollar on the Cusp of a Major Reversal Awaits a Clear Sentiment Signal
- Euro Resilience Suggests Currency May Recover Further Against Dollar
- Japanese Yen May Neglect Risk Trends as BoJ Sets Monetary Policy
- British Pound to Decline on Soft Data Ahead of Emergency Budget
- Canadian Dollar Trend Favors Further Depreciation
- Australian Dollar Momentum Points to Further Gains
- New Zealand Dollar Remains...