The week that passed showed us great volatility in the US Dollar. The ongoing US Dollar trade war gave a great potential for price actions in the Forex market. The Euro zone summit has also left the market in a state of uncertainty especially since the immigrant question is still in a state of being undecided. The US Dollar and Euro is expected to face wider volatility in the week to come as well.
We will still keep our eye on the US Dollar in the week to come. Previous week left us with a relatively flat market sentiment. The continuation of the US Dollar trade war however leaves us with a bullish outlook on the USD.
US Dollar Trade War Market Movers in the Week to Come
The latest measures of the market punching between US and China has strengthened the concerns of a full blown trade war. This is likely to drive the Forex market sentiment in the week to come. The US is likely to set active a 25% tariff on 35 billion USD in Chinese goods on Friday. China is expected to answer with nothing less.
In the week to come we will also see the release of the minutes from the Federal Reserve. On other hand, we expect a quiet week on the European market. The release of the German industrial production data, but is not likely to create any higher volatility. The Activity in the dominant services sector report will be released in UK. Thus, it will give a further indication if the Bank of England will rise the interest rate in the coming month.
The weekly outlook that we provide every week is a slight overview over fundamental events in the Forex market. It is of course up to you if you decide to include fundamental analysis in your trading plan. However, it is without doubt that some of the fundamental events we describe has a larger impact on market volatility.