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Week Ahead: RBA, NFP, Temporary Relief, Selling EUR/USD
Following numerous central bank surprises, this week’s FOMC decision to maintain the status quo will provide welcome relief for FX investors. Given such relief, we expect the periphery to recover versus EUR and JPY, while the USD should firm but not surge in the week ahead. Fears over Greece persist and the liquidityimpact of weaker oil prices will be ongoing. Both factors are significant in the new era of ECB sovereign QE. Our forecasts therefore continue to predict a stronger USD, weaker EUR and JPY, and peripheral pressure. What we’re watching: RBA – Regardless of improved labour market conditions and higher ... (full story)