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Fed pivot bets to be tested this week
FX markets enter the new year with a continuing backdrop of a weaker USD as traders bet on a Fed pivot in the first half of the year. That narrative could be tested later in the week with some key US manufacturing and employment data, including the monthly Non-farm payrolls. Key levels look to be tested this week in different FX pairs with AUDUSD and Gold both being interesting examples. AUDUSD – Gone too far, too fast? AUSUSD has had a stellar run since late October, benefitting from the risk-on environment and following equity markets higher. A weaker USD and falling US yields as traders’ position for a Fed ... (full story)