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U.S. Dollar Price Action Setups into FOMC: EUR/USD, GBP/USD, USD/JPY

Next week is huge for global markets, FX included as we hear from the Bank of Japan, the Fed, RBA and Bank of England, along with inflation prints from Euro-zone, the U.K., Canada and Japan.

Research

Dollar strengthens ahead of US retail sales

Investors are pricing in a higher terminal interest rate in the US

NZD/JPY: key non-USD pair in this election week

For obvious reasons, the focus in the FX markets is on the dollar this week. Much has been said about it: if Clinton wins, this will happen and if Trump wins that will happen. The truth is, no one knows what will actually happen, though we can have a good idea about what may happen. Now if you are like me, you cannot wait for the elections to be over so that we can actually concentrate on the US economy again and not on politics. If you are like me, you also wouldn’t like to be heavily-exposed to the dollar in the run up to the elections. This is when some FX crosses come handy. One such pair is the NZD/JPY, though it is not entirely immune to US elections, for it is considered to be a risk-sensitive FX pair.

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