Forex Forecast: Pairs in Focus

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Forex Forecast: Pairs in Focus
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TRADING TIP: Forex experts recommend going short of EURUSD this week following a daily (New York) close below this level.

The outlook regarding risk appetite is unclear. The US stock market is still in a bear market, but rose again last week, although the US yield curve remains inverted. The US Dollar Index rose again over the week, closing at yet another new 20-year high.

There were a few important economic data releases last week, which is why market volatility remained strong. The results came in as follows: RBNZ Official Cash Rate & Rate Statement – the RBNZ hiked rates by 0.50% to 2.50%, which had been widely expectedBank of Canada’s Overnight Rate, Rate Statement, and Monetary Policy Report – the BoC raised rates by a full 1.00% to 2.50%, when a hike of only 0.75% had been expected.Australian Employment dataThe Forex market saw yet another strong advance by the US Dollar last week.

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