Last week has brought new portion of negative economic data and investors moved their attention to gold and “safe haven” currencies (CHF, JPY, and USD). This week will have a lot of important events. One group of the events can be easily predicted – the rate decisions from Australia, Canada, UK, Japan and EU. Most likely nobody will change these rates.
EUR/USD is moving to the support level of the few month long horizontal channel at 1.40 and if this level will be broken the pair will move down to 1.30, prices of January, 2011. An opposite move will be possible if US economic leaders will publish more information related QE3 start date. In this case the US dollar will be under big pressure and EUR/USD will go back to 1.455 or higher.
CHF and JPY have a strong chance to grow, but they are still under pressure of the possibility for the intervention form the governments. If we will not have any news about the interventions, these currencies definitely will continue their rally.
The oil price didn’t change during last week, but the oil related currencies (AUD, NZD, and CAD) were traded low, because most investors step out from the risk. Most likely this movement will continue for the next week, if we will not have more information related to the QE3.
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