Trading Video: Dollar and Stock Run to Struggle Without Backing

By DailyFx | Updated August 22, 2014 AAA

DailyFX.com -

Talking Points:

• Two themes eclipsed the financial headlines last week: the efficient risk rebound and the dollar's rally

• Both found strength in the status quo, but extending their trends requires more

• Strong moves behind the Dollar, Euro, Pound, Kiwi and Yen will be put to the test this week

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Despite the uneven impact of fundamentals this past week, key market-based trends - like that of the Dollar and S&P 500 - were surprisingly consistent. Yet, both of these drives faces its own headwind moving forward and could stall or even reverse without the proper motivation to reinforce the speculative buildup. For equities and the Yen crosses, the risk appetite rally has burned through the 'risk premium' that speculators look to jump on when complacency prevails. To continue with the S&P 500 at record highs and USDJPY attempting to break a 15-year bear trend, commitment is critical. Meanwhile, the greenback has advanced without support of its safe haven status or a material rate forecast upgrade. Conviction once again rules. We review the markets in the Weekend Trading Video.

Sign up for John’s email distribution list, here.

You May Also Like

Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Dollar May Not Have a Quiet Thanksgiving...
    Forex News

    Dollar May Not Have a Quiet Thanksgiving...

  3. Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance
    Forex News

    Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance

  4. AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility
    Forex News

    AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility

  5. GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP
    Forex News

    GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP

Trading Center