US Dollar: waiting for the FOMC minutes
On Friday the US currency has recovered some ground on the back of the upbeat labor market figures and ISM manufacturing PMI released later in the day. US Dollar index pushed back towards the 95 mark.
Will the US Dollar return to the bullish trajectory next week? I believe the market has some space for correction, but my medium-term view for the greenback remains bearish. Monetary authorities will not let the dollar strengthen too much in the current unstable global conditions. We believe next week buying EUR/USD, AUD/USD and NZD/USD is a good trade idea.
As for the new week, watch the US non-manufacturing PMI on Tuesday (forecast - upbeat). FOMC meeting minutes will be released on Wednesday. On Friday, we’ll hear Janet Yellen participating in a panel discussion at the International House.