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The past week had probably been a sampler for what is to come as we saw the US dollar being bumped down at the start of the week from Trump’s comments, citing that the USD has been too strong. Prices later recovered with Fed Chair Janet Yellen bringing the attention back to US economic performances. This could be the struggle that we see going forward. The US dollar nevertheless retained mild declines week-to-date (WTD).
On the other hand, the jawboning down of the US dollar by the President-elect certainly raised the market’s attention to the volatility that we may experience moving forward. With the imminent Presidential inauguration, indices were seen pulling back in the week. On the other hand, safe havens including JPY and gold have registered gains. The upcoming week holds several tier one data, but expect comments from the newly minted US President to steal the attention instead.
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