A week of heavy news events are almost complete and the Dollar seems to have come out of it smelling of roses. Interest rate decisions by four central banks have come and gone without any surprise. A rate increase seems less likely for the coming months based on fundamentals and the Fed's current tone.
The credit market is far from normal levels but the Fed's actions seems to have improved public confidence and perception.
The recent Dollar strength is showing the confidence but the Dollar Index doesn't quite confirm that just yet on the weekly outlook. The weekly Dollar Index chart is below.
Javid's forex analysis can be found here.
Have a great weekend.
FX Analyst
Anne Chapman
Chart courtesy of Advanced Get. Data provided by eSignal.
