By TraderVox.com
Tradervox (Dublin) – Next Week Forex Outlook:
UAD/USD-The cross rebounded this week as it advanced above 1.04 before retreating to 1.0370. Positive reports from Australia have led the currency to strengthen; however, the decline in China economy and the crisis in Europe might force the cross downward in the coming week. The cross is bound to remain neutral as the market remains unpleased with the bad job reports from US.
USD/JPY-global worries coming from all markets have continued to weigh down the cross. In the coming days the BOJ governor’s speech and the Japanese trade balance will affect the cross. The yen is seen as a safe haven currency by most traders as bad reports from all over the world are released. However, the BOJ is keen to keep the 80 yen per dollar level hence the cross will remain neutral over the next week.
USD/CHF-the crisis in Europe has boosted demand for the Swiss franc moving the cross downwards over the last few days. The increasing demand for the Swiss asset and negative reports from US will push the pair downward over the next week; however, if traders are pleased with Philly Manufacturing Survey, expected to be released this week, we might see the cross remain neutral over the next week.
USD/CAD-the cross has closed under parity as the market welcomed the decision by the BOC to keep the interest rates at 1 percent with a better economic outlook. The strong employment figures has countered global economic outlook hence giving the loonie some advantage; the weak NFP and poor jobless claims report has resulted to the weakening of the greenback. Hence the cross might remain neutral over the next week if the Philly Man. Survey comes as expected.
NZD/USD-the cross has moved to the highest in 6 months this week; however, concerns about China economy continues to weaken the New Zealand dollar. As such, the pair has pared the gains and is now selling at below 0.82 level of 0.8171. Next week’s outlook remains bearish as bad reports from China and Europe are expected to affect the kiwi.
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