Weekly Fundamental Forecast: A Week Ending Trade War Salvo Leaves Distinct Unease for Next Week’s Trading

Sentiment was just starting to find its balance this past week when another US-China trade war headline involving the US President hit the wires. Will this theme return to prominence next week or will we fall back on scheduled event risk?

US Dollar Forecast – US Dollar Rally May Resume on Fed Rate Hike Bets, Risk Aversion

The US Dollar backtracked last week but a durable upshift in Fed interest rate hike expectations and the threat of renewed risk aversion may put it back on the offensive.

Euro Forecast: After ECB Holds, Italy to Come Back into Focus for Euro

The European Central Bank is sticking to its preset policy course as uncertainty around its inflation forecasts is receding, but with Italy back in the news, any goodwill injected into the Euro from the recent policy decision will likely be neutralized.

New Zealand Dollar Forecast – NZD Rise to Gain if GDP Sinks RBNZ Rate Cut Bets, Trade War a Risk

The recovery in New Zealand Dollar prices may continue if GDP data lowers RBNZ rate cut bets. US President Donald Trump rekindling trade war fears poses a risk for NZD/USD

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2018/09/14/Weekly-Fundamental-Forecast-A-Week-Ending-Trade-War-Salvo-Leaves-Distinct-Unease.html