Weekly Fundamental Forecast: US Deficit Crisis Weighs FX Markets

US Dollar Forecast - US Dollar Volatility and Direction in US Government’s Hands

Through Friday’s close, the dollar has dropped for five consecutive weeks (the longest slide in three years) and probed a five-month low.

Euro Forecast - Should US Fiscal Tensions Eases, Euro Will Ultimately Gain

The Euro saw a dip late-week but overall remains supported by a less dovish than expected ECB. A steadying in Euro-Zone data will prevent further accommodative policy action, which will only help the Euro as it will be a sign of an economically improving Europe.

Japanese Yen Forecast - Japanese Yen at the Mercy of US Fiscal Monetary Policy Clues

The Japanese Yen is at the mercy of US fiscal and monetary policy trends as the government remains shuttered and investors ponder the Fed’s intent to “taper” QE.

British Pound Forecast - British Pound May Have Set 2013 Peak – Two Key Themes to Watch

The British Pound surged to fresh year-to-date highs only to finish lower versus the US Dollar, suggesting that the previously high-flying Sterling may have set an important top through recent trading.

Weekly_Fundamental_Forecast_US_Deficit_Crisis_Weighs_FX_Markets_body_x0000_i1027.png, Weekly Fundamental Forecast: US Deficit Crisis Weighs FX Markets
Weekly_Fundamental_Forecast_US_Deficit_Crisis_Weighs_FX_Markets_body_x0000_i1027.png, Weekly Fundamental Forecast: US Deficit Crisis Weighs FX Markets

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Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.

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