Fundamental Forecast for US Dollar: Bearish

US Dollar Looks for Lifeline in Earnings as Data Flow Buoys Sentiment

Currency traders' perpetual obsession with the trajectory of monetary policy would imply the Federal Reserve monetary policy announcement ought to be the center of attention in the week ahead. The outing is unlikely to be as market-moving as one might suspect however. Indeed, coming on the heels of a reboot of quantitative easing just last month, it seems unlikely that Ben Bernanke and company are geared to deliver anything significant besides a restatement of the new status quo. Indeed, policymakers are almost certainly in wait-and-see mode for some time from here as they assess the effects of the new MBS purchase effort.