Apart from bouts of debt-crisis anxiety, the euro for some time has mainly been driven by risk appetite. This strategist says it's time to watch fundamentals.
In spite of Washington's endless budget crises, the ratings agency triumvirate have been strangely reluctant to pull the trigger on another ratings cut.
In case the turmoil in Italy isn't exciting enough, this week brings the post-sequestration jobs report, and this strategist has a currency trading playbook.
Equities have already surged in Japan as the yen falls, but with monetary easing looking increasingly likely, stocks are set to receive a further boost, according to one financial advisor.
The recent weakness in the resilient Australian dollar, which is down from its multi-month highs, is not due to talk of a rate cut or worries over China's patchy economic recovery. The drop is thanks to Japanese investors.
Despite Finance Minister P Chidambaram's promise to put India's fiscal house in order in his latest budget plan, ratings agency Fitch said the country's credit rating – which is teetering on the brink of 'junk' status – will more than likely be downgraded.
An inconclusive election result in Italy that raises the specter of policy deadlock in the euro zone's third largest economy, appears to have stopped a stellar euro rally and could mark a turnaround in the currency's recent good fortunes, analysts said.
This week's sharp rebound in the yen suggests the currency's steep downtrend that began in November on the back of calls for aggressive monetary easing in Japan may well be over as uncertainty and fear return to the market
As the spotlight is thrown back on the euro zone crisis amid a political stalemate in Italy, investors are scrambling for beaten-down safe havens, scooping up gold and the yen.