IntelligentHQ Forex Week In Review In Association with OANDA Corporation

Report by Dean Popplewell

Dean Popplewell has a wealth of forex experience: professional currency trader for 10 years, fixed income trader for four years, and head of the global trading desks at various financial institutions in Canada. Dean is OANDA’s resident currency analyst and has been writingOANDA’s daily forex blog since January 2007 as a way to share some of his forex experience with the OANDA community.

Week in FX Europe 1-6 July

We have a similar landscape with two different CBank stories occurring this week. The ECB’s policy easing could be viewed as increasing the attraction of the single currency as a funding vehicle against higher yield emerging market currencies. The fears of systemic risk aside, expect the market to use the EUR to fund growth currencies when volatility and carry become elevated.
EUROPE Week in FX

No Surprises from China

China was not going to be left out of all the CBank fun this week. In a surprise move and for the second time in less than a month, the PBoC has lowered the one-year rate by -0.31% and the deposit rate by -0.25%. Policy makers have obviously taken a peek at next week’s data and the easing is a good indicator in what to expect for growth and inflation releases.
ASIA Week in FX

NFP not to trigger Fed action

Consensus believes that the tepid NFP print is not so bad that it would trigger some sort of immediate Fed reaction in the form of new stimulus. The reality is that the US unemployment rate is stuck, hiring rates are modest, and the bottom has not fallen out of the jobs market just yet. Despite all this, Obama has got to be concerned.
AMERICAS Week in FX

WEEK AHEAD