OANDA Forex Trading Week In Review July 7th to July 12th

by Admin

Forex Trading Week In Review by Alfonso Esparza & Dean Popplewell of OANDA

Week in FX Europe – Political Scandals Threaten Economic Recovery 

The EUR recovered this week versus the USD. The single currency started the week trading around 1.2816 in the Asian session after a very strong Non-farm payroll figure in the US. The EUR received a strong shot in the arm on July 10, as the Fed’s minutes were released. Shadows were cast on the end of quantitative easing in the United States with a divided Fed membership. The EUR shot up to above 1.31 and was able to maintain some gains even after Fitch Ratings downgraded France. At the end of trading on Friday the currency is hovering in the 1.3040/50 range. 

Week in FX Americas – Loonie Rides Alone Amongst Commodity Pairs 

The loonie ends the week stuck just south of the midpoint volatility witnessed this week. The market is on a natural pause from the Q&A Bernanke fallout mid-week. It’s a tad surprising to see the loonie hold up so well, especially as the “Big” dollar has ended the week rallying against most of its major trading partners. Next week, investors will be dealing with the fallout of the Bank of Canada interest rate decision – the first under the stewardship of new BoC Governor Stephen Poloz. Analysts note that with a stronger than expected first-half-of the year, improved commodity prices, especially crude, and economic growth growing south of the boarder, many do not expect Governor Poloz to be dropping the hawkish bias any time soon. 

Week in FX Asia – Asian Currencies get a boost from Fed Minutes 

The JPY started the week at 101.28 versus the USD until the Fed Minutes were released when it dropped to below 99. The end of the week brought a slight depreciation to end the week just above 99. The INR was coming for touching all time lows at least once in the past two weeks. The USD/INR opened the trading week at 61.05 and started to slide as the week progressed due to announcements and statements from the Reserve Bank of India that was actively lobbying to stabilize the currency. With all the effort from the RBI the INR did not go back below to 58 even after the Fed Minutes were released on July 10th. 
ASIA Week in FX



USD Advance Retail Sales
AUD RBA Policy Meeting – July Minutes
GBP Consumer Price Index
EUR Euro-Zone Consumer Price Index
EUR German ZEW Survey (Economic Sentiment)
USD Consumer Price Index
JPY Bank of Japan June 10-11 meeting minutes
GBP Bank of England Minutes
CAD Bank of Canada Rate Decision
USD Fed’s Bernanke Semi-Annual Policy Report to House and Senate
USD U.S. Federal Reserve Releases Beige Book
EUR G20 Labour Ministers Meeting in Russia
CAD Consumer Price Index

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