Forex Trading Week Review June 2nd to June 7th

by Joe Oliver, Forex Trading-Pips

The Week Review, Dean Popplewell OANDA: 

Week in FX Europe – German Bond Traders Just As Bewildered As FX Dealers 

OANDAThe past week has more to do with the flight of the Yen rather than the rise of the EUR. The dollar was beaten down during a liquidity fire sale ahead of a QE tempering employment argument release, rather than the market love for a “unionized currency” that was temporarily pushed to test new quarterly highs. The 17-member single currency recent strength has mostly been a direct byproduct of dollar positioning under threat ahead of a highly influential US data point. Now that the NFP release has come and gone, and an FX market no more the wiser on the Fed tapering QE question front, will surely lead to an volatile summer for most asset classes. Expect investors to find themselves living from one fundamental benchmark to another. 

Week in FX Americas – Canada Bests US Jobs by a Country Mile- 

It’s not true – the Toronto Star did not hire an extra +35k employee to follow their beleaguered Mayor. Canada posted an eye-popping, decade best, +95k new jobs in May. To understand somewhat the significance of the print – by superimposing it on its largest trading partners economy, the US, that’s the equivalent of nearly +1-million new jobs being created down south. In contrast, the US managed to edge market expectations by a whisker, printing+175k new jobs in May. Both countries unemployment rates are heading in opposite direction. Canada has managed to shave 2/10th off theirs, to report a +7.1% unemployment rate, while the US adds a 1/0th to up theirs to +7.6%. However, buyer loonie beware. This Canadian jobs report should be taken with a grain of salt, as one employment report does not completely change a trend. 

Week in FX Asia – Is the Yen’s Apocalyptic Move Over? 

This week’s breakdown in the Nikkei and USD/JPY will have many who have entered into the two most crowded trades (long Nikkei and short Yen) worried. The wild Yen move is trying to confirm technically, what many have believed was a correction of Abenomic rallies, may in fact be considered a reversal, especially now that the Nikkei has broken through its -25% correction level and USD/JPY printing a sub- ¥96.00 low. What’s Japan to do to stem Abenomics opposition? The MoF will have to consider how far they can test the remaining G20 members if they ever contemplate implementing any “possible intervention.” Finance Minister Aso said that they are watching the currency moves, and there is no immediate need to intervene. Economic finance Minister Amari has indicated that equities and FX moves will continue to be driven by external factors. 
ASIA Week in FX


  • CNY New Yuan Loans
  • JPY Bank of Japan Monetary Policy Statement
  • JPY Bank of Japan Rate Decision
  • EUR Euro-Zone Gross Domestic Product
  • GBP Gross Domestic Product Estimate
  • NZD Reserve Bank of New Zealand Rate Decision
  • AUD Employment Change
  • EUR ECB Deposit Facility Rate
  • EUR ECB Publishes Monthly Report
  • USD Advance Retail Sales
  • USD U. of Michigan Confidence

….more at Week in FX 

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