Week In Review June 23rd to June 28th

by Joe Oliver, Forex Trading-Pips

Week In Review June 23rd to June 28th by Dean Popplewell OANDA:

oandaWeek In FX Europe – Market Cannot Side-Step All Fed Rhetoric

Investors have had to side step month-end, quarter-end and mid-year portfolio adjustments. However, they could not escape some compelling Fed rhetoric on the final Friday of June. Since helicopter Ben’s failed attempt at transparency at last weeks post-FOMC press conference there have been no fewer than five Fed speakers attempting to clarify his points. The plethora of Fed speakers have gone out of their way to point out that the market has got it wrong with the rate outlook. Fed’s Fischer, Dudley, Powell and Lockhart have used adjectives like “feral hog’s” and “cold turkey” to describe some of the out-of-sync rate movements that investors have endured over the past nine-day’s.
EUROPE Week in FX

Week In FX Americas – Loonie Loses Rock Star Status

The Canadian Economy has now officially lost its financial rock-star mentor, ex-BoC governor Carney. Next Monday, on Canada Day, Mark Carney starts his new role as the new top dog at the Bank of England. He has left the loonie in the capable hands of new governor Stephen Poloz. After five years at the helm, and in some of the most interesting of financial times, the CAD happens to be encroaching on its two-year lows outright. Early on Friday morning the CAD got a mild boost from its April growth data being on target with market expectations. The +0.1% gain in GDP was mostly driven by the +0.3% gain in the services sector. Despite the headline print being optically positive, analysts note that the underlying reality is suggesting a different story line.
AMERICAS Week in FX

Week in FX Asia – Indian Rupee Recovers After Slump Boosted by Reforms

This week the Indian Rupee touch a historic low (60.80) as fears that the US Federal Reserve could start its QE tapering program sooner rather than later. Positive fundamental indicators like a narrower deficit and advances in the energy reform from brought the currency out of the low point. The currency finished the trading week at 59.67 after an impressive two day recovery. The INR received outside help as what seemed to be genuine fears of a short term tapering by the Fed continued to be dismissed as more Fed members have questioned the move. In the short term it will be unlikely, although it is not discounted further down the year. September is the earliest most analyst see a change in US monetary policy, with some observers going further until the end of the year.
ASIA Week in FX

WEEK AHEAD

CNY Manufacturing PMI
EUR Euro-Zone Consumer Price Index Estimate
EUR Unemployment Rate
USD ISM Manufacturing
AUD Reserve Bank of Australia Rate Decision
GBP Bank of England Rate Decision
GBP BOE Asset Purchase Target
EUR European Central Bank Rate Decision
USD Change in Non-farm Payrolls
USD Unemployment Rate
CAD Net Change in Employment