Forex Week In Review October 1st to October 5th

Forex Week In Review In Association with OANDA Corporation

Report by  Dean Popplewell

bio_dean-e1339923416435Dean 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 writing OANDA’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 HUF Appreciation Questionable after Concessions

The Hungarian government ended the week making some new ‘perception’ concessions to the EU/IMF contingent. In its reviewed budget plan, the government said it will exclude the central bank from the transaction tax. Until now this had been the key sticking point in aid talks with the EU/IM. The HUF is rounding off the week on firmer footing on the news that a transaction tax on central bank operations will be removed from next year’s budget. The government has revised its deficit forecast from +2.2% to +2.7% of GDP for 2013. Despite the market taking this as a positive development, analysts note that two issues suggest caution. First, despite the transaction tax having already been passed as a federal law, the government’s announcements are only just “proposals”.

Week in FX Americas Obama’s Dollar Gets a Helping Hand

President Obama has got to have a smile on that poker face of his, especially after a ho-hum showing at the debate this week. Non-farm payrolls are coming up trumps and in favor of his administration, more so now than a couple of months ago. The US unemployment rate has fallen (+7.8%) to its lowest level since his inauguration as the economy continues to add jobs. A sign of steadier economic growth may help the Presidents campaign to win a second term in office. US payrolls increased by a seasonally adjusted +114k jobs in September, despite being below the general forecast by -4k, the previous two months were revised higher by a collective +86k jobs.

Week in FX Asia Oct: Japanese Car Industry Stalls 

Japanese car makers sales are set to plunge, more so now after public protesting and calls for boycotting Japanese products broke out across China a fortnight ago. Violent outbreaks have occurred on the back of Japan buying a group of disputed islands in the East China Sea from private owners. Already Toyota Motor Corp Chinese sales have fallen approximately -40% to around +50k unit’s last month on a y/y basis.
ASIA Week in FX



  • EUR German Trade Balance
  • USD Fed Releases Beige Book Economic Survey
  • CNY New Yuan Loans
  • AUD Unemployment Rate
  • JPY Consumer Confidence
  • EUR German Consumer Price Index (YoY)
  • EUR ECB Publishes Oct. Monthly Report
  • USD Trade Balance
  • USD U. of Michigan Confidence

Forex Order Book

A 24-hour summary of open orders and positions

[embedit snippet=”forex-order-book”]

Forex Open Position Ratios

[embedit snippet=”forex-open-position-ratios”]