Forex Week In Review September 23rd to September 28th

Forex Week In Review In Association with OANDA Corporation

by Alfonso Esparza

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Week in FX Europe – Protests in Portugal, Spain and Greece Deflate EUR 

Europe is facing an austerity backlash. Protests in Portugal, Spain and Greece speak volumes about what the citizens in those countries think of proposed measures to comply to European Union agreements. Germany continues to be the strongest economy and this week Angela Merkel has renewed her support of the eurozone. This happened during an event honouring former Chancellor Helmut Kohl the German political figure who was instrumental on the creation of the euro. Germany has ratified the European Stability Mechanism (ESM) but has capped German contribution to 190 billion euros.
EUROPE Week in FX

Week in FX Americas – Fed Member questions QE3 impact 

In the United States the bigger stories had some Fed members playing down the potential effect of QE3 as defenders rose to justify the decision by the central bank and potential to increase the bond-buying program. The amount is considerable enough (40 billion a month) to show of the commitment of the Fed to boosting the economy. Some analysts think it won’t make a significant difference and could be a time extension from the Federal Reserve to see how the European crisis evolves. The decision could be made then to expand the program if needed.
AMERICAS Week in FX

Week in FX Asia – China Slowdown to impact region growth 

Chinese industrial profits fell by 6 percent in August. Making it the fifth month in a row that registered a drop. The goverment has been asked to introduce measure to stop the slowdown and boost economic growth.The Bank of China followed the lead from the European Central Bank and the Federal Reserve by cutting lending and deposit rates. The Asian programs have smaller objectives and lagging the action of the West could be beneficial for the region as it can capture some of the benefits of its stronger currencies and higher interest rates.
ASIA Week in FX


WEEK AHEAD

  • USD ISM Manufacturing
  • AUD Reserve Bank of Australia Rate Decision
  • GBP Bank of England Rate Decision
  • EUR European Central Bank Rate Decision
  • USD Fed Releases Minutes from Sept. 13 FOMC Meeting
  • JPY Bank of Japan Rate Decision
  • USD Change in Nonfarm Payrolls
  • USD Unemployment Rate
  • CAD Unemployment Rate

 

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