Forex Week In Review July 15th to July 20th

 

IntelligentHQ Forex Week In Review In Association with OANDA Corporation

Report by  Dean Popplewell

bio_dean-e1339923416435 Dean Popplewell has a wealth of  experience: professional  trader for 10 years,  trader for four years, and head of the global trading desks at various financial institutions in Canada. Dean is ’s resident currency analyst and has been writing’s daily forex blog since January 2007 as a way to share some of his forex experience with the  community.

Week in FX July 15-20 

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Without either monetary or political development that can meaningfully compress sovereign spreads the odds are tipped for the EUR to test sub 1.21 sooner than we think. Peripheral markets are tighter in what optically looks like short covering. ‘Real money’ is reported to be buying the belly of the Spanish and Italian yield curve. Is it sustainable?.
EUROPE Week in FX

Is China a worry? 

China is starting to make negative headline waves. The Yuan fell to its lowest permitted level outright on Friday as concerns over the health of the Chinese economy begins to gnaw at investor confidence. Currently the yuan is allowed to fluctuate no more than +1% from a central parity level set daily by the PBoC.
ASIA Week in FX
FED Stalls and ECB denies Bonds 

The Fed dominated this week, or at least it tried to until Friday’s EUR meltdown when Spanish yields imploded to the topside and the weakening Chinese Yuan put investors on the back foot. The markets had been monitoring helicopter Ben’s semi-annual Monetary Policy Report mid-week to Congress for any strong indication of an imminent shift in favor of another round of asset purchases.
AMERICAS Week in FX

 


WEEK AHEAD

  • Inflation data come from down-under in AUD
  • Retail Sales are delivered from CAD
  • Growth numbers and housing data is released in USD and GBP
  • The EUR releases Business climate conditions in Germany
  • The Kiwis have a monetary policy review and
  • CNY will get the ball rolling with Flash Manufacturing PMI

 

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