Forex Week In Review July 22nd to July 27th

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 22-27  wk_hm20120727

 

Is this an ECB Set Up? 

It seems that the FX market wants to end this week overlooking the negative Bundesbank opposition comments to the SMP and ESM banking license. Investors prefer to hold on to the hopes of new aggressive easing measures by the ECB. This market resilience is highlighting the high level of expectations for next week’s policy meetings.
EUROPE Week in FX

Where is the US growth coming from? 

It seems that inventory growth has managed to add +0.32% to Q2 GDP growth. However, with consumer spending slowing and government outlays seen dropping, this scenario is managing to paint a picture of a recovery now struggling with too little demand and represents the beginning of slower production cycle.
AMERICAS Week in FX

China Risks US Revenge 

Is the PBoC starting to guide the yuan downward outright against the dollar after two years of trying to boost its value? The move seems to be reflecting concern in Beijing over China’s slowing economy. Is this enough of an excuse to risk a political fight with the US? Market perception is beginning to think that way now that the yuan has been trading at the lower end of its government mandated range this week.
ASIA Week in FX

 


WEEK AHEAD

  • Monetary Policy meetings from GBP, USD and EUR dominate
  • Confidence data is delivered from USD and NZD
  • Manufacturing and non along with PMI’s are released in CNY, EUR, GBP and USD
  • Sales, growth and trade are presented from CAD, AUD and CHF
  • AUD and GBP release building stats
  • USD finishes the week with employment

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