IntelligentHQ Forex Week In Review July 8th to July 13th

 

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 8-13 wk_hm20120713

 

 

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

Market to Speed up Asian Unwinding 

It seems that the post EU summit euphoria has completely unwound in most equity markets, but not enough in FX. All week long analysts have been pointing out that that Asian currencies or their indexes remain somewhat firm against the USD and particularly so against the EUR than before the EU summit. China this week brought forth a few surprising data points.

ASIA Week in FX

Focus shift from FED to PBoC 

As traders, we were told never to trade Friday the 13th. If we did, it was going to hurt. After yesterday’s short squeeze and Goldman’s revised one year EUR recommendation (1.40), the long dollar positions took it on the chin. Already this week the highly anticipated Fed minutes could not hold the line. Their lack of action or perception has only allowed the risk trading noose to tighten.
AMERICAS Week in FX


WEEK AHEAD

  • Retail Sales comes to us from USD and GBP
  • Inflation indicators are delivered from NZD, GBP, USD and CAD
  • AUD and GBP both release their respective MPC meeting minutes
  • The BoC presents CAD’s rate announcement
  • EUR has German ZEW economic sentiment to contend with
  • Both GBP and USD has unemployment claims to ponder
  • Building and Home sales data is released in the US
  • The week finishes with USD Philly Fed index

 

Forex Order Book

A 24-hour summary of open orders and positions

Forex Open Position Ratios