IntelligentHQ Forex Week In Review In Association with OANDA Corporation
Report by Dean Popplewell
Dean 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 writingOANDA’s daily forex blog since January 2007 as a way to share some of his forex experience with the OANDA community.
Week in FX July 15-20
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
Forex Order Book
A 24-hour summary of open orders and positions
Forex Open Position Ratios