Week in FX Europe-The EURO’s Teflon Capabilities

Today’s "Teflon" Currency, or the EUR to some of us, remains unaffected by any negative data and continues to climb as we go deeper into the holiday season. Friday’s mid-morning North American bounce was fuelled mostly by a London fix and some year-end demand for the single unit. It seems that this market has chosen, once again, to focus on positive Chinese manufacturing PMI data to maintain this elevated risk sentiment.

Bernanke and his fellow policy maker’s actions mid-week have, so far, given the green light to renewed risk sentiment heading into the final week of reliable trading for 2102. Currently, there are probably only two scenarios that could possibly reverse what’s taking place, the first being a disastrous fiscal cliff negotiations and the second being another implosion in Europe. The odds on either happening are not getting any shorter!

 

WEEK AHEAD

  • GBP Core Consumer Price Index
  • GBP Bank of England Minutes
  • NZD Gross Domestic Product
  • JPY Bank of Japan Rate Decision
  • EUR German Producer Prices
  • USD Gross Domestic Product
  • GBP Gross Domestic Product
  • CAD Gross Domestic Product
  • CAD Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Dean Popplewell

Director of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell