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Week In FX: October 2-7

Another week not for the faint hearted. Bernanke was to blame for instigating ‘Turnaround Tuesday’. In his congressional testimony he was prudently efficient and forthright and not overtly cheerful about the state of the US economy. His dour understanding of the fundamentals led the market to understand that some large scale stimulus, or so called quantitative easing, was still in the Fed’s arsenal.

Fitch downgrading Italy and Spain had Friday ‘flat lining’, only hours after the market embraced risk because of a better than expected NFP print. Without any firm European recapitalization announcement, dealers are trading on speculation.

The ECB announced new liquidity measures this week but disappointed hopes for outright policy easing. In contrast, the BoE defied consensus expectations and delivered a significant new installment of quantitative easing. Before departing, Trichet reminded us that “we are in a global crisis”. In a few weeks a new man will be held responsible, Mario Draghi, the new president of the ECB.

Below are some of the highlights of the week:






  • CNY, CAD and USD give us a peek at their Trade Balance next week
  • Market get a weekly claims print from the US and UK and employment changes from the Aussies
  • UK and CNY have inflation reports to deliver midweek
  • And end the week with US sales and Consumer sentiment


OANDA Top 100 Trader Statistics [1]OANDA Order Book [2]

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.

Dean Popplewell

Dean Popplewell [7]

Vice-President of Market Analysis at MarketPulse [8]
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 2006, 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