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Is EUR euphoria premium to be priced out?

The dollar is tired battered and bruised and certainly did not see the strength of EURO euphoria coming this week. In just a few short sessions “tail risk” price has been markedly reduced. Certain dealers will tell you that the market is putting the “donkey before the cart” and some of the euphoria “premium” will have to be revalued. The Euro-summit deals need to hold up to scrutiny. Policy makers and leaders have a tough marketing job ahead of them to maintain this market euphoria.

On tap for next week, month end flows are expected to be dollar negative. The market again will have to be nimble with the amount of event risk being produced. The ECB, RBA and FOMC all have policy statements due, certainly easing and QE3 questions will be asked. Capital markets will end the week with the ‘King of Kings’, the Non-Farm Payroll release and the G20 meetings.

Below are some other highlights of the week:


AMERICAS

 

EUROPE Week in FX [1]

What will the BoJ do? [2]

 

WEEK AHEAD

  • Market gets rate and policy announcements from the RBA, FED and ECB
  • GDP data from CAD and GBP
  • Manufacturing releases from CNY, GBP and USD
  • Employment changes and costs, NZD, USD and CAD
  • Building consent and permits from NZD, GBP and CAD
  • Retail Sales comes from AUD
  • Ending the week with CAD Ivey PMI

 

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
Dean Popplewell

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