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Dollar shines after an underwhelming summit

Timothy shuffling over to Europe and declaring that he had “a lot” of confidence in efforts by France and Germany to ramp up Euro-zone fiscal governance with proposed EU treaty changes seem to have done the trick. On the face of it, the Euro summit squeezed through an underwhelming “new” agreement alongside the EU treaty with a tougher deficit and debt regime to insulate the region against the debt crisis. China on the other hand could only come up with a +$300b investment vehicle. Will Geithner’s “strong arming” Europe pays off? The acid-test will be if such an agreement could ignite sustained recovery in appetite for Spanish and periphery bonds. Of course, the US has the Euros back; it’s in everyone’s interest that the Euro survives.

Below are some other highlights of the week:


AMERICAS

 

EUROPE Week in FX [1]
ASIA Week in FX [2]

 

WEEK AHEAD

  • We start the week with CNY and AUD Trade Balances
  • Inflation reports and hearings come to us from GBP and US
  • FOMC rate decision on Tuesday and SNB on Thursday
  • Germany gives us her ZEW Economic sentiment
  • Claimant changes are presented in the UK and US
  • The USD and GBP deliver us Retail sales
  • Philly Fed Manufacturing ends the week for the US

 

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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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