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Week in FX: Europe December 4-9

This week was supposed to be an historic week for the EUR. It’s actually ending on a whimper. The ECB cut rates and delivered more significant measures to improve bank funding conditions. However, the ECB has again stopped short of signaling a level of support for peripheral bond markets. Even the Euro summit progress today towards fiscal union will not trigger an accelerated pace of bond purchases, end result, this will leave the EUR vulnerable. Market participants will now be trying to anticipate any ECB market activity early next week. The market needs to be convinced that the EU actions will be great enough to avoid a credit downgrade from the ratings agencies, which could come as early as next week.

Below are some other highlights of the week:


EUROPE

 

AMERICAS 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

 

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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