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A Yen to Lead

Other regional data and policy innovation has mostly been positive for the Asian region this week. The Fed’s surprise extension of its commitment not to raise US rates for another 18-month’s, until late 2014, “should be the key to medium-term development”. Yen is expected to be the natural beneficiary of the latest dovish rhetoric by Bernanke and company and monetary easing by other G10 members. The lack of attractive yield opportunities complicates Japans current account recycling efforts. The stronger than expected Euro area flash PMI’s this month should be Asia’s strongest macro support (it suggests that the regions exports have ‘bottomed out’). Analysts historically use this indicator as a bellwether for Asian currency appreciation.

Below are some other highlights of the week:


ASIA

 

AMERICAS Week in FX

EUROPE Week in FX

 

WEEK AHEAD

  • CAD kicks off with its GDP
  • Manufacturing and non PMI’s come to us from CNY, GBP and USD
  • Building and Construction reports are delivered from NZD, AUD and GBP
  • The Swiss have Retail Sales and the Aussies their Trade Balance
  • Housing Price Index are presented in GBP
  • Consumer confidence is reported in the USD
  • The week is dominated by the employment situations in USD,CAD and NZD

 

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Dean Popplewell

Dean Popplewell [5]

Vice-President of Market Analysis at MarketPulse [6]
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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