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No Game Change For EUR

The EUR was the big looser this week, and this despite the dollar trying to give a chunk of it back on Friday. The currency nail in the coffin was this weeks latest Spanish auction. An auction that should ‘put to rest to any lingering doubts whether the LTRO related rally on peripheral debt is over.’ It was a bad auction, bad for debt markets and bad for the EUR. Spain happened to end up selling at the lower end of their range (EUR2.5b-3.5b), delivered product at higher average yields and a low bid-to-cover ratio point to investors “repricing periphery risk.” This is doing nothing for regional financial health perception. If anything, its making the ECB’s task even harder. The ECB kept rates on hold with no new news and no innovations from the meeting. On what is transpiring peripherally, expect markets to rebuild ECB easing expectations as their economies struggle. The game change has the markets looking to use upticks as fresh EUR selling opportunities as the underlying bias remains with the bears.

Below are some other highlights of the week:



AMERICAS Week in FX [1]

ASIA Week in FX [2]



  • JPY releases its current account ahead of interest rate announcement
  • CNY is busy with Inflation, Trade and Growth data this week
  • NZD deliver Business Confidence while AUD release Employment
  • USD and CAD both bring Trade numbers
  • Inflation numbers are also released in USD along with Claims


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

Latest posts by Dean Popplewell (see all [7])