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Week in FX Europe April 22-27

Investors will continue to view this as a EUR relief rally without teeth unless resistance is firmly broken or the slew of weak PMI’s right themselves. The markets current low level of risk appetite is partially due to the lack of a core market trend. The availability of limited carry amongst G10 currencies is not providing enough compensation to want to embrace it. Even Central Banks absence of market hand holding is dissuading investors from strapping on more of it. Do not forget the data, regionally it has softened, and despite a good US earnings season, the lack of market volatility indicates many investors have been sidelined. Asia on the other hand has less of an “homogenous” economic cycle and analysts believe this reason alone will lead to the growing divergence of currency performance in their favor. However, until the lack of market conviction attitude changes, the market is in danger of just plodding along similar to the last couple of weeks.

Below are some other highlights of the week:


EUROPE

 

AMERICAS Week in FX [1]

ASIA Week in FX [2]

 

WEEK AHEAD

  • Busy week with rate and rhetoric deliveries from AUD and EUR
  • Service/Manufacturing PMI’s are released in CNY, GBP and USD
  • NZD presents business confidence data
  • GDP and Ivey PMI is announced in CAD
  • CHF has Retail Sales
  • Mid-week has NZD employment while USD Payroll ends the week

 

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