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Asia playing second fiddle to EUR

Markets sole focus this week has been on the EU summit. Investors have been expecting the outcome to “define the next short-term trend before ECB policy expectations come into play next week.” The market has been squeezed ever since this mornings early announcement. The price action confirms that investors expectations were rather modest and that overall market positioning were leaning towards a disappointing outcome. Not getting what they were anticipating should be capable of squeezing more upside out of this market, even if its a holiday shortened trading week.

Now its all about market confidence in the Euro leaders “to break the bank-sovereign loop” and their success in working together to strengthen the financial architecture. If the market ends up reaching a tad too far on this first go around, the bears will be expected to take control again quickly.

Below are some other highlights of the week:


ASIA

 


AMERICAS Week in FX

EUROPE Week in FX [1]

 

WEEK AHEAD

  • AUD, GBP and EUR Cbanks deliver their rate and QE recommendations
  • Sales data is presented by CHF and AUD
  • GBP and USD release some manufacturing reports
  • Building and construction data is announced by AUD, GBP and CAD
  • Inflation and PMI reports are presented by GBP, USD, CHF and CAD
  • Employment landscape is analyzed by USD and CAD
  • Demand for Spanish product is tested again after the release of AUD trade

 

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Dean Popplewell

Dean Popplewell [6]

Vice-President of Market Analysis at MarketPulse [7]
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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