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Week in FX Europe July 29-Aug 3

The message from Draghi and Ben seems to be rather similar, policy response is possible, but they have yet to convince “internal skeptics of the need for immediate action.” The ECB has sent a message indicating that it “may” conduct open market operations to support the front end of the peripheral debt markets, but probably only in the context of the EFSF/ESM aid requests. The Spanish Prime Minister now suggests, after Draghi’s pressure comments, that he could consider a bailout request from the fund to help ease his country’s deepening financial crisis. The ECB’s forceful commitment to lower short term yields in the weaker peripheries has added to the views of a “great European firepower.” Spanish 2-year yields have plunged -92bps in late Friday trading and are helping to drag the EUR higher.

Below are some other highlights of the week:


EUROPE

 

AMERICAS Week in FX [1]

ASIA Week in FX [2]

 

WEEK AHEAD

  • More rate announcements from AUD and JPY
  • CHF and CNY will produce inflation data
  • Manufacturing and trade data comes to us from GBP, CAD and USD
  • GBP has inflation reports
  • Employment numbers are released in NZD, AUD, USD and CAD

 

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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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