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Week in FX Americas Helicopter Ben leaves the Door Open

Anyone looking for some clear evidence from Bernanke on the Fed’s next steps in Jackson Hole was left disappointed ahead of the long weekend. He again pledged to provide additional support as needed, without mentioning any new specific bond buying program. The central banker sees continued economic weakness and called the state of the labor market a “grave concern.” A good deal of his highly anticipated speech was defending the effectiveness of his past actions. However, he stopped short in “tipping his hand,” saying that of the tools currently available to policy makers, “we should not rule out further use of such policies if economic conditions warrant.” He indicated that the Fed “will provide additional policy accommodations as needed.” He went on to state that additional bond buying and forward rate guidance “have been and can continue to be effective” in providing economic support. All of this would suggest that he is leaning in the way of action, without actually saying so.

Below are some other highlights of the week:


AMERICAS

 

EUROPE Week in FX [1]

ASIA Week in FX [2]

 

WEEK AHEAD

  • It’s monetary policy announcement week, AUD, CAD, GBP and EUR
  • Employment focus in AUD, CAD and USD
  • Retail Sales and Trade headlines come to us from AUD and CHF
  • Manufacturing data is produced in GBP and USD
  • Inflation numbers are released in CHF and CNY
  • CAD has building permits
  • EUR has the Spanish 10-year auction to take down

 

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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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