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Week in FX Europe Ben left the door open and Draghi?

Ben failed to deliver. Will Draghi also disappoint those who are betting large on a big bond buying announcement by the ECB next week? Neither policy leader seems to have the political support to press ahead with the monetary stimulus plans they have in mind. To really understand how much support they have the market will have to wait until the second week of September. Many are now predicting that the 12-13 of next month will be the most important FX trading day of the calendar year. The Fed’s next two day meet ends on the 13th and that’s the day the market gets to see if Ben and his QE3 advocates get the support they require. Draghi is in the same boat, also lacking political support. He too wants to launch a new program of bond buying to help Spain and Italy; however he lacks sufficient support within the euro-zone as a whole. Germany, the most important Euro creditor remains “leery of any plans to provide more aid.” On the September 12 a German court will rule on the legality of the two European bailout funds (EFSF and ESM). Both events should provide the biggest event risk of that week.

Below are some other highlights of the week:


EUROPE

 

AMERICAS 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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