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Week in FX AMERICA Sept 9-14: Getting Rid of the USD Quickly

The “Big dollar” is likely to lose ground most persistently against higher-yielding EM currencies, especially those, which are considered, undervalued such as the INR and MXN. The JPY is also likely to resume gains in a world where most G10 CBanks are in easing mode. This will surely upset the MoF and BoJ who have been rather vocal in trying to preserve currency normality without it being held to ransom by speculators. The market will need to refocus on the poor Euro fundamentals and Grexit before we see dollar market support again. This market move is “rich.” Despite the bigger than expected Fed stimulus, one hears the rumblings of “diminishing returns of QE.” Many are looking to fade the EUR gains, although so far the only fading would be hard end profits. Counter trading the CBanks, the ECB, Fed and PBoC stimulus can get very costly.

Below are some other highlights of the week:


AMERICAS

 

EUROPE Week in FX [1]

ASIA Week in FX [2]

 

WEEK AHEAD

  • Week starts with AUD and GBP MPC minutes and JPY rate release
  • Inflation data come from GBP and CAD
  • EUR Germany has ZEW Economic sentiment
  • Manufacturing index are produced in CNY, EUR and USD
  • NZD has its current a/c and GDP to discuss
  • USD gives us Building and Home sales data
  • GBP has Public sector Borrowing and Retail Sales to divulge
  • ECB’s Draghi end the week at the podium

 

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
Dean Popplewell

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