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Week in FX EUROPE Sept 9-14: EUR Bulls Squeeze Retail

It has become blatantly obvious that risk appetite has improved since the Fed made its QE3 intentions known. Announcements made by Ben and Draghi seems to have removed tail risks from the market, allowing investors to become most bullish on the EUR, RUB and MXN. At the same time, speculators are becoming more bearish on the USD, CHF and JPY. In other words, investors are not keen on the traditional low yielding save haven currencies. The market, in not unkind terms, is telling the retail sector not to mess with the CBanks. Investors seem to have become most optimistic on their assessment of the single currency in 15-months. This is not good news for 11% of the market, the retailers, who insist on being short EUR’s the past two weeks. The squeeze has begun!

Below are some other highlights of the week:


EUROPE

 

AMERICAS 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