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Week in FX Asia – Bank of Japan to Intervene as China Recovers

Economic news out of China were flat this week but were taken as good news considering the current European crisis. The Ministry of Industry and Information Technology expects China’s economic growth to accelerate in the fourth quarter. The deficit in their capital and financial account shrank but the government was quick to dismiss the notion of a capital flight. The current account surplus continued to grow. China exported 70.6 billion more than it imported during the 3rd quarter.

The Bank of Japan is considering further easing which could be announce the coming Tuesday. The decision could be trigggered after the economic recovery has stalled and exports have dropped 10% reaching levels seen after the Earthquake. This has urged politicians to look at the BoJ for direction and stimulus for the economy.

WEEK AHEAD
* EUR Consumer Price Index
* JPY BoJ Interest Rate Decision
* JPY BoJ Monetary Policy Statement and press conference
* EUR ECB President Draghi’s Speech
* CAD Gross Domestic Product
* USD Nonfarm Payrolls
* USD Unemployment Rate

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Alfonso Esparza

Alfonso Esparza [19]

Senior Currency Analyst at Market Pulse [20]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza