Week in FX Europe – EUR’s Kiss Of Death From Ben

The 17-member single currency got the “kiss of death” from the Fed – just like other currencies against the dollar. It has been a tough two weeks for the one of the G3 member currency. First, the market pared their record dollar longs going into this week’s watershed FOMC meet and even managed to go long the EUR, nothing aggressive mind you. Second, the market did not anticipate that ‘helicopter’ Ben and his fellow cohorts would be as hawkish as they finally where mid-week. Now that tapering is on the Fed’s table, US yields have aggressively backed up, while the fear of expensive money has global equities entering “rout” territory. All of this has resulted in the USD be crowned ‘King’ again.

The EUR is ending the week printing fresh two-week lows as concerns about Greece’s political and financial stability is enough to act like another lead weight for the common currency. The “mighty” dollar has managed to extend its rally for a fifth consecutive session on the Fed’s optimism and their transparent roadmap towards tapering. The panic and lack of liquidity has been expensive for the many individuals who seem to have been caught in the matrix headlights. Closing below 1.3145 supports the bearish momentum of the EUR.


* GBP Inflation Report Hearings
* USD Gross Domestic Product Annualized
* EUR Unemployment Change
* EUR Unemployment Rate
* GBP Gross Domestic Product
* JPY National Consumer Price Index
* JPY National CPI Ex Food, Energy
* EUR Consumer Price Index
* EUR Harmonised Index of Consumer Prices

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

Vice-President of Market Analysis at MarketPulse
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