A co-ordinated game changer

A co-ordinated game changer

A game changer of a week as hawkish central bank commentary steamrolled the markets. And as the G-10 central bank band plays on, traders are now contemplating who will be next to join the lineup  No one want’s  to miss out on this party realising there’s a co -ordinated policy shift afoot and the chance to catch the removal of an easing bias is far too seductive for traders to ignore.


EUR continues it’s relentless march higher driven as much by an omnipresent apprehension that one is missing out as it is about conviction. But the groundswell of support for the Euro is undeniable as traders see this as a rare opportunity to catch a ride on the wave of shifting policy.

Japanese Yen

After peaking at near 113.00 on the upside surprise to Q1  US GDP data, a broader shift in risk sentiment sent the pair toppling to below 112 before regaining some traction.Double-digit percentage corrections on the NASDAQ are unsettling investors and risk has turned sour.

Australian Dollar

Jumping on the bandwagon appears to be the trade of the day.Everyone including their dog is clamouring for the top side of exposure on the Aussie as the markets contemplate the possibility the RBA will join the ensemble of hawkish central banks. And while a rate hike is highly unlikely next week, shifting out of neutral would be sufficient to provide the spark to push Aussie even higher. If there was ever a case made for fear of missing out, I suspect we see that  reflected in current AUD price action

Looking at the day ahead

The depth of today’s  economic calendar is of epic so that traders will be glued to their screens most of the day… so back to it.

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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes