IntelligentHQ Forex Week In Review Jul 1st to July 6th

By
TradersDNA

IntelligentHQ Forex Week In Review In Association with OANDA Corporation

Report by  Dean Popplewell

bio_dean-e1339923416435 Dean Popplewell has a wealth of  experience: professional  trader for 10 years,  trader for four years, and head of the global trading desks at various financial institutions in Canada. Dean is ’s resident currency analyst and has been writing’s daily forex blog since January 2007 as a way to share some of his forex experience with the  community.

Week in FX Europe 1-6 July 

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We have a similar landscape with two different CBank stories occurring this week. The ECB’s policy easing could be viewed as increasing the attraction of the single currency as a funding vehicle against higher yield emerging market currencies. The fears of systemic risk aside, expect the market to use the EUR to fund growth currencies when volatility and carry become elevated.
EUROPE Week in FX

No Surprises from China 

China was not going to be left out of all the CBank fun this week. In a surprise move and for the second time in less than a month, the PBoC has lowered the one-year rate by -0.31% and the deposit rate by -0.25%. Policy makers have obviously taken a peek at next week’s data and the easing is a good indicator in what to expect for growth and inflation releases.
ASIA Week in FX

NFP not to trigger Fed action

Consensus believes that the tepid NFP print is not so bad that it would trigger some sort of immediate Fed reaction in the form of new stimulus. The reality is that the US unemployment rate is stuck, hiring rates are modest, and the bottom has not fallen out of the jobs market just yet. Despite all this, Obama has got to be concerned.
AMERICAS Week in FX

 


WEEK AHEAD

  • This week is dominated by trade/growth data reported in CNY, CAD and USD
  • CNY has CPI and USD PPI
  • FOMC has its minutes and the BoJ its rate decision announcement
  • Unemployment and claims come from AUD and USD
  • Business and consumer sentiment is released in CAD and USD
  • GBP has manufacturing production to digest

Forex Order Book

A 24-hour summary of open orders and positions

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Forex Open Position Ratios

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