|OANDA Forex Week In Review January 6th to January 11th by Dean Popplewell|
Spare a thought for the CEE3 ensemble, otherwise know as the HUF, CZK or PLN next week. This Friday has seen many investors being steam rolled over by the magnitude and speed of the EUR, JPY and CHF moves. Next week, for a period at least, a different market pace is required when Central European inflation becomes a focus. Analysts expect a tamer Polish, but a slightly faster Hungarian rate of inflation to catch most market participants attention.
EUROPE Week in FX
Week in FX Americas – Loonies Flight Is Not As Clear As the EURs
The Loonie does not want to be left behind by its other commodity currency foes. The interest rate sensitive, oil and gold supported currency managed to print a three-month high outright on Friday against its largest trading partner, the US. Faltering only once on news that Canadas November trade deficit was bigger than expected (-$1.98b vs. -$552b).
The currency has since resumed its grind higher. However, the market can expect quite a bit of big dollar buying interest around the 0.98 cent support mark and a little below that. Topside seems to be a different matter, with little resistance until the dollar figure above, 0.99c. Because of the Loonie touch, Goldman Sachs, the motley crew with the Midas touch has been seen closing out their long EUR/CAD dollar positions in favor of a direct swap into EUR/USD. With their single currency positional play intact, their EUR for EUR return is better served against an underdog, like the Big dollar rather than many investors outside thoroughbred the loonie!
AMERICAS Week in FX
Week in FX Asia -Yen Fall a Life Saver For Exporters, But What About Debt Holders?
At the moment Yen seems only interested in one direction and that is the weaker route. Since last September the mighty dollar has taken one course of action against the currency from the rising sun, and thats the northbound appreciation highway. During this period, this one directional outright trade has seen the JPY depreciate just over +15%! Any sustained and material domestic currency weakness tends to appease the countrys exporters. But what about the debt holder, the vast majority of JGB owners, who tend to be other financial institutions or the BoJ itself?
ASIA Week in FX