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29 Apr 2013
Forex Flash: G10 currencies head off on different paths - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that G10 currencies took differing paths on Friday with JPY strengthening across the board after the slightly disappointing BoJ meeting outcome where there were indications of waffling over the 2% inflation target internally.
meanwhile, he adds that the disappointing US GDP numbers (2.5% as opposed to a consensus of 3.0%) also undermined the dollar across the board, although renewed growth concerns also saw the antipodeans under performing across the board. Over the weekend, he saw that the the formation of the Italian parliament gave the EUR a slight lift against the dollar. Looking ahead he feels that this week may well prove eventful for the markets with the turn of the month bringing the usual deluge of data (i.e. PMIs) with markets expected to continue to dwell on global growth prospects. In addition, Ng adds that the slew of central bank meetings will likely add to the potent cocktail with the FOMC on Wednesday and the ECB on Thursday. While background speculation towards the balance of opinion within the Fed with regards to its exit stance remains in a flux, the street is cautiously expecting the ECB to turn a touch dovish. In Asia, he expects the focus on the RBI meeting on Friday with investors looking for the central bank to cuts its benchmark rates by 25bp.
meanwhile, he adds that the disappointing US GDP numbers (2.5% as opposed to a consensus of 3.0%) also undermined the dollar across the board, although renewed growth concerns also saw the antipodeans under performing across the board. Over the weekend, he saw that the the formation of the Italian parliament gave the EUR a slight lift against the dollar. Looking ahead he feels that this week may well prove eventful for the markets with the turn of the month bringing the usual deluge of data (i.e. PMIs) with markets expected to continue to dwell on global growth prospects. In addition, Ng adds that the slew of central bank meetings will likely add to the potent cocktail with the FOMC on Wednesday and the ECB on Thursday. While background speculation towards the balance of opinion within the Fed with regards to its exit stance remains in a flux, the street is cautiously expecting the ECB to turn a touch dovish. In Asia, he expects the focus on the RBI meeting on Friday with investors looking for the central bank to cuts its benchmark rates by 25bp.