The Forex Week In Review

The Week That Was…

A quiet week for Forex traders as markets digested last week’s Dovish FOMC with hardly any Tier One data releases to offer direction. However, surprises came in comments made by central banks this week.

ECB’s Mario Draghi failed to deliver the Dovish blow that Euro traders were looking for on Wednesday explaining that although risks to the the European inflation & growth outlook have increased, more time was needed to decide on implementing further stimulus. Fed Chair Yellen kept the USD bullish ember alive on Thursday by stating that the FOMC remain on track to raise rates this year. Yellen’s comments saw USD strength late in the week with the Dollar Index trading back up through its weekly high. The BOE commented on Friday that risks to the UK financial system had increased through the summer with the China slowdown and recent market volatility the two biggest threats.


  • USD A stronger wee for the US Dollar as bulls were once again engaged following Fed Chair Yellen’s Hawkish comments on Thursday evening, with price making its way back up through the weekly high.
  • EUR The single currency ended the week near lows despite a strong risk-off rally. Although the ECB failed to deliver further stimulus at this month’s meeting, market participants are anticipating further easing in the very near future suggesting further downside.
  • GBP The Dovish FOMC has seen an unwinding of BOE rate-hike expectations seeing Sterling broadly lower this week. Comments made by the BOE on Friday highlighted the increased risk from global elements seeing further GBP weakness.
  • JPY CPI data came in better than expected this week though JPY upside was largely ignored in the wake of of Fed Chair Yellen’s Hawkish comments.The Yen continues to strengthen amid falling equity prices as investors repatriate capital.
  • AUD The Australian Dollar came under sustained pressure this week amid stronger USD. Retail markets were heavily offside as AUD continued lower as commodity markets continued their decline. A monthly close below the 15 year ascending trend-line is now looking likely.
  • CAD Despite Oil remaining range bound this week, the Canadian Dollar weakened further with Canadian elections less than a month away prompting uncertainty. Yellen’s Hawkishness should spur further Canadian Dollar weakness from here.