Weekly Forex Market Followup (October 17th - October 21st 2011)

Key Fundamental Forex Events for the Week of October 17th
through October 21st The following table lists the key economic
data and other events that came out during the week of October 17th
through the 21st, with release times displayed for the GMT time
zone. The list also indicates how much each release deviated from
the market consensus forecast upon release, as well as what the
affected major currency pair or pairs did after each event or set
of events. Monday, October 17th 3:30pm CAD BOC Business Outlook
Survey noted that, The business outlook survey suggests that though
respondents expect growth to continue, the optimism has been
curtailed, this moderation in confidence provides further reason
for the Bank of Canada to maintain its highly accommodative stance.
The CAD fell. Tuesday, October 18th 1:30am AUD Monetary Policy
Meeting Minutes noted that, In the Australian markets, there was an
expectation that the cash rate would be reduced significantly by
the middle of next year, which was reflected in lower yields on
comparable government paper and bank bills. The AUD rose. 3:00am
CNY GDP 9.1% versus 9.3% expected. 9:30am GBP CPI 5.2% versus 4.9%
expected. The GBP fell. 10:00am EUR German ZEW Economic Sentiment
-48.3 versus -44.7 expected. The EUR rose slightly. 1:30pm USD PPI
0.8% versus 0.2% expected. 2:00pm USD TIC Long-Term Purchases 57.9
versus 27.8B expected. 6:15pm USD Fed Chairman Bernanke spoke. He
said that, Forward guidance and other forms of communication about
policy can be valuable even when the zero lower bound is not
relevant, and I expect to see increasing use of such tools in the
future. The USD was mixed. Wednesday, October 19th 9:30am GBP MPC
Meeting Minutes vote 0-0-9, as expected. They noted that, The
Committees view remained that inflation was likely to rise above 5%
in the near term, boosted by already announced increases in utility
prices. Inflation was then expected to fall back sharply in the
first part of 2012 as base effects from both the earlier VAT
increase and higher oil prices dropped out of the twelve-month
comparison. The GBP rose. 1:30pm USD Building Permits 0.59M versus
0.61M expected. 1:30pm USD Core CPI 0.1% versus 0.2% expected. The
USD was mixed. Thursday, October 20th 9:30am GBP Retail Sales 0.6%
versus 0.1% The GBP rose slightly. 1:30pm USD Weekly Initial
Jobless Claims 403K versus 405K expected. 3:00pm USD Existing Home
Sales 4.91M versus 4.94M expected. 3:00pm USD Philly Fed
Manufacturing Index 8.7 versus -9.0 expected. The USD fell except
versus the JPY. Friday, October 21st 9:00am EUR German Ifo Business
Climate 106.4 versus 106.3 expected. The EUR rose. 9:30am GBP
Public Sector Net Borrowing 11.4B versus 11.9B expected. The GBP
rose. 12:00pm CAD Core CPI 0.5% versus 0.2% expected. The CAD rose.
Technical Recap for the Majors This Week EURUSD: Forecast:
LowerActual: Mildly higher from a 1.3866 open to a 1.3880 close.
USDJPY: Forecast: Mildly LowerActual: Mildly lower from a 77.06
open to a 76.13 close. GBPUSD: Forecast: LowerActual: Higher from a
1.5823 open to a 1.5944 close. AUDUSD: Forecast: HigherActual:
Mildly higher from a 1.0324 open to a 1.0335 close. USDCAD:
Forecast: LowerActual: Mildly lower from a 1.0108 open to a 1.0087
close. NZDUSD: Forecast: HigherActual: Virtually unchanged from a
0.8016 open to a 0.8011 close.