Weekly Forex Market Followup (October 24th - October 28th 2011)

Key Fundamental Forex Events for the Week of October 24
^th through October 28
^th The following table lists the key
economic data and other events that came out during the week of
October 24
^th through the 28
^th, 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. Sunday, October 23
^rd All Day EUR EU Economic Summit noted that, We all
have similar concerns in relation to what might happen as a result
of the creation of further fiscal consolidation of the eurozone.
This might involve a new kind of ministry or commissioner to
supervise eurozone issue more centrally. The EUR rose. Monday,
October 24
^th 1:30am AUD PPI 0.6%, as expected. The AUD rose.
3:30am CNY HSBC Flash Manufacturing PMI 51.1, as expected. 10:45pm
NZD CPI 0.4% versus 0.8% expected. The NZD rose. Tuesday, October
25
^th 9:30am GBP Current Account -2.0B versus -9.9B
expected. 9:45am GBP BOE Governor King spoke. He said that, We need
to use the existing banking system and soon, we are giving advice
to the treasury on that. And of course the government does own two
of the biggest banks.The GBP was unchanged. 1:30pm CAD Core Retail
Sales 0.4%, as expected. 2:00pm CAD BOC Rate Statement noted that,
The outlook for the Canadian economy has weakened since July, with
the significantly less favourable external environment affecting
Canada through financial, confidence and trade channels. 2:00pm CAD
Overnight Rate 1.00%, as expected. The CAD fell. 3:00pm USD CB
Consumer Confidence 39.8 versus 46.2 expected. The USD was mixed.
Wednesday, October 26
^th All Day EUR EU Economic Summit noted that, The world
is watching Germany and Europe to see if we are ready and able to
take responsibility. If the euro fails, Europe fails. The EUR was
unchanged. 1:00am NZD NBNZ Business Confidence 13.2 versus 34.4
expected. The NZD rose. 1:30am AUD CPI 0.6% versus 0.7% expected.
The AUD fell. 1:30pm USD Core Durable Goods Orders 0.6% versus 0.5%
expected. 3:00pm USD New Home Sales 313K versus 302K expected. The
USD was mixed. 3:30pm CAD BOC Monetary Policy Report noted that,
The Bank now expects that the euro areawhere these dynamics are
most acutewill experience a brief recession. 4:15pm CAD BOC Press
Conference noted that, A lot of good things happen in the shadow
banking sector, but a lot of risk can come out of it that has to be
tackled, and that's what we're here to work on. The CAD rose.
9:00pm NZD Official Cash Rate 2.50%, as expected. 9:00pm NZD RBNZ
Rate Statement noted that, Given the ongoing global economic and
financial risks, it remains prudent to continue to keep the OCR on
hold at 2.5 percent for now. However, if global developments have
only a mild impact on the New Zealand economy, it is likely that
gradually increasing pressure on domestic resources will require
future OCR increases. The NZD rose. Thursday, October 27
^th 4:31am JPY Monetary Policy Statement noted that, At
the Monetary Policy Meeting held today, the Policy Board of the
Bank of Japan decided, by an 8-1 majority vote, to enhance monetary
easing by increasing the total size of the Asset Purchase Program
by about 5 trillion yen, from about 50 trillion yen to about 55
trillion yen. 4:31am JPY Overnight Call Rate 0.10%, as expected.
7:16am JPY BOJ Press Conference noted that, The economic situation
has not changed significantly since the August easing ... What has
changed is that Europe's situation has become more severe. The JPY
rose. 1:30pm USD Advance GDP 2.5% versus 2.4% expected. 1:30pm USD
Weekly Initial Jobless Claims 402K versus 404K expected. 3:00pm USD
Pending Home Sales -4.6% versus 0.2% expected. The USD fell.
Friday, October 28
^th 10:30am CHF KOF Economic Barometer 0.80 versus 1.01
expected. The CHF fell. Technical Recap for the Majors This Week
EURUSD: Forecast: HigherActual: Higher from a 1.3840 open to
a 1.4169 close. USDJPY: Forecast: Mildly LowerActual: Mildly lower
from a 76.47 open to a 75.77 close. GBPUSD: Forecast:
HigherActual: Higher from a 1.5931 open to a 1.6130 close.
AUDUSD: Forecast: HigherActual: Higher from a 1.0331 open to
a 1.0718 close. USDCAD: Forecast: LowerActual: Lower from a
1.0090 open to a 0.9917 close. NZDUSD: Forecast:
HigherActual: Higher from a 0.8015 open to a 0.8206 close.