Forex Analysis

The 50 Billion Dollar Currency

* Turnover in the global FX market expanded 35% between 2010 and 2013, easily outpacing growth in global GDP and world trade

Market movers today * This morning ECB president Mario Draghi speaks at an SME conference in Berlin and

Timing is Everything * GDP depressed for Q2, only to bounce in Q3

Facing up to tapering * Fed tapering to commence this week; even if watereddown and more conditional on economy

The Reserve Bank inched one small step closer to hiking the OCR when it delivered its Monetary Policy Statement last Thursday.

A journey of a thousand miles begins with a single step. Lao-tzu THE week has arrived – to taper or not to taper seems no longer a question.

USDJPY maintains the breakout from its “triangle” pattern and we stay bullish for 101.54/61 initially above which would retarget the 103.10/74 peak.

* There are three key takeaways from this report:1) Traders were nervous and scaled back risk as most currencies saw a reduction in gross short and

The first part of the sell-off to complete wave-E occurred yesterday and has already been corrected via a sharp retracement.

This Euro rally off the lows has now satisfied a nice, sideways, a-b-c correction which sets the stage for a rally through 1.3325 and

In the face of fairly negative economic news yesterday the Euro showed good resilience with a closing price not much less than Wednesday’s close.

So far today, the Franc has experienced a slight negative bias which may be nothing more than profit taking.