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Cliff Wachtel
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Cliff Wachtel, CPA, is currently the Director of Market Research, New Media and Training for Caesartrade.com, a fast growing forex and CFD broker. He covers a variety of topics including global market drivers, forex, currency hedged and diversified income investing, and is currently working on a... More
My company:
THE SENSIBLE GUIDE TO FOREX
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THE SENSIBLE GUIDE TO FOREX
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The Sensible Guide To Forex: Safer, Smarter Ways To Survive & Prosper From The Start
  • The Coming Week: Central Bank Rate Decisions & Comments Key IF EU Calm Persists 0 comments
    Feb 4, 2012 6:55 PM | about stocks: SPY, DIA, UUP, UDN, FXE, ERO, URR, ULE, EUO, DRR, FXA, FXB, FXC, FXD, FXF, FXEN, FXY, JYF, CYB, GLD, CNY, USO, DUG, USL, NBO, DBV, ICI, CEW, SLV, OIL, SDS, RSW, BXDC, SPXU, SH, EWC, EWA, TLT, XHB, ITM, IGOV, VGK
    However Drama From Bond Sales, Greek Debt Swap Deal Would Dominate

    Part 2: Coming Week Market Movers

    The following is a weekly strategy guide for traders and investors, covering coming week's market movers and trade ramifications for traders of all major asset classes via both traditional instruments and binary options. Perfect for those seeking a summary look at likely coming week market movers. See here for Part 1on the prior week and it's lessons for the coming week.

    If EU Calm, Central Bank Rate Statements & Comments Key

    The big events this week are interest rate and policy commentary from the RBA, BOE and ECB, as well as a speech from Fed Chairman Bernanke on Friday.

    Tuesday we have the first such event from Australia's RBA. Markets expect a 25 bp rate cut from 4.25% to 4.00%. There is some minor risk of a 50 bp cut, as the RBA does not expect banks to pass on to customers the full 25 bps if it only cuts by that amount. There is also some risk that the RBA keeps rates steady in light of recently more upbeat global data and calming in the EZ. Regardless, AUD is not moving on interest rate expectations for now, but rather on overall risk appetite, so we look to the broader risk gauges like the S&P 500 for guidance on the AUD.

    Thursday features the other two central bank events:

    First comes the BoE, expected to keep the benchmark rate at 0.50%, but also to begin a third round of UK bond purchases. Markets are mostly expecting a smaller round of GBP 50 bln, with a minority expecting another round of GBP 75 bln. Given the strength in recent UK data, we believe the BOE holds rates steady, which could help the GBP strengthen briefly. However, the GBPUSD is struggling to rise above the 1.5900 zone, and regard a daily close below 1.5750 as a potential start of the next move lower.

    Then comes ECB comes later Thursday, and is not expected to announce any policy changes. ECB Pres. Draghi is likely to note that last week's better PMI's are a further sign that Q4 was potentially the worst for now for the EZ, , but will likely qualify any optimism by noting that downside risks remain. In sum, this is likely to be a non event, and the EUR will continue moving with news on Greece, as well as other GIIPS bond sales.

    But New EU Drama Would Steal The Show

    Of course, anything that rocks the current relative calm on the EU would become the dominant market driver. Possibilities include:

    TO VIEW THE REST OF THIS ARTICLE PLEASE VISIThttp://globalmarkets.anyoption.com AND FIND ARTICLE BY SAME NAME UNDER THE WEEKLY TAB.

    Our apologies for the inconvenience. My partners want these posts to introduce visitors to our website. Your visit helps keeps these posts coming to you free of charge. Thanks in advance for your help.

    If you want to know more about how to protect yourself against risk of crashing markets and currencies, stay tuned for details about my coming book, THE SENSIBLE GUIDE TO FOREX, SAFER, SMARTER WAYS to SURVIVE and PROSPER from the Start. It's the first book to show how prudent, traders and long term investors with limited time and risk tolerance can tap forex markets to hedge currency risk and improve returns.

    DISCLOSURE /DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY, RESPONSIBILITY FOR ALL TRADING DECISIONS LIES SOLELY WITH THE READER. IF WE REALLY KNEW WHAT WOULD HAPPEN, WE WOULDN'T BE TELLING YOU FOR FREE, NOW WOULD WE?

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