FX space largely unchanged last week as all currency pairs posted ±1% change against other G20 counterparts
Gold prices were a shade lower, meeting strong support around $1670 per troy ounce
Short-term, traders remain sceptical as to whether we have seen enough to reverse the crisis of confidence in the Euro-zone. Chances of an IMF program for either/both Italy and Spain has increased with news of an additional €200bn IMF fund
Domestic demand is slowing in China as well as globally – prime data out this week could be the most market moving FX theme in the absence of revelations in Europe
As nations compete for export-led growth, central banks are facing increasing criticism for manipulating their domestic currencies. The rationale behind currency manipulation makes sense, but in an increasingly globalised world is competitive currency devaluation viable?
As financial markets stutter forward amidst growing private and national debt, traditional currencies are in danger of suffering a confidence crisis, but equally, given their dynamics, can be a leading indicator for all asset classes.