FX Weekly: 8th August 2011

 US and Europe stay mired in crisis. World markets are very uncertain and volatile. Emergency meetings planned in Switzerland, Europe, US and G7

 Oil prices suffer sharp retracement – strong indication that oil prices are mostly speculation driven rather than relating to actual supply shortages or demand spike. Oil price volatility is exceptionally high right now

 Last week’s spike in USD was the second largest since Lehman default in 2008

 The data calendar is light this week; most intriguing data comes from China

 Norges bank expected to hike 25bp on Wed; event risk is high because a pause could very plausibly happen due to deteriorating world economic conditions




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