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Wskxw.com is dedicated to providing quality information on the subject of Forex Trading for beginners, and in particular, on the various trading systems, and brokers, and tools.This week is starting out kind of quiet, perhaps recovering from Super Bowl hangovers and the carnage from the end of last week.  There’s no real earth-shattering news on tap until the end of the week, when all eyes will be on Europe.  This is exactly what the markets need; a


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This week is starting out kind of quiet, perhaps recovering from Super Bowl hangovers and the carnage from the end of last week.  There’s no real earth-shattering news on tap until the end of the week, when all eyes will be on Europe.  This is exactly what the markets need; a chance to rest and re-evaluate.  I’m seeing some mild risk-taking and US dollar weakness this morning.

On to the currencies:

Aussie (AUD):  No real news on tap until the end of the week when Australia reports its employment figures.  Look for the Aussie to trade solely on risk themes and commodity prices this week.  The Aussie is up across the board.

Kiwi (NZD): Expect the Kiwi to trade in similar fashion to the Aussie.  New Zealand’s economy is still “fragile”, according Reserve Bank Governor Bollard in response to last week’s unemployment figures.  There will be some figures coming out later this week that may help gauge inflation, but don’t expect any major moves outside of risk themes.

Loonie (CAD):  Canadian housing starts came in better than expected this morning, but expect the Loonie to trade more on US themes and commodity (particularly oil prices) this week.  No other news this week.

Euro (EUR):  By now if you’re not aware of the pending debt crisis in Greece, then you’ve had your head in the sand for some time!  Seriously, reports coming out of Greece suggest labor strikes as unions are dead-set against the government’s debt reduction plans.  In the past, these strikes have become violent which could further highlight the problems and decrease confidence.  On tap this week is Germany’s Consumer Price Index and at the end of the week we get Euro zone GDP figures.  The trends on the chart clearly look down and we could see the Euro test 1.35 vs. USD.  Stay tuned!

Pound (GBP):  The Pound is down again after surveys showed the opposition party’s lead over the incumbent party narrowing, which would result in an election to be held in June.  Furthermore, British GDP and the BOE quarterly inflation report are on tap, which could show weaker than expected growth.  The pound is just under 1.56 vs. USD.

Dollar (USD):   The Dollar is weak this morning, paring back after gains last week from risk-aversion themes.  Toward the end of the week retail sales will be reported which should be a gauge of how recovery is going.  The consumer in the US represents some 70% of GDP so weaker sales could foreshadow slower growth.  Friday is the UM Consumer confidence number.

Yen (JPY):  The yen is weak today mainly on risk-taking and a pullback from strength last week.  Economic slowdowns are predicted as problems in the Euro zone hurt exports and the Toyota recalls hurting the economy in general.

After last week’s scare, expect the market to trade some sideways as market capitulation digests the news.  Barring any major economic “disasters”, expect traders to dip their toes back into the risk trade very slowly.   However, if stocks continue to sell of today, then we could be in for more dollar strength.
Overnight, Asian markets are down while they are trading higher in Europe.  US market futures are down, and oil is up slightly to 71.25, with a better rebound in gold, up 1.25% to 1065.

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

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