Article Summary:

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.A quiet start to the week is just what the doctor ordered for world markets.  After last week’s holiday schedule and an array of news, markets are seemingly ready for a reprieve from high drama.  There is no real news of any significance due out today, and the world’s banking


Article Content:
A quiet start to the week is just what the doctor ordered for world markets.  After last week’s holiday schedule and an array of news, markets are seemingly ready for a reprieve from high drama.  There is no real news of any significance due out today, and the world’s banking system didn’t collapse over the weekend.  Options expiration last Friday went off without a hitch, and the market is now looking to take a “wait and see” approach.
Later this week we are going to see some figures out of France and Germany, as well as British and US GDP at the end of the week.  There’s always some new twist in the Euro situation, and I can’t tell if this is going to play out as a Greek comedy or tragedy.   One thing for certain is that investors will be keeping an eye out for Euro zone contagion, waiting for the next debt crisis to emerge from one of the other PIIGS.
In the currency market:
Aussie (AUD):  The Aussie is slightly lower this morning, pulling back from good gains from last week.  While global stock markets are higher so far, today can’t really be described as risk-taking.  Commodities are slightly higher and the “Chinese Tiger” is back, after celebrating New Year last week.   I’m expecting the Aussie to reverse losses and trade higher by the end of trading.
Kiwi (NZD): The kiwi is higher this morning, having benefited from risk taking last week but not nearly to the same degree as the Aussie.  Thus the Kiwi is higher vs. the Aussie so far, even though New Zealand economic recovery trails Australia by far.
Loonie (CAD):  The Loonie has been showing major strength vs. the Dollar as Olympic-fever has investors focused on the nation to the North.  The economy in Canada appears to be in good shape and investors are starting to catch on to the notion that Canada may be the next nation to raise rates.  The Loonie had a nice against the dollar last week, down from 1.05 levels and approaching 103.5 USD as oil prices have generally been higher.
Euro (EUR):  This week we are going to see French CPI data and German GDP, CPI, and employment figures.  As these two countries are the strength of the Euro zone economically speaking, investors will be watching to see if economic recovery in the two powers will be enough to offset the fallout from the PIIGS.  If these numbers come in weaker than expected, then the Euro could revisit last week’s low of 1.345 and beyond.  The Euro is down across the board.
Pound (GBP):  On Friday, UK GDP is on tap and investors are hoping that growth remains positive in light of the awful economic figures from last week.  The Pound got hammered last week and the UK economy is on thin ice in the eyes of investors who are starting to think that the UK economy more closely resembles Greece than Germany.
Dollar (USD):   The dollar is mixed this morning trading a bit higher on technical bounces against the Loonie and Aussie and of course the Euro.  The pound is slightly higher vs. the Dollar.  Tomorrow we’re going to get US Consumer Confidence figures and then GDP later in the week.  Inflation hawks will be watching these figures, to see if there is any indication that last week’s Fed discount rate hike is a harbinger of inflation in the US.
Yen (JPY):  On Thursday, Japan will unveil its CPI figures and the expectation is for deflation.  This should help buoy the carry trade as there is no expectation that Japan will moving on rates any time soon.
In overnight markets, the Nikkei and Hang Seng were up big, posting roughly 2.5% gains on the session.  This is probably due in part to resumption of activity from the Chinese, as well as general risk-taking.  In Europe, stocks are slightly higher so far.  US equity futures are higher and oil is nearing , with gold at 1120 and change.
This week will give us a better idea of where the Euro zone and US economic recovery are within the framework of the global economy.  If US figures come in higher than expected, then it could bring out the Fed rate-hike crowd and we could see some Dollar strength.
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!
To follow these events live with a free, real-time practice account, click here!  Don’t miss out on the world’s fastest growing market!

none

———————