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Here is a collection of Forex News Updates, Other Forex Trading System Resources and Information.There are a few different economic figures coming out in different regions around the globe that all have one thing in common: prices.  Prices are important to economic forecasters and finance ministers as it gives them a gauge of where their particular country is in relation to


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There are a few different economic figures coming out in different regions around the globe that all have one thing in common: prices.  Prices are important to economic forecasters and finance ministers as it gives them a gauge of where their particular country is in relation to inflation.  Most Central Banks around the world are mandated to control their economy’s inflation, so when these numbers come out, the market usually perks up.

This morning, we had an interest rate decision in Japan, Consumer Price Index reported in Canada, and Producer Prices Index reported here in the US.  In Japan, the BOJ held interest rates steady at .1%, which was no surprise to anyone, but Canadian CPI and US PPI came in a little hotter than expected.   This could signal some potential interest rate hikes here in N. America, thought the economic recovery is still fragile so it is a fine line policy makers are walking.  So far this morning is showing mild risk-aversion tendencies, though that could change once the US stock markets open.

In world currencies:

Aussie (AUD):  The Aussie is lower this morning on risk aversion as data from the US shows signs that the economy is heating up and that accommodative measures may be removed.  There is no further news specific to Australia on tap for this week.

Kiwi (NZD):  New Zealand consumer confidence came in lower this morning than last month’s reading, though the Kiwi economy is still viewed as strong.  With commodities lower this morning and risk aversion, the Kiwi is down across the board.

Loonie (CAD):  The Loonie is showing strength this morning as Canada reported CPI that was 1.9% higher than a year ago.  This was a little higher than the expectation, but more importantly is showing economic strength which may cause the Bank of Canada to move on rates sooner than expected.

Euro (EUR):  The Euro is pulling back this morning as the debate over Greece lingers over the Euro zone and is becoming a game of “pin the blame on somebody”.

Pound (GBP):  The Pound is markedly lower this morning as a report came out that last month the UK ran a deficit of 4.3 billion pounds, when economists were forecasting a 2.6 billion pound surplus.  This comes on the heels of yesterday’s negative employment report which contributes to the belief that economic recovery in the UK may be further away than previously thought.  The Pound is down across the board.

Dollar (USD):   The Dollar is higher this morning as US PPI came in higher than expected, prompting the inflation hawks to start chirping.  But Initial Jobless Claims also came in higher than expected; thereby negating the thought the Fed will need to move on interest rates.  The dollar is beginning to give back some of its earlier gains on the employment number, though I’m not sure how the market can see this as positive.  Stock market futures are lower, as are oil and gold, though well off of their morning lows.

Yen (JPY):  As expected, Japan did not change its view of interest rates remaining at .1% which is no surprise to anyone.  Japan is battling some serious deflation, so any sort of inflation there would be welcome.

In overnight markets, the Nikkei was higher though the Hang Seng was lower.  Europe is mixed as well with the FTSE higher on the UK deficit report, but Germany and France marginally lower.  US stock futures are lower as are gold and oil though they’ve given back gains and today looks like its reverse from risk aversion to risk taking.

With the numbers reported today, it sometimes baffles me that higher unemployment and potential inflation is “good” for the market and encourages risk taking.  It looks like the market is betting that the US is going to be content to let inflation occur in order to continue the monetary stimulus it believes is leading to economic recovery.  However, the employment figures tell us otherwise.  How this is going to play out down the road is anyone’s guess but in my mind it ain’t gonna be pretty.

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