Exciting Week Ahead!

The coming week promises to be an exciting one on Forex markets around the globe. Several countries will be releasing figures related to employment, production and other indicators that affect Forex opportunity. These figures will affect all global markets and could signal either a return to risk aversion or increased appetite for risk. Forex trading requires a close monitoring of world markets to seize Forex opportunities as they occur. Here is this week’s schedule—

Monday December 15

00:01 United Kingdom Rightmove House Price Index –

December

08:15 Switzerland Producer and Import Prices –

November

13:30 United States NY Empire State Manufacturing Index –

December

14:00 United States Net Long-term TIC Flows –

October

14:15 United States Industrial Production –

November

17:30 European Monetary Union ECB Trichet’s Speech

Tuesday December 16

00:30 Australia RBA Meeting’s Minutes –

December

09:30 United Kingdom Consumer Price Index –

November

n/a United Kingdom BoE Inflation Letter

11:00 European Monetary Union Employment Change - 3Q

13:30 United States Consumer Price Index –

November

13:30 United States Housing Starts –

November

19:15 United States Fed Interest Rate Decision

Wednesday December 17

Germany Consumer Price Index –

November

Germany Preliminary Purchasing Manager Index Manufacturing –

December

Germany Preliminary Purchasing Manager Index Services –

December

Euro Zone Preliminary Purchasing Manager Index Manufacturing –

December

Euro Zone Preliminary Purchasing Manager Index Manufacturing –

December

United Kingdom Bank of England Minutes

United Kingdom ILO Unemployment Rate (3M) –

October

European Monetary Union Consumer Price Index –

November

United States Current Account - 3Q

Thursday December 18

07:15 Switzerland Trade Balance –

November

09:00 Germany IFO - Business Climate –

December

09:30 United Kingdom Retail Sales November

10:00 European Monetary Union Trade Balance n.s.a. –

October

13:30 Canada Leading Indicators –

November

15:00 United States Leading Indicators November

15:00 United States Philadelphia Fed Manufacturing Survey –

December

23:50 Japan All Industry Activity Index –

October

It will be a busy week for Forex traders and investors. These figures could well determine the future of currencies on global markets and affect Forex opportunities. Of course savvy traders will spot Forex opportunities as they occur following the release of these economic figures.

Britain Closer to Joining EU

In an address onFrench radio European Commission President Jose Manuel Barroso said that the British government was “closer than ever before”

to joining the European Union. Barroso stated that many British politicians were considering the move because of the global economic crisis. Despite these statements the British government denies that policies are likely to change in the near future.

Pound Pounded on Forex Markets

Should the British government change policies and join it would have to adopt the Euro as its currency and could cause a disruption in Forex markets. At present the Pound has taken quite a pounding on Forex markets and has provided limited Forex opportunities for traders and investors.

Adopting Euro Unpopular in Britain

Opinion polls suggest that any vote on dumping the Pound and adopting the Euro would be lost and in the UK the Euro has not been a significant political issue for years. During the radio interview Mr. Barroso acknowledged the fact that a majority of the British public oppose joining the Eurozone. Mr. Barroso also said that recent economic uncertainty had made the currency a far more attractive option. While the Euro is down on Forex markets it continues to provide significantly more Forex opportunities than the beleaguered Pound.

In the radio interview Mr. Barroso said “I’m not going to break the confidentiality of certain conversations, but some British politicians have already told me, ‘If we had the euro, we would have been better off’.” I know that the majority in Britain are still opposed, but there is a period of consideration under way and the people who matter in Britain are currently thinking about it.”

Political Opposition to the Euro

The opposition Conservative party opposes the adoption of the Euro. Shadow foreign secretary William Hague stated, “It is extraordinary that certain politicians are whispering to the EU Commission about joining the euro behind the British people’s backs.”

Britain is a country grounded in strong traditions and opposition to adopting the Euro is strong.

A European Commission spokesman stated “Member states would benefit from a country like Britain being in the euro.” The EC has long wanted Great Britain to join the EU and believes that Britain would benefit from adopting the Euro.

Dollar and Yen Strongest Currencies

Despite the economic situation in Britain and the limited Forex opportunities the Pound presently provides, it is very unlikely that Britain will adopt the Euro in the foreseeable future. At the present time the US dollar and the Japanese Yen are the strongest currencies and are providing both Forex traders and investors with plenty of Forex opportunities.

Some Economists Predicting Dollars Sharp Decline

Some economists are predicting that because of a deepening recession and low interest rates the dollar could see a sharp decline on Forex markets in 2009. Recently risk aversion and de-leveraging has helped to prop up the dollar and provided many with Forex opportunity.

Dollars Gain Artificial

The dollar has gained 20% against major currencies since July but many see the gain as artificial and predict a correction once extreme risk aversion eases and global markets stabilize themselves. Bob Sinche, head of global FX and rate strategy at The Bank of America in New York stated, “Foundations for the dollar’s recent rally have not been solid. The result of repatriation, deleveraging, quantitative easing and a major scarcity of dollars. But now we are bound for a correction.”

Mr. Sinche also predicted that the dollar could be trading at 1.38 by the end of December and could go as low as 1.44 to the euro by the first quarter of 2009. Of course the shift will provide savvy investors with Forex opportunities.

Risk Aversion Easing

Goldman Sachs strategist Abby Joseph Cohen stated that the dollar is now at the level it should be. Some experts see extreme risk aversion easing and combined with low interest rates and a declining economy could put downward pressure on the dollar. Most currency strategists in a Reuter’

s poll released on Wednesday said they expect volatility in the euro, sterling and yen against the dollar to decrease in the next few weeks. This shift could provide increased Forex opportunity for those who know how to invest in volatile markets.

Dollar Providing Safe Haven and Forex Opportunity

2009 promises to be an interesting year for Forex markets. The levitating act of the US dollar has provided many investors with a safe place to park their money and still provides plenty of Forex opportunity. How much longer this will last is anybody’

s guess.

Bush Will Host Meeting Of World Leaders To Address Crisis

On November 15^th US President George Bush will host a gathering of world leaders to address the current global financial crisis. There has been resentment in some quarters with many blaming the US for the financial meltdown. The crisis started in the US with the sub prime mortgage crisis and quickly spread to the whole US economy and ultimately resulted in a $700 billion dollar bailout of financial institutions. Credit markets froze and interbank lending ceased and businesses found themselves unable to obtain loans for day to day operations. Despite the performance of world stock markets, investors large and small have been able to take advantage of the many Forex opportunities offered by currency exchanges.

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The Economic Crisis

Lately the economic news from around the world has been, by and large, doom and gloom. The world is facing an economic crisis of unprecedented severity and governments around the globe are trying to stimulate the economy. Stock markets in the US, Europe, and Asia have been volatile to say the least.

Despite Economy US Dollar Performs Well

Despite the dismal state of the US economy the dollar has held steady and has actually increased against many world currencies on Forex markets. Analysts are at a loss to explain the performance of the US dollar which some have described as a ‘levitating act.’

For those in the US fortunate enough to have disposable income for travel the performance of the US dollar is offering the opportunities for bargain travel and is also offering investors Forex opportunities in currency exchanges worldwide.

Strong Dollar Good News For Travelers

For US travelers the strong dollar means bargain rates in several countries. In Mexico, for example, a year ago the dollar was worth 10.50 pesos. This year travelers can expect 12 to 13 Pesos for a dollar. Mexico is a popular destination for US travelers and has always offered moderately priced vacations and the strength of the dollar makes Mexico a real bargain for vacationers.

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