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.

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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The Bush Bailout Plan

Wednesday night US president Bush addressed the nation concerning the proposed bailout of US banks and tottering financial institutions. Reaction was mixed and even some Republicans criticized the administration’s proposals. Bush urged immediate passage of the bailout plan stating “We’re in the midst of a serious financial crisis, and the federal government is responding with decisive actions.” Bush also stated that failure to pass the bailout plan could lead to a “long and painful recession.”

Because of the perception that the US will act quickly to address the crisis the dollar is holding its own and is providing investors many Forex opportunities.

The Financial Crisis and Forex Opportunity

The current US financial crisis has affected stock, commodities, and Forex markets worldwide. Confidence in the US dollar is waning with many worried that the bailout policies proposed could lead to a devaluation of the US dollar. The financial crisis could not be more ill timed with the US suffering massive debt from the War in Iraq, rising oil prices, and massive infrastructure damage from recent hurricanes.

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