No New Ideas From G7
The weekend G7 meeting, held in Rome, failed to produce any new ideas or policies and many economists consider the meeting a duplicate of the last meeting held in October 2008. Forex investment opportunities are getting harder to find and the dominant theme in currency markets has been risk aversion.
Britain’s Banks To Remain in Private Hands
The Pound once again fell against the dollar amid worries about Britain’s troubled banking sector and the failure of the G7 conference to address currency issues. British Finance Minister Alistair Darling reassured investors that Britain’s banks are best left in private hands amid concerns that Lloyd’s and it’s troubled division HVBOS could be nationalized. Lloyd’s shares fell 17% Monday. Free markets, especially in the currency sector, have provided many Forex investment opportunities for both Forex brokers and investors.
Dollar and Yen Strong
Since the failure of the G7 conference to address currency issues currency markets have taken their cue from Equities markets. Both the US dollar and the Japanese Yen remain strong and continue to provide safe haven and Forex opportunity for investors. Jeremy Stretch of Rabobank said, “Clearly nervousness about the banking sector and general risk aversion is favouring dollar and yen over other currencies and continues to impact sterling.”
Weak Pound Helps Britain’s Foreign Trade
Many Forex traders had expected the G7 conference to address the Pound’s weakness which caused the Pound to rise against the dollar in Friday’s trading. While the troubled Pound may not be providing investors with Forex investment opportunities it has made Britain more competitive in foreign markets. G7 members said that fighting the global recession and stabilizing financial markets are the highest priorities.
Inaction by ECB
The Euro has fallen against the Pound due to inaction by the European Central Bank which is seen as behind the curve in implementing policies which could lead to monetary easing. The Bank of England will release the minutes of its February meeting on Wednesday and markets will be watching for a move to quantitative easing.
Since the G7 meeting did little to address currencies Forex brokers will be watching other markets for signs of Forex opportunities.
The weekend G7 meeting, held in Rome, failed to produce any new ideas or policies and many economists consider the meeting a duplicate of the last meeting held in October 2008. Forex investment opportunities are getting harder to find and the dominant theme in currency markets has been risk aversion.
Britain’s Banks To Remain in Private Hands
The Pound once again fell against the dollar amid worries about Britain’s troubled banking sector and the failure of the G7 conference to address currency issues. British Finance Minister Alistair Darling reassured investors that Britain’s banks are best left in private hands amid concerns that Lloyd’s and it’s troubled division HVBOS could be nationalized. Lloyd’s shares fell 17% Monday. Free markets, especially in the currency sector, have provided many Forex investment opportunities for both Forex brokers and investors.
Dollar and Yen Strong
Since the failure of the G7 conference to address currency issues currency markets have taken their cue from Equities markets. Both the US dollar and the Japanese Yen remain strong and continue to provide safe haven and Forex opportunity for investors. Jeremy Stretch of Rabobank said, “Clearly nervousness about the banking sector and general risk aversion is favouring dollar and yen over other currencies and continues to impact sterling.”
Weak Pound Helps Britain’s Foreign Trade
Many Forex traders had expected the G7 conference to address the Pound’s weakness which caused the Pound to rise against the dollar in Friday’s trading. While the troubled Pound may not be providing investors with Forex investment opportunities it has made Britain more competitive in foreign markets. G7 members said that fighting the global recession and stabilizing financial markets are the highest priorities.
Inaction by ECB
The Euro has fallen against the Pound due to inaction by the European Central Bank which is seen as behind the curve in implementing policies which could lead to monetary easing. The Bank of England will release the minutes of its February meeting on Wednesday and markets will be watching for a move to quantitative easing.
Since the G7 meeting did little to address currencies Forex brokers will be watching other markets for signs of Forex opportunities.
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