Forex Gump

With mixed economic themes popping up in markets lately, I wouldn’t be surprised if you’ve been catching falling knives! Fear not, my forex minions. I’ve sorted out the good news from the bad, and I even wrote a few tips on trading the current market themes surrounding the U.S.

It’s been ten days since the massive earthquake, but the market spotlight is still focused on Japan. I’ve already talked about the yen, now let me give you the lowdown on the effects of the calamity on the commodities and equities markets.

Last Friday the People’s Bank of China raised its reserve requirement ratio (RRR) for the sixth time since October 2010. While the announcement was no surprise to the markets, something tells me that the PBoC’s next moves could shake things up a bit.

Word on the street is that Chancellor of the Exchequer George Osborne is going to stun Britain on Wednesday with more than just his incandescent smile. Yup! He promises to present the most pro-growth budget plan of this generation. But can he really sweep the Britons off their feet?

Rebecca Black couldn’t have been more right when she said “It’s Friday, Friday… Gotta get down on Friday.” (Yes, shame on me for quoting the song.) Yesterday, the Group of Seven (G-7) pledged once again to combine all their mighty powers to launch a coordinated currency intervention to stabilize the yen.

With markets focused on risk aversion, it won’t be long before low-yielding favorites like the dollar, yen, and the franc become overvalued. Here are three exotic currencies you should consider buying when your favorite safe havens start to lose steam…

I dunno about you, but I was pretty stunned when I woke up this morning and saw the HUGE move among yen pairs. With the yen now at an all-time high, it has led to speculations that the BOJ now has no choice but to intervene in the markets. The question is, can it work?

While all eyes were on the ruckus in the Middle East and a possible nuclear breakdown in Japan, markets largely overlooked the Fed’s FOMC statement released last Tuesday. Did traders miss out on a big announcement, or did the Fed just play the straddle card yet again?

After being bombarded with heart-wrenching news from Japan, I think we could all use a break from the heartache. So let’s shift our attention to the euro zone and discuss the “Pact for the Euro,” a we’re-all-in-this-together tale that should give our spirits a much-needed lift!

Last Friday, a huge 8.9 magnitude earthquake shook northeastern Japan. The natural disaster caused billions of dollars in damage and claimed at least 1,600 lives. It was a sad event not only for Japan but for the rest of the world as well.