Forex Gump

If you couldn’t get enough of the crazy price action last week, then you’re in for a treat as we kick off a brand spankin’ new trading quarter next week! To start off, here are three market themes that will most likely dominate your newswires:

Newsflash! New Zealand just got slapped with a debt rating downgrade, suggesting that the nation’s finances are in shambles. How much trouble are we looking at here?

Well, if RBNZ Governor Alan Bollard is to be believed, it is! According to the central bank head honcho, New Zealand is in a “reasonably sweet sort of spot” with regard to its current monetary policy.

Last week, our good old buddies at the FOMC decided to implement a “brand new” program to boost the economy called Operation Twist. Do the Fed officials themselves think it’ll do the trick?

On Monday, I talked about discussions between European leaders on the EFSF leveraging and using it as a stop gap to save the stumbling euro zone economies. Today, I want to shine the lime light on Germany and the EFSF. Word around the hood is that it could actually cost Chancellor Merkel her job.

With so many reasons to boost the economy with more stimulus, many are expecting other MPC members to join Posen in voting for more quantitative easing. But could it be that Posen has already found a new member for his wolf pack?

With the FOMC finished with its big number this month, all eyes are once again on the euro zone debt crisis. What have the market movers come up with in their meeting last weekend and how will it impact investors’ concerns on the euro region?

Can’t get a hold of the majors? Maybe it’s time for you to take a look at some cross currency and exotic pairs! Here are three pairs that could yield you some pips if you play them correctly.

Adam Posen may look a lot like the character Alan in the hit comedy “The Hangover,” but Posen lacks something that Alan has – a wolf pack! Earlier this week, it was revealed that Posen was a lone wolf in the most recent monetary policy committee meeting in voting for an immediate increase in the Bank of England’s asset purchase program.

After days of suspense, the Fed finally released its short-term plans for the economy! What the heck is the Fed’s “Operation Twist” and how will it affect market participants?