Forex Gump

Three weeks to go until the August 2 debt ceiling deadline! The U.S. government better get its act together and do something about their debt soon, or they run the risk of falling into default. How likely is this to happen and how could it affect the forex market?

After the sensational ECB interest rate decision and the disappointing June NFP report, Europe’s sovereign debt crisis is once again making headlines in financial markets. This time around, it’s Italy’s turn in the hot seat.

So much for the ADP report being a good indicator of non-farm payrolls results! After the ADP printed a nice figure earlier in the week, many expected we’d see a similar result on NFP Friday. However, the stars didn’t line up properly, and instead, the NFP shocked the markets with another downer!

I mentioned in my blog last week that China’s resilience during the 2008 financial crisis made it the envy of many nations. However, it seems like big ol’ China has a few sore spots in its economy too! Here are four of them:

Earlier this week, Moody’s, the ever-so-popular credit rating agency, announced that it decided to downgrade Portugal’s debt to Ba2 from Baaa1 with a negative outlook. Since Ba2 is below the lowest investment grade level, it means that Portugal’s bonds are now considered “junk.”

Looks like Australia’s employment numbers are starting to gain momentum again. But how exactly will this affect the Reserve Bank of Australia’s stance on the economy?

Heads up! Another set of fireworks could be coming your way when the U.S. releases its jobs report on Friday. If you plan to trade the NFP release, you might want to look at how EUR/USD usually reacts to this report.

Nope, Thanksgiving ain’t for another five months, but yes, that is Turkey you smell cooking in the kitchen. Turkey the country that is!

It has been more than a quarter of a decade since the financial crisis first hit the airwaves. Since then, the world’s largest economies have banded together to bring the global economy back to its feet. While it is true that the world has been slowly recovering, it is still very fragile.

Come one, come all! Brace yourselves for more fireworks when the RBA announces its monetary policy decision tomorrow. Will they hike interest rates this time?