Forex Gump

Loose lips sink pips. BOE monetary policy committee member Adam Posen just uttered those two nasty letters that send shivers down pound bulls’ spines: Q and E. Uh oh…

Ahh, the busy bees in the Forex streets are once again buzzing with excitement over this report that pops up in Japan once every quarter. You know what I’m talking about… The quarterly Tankan survey!

Every so often, two bulls decide to lock horns. Such is the case with China and Japan. Keep an eye out for the effects of this rift because things could get ugly!

For the past two weeks, EURUSD had been on a hot bull rally, posting fresh monthly highs and breaking above the 200 SMA on the daily chart. However, it stopped short of successfully trading past the 1.3400 handle yesterday as the ghost of structural problems resurface to haunt it.

If there’s one currency that’s as stubborn as a 2-year old toddler, it’s the Japanese yen. The Bank of Japan has been pulling all the stunts, from verbal jawboning to actual currency intervention, yet it still can’t get the yen to behave. Why won’t its “tried-and-tested” moves work?

People are still buzzing about this month’s most highly-anticipated event – no, I’m not talking about the season six premiere of How I Met Your Mother. I’m referring to the recent FOMC statement!

Both Ireland and Portugal are having bond auctions this week. You know what that means – potential spikes of volatility! How will the markets react? Will we see the return of risk aversion?

Ahhh… It’s another FOMC week! After last week’s rumors about more quantitative easing, all eyes will be on tomorrow’s statement. Here are three things you should look out for…

Take a deep breath. Do you smell that? That, my friends, is the smell of US Treasury Secretary Timothy Geithner getting grilled by the Senate Banking Committee. Yesterday, Geithner had the unenviable task of answering to senators who have been pushing the Obama administration to accuse China of currency manipulation.

Step aside, Greenback. Make way for the hottest and shiniest safe-haven in town: Gold!