Forex Gump

Talk about making a difference! Just one week after stepping up to the plate, Prime Minister Julia Gillard, the new superstar of Canberra’s Sex and the City, has managed to work out compromises on Australia’s mining tax!

It’s NFP Friday and we all know what that means – a catalyst for major moves! If yesterday’s report was any indication, we may just be in for a downside surprise. Analysts normally look at the ADP as an indicator of things to come once the NFP version rolls around later in the week.

Yesterday, we saw just how huge of an effect China has, not only on the global economy, but on the forex market as well. If you’re at a loss as to what I’m talking about, take a look at your charts. You’d see that most of the major currencies, particularly the Aussie, took a massive hit and gave away triple-digit pips to the dollar and the yen in just a single day. Lemme tell you why!

Japan takes center stage on Wednesday as they release the results of their quarterly Tankan survey. What kind of results will we see and how could these affect the Japanese yen?

Too busy watching Germany beat England yesterday to catch up on those G20 talks? Don’t worry, lemme break those talks down for you and point out what you missed out on.

Well, wadya know?! It looks like there’s a dissenter in the Bank of England’s Monetary Policy Committee! I wonder… Who could it be?

Brits better brace themselves for a harsh round of austerity measures now that Chancellor Osborne unveiled the emergency budget plan. Yet what do I see after the report? A pound rally! What gives?

Gotcha! You didn’t think it would be THAT easy did you?!? In any case, let’s turn the spotlight on this week’s main event: the FOMC rate decision. Will the Fed finally omit their favorite “extended period” phrase this time around?

Just this weekend, the PBOC announced that they’d let the Yuan move more freely against the dollar. It seems that Chinese officials are finally giving in to the pressure – both from the US and from inflation!

Uh oh, now that the US government tax credit program has already expired, what’s next for the housing market? Housing figures for May ain’t looking so good! Is there something that the Fed could do to push those housing numbers back up?