Forex Gump

Just in case you’ve forgotten, let me remind you that we’ll be seeing the US non-farm payrolls tomorrow! I know it’s hard to keep shifting our attention from one issue to another, especially since euro zone’s debt problems are hogging the spotlight.

In the red corner, wearing white trunks with red polka dots, from the Land of the Rising Sun, the Japanese yen! And in the blue corner, with the red, white, and blue stars and stripes, the pound-for-pound king of North America, the US dollar! Let’s get ready to rumbleeeeee…

I feel it in my fingers… I feel it in my toes… The end of this Greek debt drama is drawing near! Or am I speaking too soon?

Last Monday’s Greek and Portuguese credit downgrades caused a sudden meltdown in the financial markets. Out of the blue, a lot of news agencies started pointing to the abrupt spike in the VIX. Wait a minute, what the VIX?!

Oh my, it looks like the euro is poised for more losses in the days to come. Apparently, news broke out yesterday that credit rating agency Standard & Poor had had enough of Greece’s shenanigans and decided to downgrade the country’s sovereign debt rating to… wait for it… Junk!

In their statement later this week, the FOMC is expected to keep interest rates at their current levels… No surprises there! Can we expect something new this time around? More hawkish comments, perhaps?

With the Reserve Bank of New Zealand releasing its interest rate statement tomorrow, will the central bank join its com-doll brothers and sisters and break its commitment to keep rates steady till mid-2010? Or will it continue to lag behind and maintain its dovish stance?

While the US and euro zone have been posting notable improvements in their own GDP accounts, the UK barely managed to crawl out of the recession with a mere 0.4% growth during the last leg of 2009. Would they be able to keep this up for another quarter? The upcoming preliminary GDP report should give us an idea.

You’re going to hate me for saying this but… I told you so! I’ve been raving about the strength of Canada’s economy for quite some time now, and it was really just a matter of time before the BOC came out with a really hawkish interest rate outlook.

At a loss why the Aussie rallied earlier today? Don’t ya worry, Forex Gump’s here to give you the latest scoop on what’s happening with the Aussie and the RBA!