Forex Gump

Liquidity was back in full swing in the market yesterday… With the exception of the JPY, we saw most pairs trade side ways. So, what’s today’s economic calendar got in store for us? Check it out!

The market was silent but the streets were loud! It was the fourth of July celebration in the US. Fireworks lit the skies. Kids blew their horns. Adults downed their booze. And the market…?

Check out today’s Economic Roundup!

Daily Economic Roundup – check it out!

Another interest rate decision tomorrow – what will Jean-Claude Trichet and the ECB pull out from the monetary policy hat this time?

Consumers are starting to realize that things are not as rosy as they seem. The consumer confidence index slid from 54.8 to 49.3 instead of rising to 55.4 as expected. Concerns about job losses and wage cuts took their toll on the consumers’ outlook for the economy.

Remember that thing my barber told about the times… I mentioned it in one of my recent posts… you know… that thing about the current situation… He said, “These are unprecedented times – we just don’t know what’s going to happen.”

Remember the days when the US was the big kid, “the bully” who no one would stand up to? The one who dominate the playgrounds and take away your PB&J sandwich? Well, it looks like some kids have had enough and don’t feel like giving their lunch money away anymore. Introducing, the new kids from the BRIC-block – Brazil, Russia, India and China!

All this political mumbo jumbo has given the pound a headache. One minute it’s soaring in the sky, and the next minute it’s jumping off the cliff into the English Channel. Where is the pound really heading? Will it rise to levels prior to the recession? Or will the political turmoil drag the pound down along with it?

The US dollar seems to have undergone several ups and downs with the advent of the global financial crisis. It appreciated when the US economy was in the dumps defying usual laws of economics.