MP FOREX ADVISORY

The GBP/USD drove up steadily last week in a fairly orderly manner; however, the EUR/USD was a chaotic mess, which made trading the Euro pairs a bit of a gamble.  On the 4 hour chart, the EUR/USD crossed the critical 35 period Simple Moving Average at least 16 times last week!  This was truly an incredible display of choppiness and indecision.  The big news over the weekend was the G-20 Summit.  As expected, at the top of the agenda was the issue of the ever growing debt of the advanced economies, which has become a massive drain on the world economy.  The statement released by the G-20 reflected an intention among the advanced economies to cut their deficits in half by the year 2013.  It is expected that the next US employment report will be worse than previously anticipated.  It is clear that neither the US economy nor the world economy has turned the corner, which opens the door for continued volatility and instability in the forex market.  We do anticipate more of a trending pattern over the coming weeks.  We will keep you posted.