MP FOREX ADVISORY

Similar to what was seen earlier this year and late in 2008, the currency markets, and other national and international markets, are once again being battered by risk aversion and fear as investors are growing increasingly nervous about indications of a global economic slide.  Such conditions have been exacerbated by the release of news from the Federal Reserve that it will embark upon a more aggressive “dollar printing” campaign.  Moreover, recent jobs data in the US has been extremely disappointing and appears to indicate that we may be headed for a double dip recession or possibly something worse.  Several key reports will be released next week including the following:  US Unemployment Claims, US PPI, US Housing Data, Japanese GDP, the British Inflation Report, and the German ZEW Report.  All eyes are also on the sharp rise in the Japanese Yen against the US Dollar – something that is having a detrimental impact upon Japan’s export driven economy.  Rumors of possible market intervention by the Bank of Japan below the 85.00 level are rampant.

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