Thursday, 2 Jul 2009

Trade Now! Major Currencies Anticipate Heavy Volatility

As the US prepares to open its markets there are a number of economic events scheduled which will likely intensify the market's recent volatility. Scheduled first is the Euro-Zone's decision regarding its Minimum Bid Rate (short term interest rates), followed by a press conference by the European Central Bank (ECB). There is speculation that a quantitative easing program will either be implemented or discussed, which may devalue the EUR in the short-term.

Expected at 12:30 GMT, just prior to the US market open, are 2 data reports of the utmost significance. The first is the Non-Farm Employment Change report, which was forecast yesterday by ADP to have dropped much more than anticipated, signaling a further contraction of the US economy. The second report is the Unemployment Rate. If the US job sector did indeed slash more jobs than are expected, we may see the USD drop further in value against its major counter parts.

On the other hand, if ADP's figures were over-estimated and the US in fact did not shed so many jobs, we may see a strong rally for the greenback. These events are going to push market volatility to new highs just before the July 4th weekend in the US. Today will be one of the more exciting days in Forex this summer. If you're not in the market today, you should be!