The G7 summit held in Rome this weekend is closely monitored by forex traders looking for new opportunities to invest Forex in a volatile market. Many Forex brokers have been betting that the G7 conference will tackle what many consider the Japanese yen's excessive power.
Markets respond to US stimulus plans
The US dollar was raised by the US Government's announcement of a mortgage subsidy plan for homeowners and the prevention of foreclosure by economically disadvantaged homeowners. Stock and commodity markets responded favorably to the news, raising Wall Street stocks and creating forex opportunities for brokers and investors. This weekend, forex brokers and investors will turn their attention to the ongoing G7 conference, which will undoubtedly affect foreign exchange markets and foreign exchange investment opportunities.
Japan will respond to excessive currency movements
Japan's Finance Minister Shoichi Nakagawa said the Japanese government would act against excessive currency movements, but said that the yen's release during the G7 conference would not work because of the growing global economic crisis. Omer Essiner of Ruesch International said: "People are selling the yen because I think investors are positioning in case the G7 mentions the currency as too strong. yen weak. "
Investors are looking for high-yield currencies
The Chancellor of the Exchequer, Alistair Darling, indicated that any discussion of the currency at the G7 conference would be "broadly". The yen dropped 1.4% in 2009, but in 2008 the yen gained 23% because of the yen's safe haven status. Friday's short-term return to risk-taking has provided many with opportunities to invest in higher-yielding currencies and emerging currencies such as the Brazilian Real.
The Lloyds banking group announces a loss of 8.5 billion pounds
The pound fell after a collapse in UK banking shares and after Lloyds Banking Group revealed a major loss related to the Lloyds HBOS division. HBOS lost an estimated £ 8.5 billion in 2008, which sent Lloyds shares sharply to pressure the Pound and any foreign exchange opportunities it may provide.
US markets closed on Monday
Many analysts believe that foreign exchange markets will take their toll on the stock markets. Last week, stock markets backed away from news that the US government is continuing its mortgage subsidy plan, which in turn takes advantage of foreign exchange markets and provides many opportunities for foreign currency investment. Trade is expected to be light on Monday, with US markets closed on President's Day.