By Greg Holden – Headline news this weekend has been the defeat of the ruling party in Japan in recent elections. The USD/JPY and EUR/JPY pairs both slipped to fresh highs as a result. Whether or not the yen will continue to fall is yet to be determined.
In other news, commodity prices have appeared to stabilize somewhat. Crude Oil has risen above $76 a barrel once more, but price movements appear steady and stable. Even though the price of Gold broke through its long-term bullish channel, the precious metal remains in a bullish posture heading into the start of this week.
Today’s leading news events:
08:30 GMT: GBP – Final GDP q/q
– Britain is due to release its final gross domestic product (GDP) figure for the second quarter later this morning. Should we see an increase in growth it could mean the latest austerity budget is having an impact. However, the forecast is set to show no increase from the previous quarter. If growth is higher, the GBP may see bullishness, and vice versa if the reading disappoints.
14:00 GMT: USD – Fed Chairman Ben Bernanke Speaks
– US Federal Reserve Board Chairman Ben Bernanke is due to speak at the Financing Needs of Small Business Forum in Washington D.C. today. The topic of his speech is going to be “Restoring the Flow of Credit to Small Business” and should create volatility in the USD market as his comments tend to influence trader speculation. Hawkish statements about increasing investment and boosting the flow of credit should help add momentum to the greenback against its currency rivals.
Forex Market Analysis provided by Forex Yard.
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