Traders expect volatile week ahead

A number of events this week have the potential to trigger substantial moves in the Forex market.
As we all have seen since the beginning of the financial crisis, the  market can turn very sensitive to rumors and assumptions drawn from gatherings such as the G20.

But before we turn our attention to the G20, the President of the European Central Bank Jean Claude Trichet is scheduled to speak later today. There are expectations  he will signal accelerated interest rate cuts. These expectations are already pressuring the Euro down this morning, along with the growing fear U.S auto makers are facing bankruptcy- this is the kind of news that pushes the market back into the “safe haven” cycle.

and indeed we opened the week with EURUSD dropping to its main trend-line support at 1.32, a clear break under will mark the end of last week’s uptrend formation.

USDJPY and EURJPY are  also trading considerably lower on early trading.  the Japanese currency showing some strength after a long period of relative weakness in particularly against the Euro, this might signal us that the mid term balance of power in the market is shifting.
Z.Georgi

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