With the CPI data to be released tomorrow, the U.S. Dollar looked to being doing very well in the forex currency trading market all across the board but particularly against the weak Euro. The EUR/USD forex currency trading rate fell to $1.3566 though it has since recovered somewhat to $1.3628 at the moment and the same is true for the Aussie which fell as low as $0.8951 in the AUD/USD forex currency trade rate but has since recovered to $0.90050.

The forex currency trading market has been in turmoil throughout February with regards the Euro which as we have mentioned before is very uncertain due to the lack of support and concrete plans for a bailout for Greece if required. Furthermore rising tensions between Greece and other Euro nations, in particular Germany have aided in further causing uncertainty regarding the Euro in the forex currency trading market.

Oil prices fell below US $77 a barrel today as the rising U.S. Dollar in the forex currency trading market and high inventories once again came into effect.

Gold prices meanwhile also fell as price of the U.S. Dollar rose at the back of strong economic data on Wednesday. Further downward pressure on gold prices came into effect as IMF announced its resolution to sell almost 200 tonnes of gold into the open-market perhaps because of week off-market demand from the various Central Banks of the world. The IMF however made it clear that it means to sell the gold in a phased manner over time. Gold prices later stabilized to about $1,100 an ounce.

The forex currency trading rate for the U.S. Dollar have however now started falling against other currencies after reports released today showed that jobless claims rose above market expectations. The weakening of the U.S. Dollar in the foreign exchange market though not serious was further compounded by a higher than expected PPI.

Analysts now await the CPI report to be released tomorrow to see what the outlook for the economic recovery for the U.S. will be as well as the performance of the U.S. Dollar in the forex currency trading market.

After having successfully lasted through forex currency trading market worries based on the ability of countries like Greece, Portugal and Spain to remain within their fiscal budgets that snowballed due to speculators and traders causing the Euro forex trade rate to fall to a half year low it now seems that the Euro is starting to appreciate once again. This was partly caused by rumors and speculation suggesting that European Union nations might perhaps bail-out troubled Greece. The current EUR/USD forex currency trading market rate stands at 1.3781.

The G7 finance ministers and having held a meeting in Canada earlier this month can look forward to some welcome news as a monthly report compiled by Reuters recently that had revised estimates upwards for growth among the G7 countries (the Euro zone and Britain, Japan and the United States).

Further interesting news for forex market speculators as it seems that G7 countries’ central banks will not be raising interest rates any time soon (including the European Central Bank, the Bank of Japan and the Bank of England). In Japan this is mainly as a means to stimulate growth further and to counter the deflation that is gripping the economy at the moment. The current forex trading rate for GBP/USD stands at 1.5701 and USD/JPY at 89.480.

Central banks in developing countries (particularly in Asia) however look set to start raising rates shortly as economic growth seems to have been over and beyond what was expected.

Oil prices which have so far fallen about 10% this year, mainly due to lackluster demand and a stronger U.S. dollar in the forex currency trading market, have started to once again rise. Analysts put this down to a weaker U.S. dollar as the Euro made a recovery as well as increased demand in the United States due to recent cold weather hitting the Eastern Seaboard. Forex traders, especially those having interests in commodity futures would do well to keep a close eye on oil prices.

The US Dollar forex rates are currently fluctuating despite the encouraging report from ADP, this is partially because of the meek earnings results released by Pfizer and Merck, pharmaceutical giants both. The US Dollar is expected to maintain its current levels of forex trading rates or strengthen slightly after the government releases the non-farm payroll data report on the 5th of February.

Gold is a key part of forex currency trading and its price has been rising to record levels as people have traded in the weakening US dollar for the traditional “safe haven”. However with the forex rates of the US dollar once again strengthening it is likely that gold prices will steady. Furthermore with the possibility and rumors of a tighter US monetary policy floating about, it is even likely that gold prices might start falling as gold despite having stable values does not provide interest and will therefore be less attractive if a higher interest rate is implemented for the US dollar. This might lead to strengthening of US dollar forex trade rates.