With the recent slew of bad news for the Euro monetary bloc, its a surprise that there has been a let-up in the fall of the Euro despite efforts made by governments, governing bodies and now the G7 to stall its falling forex rate and to instill confidence in traders. The G7 meeting hosted in Canada witnessed European finance ministers assuring their non-European counterparts that they would ensure that Greece follows through with its claim to make drastic cuts in their budget gap.

Forex currency trading analysts meanwhile claimed that the Euro bloc needs to do more than say words and perhaps even form an agreement to provide support for Greece in these troubling times. The host country’s Central Bank (the Bank of Canada) meanwhile has re-asserted its commitment to ensuring low interest rates at a record rate of 0.25% until June as long as the inflation remains within check.

The Aussie meanwhile has made a strong recovery after news this past week that the RBA (Reserve Bank of Australia) would not be raising interest rates. The forex trading rate at the moment stands at 0.86920 (at the moment of writing) for AUD/USD; having risen whilst this post was being written. This rise in the Aussie forex currency trading rate has mostly been a result of an announcement made by an Australian coal and iron-ore mining company Resourcehouse.

The Japanese Yen meanwhile made some significant gains against the U.S. dollar before being brought back under control. Analysts claim that the rise in the forex currency trading rate of the Yen was mainly due to investors buying the Yen as a “safe haven”. A “safe haven” is a forex trading term used to describe a currency or in the case of gold a commodity that is considered to be a safe means of maintaining value whilst other currencies or commodities are in turmoil or falling in value.

Amidst worries that the monetary union of the Euro may well fall to pieces, policy makers rushed to assure markets on the stability of the currently 16 nation bloc. As we reported in our earlier posts, the Spanish, Portugese and particularly Greek governments face pressure to get their financial affairs in order. Confidence amongst forex currency traders is brittle at the moment with fears that Greece in particular may fall out of the Euro bloc.

The U.S. dollar has hit an unexpected high for 2010 this week on the back of the ADP report as well as a weak Euro in the foreign exchange trade market. This despite current reports that employers axed almost 20,000 jobs in January although the jobless rate has now fallen to a five month low of 9.7%. This however is explained as the number of people giving up looking for jobs has sharply risen however there are positive signs in the U.S. economy and the forex rate for the US dollar is showing it. The current forex currency trading exchange rate for EUR/USD stands at 1.36902.

Crude oil rates have fallen amidst fears regarding the Euro currency and its forex trade as well as a higher dollar and rising crude oil inventories in developed countries. Forex currency traders may look for a turbulent time ahead as uncertainty regarding the Euro grows and gold prices continue to fall for the moment.

Other than the worries regarding the Greek governments abilities to make such drastic cuts in spending to lower the budget gap, political tension in Portugal over a planned treasury bill placement being canceled caused further investor concern regarding the Euro. Spain and Portugal are both being tipped to have problems similar to Greece in the future by analysts and therefore forex traders are once more resorting to the safe haven US dollar further strengthening the US dollars forex rate.

Ian Stannard, a currency strategist at BNP Paribas (one of the world’s largest banking groups), predicted that the Euro forex rate would fall further despite some fluctuations upwards.

Forex currency trading for the GB Pound Sterling however rose on the back of the news that the Bank of England has halted its 11-month long government bonds purchase as part of a program to induce growth in the economy.

However, interest rates were left unchanged by both the Bank of England (BoE) and the European Central Bank and so investors will be looking to take advantage of the extremely low interest rate (0.5% bank rate set in England) and thus cause a rise in the GBP forex currency rate. The BoE however has re-affirmed its position of continuing to make purchase of private sector assets using the issue of treasury bills to finance them in the future.