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.

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.