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.

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.

According to a spokesman for the Ministry of Commerce in China we are unlikely to see any sudden changes in the Yuan in 2010 and China will maintain the value of the Yuan in the forex market at a level suitable for its own stable growth. The Chinese Yuan (CNY) has been since 2005 appreciating in value slowly but steadily against the US dollar. However in mid-2008 due to the worldwide economic crisis, China halted the steady growth in the forex trading market to allow its exports to remain competitive and more importantly to remain within the buying power of foreign importers.

Analysts however predict that a steady rise in the Yuan may be expected in 2010 although the amount of change has now been lowered to 2.8%, slightly less than before the comments made by the US President. At the moment in the forex currency market the CNY/USD stands at 0.14642.

Gold prices on the other hand have been falling against a stronger US dollar due to the depreciating Euro in the forex trading market. The price of gold has now fallen below $1,100/oz today and may well be expected to continue its decline further today. Analysts however predict that recent low prices for gold will not last and we may expect to see them reach well above $1,100/oz again soon.

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.