Economic Data Due

Forex traders have experienced volatile markets since the global recession reared its ugly head. In addition to tracking exchange rates forex traders must sort through reams of data from around the world and make investment decisions based on that same data. The coming week will be a busy one for forex traders as several countries release economic and banking data that will affect global currency markets.

Australia to Cut Rates

On March 2nd the Reserve Bank of Australia is expected to cut rates and many economists are calling for a 25 basis point reduction sending rates to a historic low of 3%. Australia has been hit hard by the global credit freeze. Australia depends on exports for much of its income and the global slowdown has had a negative effect on employment and growth. Forex traders will be watching to see what effect this has on the Aussie dollar.

Bank of Canada to Cut Rates

On March 3rd the Bank of Canada is expected to cut rates for the 5th time since October and many economists are predicting a cut of 50 basis points sending rates to 0.50%. Canada is experiencing a deteriorating economy and in December retail sales fell to the lowest point since 1991. Forex traders will also be watching the Canadian Central Bank’s decision with great interest.

Bank of England to Cut Rates

On March 5th the Bank of England is expected to cut rates by 50 basis points for a rate of 0.50%. The Pound has been in serious trouble on global currency markets and many economists believe the UK economy could worsen and expect the recession to be ‘prolonged.’ Many British experts expect deflation if the recession continues and some are calling for the BOE to adopt the policy of quantitative easing. Forex trading in the Pound has been weak at best.

ECB to Cut Rates

On March 5th the European Central Bank is expected to follow the BOE in cutting rates by 50 basis points for a rate of 1.50%. The deepening recession and banking troubles in Eastern Europe have taken their toll on the Euro and forex traders are sure to monitor the European situation closely.

US Non Farm Payrolls Due

On March 6th the US Non Farm Payrolls will be released and the news is not expected to be good. 645,000 jobs were lost in February, the worst monthly job losses since 1949. The unemployment rate is expected to reach a 25 year high at 7.9%. Forex traders expect the dollar to continue to do well due to the safe haven status of the US dollar.

Forex traders have a busy week ahead and must sort through all the new data and make investment decisions. Good news is hard to come by in today’s markets.