After five consecutive days of rising shares on global markets the Euro gained against the US dollar. Forex traders have noticed a rise in risk appetite as forex markets take their cue from equity markets. The Euro reached $1.30, its highest in a month.

A group of some of the G 20 finance ministers met in London over the weekend but did not address any currency issues and some analysts and Forex traders believe that money promised to help emerging economies and various stimulus programs had prompted the stock upturn.

European stocks rose 2% early Monday and pointed to a higher open on Wall Street. Daragh Maher of Calyon stated, “The G20 statement just reflects the mood of the market at the moment, if something changes on mood people are reluctant to stand in the way. For now that means the dollar weakens.” The rise in risk sentiment sent the Euro up 0.9%. British forex traders were pleased with a rise in the Pound which is up 0.4% to $1.4205.

The dollar was up 0.3% against the Yen and traded at 98.27. Both the Federal Reserve and the Bank of Japan have scheduled policy meetings this week and Forex traders are sure to be paying close attention to both. Many Forex traders expect central banks to take exceptional measures to address the ongoing recession.

Fed Chairman Ben Bernanke said on the popular news show 60 Minutes that he expects the recession to last for most of 2009 and that the banking sector in the US needs to be stabilized. Forex traders noted that the Swiss National Bank intervened in currency markets to weaken the Franc to fight deflation. The SNB is the first central bank to actively intervene during the current crisis.

Forex trading has been a difficult occupation lately and Forex traders have been inundated with economic data from around the globe. Hopefully in all that data will be some much needed good news.