This will be an eventful week regarding forex online trading developments. Today, around 13:30, the president of the European Central Bank (ECB), Mario Draghi, will have the opportunity to clear the air regarding the ECB’s upcoming rate decision in the European Parliament and the different bond-buying viewpoint with Bundesbank’s Jens Weidmann.
The forex online trading EUR/USD pair has not suffered major fluctuations, after Federal Reserve Chairman Ben Bernanke’s disappointing speech in Jackson Hole last week. Bernanke hinted that new steps will soon be taken to boost the U.S economic recovery, as well as calling the employment situation “grave” and justifying past quantitative easing. Next Fed meeting will be held this month in Kansas, where Forex online trading experts are waiting for the Fed to call on alternative monetary easing options, as a QE3 is still uncertain. In Europe, Spain is still the market to watch, with positive Manufacturing PMI figures climbing to a five-month high, but with autonomous region Catalunya’s aid request adding pressure on the central government and expanding on independence ideals that Catalonians have defended for long. This will be an eventful week regarding forex online trading developments. Today, around 13:30, the president of the European Central Bank (ECB), Mario Draghi, will have the opportunity to clear the air regarding the ECB’s upcoming rate decision in the European Parliament and the different bond-buying viewpoint with Bundesbank’s Jens Weidmann. On Wednesday, Spain will test market sentiment with a bond auction which is right in the middle between the short end of the curve and the benchmark 10-year bonds. The last auction resulted in a yield of 6.456 percent and a lower yield will certainly ease the pressure, especially after Catalonia’s aid request. A day later the ECB will provide more details about the new bond buying scheme initially announced in August. The ECB is also expected to cut interest rate from 0.75 percent to 0.50, to help the struggling economies. As this is far from certain, there is still room for further forex online trading market action. In the meantime, George Soros, a forex online trading savvy, said in an interview that he is very pessimistic about the single currency’s future, as a consequence of bad leadership from Europe, even calling on a serious risk for a Lehman Brothers-like accident. “The worst thing is that if you avoid the accident and you do the minimum to hold Europe together, Europe will be the opposite of a free, open society, and the real danger will be the division between creditors and debtors”, explained the Hungarian-born American investor.According to Soros, we are falling in the same mistakes that lead us to the Great Depression, and considered Germany’s idea of reducing debt by contracting the economy as “not understanding how the economy works”. “Debt is an indicator that is measured according to the Gross Domestic Product. If you reduce the GDP, debt grows. It’s a basic mistake, said Soros. Going to Asia, The euro made a significant gain against the yen, as the Japanese currency continues to drop further than analysts predicted. As of early Monday afternoon, the euro was trading at a rate of 109.81 against the yen, marking a five-month-high for the EUR/JPY pair.