Week's Market (16 Jan -20 Jan)

This week is predicted to stay in a bearish mode, as commodity markets are heading down and European country are down graded. These two major factors are going to influence financial markets in this week.

U.S government wants to merge six of its financial institutes to into a single export body to compete the challenges of 21^st century economic challenges. U.S private job sector is providing support to economy for recovery stages. U.S government is taking steps to accelerate small business sector. The increasing imports are widening the gap in budget deficit.

The financial scene has been once again wavered by downgrade of European countries by S&P. This move has affected markets and it is going to affect financial markets during this week. Greek, the hub of European debt crisis was desperate to gain a bailout package but this development has sabotaged it s efforts. European Central Bank's recent moves are increasing liquidity in the market which playing an easing role in the European countries.

U.K foreign secretary has warned Iran to face military action if will not cooperate on its nuclear issue, adding that U.K is not advocating any severe action but they could not rule out any option to bring Iran to table talk. Britain's FTSE 100 share index is in negative mode on the U.K downgrade by S&P.

Germany has gained an outstanding position is European crisis, as it is among the major players for resolving this crises. Now EU Zone is looking forward to Germany and other A+++ rated countries to increase their financial support to help them out.

Air France has announced its three years plan to freeze salary and reduce its investments to restore its profitability.

EUR/USD

With economic developments and European situation a downtrend is predicted to remain for this pair in the forex markets.

USD/JPY

The release of soft U.S data is here to give a downtrend but Japanese government also is predicted to take steps to consolidate Japanese yen position in the market. So there is a neutral forecast for this pair in the market.

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