Week's Market (16 jan - 20 Jan)

The trends in this week will be mostly move round the corporate earning releases in ongoing week and any major move to solve the European crisis. The French president Nicolas Sarkozy and the German chancellor Angela Markel are striving hard to resolve the European crisis. The world economies are predicted to slowdown in 2012.
The U.S unemployment rate is 8.5% which is less than predicted by the economic experts. It is acting as a major stimulator in markets. U.S government is confident to reduce it to 8 % until election. It will speed up the recovery process. The tension between Iran and United States over its nuclear program is affecting oil prices in market, which is playing its role in slowing down economies. The U.S economy has a long way to go on economic recovery.
The U.K unemployment rate has soared 8.3% in last month. The private sector is less optimistic to generate new jobs. The interest rates in U.K are low but investors are in a hold back strategy to monitor European crisis. While banking sector is much more confident to squeeze significant gains in 2012.
The France is trying to persuade European Union to control crisis through ECB. The French government is ready to go on its ride alone for imposing tax on financial transactions. As they are of the view that France would like to step forward and initiate instead of stay and watch policy.
The German government is however is reluctant to impose this policy on their own behalf. They want it implemented by European Union platform.
The Asian giant China is to become the world largest oil consumer. China had tightened its monetary policy to cope with inflation and European recession but now China is on the opposite direction and is encouraging lending. The bank ratios are going to be cut short.

USD/EUR

The exchange rate for this pair is predicted to rise as EUR has been under selling and now it is expected to rebound and getting a high exchange rate for this pair. The market correction is going to take place whether in a long term or a short term.

USD/JPY

Positive news in U.S economy and some positive factors in Japan’s financial markets this pair is likely to gain its stronger position in forex markets.

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