Recent sell offs across global over the past few weeks have succeeded in holding investors on the sideline, while major institutions and central banks assess the potential damage of the most recent correction in equities. The US dollar and gold have emerged as the safest bets in the immediate future, as both continue to benefit from “risk aversion”.

EURUSD
The Euro continues to fall against the greenback, extending its largest monthly drop in over ten years against American currency. The European currency lost 7.4% against the USD in May, its sixth straight monthly decline, as the 16-nation currency has been unable recover from the region’s debt crisis. Any indication of a recovery in the price action is immediately followed by a sell off supporting the argument that all attempts at recovery are simply new opportunities to short the flailing currency

Support/Resistance 1.2200/1.2333

AUDUSD
The Australian Dollar extended losses overnight after RBA governor, Glenn Stevens, opted to hold the nation’s benchmark rate at 4.50% and signaled that the central bank may keep borrowing costs unchanged in coming months. Rising concerns about the global economic recovery and Europe’s sovereign debt crisis have hurt the Aussie. The currency fell 8% against the USD in May – its worse monthly performance since January 2009 in the forex online market.
The Australian currency has suffered proportionally to the loss in global risk appetite and will most likely continue to suffer barring any major change in investor sentiments.

Support/Resistance 0.8195 0.8420

EUR/USD
Renewed debt concerns about the Euro-Zone continue to strain the single currency. In overnight forex online trading, the EUR/USD slipped to fresh low of 1.2153, trading just a few pips above the 4-year low it hit last week. However, the highly traded pair has since recovered, and managed to touch on a high of 1.2275 in this morning’s Asian session.  Nonetheless, EUR/USD sentiment remains fairly negative which may limit any additional advance in the pair to its 1.2350 resistance.
Support/Resistance 1.2145/1.2350

GBPUSD
The GBP/USD seems to be strengthening, as the pair successfully bounced off of its 1.4250 support several times over the last seven trading days. The Pound’s recent movement against the Dollar suggests that demand for the pair could be rising. If it continues to trade out if its 1.4250/1.4500 trading range we may see a breakout to the upside occur.
Support/Resistance 1.4250/1.4510

In Asia there is a fall is shown in the EURO currency tumbles down to 1.2385 from 1.2370 level. This is due to the move in Bank of Spain also some austerity programs supported that has been launched in order to provide support to weaker euro zone’s member countries to get recover from the debt crisis. There was a big fall in EURO currency pair that is EUR/JPY is shown that is of 110.10 points. AUD/JPY falls to 73.50 from the 74 level and also a drop down shown in the USD/JPY to 90 level.

Overall it can be said that market is still in the consolidation state and there is a risk shown in the Dollar and Yen sell-off. The euro fall is limited to some extent as predicted in the Foprex market. Due to solid economic data out in the US the Dollar gets the safe side flow and there is a dynamic move shown by the Gold in Asian market. These are all the lastest update about the Forex market till now.

The BOJ had decided to fix the interest rate to 0.1 percent that supports the policymakers to fight against the deflation rate. This will help in recovering from the Global world’s economy because of the increase in demand of exports from Japan which leads to rebound of manufacturing companies in Japan.

Since the Japan’s economy results less as estimated by the experts of the forex online market benefits the EUR/USD currency pairs trading and it reaches to high level of 91.78. It happens due to the failed export recovery along with the less consumer spending. BOJ is in pressure after the two days meeting to decrease the deflation rate in Japan. The Government continues in their expectations from BOJ to do something better in order to reduce the deflation rate but the BOJ is not willing to change its policies after seeing the GDP growth rate.

In terms of Technical analysis it is estimated that the GDP rate of Japan rises to 4.9 percent in past three months till March it was 4.2 percent and was expected to be 5.5 percent from the experts. There was a rise in consumer spending of 0.3 percent in first quarter of this year that was 1.7 percent in the past year’s quarter four. There was a lead in housing investment is shown after the continuous five quarters  of 0.3 percent. This was the first increment shown in the housing investment while in business investment the past rise was of 1.3 percent where as morning results shows gain of 1 percent. After getting all these results the BOJ holds a two day meeting to and also decided to keep the interest rate to only 0.1 percent and it may be expected to announce the leading plan in today’s meeting.

EUR currency remains in their downtrend this week regardless of the Greece aid-package details that favors to the debt crisis facing countries belong to the euro zone are Greek, Spain and Portuguese. The austerity package finally gets the approval this week which in turn provides a flip in single currency and equities. EUR/USD currency pair has showed on and off this week and were supposed to touch low of 1.234.

This week is beneficial for the currency pair of USD/GBP because of the UK elections, this helps the pair to reach high of 0.8620. The BoE not make any favor for the GBP against other currencies in G10, it only creates a resistance line for the euro currency so that it can snugged to the place where it is.

There will be a relief expected in the next week’s forex online session because of the three major targets that is maturing of Greek 10y debt package, Ecofin meeting along with the buying of ECB bonds. For the investors, it is only be said that “When there is a will, there is a way”. Hope for well!!!

Those who are investing in Forex hunted to ward off the threats of market and opening towards USD and this response of investors pulled down EUR against USD.  The outcome of European Manufacturing PMI is pretty well exceeding the expectation and is at 57.6.
While in UK, reversal of market threats is the subject of great concern and caught the attention of traders indulging in discussions because traders are sitting quite to see the  outcomes of election 6 May. This quietness of traders proved to be contagion for the pound and sterling and it dipped down in front of USD.

Turning towards the US market, stocks once again recouped the losses in the last few days and the commodities incessantly gaining on 4 May. Dow Jones expanded by 1.3% with NASDAQ gaining 1.53% and the crude oil profited and finally closed at $86 per barrel. Gold profited close at $1,182 per ounce and all these gains together pulled the USD against all the major currencies because traders are looking for some safe investments to get protected against the risks.

The currency pairs of GBP/USD traded at the low level of 1.5210 and at the higher level of 1.5334 whereas the EUR/USD pair traded at the low level of 1.3153 and higher level of 1.3360. Further information regarding the currency pairs will become clear in today’s session.

The outcome of GDP reached 3.2% in US that indicates economy was able to maintain its expansion during the first quarter of the year. This growth expansion might not be visible to most of the consumers, they are still sticking to the same assumptions of poor economy, and it is yet a positive sign that the economy is trailing back on its way.

Dow Jones upshot cried off at the forex platform at the level of -1.42%, on the other hand NASDAQ pulled down by a greater amount -2.02%, while crude oil rebounded and closed at $86.2 per barrel and gold along with the growing economy managed to evidence profits and closed with $1,178 per ounce. USD had mixed results in front of the forex major currency pairs.

Greece will now receive the aid package of 110 billion euro as approved by the EU in Europe and the package has sanctioned for the coming three years. The only thing that is tensing the environment in Greece is its growth that is still unable to go up.

Taking look at the currency pairs including EUR/USD made to trade at the higher level of 1.3360 and at the lower level of forex market 1.3223. Whereas the pound and sterling couldn’t do much and fell down while trading against USD and the GBP/USD pair trading at the higher level of 1.5388 and at the lower level of 1.5251. This gives the impression about the UK economy that it is undergoing through turtle walk revitalizing of the economy in comparison to the rabbit running US recovery.

Such rebound came up with the announcement of the credit ratings in Portugal and Greece that are highly dissatisfactory, Dow Jones dropped by -1.9% and the NASDAQ declined by -2.04% with some of the unbearable losses in the year.

Whereas the commodities market showing mixed trading responses with the falling crude oil prices to around -2.09 that closed at $82.44 per barrel along with gold gaining 0.71% and closed with $1,161.7 per ounce.

EUR/GBP weakened at the forex board while trading across USD and the reports of Standard & Poor lower credit rating of Greece and Portugal further made the trades to slow down. EUR/USD currency pair made to trade at a higher level of 1.3395 and a lower level of 1.3144 in this way it marked first time that EUR traded below the level 1.32 since April 2009.

Right now, the issue that is capturing the concern of officials includes debt crisis of Europe that is spreading to Portugal and this would not left Spain and Ireland will soon be trapped. Moving towards UK forex online market, the GBP/USD traded at the higher level of 1.5476 and the lower level of 1.5224.

These are the trading thoughts that are airing among the investors and the officials that are keeping watch of the direction of the market to catch the nerves of the trends and the likely behavior of the trading pairs in the next few sessions.

USD once again fell down and faced loss on second consecutive day as well in front of all the major currencies involved in forex online trading. Such a downward slip in the USD trade activity is based on the increasing hopes of Europe along with the keen interests of the investors to wait for the announcements about Greece’s bailout plans.

In the Asian market also the session was bitter and had a massive downfall after attaining good trade level in last week’s trade because all the traders sold off their investment in huge proportion and that mad the market to have a sudden fall.

The stock markets are as well doing very slow trade and not satisfactory as they generally used to have this can be analyzed with the fact that Dow Jones stayed with same trading level and NASDAQ falling by -0.28% for the first time because some negative trade moves are being observed since Goldman Sachs controversy.

Gold didn’t show any movement and closed with the $1,153.4 per ounce and on the other hand crude oil pulled down by -1.4% and closed at $83.97 per barrel.

There are some more news from other currency pairs that includes elevated hopes of ending Greece issue EUR managed to gain at the market against USD consecutively for the second day as well. The currency pair of EUR/USD traded at the higher level of 1.3416 and at the lower level of 1.391. Whereas the sterling and pound managed to gain against USD and other major forex currency pairs on trading session.

Subsequently moving towards ninth month of trading uncertainty UK house price index finally recouped to climb over that is good sign of economic recovery while GBP/USD traded at the forex session with the higher level of 1.5498 and the lower level of 1.5386.

Such mixed information from the trading market is because of the some supporting news for Greece along with some bad news that consists of worst than the expectation of the Prelim GDP data release.

The market analysis reports suggest that there is a need to make some prospective programs that may enable the major currencies to sustain the pressure of inflation so that the consumer should not loose their interest in the economy.

The currency pair of GBP/USD trading at the forex online trading platform is moving at the lowest level of 1.5294 and the higher level of 1.5399 as USD dropped in comparison to the most of the major pairs participating in the market.

At the same time, gold and crude oil were jot down to make some good gains around 0.94% and 1.7% respectively. Gold closed its session with $1,153.7 per ounce while crude oil closed its trade at $85.12 per barrel. NASDAQ made to get the profit of 0.44% and on the other hand Dow Jones is leading by 0.63% of gains.

On 23 April 2010, last Friday, EUR drowned to new-year lowest while trading against USD because of the information that Greece deficit issue is not a smaller issue that can be resolved easily instead it can engulf other nations into its grasp if timely resolutions are not found.

On Monday, EUR made to rebound back on its position due to the announcement that the requirement of aid package of Greece reached to 55bln USD is of substantial aid from the EU and IMF. This statement made the pair of EUR/USD to trade at the low of 1.3205 and the higher level of 1.3400 and this raise the interest of the investors in EUR to have secure trades.