OctaFX | OctaFX Forex Broker
Open trading account
Back

G7 expected to discuss austerity, back G20 stance on currencies

FXstreet.com (Barcelona) - G7 finance ministers and central bank chiefs are due to meet today in the UK to discuss ways of stimulating growth, in the face of the disagreement between Europe and the US on the pace of implementing austerity measures.

The US is pushing for boosting demand and employment and believes that stepping up fiscal consolidation, which until now helped ease the debt crisis in the Eurozone, would impede the slow economic recovery.

Officials from Britain, Canada, France, Germany, Italy, Japan and the US will also most probably express their support for the position determined by the G20 nations last month, that monetary policy should not be used to target exchange rates.
 
Nevertheless, Jane Foley, Senior Currency Strategist at Rabobank does not expect any breakthrough decisions at the summit: “It is unlikely that the G7 meeting today will offer fresh direction for the currency market; any remarks on FX are set to remain along the lines of the well worn mantra that markets should set exchange rates.”

Forex Flash: AUD/USD has broken down from its 9 month range- Commerzbank

With the dollar taking centre stage at the end of this week, recording significant gains in a white wash move in the market, triggered by comments from Fed’s non voting member Posser in favour of calling back QE3 next month, The Aussie has tumbled towards parity.
Read more Previous

Forex Flash: EUR/USD holds a neutral bias – BTMU

Bank of Tokyo Mitsubishi UFJ analysts are neutral for the week ahead and see spot ranging between 1.2950 and 1.3250.
Read more Next
Start livechat