The G 20 summit scheduled for April will undoubtedly affect global markets and forex opportunity for investors. European Commission chief Jose Manuel Barroso said that Europe will speak as one entity at the upcoming conference despite disagreements between some countries. European leaders will meet in Brussels this week to try to reach a consensus before the April meeting. Barroso stated, “Europe must speak with one voice in London and I think we will do that. It is critically important not only for Europe, but for the world, that we have this success here in London.”
G20 finance ministers met in London on Saturday and said they would use their economic firepower to address the global recession and help emerging economies. Equity markets were up for the fifth day in a row and currency markets provided several forex investment opportunities. The troubled Euro rose against the dollar as did the British pound. Investors were quick to snap up the forex opportunities provided by these currencies.
Although differences remain between Europe and the US regarding policies to address the global recession markets remain upbeat. France and Germany are rejecting US requests for more spending on stimulus programs and believe that tighter regulations are the key to solving the crisis. Great Britain favors US style stimulus plans. Forex brokers will be watching the conference carefully.
The US Federal Reserve bank meets on Tuesday and Wednesday and forex brokers are waiting to see whether the Fed will buy longer dated treasuries to help keep interest rates down. The Bank of Japan also meets this week and may also consider the purchase of long-dated government bonds in a similar attempt to keep interest rates down.
In the past few days there has been a rise in risk sentiment and the forex opportunity that risk appetite brings. Some US economists believe that stimulus programs are beginning to have an effect on the US economy. Recovery is sure to bring increased forex opportunities for investors globally.
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