G10 forex trading linked to recession type dealing
US dollar (USD)
Japanese yen (JPY)
British pound (GBP)
Australian dollar (AUD)
Swiss franc (CHF)
New Zealand dollar (NZD)
Swedish Krona (SEK)
Canada dollar (CAD)
Norway Krone (NOK)
Financial researchers have indicated that trading across all G10 currencies is similar to the type of trading conducted throughout recession periods. The G10 currencies are the most widely traded globally, these are:
The researchers at NOMURA state fears of recession are not being stated at present, however, the current pattern of financial trading shows close links to the type of trading conducted during the recent financial crisis.
At present G10 currencies have been outperforming the G3 currencies and commodity currencies are under performing. This form of trading is likely due to the jittery feelings about stock markets, but as industry and global manufacturing is not entering recession at this moment it’s felt that the situation will soon be rectified. Service sector information has been reassuring and it’s felt that just as soon as investors begin to adopt more balance the pressures on depreciating GBP will ease and appreciation pressures on G3 prices will also relax.
Dollar trading so far this week has been very cautious with investors likely waiting the outcome of the Federal Reserve policy meeting due to take place. The Euro has continued to hold steady following its dip last week, with investors waiting to hear announcements from the European Central Bank meetings and whether a slow down in the emerging markets will affect the Euro. The Australian dollar fell around 0.2% following a drop in crude oil futures after Iraq announced recent records for oil production.