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EURO gets a hit in early yesterday as the ECB presents its financial report which acknowledges that the banks are already made a significant improvements as per their financial condition. But still there are 2 important factors that may hurts the financial stability of the market. The first factor is the intensification of public finances and second is the possibility of the obstinate between the public finances and financial sector. These two factors is expected to cause a disorder in the financial situation of the market. Unemployment rate of euro zone countries seems to rise up by 12 year high where as Germany unemployment falls to 7.7 percent in the month of May. While there is a rebound shown by the euro after getting support from the stocks.

Bank of Canada rises the rate yesterday from 25 bps to 0.5 percent as it was the first G7 Central bank that have tighten their policies after the recession period. As this was expected by the market earlier times. The euro zone debt crisis leads to the uncertainty in the market but we have to remain cautious about the Global economic market after the rate hike of 0.5 percent. In early times the RBA makes the decision to hold its rate hike because of the continuous fall of euro currency due to the sovereign debt crisis. RBA only mentioned that the current monetary policies are decorous can bring rate hikes to an average situation. RBA has taken a “pause” from the May month but at that time it was predicted that it will give some good results for June hike but after observing the current situation the RBA again takes a decision for a pause in rate hike.

Dollar index sharp rebound of yesterday suggested that the combinations are still in the progress to reach a high of 87.46. The investors are still expecting the resistance hold at the level 87.46 and expected to again reach the high of 89.62 that was the high of 2009 year. GBP/CAD also rebounds and reaches the level of 1.4831 is now resuming. This rise is seen in the currency pair due to the strength gained by the Canadian Dollar and the support given to the pound from the stocks. These all things supported the currency pairs to rebound from their lows and reaches to the high position in the Forex online market.

In this week the market mainly focuses on rate hike of BOC since, the market were pricing only forty percent at only one point where as 25 bps rate hike in terms of BOC as anticipated for this week in the market. But it is seen that OECD has taken an strict action against the BOC and ordered them to remove all the policies that leads the investors to increment their betting as the stocks gets rebounded in past week. Therefore, at the end of the week it is noticed that market gets only a seventy percent rate hike since we all know that BOC rate hike is not a done deal in the market. It is seen that there was a recovery seen in the past week in the Canadian Dollar against the major currencies and commodities of the market. The market experts anticipated that the US and UK market is to be returned on Monday or Tuesday so traders have to be cautious while trading in the forex online market.

Also in this week it was predicted that RBA may take meeting for giving details about the minutes of there “pause” taken in the month of may. There were seven meetings taken by the banks and issued the borrowing cost raising up to six times. Although this was expected from the starting of the May month before the intensification of the Euro zone financial crisis and also before the fall of the stock market. There was also a fall seen in the Australian market after fourth of May to 4194 from the high of 4753 index level. It seems to be a 12 percent low but again shows a rebound at the end of the month and reaches to 4479 level. But it is still at a low of 11 percent as compared to a high level of 5048 in the month of April. Overall it is expected in the market for a June hike that RBA should take a move that will ignore the previous statements of RBA, so is Aussie.

After April 30 meet the BOJ has released minutes Yesterday. The minutes contains the views of the members of the meet that all agreed for the same thing that the “economic global growth foundations should be strengthened”. Some members also shows their concerns in terms of the side effects of the easing in the market which ultimately impacts on the financial condition if there was a fall seen in the profit of the bank in terms of interest rate.

Now about the strengths and recoveries seen in the Yesterday’s Forex session. First of all about the US major currency Dollar. There was a recovery shown by the Dollar in the late Forex session as it reaches to 86.33 level but the up gradation in Dollar is still limited at the level below 87.46 high. We cannot deny the rise seen in the dollar but it is also the truth it is not equal to other major currencies of the market. The fall of US stocks Dow also strengthen the rise of Dollar since it is the truth that the risk sentiments are the major driver in the Forex market.

Now the latest update about the euro currency as it we have seen that there is no change noticed in the weak euro currency instead there is a sharp fall in the currency pair EUR/GBP. The whole fall seems to be resumed at the level of 0.9317. EUR/CHF is also seems to be rebound on the last week’s way for reaching a high of 1.45867 again. But there is a possibility of intervention is also seen near the level of 1.40 in the currency pair. That’s all about the latest about the Forex online market.