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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.

Today the currency pair EUR/USD boosted out in the forex online market because of the rumors in the US market getting support from the ECB. Since from the past year’s low the pair drop down to 20 percent after the December high and in mid July it drops to 22 percent low. Now we are experiencing the a demand of additional gain in the Forex market because of the drop down of Dollar in the US market in the past 2008. The federal government only needs approach that will benefit the market is to sell the USD and not to ban their short sales. It is predicted about the US economy that it will become better in the year 2010 suggested by the Conference Board LEI data. The US economy unexpectedly slips down to 0.1 percent in April month after getting revised of 1.3 percent in the month of March.

The Europe economy is facing downside since the past year’s fall down of euro. The euro zone countries are going through the tough days of the economy but there is bright sunshine is seen in this week as the currency pair EUR/USD goes high because of the news that the EURO will receive a great help from the ECB government. But, the investors is still in doubt because of the failure of the Stabilization fund that has been announced to provide favor to the EURO currency. Germany prices grew more in April as expected to 0.8 percent. This has been recognized as the third advance as in the march month it was only reaches to 0.7 percent. It is also seen that the UK retail sales incremented for the third time in past three months including April. The retail sale price seasonally noted that was up in April from 0.1 to 0.3 percent.

Now the Asia-Pacific Forex market impact as it is seen that the Japan’s economy recovery was not raise this week as expected. GDP of Japan was abouit 4.9 percent recoreded as it is low that forecasted for the first quarter of the 2010 year. Since in fourth quarter of the past year the GDP recorded was up to 4.2 perecent but it does not do well this year. As if we talk about theAustralia’s economy rate it was down at 3.6 perecnt in the month of May than in April as it was recorded to 4.1 percent at that time. This uncertanity is due to the euro zone events that does not provide any benefits to the Europe instead affects the Global economy recovery. This survey is done by the consumer inflationary of  Melbourne Institute.

In Asia this week is not at all as good in terms of economy since the EURO is getting benefited from the past two days. This makes the currency pair of EUR/USD to hits high of 1.2671 from the low of 1.2150 points. The all euro currency pairs are showing good results after the upside trend of EURO in the Forex Trading chart. EUR/CHF reaches to 1.4585 by gaining 235 pips and EUR/JPY reaches the high of 114.35 points in a day where as 100 pips was gained by the currency pair EUR/GBP and reaches to a high of  0.8770 points. While Yen goes high against the equities and commodities that are going low along with the Nikkie reaches to 3 percent and touches the one point low in five months. These are all the latest updates about the Forex market of today in technical terms.