The data regarding inflation and investments in the forex market of the third week of October 2011 may seem to be optimistic, but still it can’t help much in pulling up the greenback. It’s because of the current PPI (Producer Price Inflation) and TIC (Treasury International Capital) long term investment, it is hoped that the market will be steady this month and can be responsible for lifting the value of the riskier assets. In order to be conformed, certain data has to be analyzed.

Data to be consulted

Read on to know how these following data will help you confirm the stability of US market and make necessary investments.

USD (US Dollar):

In the second week of October, US Dollar was found to be bit bullish while trading. This made the investors feel pessimistic about the growth of the American economy. This has led increase of investment in the safe haven assets like the greenback. To build the confidence, there will be several major US economic releases. The economic news will focus on inflation, confidence of the consumer in Europe, and investment in US domestic securities. It is expected that it can make liquidity grow likely higher in the following trading market. However, the impact of Europe’s ZEW reports will be sufficient enough to force a surge on USD at any direction.


EUR (Euro):

It is expected that, at the beginning of the second week of October 2011 EUR (Euro) will be found to be trading with mildly bearish results. In comparison to US Dollars, Euro is found to be sinking downwards from a recent flight to safety after last week’s positive figures. This has led the investors of the Euro zone grow pessimistic about making necessary investments in the global stocks at this market. Now, the analyst and the economists are expecting the Euro zone to gain a slightly positive effect.

JPY(Japanese Yen):

In comparison to other currencies, Japanese Yen was found to be trading mildly higher but BOJ (Bank of Japan) is still evaluating that whether or not the value of JPY can be considered to be an international safe heaven. As it is linked with the international risk settlement, its value has increased during the period when higher yielding assets have become prominent. With the strengthening of the value of Yen, Japan’s current financial model will attain a positive look.

Lastly, crude oil prices are found to be steady as certain policies of monetary stagnation are being executed by several central banks. The releases have suspected a surprise downtick in the global forex market. This has driven the investors back to the safe heaven assets.