Aussie vs. Loonie: Perfect storm

There has been very little action in the currency world at the start of the new week as most of the major currency pairs are lacking in the headline grabbing department. 

US equities, on the other hand, are racing out to record levels this morning potentially on expectations of solid earnings from Apple being released after the market closes this afternoon. 

Just because currencies aren’t providing any major talking points doesn’t mean there isn’t anything going on within them though.  Our old friend Greece is making some headlines due to the reeling in of Finance Minister Yanis Varoufakis.

The much ballyhooed Varoufakis was anointed as a next level negotiator supremely skilled in the art of Game Theory when he ascended to his post, but after a few months of little progress with Greece’s debtors, he was essentially ousted as Greece’s dealmaker. 

That role now falls to Deputy Foreign Minister Euclid Tsakalotos.  The former economics professor has been a politician since mid-2012, and now he is tasked with trying to negotiate a favorable deal for his home country after the supposed master negotiator couldn’t get the job done.  Something tells me this won’t end well for Greece.

Moving away from everyone’s favorite punching bag, there are other intriguing opportunities out there in the trading world.  One such situation could be arising for a couple of commodity currencies whose central bank heads will be making some speeches over the next 24 hours. 

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About the Author

Neal Gilbert is a senior market analyst at Forex.com.