This week’s highlight obviously will be Friday’s employment situation report. Before then, traders will get their chances to tweak their forecasts with ADP employment on Wednesday and jobless claims Thursday. Current estimates puts the print just over an unimpressive +50k.

The market continues to wait for any positive news about Greece, again there was little produced over the weekend. The Greek cabinet approved new budget cuts, but the overall picture is one of a ‘failing program’. Greece’s GDP growth and budget deficit targets for 2011 and 2012 are significantly above estimates produced only three months ago. With the economy contracting close to 6% and protests increasing, the further budget and forecast downgrades likely challenge the credibility of Greece’s ability to meet even these new targets.

Greece is not the only challenge this week. Trichet Chairs his final rate policy meeting. Is it a surprise cut we can expect or the usual road sign policy change? European policy makers prefer to be more transparent, they do not even like surprising themselves! Ben gets to testify midweek, before the ‘holy grail’ of data, NFP is to be released on Friday. He is expected to emphasize the economic downside risks and that all policy options remain on the table. We can only guess what NFP will give us, for such a large country, it always surprises!

Roundup of what to expect this week plus summary of last week’s price action across related markets. As forex traders we need to expand our horizons by looking at related markets such as oil, gold, silver, bonds & equities so we can judge risk tolerance & see where the money is flowing.

Not one I would usually trade but again it was good not to have to focus on the euro!!

Very pleased with this trade and for once it wasn’t the eurodollar!

Forex market roundup & some suggested trades for this week. Since writing nice trade this morning on the audjpy which netted 90 pips which is pretty good for a Monday morning. You can find more details of this on my facebook page.

Merkel seems to burning the candle at both ends and doing everything in her power to prevent a Greek default. She is side stepping her own domestic supporters by moves of perception. Always be seen doing the correct thing, this is being fulfilled by her country’s own domestic banking due diligence of a Greek default occurring. The Chancellor, vocationally has to answer to a higher position of authority and that’s to the Euro-zone. Germany being the anointed leader, economically and politically, should supersede domestic affairs, the catch 22, its the local electorate that get you appointed. Any Greek exit from the single currency would unleash a ‘domino effect’ that must be avoided at all costs. The negative affect would be felt first hand by Merkel’s own local electorate. Its no wonder that she remains front and center, and the glue that can keep this all together. For how much longer?

The US$ is stronger in the O/N trading session. Currently, it is higher against 14 of the 16 most actively traded currencies in a ‘volatile’ trading session.

Round up of market sentiment which can only be described as febrile. Many saying Greek exit would be catastrophic for euro, eurozone as well as global economy but given lack of leadership & general paralysis it may be too late anyway.

Germany blaming Greece for the whole mess & everyone else running around like headless chickens. As article mentions the only viable solution is some kind of two tier euro. Meanwhile euro under pressure but a euro at 1.20 would certainly be a step in the right direction for Club Med countries.