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Here are some suggestions for traders, planning to be active during foreign exchange market activities on Thursday. Although the market is not very active these days due to official holiday in Asia, there are many trades providing possibility for good income.

Euro: Traders should react, if the euro consecutively closes above, as it is usually done. The level of 1.3430 is the one which should receive attention from traders.

The European currency is further declining versus both the dollar and the yen. Other risk-sensitive currencies have also been affected by the risk aversions, connected with the swine flu spreading and how it will affect the process of economic recovery around the world.

On Monday morning the euro fell significantly (after reaching its high on Friday around $1.3300) to $1.3093 and 126.55 against the Yen. But the Mexican peso is still the most affected currency.

Major tendencies of the day:

Yen is strengthening against all major currencies, including the US dollar due to slump in American economy.

Euro fell against both the dollar and the yen, reaching its one-week lowest, due to speculations of the fact the interest rates will be lowered by the Central Bank of Europe.

One of the reasons why Japanese Yen rose versus the dollar is because Lawrence Summers informed that the American economy will keep the shrinkage. The Yen also strengthened against all other major currencies, as it is well-isolated from the spreading of the swine flu.

The American dollar and the Japanese Yen are much higher on the risk aversions related with the swine flu disease, while the concerns are growing regarding the possible impact of the swine flu spreading on the world economy, as well as economies of certain countries, who are the most affected by the flu (Mexico is on top of the list, as the outbreak of the disease happened in the country and over 80 people are already dead, followed by New Zealand and possibly Australia).

As for April 27th, the Japanese Yen and the Swiss franc are considered safe-haven currencies, which will most likely be on the rise. The riskier dollar currencies, like the New Zealand and Australian dollar are already falling and will keep falling all day.

Some experts think that for this week Germany will cause some weakening of the Euro, as it has been reported over the weekend, that the country’s system of banking owns over 1 trillion of USD worth of risky assets.

The euro versus the US dollar pair has been showing significant instability during the past week. As a result of different market changes and new information about the situation in the economy of both countries made the euro reach to 1.3300 by the end of the week. The level of 1.3300 is currently coincing with approximately one major downtrend line of resistance of 1.6, which extends all the way back to July.

The next week, from April 27th till May 1st, we will be able to see the euro/usd figures at a critical juncture.

The dollar slipped against major currencies on Friday as a rebound in European share prices eased some risk aversion fears, but trade was subdued ahead of U.S. payrolls data later in the day.

Investors tentatively sold off the dollar and low-yielding yen and bought into riskier assets, including higher-yielding currencies such as the euro and sterling.

The euro EUR rallied around one percent to a session high of $1.2850, according to Reuters data. It later trimmed some gains but held above a low of $1.2654 earlier in the day. The dollar JPY fell 0.4 percent to 97.38 yen.