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During trading session on Friday, the Japanese currency hit its two-week low, as the investors became more confident regarding the development pace of the decline in global economy. This caused more appetite among investors for trading riskier currencies.

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.

On Wednesday dollar went down against all major currencies, besides yen, as the risk aversion eased, as the economic data from the United States was much stronger than it was expected, which moved backwards concerns about the US banking sector and the spreading of swine flu.

The growth figures of the first quarter are about to be announced, so there are still some worries remaining about the impact of this information on the market. The United States Federal Reserve also has to announce its future policy today.

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.