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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.

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.

On Tuesday morning US trading both the dollar and the pound of sterling reversed its losses. The euro was able to hit $1.3063, but at the same time it reached its lowest in seven weeks against the Japanese Yen, selling at Y124.38.

The pound of sterling hit its highs versus the American dollar, trading at $1.4685. The pound was supported by the government report of sales volumes of British retailers, which in April jumped for the first time since January 2008 to unexpectedly high level.

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 Indian rupee today (December 17) extended its gains against the greenback for the third day in succession by closing higher by another 25 paise at 47.66/67 though it could not keep up with the surge it saw in early trade.

The domestic unit had gained over 60 paise in the morning on hopes of fresh capital inflows following rate cut by the US Federal Reserve amid weak dollar overseas. There has been intense anticipation of inflow of dollars for the past three days which saw the rupee rose by 79 paise or 1.63 per cent.

Nigeria's naira is stabilizing against the U.S. dollar, the central bank governor said on Tuesday, after the government met recent strong demand for dollars from importers and foreign investors with Nigerian assets.

Chukwuma Soludo told lawmakers dollar demand in the interbank foreign exchange market has declined sharply to around $72 million on Tuesday from over a $1 billion last week.

"We have met the demand in the market," he said. "As of today, the rate has ... just appreciated because there is a decline in demand."

The Philippine peso and Thai baht hit their highest levels in two months against the dollar on Tuesday as the US currency fell broadly in anticipation the Federal Reserve will cut rates to near zero to buffer an economy in recession.

The Philippine peso was one of the biggest gainers as it firmed 0.7 percent to hit as high as P47.31 to the US dollar, the strongest level since mid-October, as the country swung to a surplus in its balance of payments in November. It closed at P47.40 Tuesday.

Saudi Arabian stocks tumbled on Saturday, tracking a drop on world markets, as investors worried that an oil price fall and possible global recession would hit growth of companies in the world's top oil exporter. The benchmark of the largest Arab bourse .TASI was down 9.52 percent at 5,572.01 points at 5 a.m. EDT, a day after bourses around the world plummeted as investors, fearing a long and deep worldwide recession, dumped risky assets.