Anthony Wayne

French President Nicolas Sarkozy said that he expects Sunday's meeting of 15 European leaders to produce a united coordinated plan to battle the effects of the current financial crisis.

The current financial crisis has been years in the making and the crisis is the product of years of reckless and irresponsible behavior by both government and financial institutions.

On Wednesday Britain announced a 1.23 trillion dollar rescue package that included part nationalization of eight of Britain's largest banks. Immediately after the UK bailout was announced the Bank of England announced an interest rate cot of 0.5%.

Stock markets remain volatile with investors unsure whether the market has bottomed out or will decline even further.

In addition to the recent financial and banking crisis in the US the country faces unprecedented debt and massive job losses. The US economy has been shedding jobs at an alarming rate.

In an astonishing display of hubris, executives at insurance AIG headed to a $440.000 retreat at one of the nations most luxurious resorts. The retreat was held less than a week after the Federal Government offered an $85 billion dollar bailout to the insurance giant.

New York stock markets showed positive gains as the lowest oil prices in more than a year inspired investor confidence. The Dow rose 240 points having been down as much as 380 points in the late morning.

Last week's meeting of the International Monetary Fund (IMF) was attended by the world's financial leaders who are putting aside political differences in order to stave off a global recession.

Following the lead of the US Federal Reserve, central banks around the world announced rate cuts designed to lift the global economy in the face of a recession.

It is hoped that the recent coordinated rate cuts by the US Federal Reserve and European Central Banks will thaw frozen credit markets globally. The credit crisis has been trickling down into the everyday economy.

The recently passed $700 billion dollar bailout which was supposed to rebuild economic confidence instead triggered massive sell offs in global markets. Investors feared that the plan was too little and too late.

Tuesday the US government announced a $250 billion plan to help banks repair their balance sheets and restore confidence in markets. The government will inject capital directly into the banking system by purchasing preferred stock and warrants to purchase significant stakes across a number of banks.

Following an announcement of a coordinated European bank rescue plan the Euro rose against the Dollar. It is thought by some economists that the European rescue plans have reduced the dollar's attractiveness as a safe haven.

On Tuesday the Euro rose sharply against the Japanese Yen signaling investor confidence that the coordinated European bailout plan will revive floundering banking systems.

Markets around the globe posted record losses last week but following a meeting of Eurozone leaders over the weekend Asian markets slowly climbed and as of Monday Asia Pacific index gained 7.7% after dropping 20% last week; the worst performance in its history.

Last week's doom and gloom in world stock markets was tempered by Monday's astounding gains, the largest since the great depression. The Dow rose 11% the largest one day gain since 1933.

Many small investors in both Europe and the US are interested in Forex trading but have little or no understanding of how Forex markets work and how to invest.

Key bank to bank long term lending rates in Europe jumped to their highest since 1995 from 5.142 to 5.237 a move sure to reverberate through Interbank Forex markets.

Current economic conditions in both the US and Europe have caused a slowdown in the sale of gold by banks. Sales of gold by European banks are expected to be lower this year since banks are trying to mitigate the risks of paper assets.

World events have a profound effect on Forex markets. What seem to be minor events can cause currencies to rise and fall. Forex traders must stay well informed about events in several categories.