Will tinkering with the economy fix a depression?

Kathy Lien investigates if there are any unique characteristics in the currency market for the month of February.

The US dollar and Japanese yen were some of the strongest of the major currencies as lingering risk aversion led Asian, European, and US stock markets lower.

Todd Gordon is looking at a new sell zone in the euro.

As all industrialized economies continue to battle the growing global economic crisis by further easing their monetary policies, what becomes the dominant value to drives trade?

Fundamental outlook for the US economy remains poor, and such bearish sentiment would normally be enough to send the dollar significantly lower against major counterparts. Yet it is clear that markets are currently not normal.

Next week, there are a top-tier economic indicators scheduled for release; but among them only the European Central Bank’s (ECB) rate decision has the potential to fundamentally redefine its currency’s trend.

Risk sentiment dominated the markets last week; and it will no doubt do so again next week. This is a promising trend for Japanese yen traders who are looking for volatility – and nail-biting for those that await a lasting trend. Among the major economic drivers for next week, half are scheduled and the other half are potential.

The British pound was the strongest of all the majors last week, as the currency trades in a highly speculative manner and attempts to recoup the massive losses accumulated between October 2008 and January 2009.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for February 2.