Week in FX Europe – For Now EUR A Bust, G20 A Must

With little else to occupy the forex market, traders shifted their focus towards Moscow where Putin and Russia host the two-day meet of the Group of 20 nations' finance ministers. One of their primary objectives will be working on a common approach to QE programs to avoid market volatility in the future.

The gathered finance ministers are expected to formulate an agenda for discussion by the G-20's meeting of leaders in September. Ministers will be working out a “comprehensible criteria” for when and how such programs can be tapered. In other words, they will be trying to formulate a predictable exit strategy that is supposed to leave investors with little mess. How have they being doing so far?

The G20 also reiterated their commitment to more market-determined exchange rates and that members should refrain from competitive devaluations. Japan should have no worries in this regard. 'Helicopter' Ben gave his BoJ counterpart, Governor Haruhiko Kuroda, his...