Here’s a quick update on technicals, fundamentals and community trends.

During the weekend, the finance ministers of the G20 countries are meeting in St. Andrews, Scotland. The headlines that will come out from there will impact the markets, and especially EUR/USD, which is sensitive to global events like these.  EUR/USD, the world’s favorite currency pair, partially recovered from the panic that struck the markets two week’s ago.

There are lots more figures from all over the globe. Also note non-standard events: general elections in Japan and the G20 meetings during the weekend. Add to that the return of many forex traders from their summer vacations, and you have one of the most fascinating weeks. Will technical barriers be broken? OK, let’s start:

Non-Farm Payrolls, the single top rated indicator, was better than expected, showing a fall of “only” 539K jobs in April. This was the peak of various economic indicators that showed recovery. American housing is clearly off the bottom, and also other indicators such as Durable Goods Orders, consumer confidence and Purchasing Manager’s indexes were positive.

There are several economic indicators that show that the American economy is improving, or at least stabilized. Hope for America and the whole world is also expressed by economists and politicians

G7 Meeting are held throughout the day in Washington DC. This may also be seen as a follow up on the G20 summit, that pledged $1 trillion to the IMF. They will discuss how to get out of the current global crisis, and focus on the IMF’s role.

Wall Street has enjoyed an uncommon 5 week rally. Stocks rose on good news and lots of hope. Geithner’s Toxic Asset plan sent bank stocks to the sky, and this pulled other stocks. Positive housing data sure helped. 

Non-Farm Payrolls fell a little bit more than expected, but not too bad. Early expectations were for a fall of 659K jobs. So, the figure is within expectations. Also Unemployment Rate, which disappointed expectations recently, was exactly within expectations, rising to 8.5%.

The day starts with German Import Prices, which are expected to drop by 0.3%. Later in Europe, Final Services PMI is expected to be left unchanged, at 40.1. This is a major indicator for Europe.