Mario Draghi will likely want to build credibility and skip a rate cut. And what about the credibility of the Japanese authorities with the recent intervention? Rodriguez provides answers to these questions and more in the interview below.

Since the big financial crisis erupted in the fall of 2008, there have been many such absurd period. The current summer of 2011, which includes an escalating European debt crisis that approaches the core, an unprecedented downgrade of the US and fears of a global recession, is a time when these abnormal phenomenons happen all the time, the “new normal” if you wish. How does it work?

The past two months were quite good with job gains of around 200K each month. The last report, for March, stood out by finally exceeding expectations (216K instead of 192K) after many months of the result falling short of expectations.

In an interview with Forbes, Wikileaks’ Julian Assange says that a major American bank will “suddenly find itself turned inside out. A collapse of a big American bank – Bank of America, Citi, JP Morgan or any other of the big names will definitely have a big impact on currencies – more risk aversion means a stronger dollar and especially a stronger yen.

Bank of America has stopped foreclosure procedures in the US, and so did a few additional banks. They were forced to do so after it was discovered that many foreclosures are illegal – a result of a few things. In some cases, the mortgage note was turned into a Mortgage Backed Security, but the chain of signatures necessary for this process wasn’t complete. If the note was sold over and over again, without proper signatures, the house owner owes no money anymore.

EUR/USD Technicals

Most of the rises are due to hiring in the public sector, as expected. The decennial census in held in May created lots of public jobs during the months that preceded the census, and the hiring reached a climax in May. But other components weren’t so good:

It’s important to stress that the Non-Farm Payrolls release is the most volatile event in forex trading, and causes very high volatility. I suggest you read my 5 notes for Non-Farm Payrolls trading. The comment regarding the risk factor is very important these days. OK, let’s see what’s special this time:

Gross domestic product for the first quarter of 2010 was revised from 3.2% to 3%. Economists had expected an upwards revision to 3.5%. While this figure relates to a time period that ended almost two months ago, this release is quite disappointing for the American economy.