Below is the Statement released by the G7 Finance Ministers Central Bankers.
G7 Communique'............................
The global economic recovery has strengthened significantly since our meeting in Dubai risks have diminished. Growth projections for 2004 have been revised upward to their highest in three years. Fiscal monetary policies have helped bring about these welcome changes.
Yet much more remains to be done. The pace of growth among our economies remains uneven. In our Agenda for Growth initiative we emphasize supply-side structural policies that increase flexibility raise productivity growth employment. Today we released a progress report on our Agenda for Growth. This agenda sound fiscal policies over the medium term are key to addressing global current account imbalances. We outlined strategies for sustained medium-term fiscal consolidation as economies recover. International trade is vital; we call for further efforts for countries to take the steps to resume the Doha round which is pivotal to global growth the alleviation of world poverty.
We reaffirm that exchange rates should reflect economic fundamentals. Excess volatility disorderly movements in exchange rates are undesirable for economic growth. We continue to monitor exchange markets closely cooperate as appropriate. In this context we emphasize that more flexibility in exchange rates is desirable for major countries or economic areas that lack such flexibility to promote smooth widespread adjustments in the international financial system based on market mechanisms.
To combat terrorist financing we urge all countries to strengthen their asset freezing regimes to combat abuse of the informal financial sector non-profit organizations. The IMF/World Bank should make permanent comprehensive their assessments of countries' efforts to combat terrorism.
We are committed to further enhance transparency supervisory stards in financial markets in particular non-compliant off-shore centers.
We have a shared interest in seeing strengthened economic growth in the greater Middle East. We had a productive meeting with our counterparts Afghanistan Iraq. We welcome the completion of the currency exchange in Iraq the removal of interest rate controls we look forward to the approval of the new central bank law. We welcome progress on reform reconstruction in Afghanistan the renewed efforts to collect revenues the provinces. We call on others to join us in reducing the debt burdens of Iraq Afghanistan. We welcome the plans of the IMF the World Bank to provide financial technical assistance to Iraq Afghanistan.
As expected the communique doesn't offer something different regarding forex. The communique rather similar to the other one in Dubai.
Of course they indirectly refer to eur/usd which has increased pretty much post-Dubai summit. But what if the rise is in 'orderly manner'? Would that be acceptable? They should accept it if the rise is not 'volatile' but in orderly fashion.
Also they indirectly mentioned about flexible exchange rate system which refer to again China. Same old story. As for stating that the exhange rate should reflect the economic fundamentals well I don't think Japan will let USD/JPY to drop that easily. Japan's monetary authority will keep on intervening to slow the pace of the drop regardless what the communique stated.
What would the impact upon the USD?
Without direct statement voicing concerns over USD weakness the communique possibly will not lend a helping h to the USD bulls.
There used to be some post-meeting statements but I don't think it would be far different than this one posted by Iris.
Originally posted by darmasdt Well the spread on Oa is now 25 pips (!!!) on EUR (this must be wider than usual weekend spread). To be precise it is 1.2665/2640 now.
The USD/JPY is at 105.64/105.49 now a 15 pips spread.
Good luck my friends
Is it possible to trade with Oa when the markets are closed?
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G7
(this must be wider than usual weekend spread). To be precise it is 1.2665/2640 now. 
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