Due on the weekend, starting tomorrow the G7 meeting will start in Tokyo; as current global economic conditions have deteriorated lately and are now unusually highly undefined, surely the US slowdown impact is to be discussed, especially that all the great seven industrial nations have now felt the pinch of the American slowdown and the subprime market collapse.

Central Bank chiefs and finance ministers are surely to discuss the disruption that hit the markets and the market turmoil, that according to the MPC decision statement yesterday, still continues, as volatility in markets have affected currencies and sure commodities; oil prices are on the top of the list after OPEC discarded calls from consumer nations ending their meeting last week with no production enhancement to anchor surging prices.

Nevertheless, if the group is to release its customary end-of-meeting memorandum, on foreign exchange and FOREX markets then basically will have less on impact and importance that used to in the past, as now markets are looking for more of clues and direct implications that a summarization to what they already know.

The highlight will be the Financial Stability Forum (FSF) which will be submitting a provisional report that's sole purpose is to analyze the disturbance in financial markets and the underlining causes to the credit crisis; the key element will be the prepositions provided to ensure that it will not occur once more, recommendations on how to enhance transparency and activating a more vital role to risk management and financial institution where they should be quick in disclosing all their losses, as they say quickly scrap the bandage off that wound!!! Though that forum is a key element yet the final FSF report will not be released until April and for that again lessens the highlights of the Tokyo meeting.

They are to discuss much tabled issues, and then again those are the areas above of concern, while others will be redundant and talked off much, such as sovereign funds, that was the Davos highlight, and others such as climate change collaboration and IMF funding.

Unless they are to release a serious aggressive pessimistic tone regarding financial stability and the effects of a US slowdown or recession, and FOREX markets will not sense the change on currencies when participants resume to their posts on Monday… All in all stay tuned in case bad comes to worse so you won't miss a beat next week…