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Yen Gains Strength from Weak US Data
Tuesday, January 5, 2010 - 7:13pm | 120Read More...The Yen was able to exert serious pressure on the dollar throughout today triggered by rumors of a large-scale repatriation by Japanese exporters. In addition, the posting of a steep drop in US pending home sales earlier this morning weighed heavily on the greenback. As a result, the USDYEN plunged...
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New Year Brings Early Dollar Drama
Tuesday, January 5, 2010 - 10:27am | 247Read More...During December, the Dollar rose extensively against the other major currencies because many believed that signs of an improving US economy would prompt the FED to tighten monetary policy during 2010 and raise interest rates. However, official statements made in the last 24 hours do not support...
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Forex Strategy Evaluation Test
Tuesday, January 5, 2010 - 8:14am | 263Read More...A strategy evaluation test can be used to assess whether a trading strategy is profitable or not. Average trading strategies aim at a risk-reward ratio of 30% to 50% (Reward-Risk Ratio = Profit Targeted/Maximum Stop Loss * 100), which, if complemented even with a guaranteed winning percentage of...
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Further Dollar Support Needs Economic Proof
Monday, January 4, 2010 - 10:18am | 199Read More...The strength of the dollar took a dramatic reversal during the night with the EURUSD rebounding from a low of 1.4260 to its present reading of 1.4430 (see hourly chart). A consensus of expert opinion seems to be behind this development, advising caution concerning further dollar support in the wake...
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US Economic Data Impacting The Forex Market – Part 5
Monday, January 4, 2010 - 7:51am | 330Read More...In the previous part, you read about a few economic parameters that impact the forex market. Some of the last few data points are: • Philadelphia Fed Index: This Business Outlook Survey is released by the Federal Reserve Bank of Philadelphia around the 17th of every month and covers business...
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Risk Appetite Drives Euro Higher
Tuesday, December 29, 2009 - 9:25am | 209Read More...The Euro managed to find some legs overnight with improving risk appetite driving the EURUSD to highs of 1.4455 (see hourly chart). Official statements out of the Euro-zone stated that there were signs that the recession were beginning to end but a double-dip risk still remained because of banking...
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Forex has Spent the Day Treading Water
Monday, December 28, 2009 - 7:14pm | 152Read More...The EURUSD failed to hold its modest gains today as it fell from its highs of 1.4410 to its present value of 1.4375 in the last few hours of trading. Tomorrow morning, the preliminary release of the German consumer price index (CPI) is due to be announced and it is expected to have risen by 0.6%...
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Quiet Forex Needs Spark to Ignite any Momentum
Monday, December 28, 2009 - 9:28am | 222Read More...The EURUSD opened at 1.4380 yesterday after closing last Thursday at 1.4355. However, as it most cases this gap was rapidly closed in early trading. Overnight, the pair has achieved new highs amidst weak holiday trade and is presently sitting at 1.4410(see hourly chart). With no major event risks...
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US Economic Data Impacting The Forex Market – Part 2
Monday, December 28, 2009 - 9:00am | 346Read More...In the previous part, you read about the types of data released and how they affect currency pairs. Some US economic data points that impact the forex market are: Industrial Production (IP): U.S. production activity is measured in terms of the IP index. When the economy is doing well, there is an...
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Dollar in Retreat after Xmas Break
Sunday, December 27, 2009 - 6:03pm | 195Read More...After the Christmas break, the EURUSD is recommencing where it left off by continuing its corrective action. The pair is presently posting 1.4385 (see hourly chart). The dollar retracted by just over 160 pips against the Euro in the last 48 trading hours of last week amidst relatively illiquid...
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The Need for a Powerful Forex Methodology
Thursday, December 24, 2009 - 9:57am | 393Read More...Forex has the potential for significant financial gains but is also a very dynamic and complex entity. In order to understand this market so that you can trade it successfully, you definitely need to develop a powerful winning psychology that will enable you to navigate yourself through its...
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Drop in US optimism Weakens Dollar
Thursday, December 24, 2009 - 9:21am | 205Read More...The Euro continued its recovery during the night with the EURUSD hitting highs of 1.4415 (see hourly chart). In thin pre-holiday trading, yesterday’s US New House sales, which plummeted by 11.3% in November to a seven month low, has knocked the gloss of US economic optimism placing pressure on the...
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New House Sales Figure Stalls Dollar Run
Wednesday, December 23, 2009 - 6:46pm | 122Read More...Recovery hopes for the US economy took a hit today after the US New home sales posted a dived to a seven month low. In addition, although the University of Michigan Confidence index recorded a rise this morning, it still failed to meet expectations and thus placed the dollar under further pressure...
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Slow Forex Night as Holiday Markets Thin
Wednesday, December 23, 2009 - 7:13am | 197Read More...The EURUSD has traded mainly sideways during the night posting 1.4250 presently(see hourly chart). With the Tokyo market closed, the dollar has remained well-bid amidst a background of very thin trading. Analysts are pointing out that a EURUSD break of $1.4194 could lead to further weakness with...
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US Economic Data Impacting The Forex Market – Part 1
Wednesday, December 23, 2009 - 6:15am | 327Read More...The US and all other major countries release economic data on a daily basis that affects the forex market. The types of data released and how they affect currency pairs are described below: • Non-farm payroll and employment report: The U.S. government releases this report on the first Friday of...
