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Sunday, May 18, 2008

May Oil Prices and Forex Bulls

Friday's historic high in the price of oil had a tremendous effect on the forex currency market. As we have been riding the inflation fears for weeks, this additional increase in oil prices moved the currency markets sharply on Friday. Shortly after the early morning announcement that oil had reached a record breaking $137 dollars USD a barrel, the rise in currencies against the dollar was breath-taking. Both the cable and euro rose sharply. The EUR/USD currency pair went from a low of 15431 to a high of 1.5601. The GBP/USD had a low of 1.9441 and a high of 1.9598. For forex traders that were in the market at the time, profited from the oil price angst. As the Japanese Yen is also quite sensitive to the price of oil, the GBP/JPY consequently dropped sharply with the news.

For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, trading systems.

For weekly economic indicators for other country's currencies, consult this Forex Calendar.


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Thursday, March 6, 2008

Inflation and Forex

The rate of inflation is the rise in overall prices and is strongly correlated to rising interest rates. Higher interest rates tend to support a local currency. Forex traders generally use 7 economic indicators to measure inflation. They are:
  • Producer Price Index (PPI)
  • Consumer price Index (CPI)
  • GNP Deflator
  • GDP Deflator
  • Employment Cost Index (ECI)
  • Commodity Research Bureau’s Index (CRB Index)
  • Journal of Commerce Industrial Price Index (JoC)
Each of these will be covered in more detail in upcoming Forex Digest blogs.

For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, trading systems.

For weekly economic indicators for other country's currencies, consult this Forex Calendar.

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Saturday, February 2, 2008

Forex Economic Indicators for the US - Week of 2/3/08

Forex Economic Indicators for the US Economy for the week of February 3, 2008 are listed below:

Date Time* Description Forecast Previous
2/4/2008 12:30 Challenger Job Cuts YoY n/a -18.70%
2/4/2008 15:00 Factory Orders 0.80% 1.50%
2/5/2008 15:00 ISM Non-Manf. Business 53 53.9
2/5/2008 22:00 ABC Consumer Confidence n/a n/a
2/6/2008 13:30 Nonfarm Productivity 2.00% 6.30%
2/7/2008 13:30 Continuing Claims n/a n/a
2/7/2008 15:00 Pending Home Sales MoM -0.50% -2.60%
2/7/2008 18:30 ICSC Chain Store Sales YoY n/a 0.90%
2/7/2008 20:00 Consumer Credit $8.0B $15.4B
2/8/2008 15:00 Wholesale Inventories 0.003 0.60%
* Times listed are GMT


For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, trading systems.

For weekly economic indicators for other country's currencies, consult this Forex Calendar.

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Forex Trading for the currency trader whose only goal is to make money!

Thursday, January 31, 2008

Forex USD impact of Fed Rate Cut

In the Forex market, the US Dollar fell sharply against the Euro after the Fed Rate cut of the key interest rate by 50 basis points on Wednesday. This was a huge rate cut and there is widespread belief that more cuts will come. The currency market can be very sensitive to news. Forex traders should pay close attention to the major currency pairs traded against the dollar in the coming weeks.

For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, and trading systems. Stay informed; boost your forex trading knowledge.


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Forex Trading for the currency trader whose only goal is to make money!

Tuesday, January 22, 2008

Top Forex Currency Pairs

trading forex currency pairs
In foreign exchange, forex traders analyze currency pairs to benefit from small movements in exchange rates between currencies. The top currency pairs traded in forex are:

  1. EUR/USD - Euro/U.S. Dollar
  2. GBP/USD - Great British Pound/U.S. Dollar
  3. USD/CHF –- U.S. Dollar/Swiss Franc
  4. USD/JPY –- U.S. Dollar/Japanese Yen
  5. USD/CAD –- U.S. Dollar/Canadian Dollar
  6. AUD/USD - Australian Dollar/U.S. Dollar
  7. EUR/GBP - Euro/Great British Pound
  8. EUR/JPY - Euro/Japanese Yen
  9. EUR/CHF - Euro/Swiss Franc
  10. GBP/CHF - Great British Pound/Swiss Franc
  11. GBP/JPY - Great British Pound/Japanese Yen
  12. CHF/JPY - Swiss Franc/Japanese Yen
  13. NZD/USD - New Zealand Dollar/US Dollar
  14. EUR/CAD - Euro/Canadian Dollar
  15. AUD/CAD - Australian Dollar/Canadian Dollar
  16. AUD/JPY - Australian Dollar/Japanese Yen
  17. EUR/AUD - Euro/Australian Dollar
For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, and trading systems. Stay informed; boost your forex trading knowledge.


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Forex Trading for the currency trader whose only goal is to make money!

Saturday, January 12, 2008

Forex and China's Trade Surplus

forex china trade surplus foreign exchangeThe forex reserve for China rose to an incredible 1.53 trillion dollars USD in 2007. This is the largest forex reserve in the world. The forex reserve increase has resulted in an extraordinary excess of liquidity for the country which exerts tremendous pressure on the Chinese currency, the Yuan. To deal with this excess, in September of last year, the Chinese government created the CIC, the China Investment Corporate Limited, the country's first state initiated forex investment company. The mission of the CIC will be to invest in foreign financial markets and better manage and leverage the country's forex reserves. The working capital for the CIC was derived by issuing 1.55 trillion Yuan special treasury bonds, the equivalent of 200 billion USD.

China's trade surplus is credited with the year-to-year increases in its foreign exchange reserve. China's trade surplus exceeded a quarter of a trillion dollars USD in 2007. This trade surplus exists in the backdrop of a declining US Dollar and an appreciating RMB, the Renminbi. By the end of 2007, the RMB had appreciated by over 6% against the USD.

As the CIC matures, China will be the major player in the global forex trading market.

For more information about forex for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, strategy, forex broker info, currency charts, trading systems.


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Forex Trading for the currency trader whose only goal is to make money!

Wednesday, January 9, 2008

Forex Top Ten Traded Currencies in 2007

forex top ten currencies2007 was an interesting year for the global financial markets. Forex or foreign exchange was no different. In a year where we saw unprecedented highs and unprecedented lows for currencies. Some things remained consistent.

The USD Dollar remained the most traded currency in the world in 2007. However, the Euro gained slight ground, but remains a strong second. A newcomer to third place over the past few years is the Japanese Yen. Forth place now belongs to the British Pound.

Note: The number one forex currency pair for 2007 was the EUR/USD - a currency pair consisting of the number one and number two most traded currencies in global currency exchange.

As trends and statistics are tools for forex traders, this top ten list is presented to provide additional information to use in your overall forex arsenal.

Top 10 Traded Forex Currencies in 2007
  1. USD
  2. EUR
  3. JPY
  4. GBP
  5. CHF
  6. CAD
  7. AUD
  8. SEK
  9. HDK
  10. NOK

For more information about forex for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, trading systems.


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Forex Trading for the currency trader whose only goal is to make money!