USD - October's Profit Opportunity for Forex Traders

Yesterday's Fed announcement to cut the federal funds rate a quarter point created a terrific profit opportunity for Forex traders shorting the US dollar. The US dollar continues to fall to records lows against all of the major world currencies.

What was the impact of the news? The British pound was trading at 2.0785 before the news and soared to 2.0821 after the announcement. The euro was trading at 1.4459 before the news and then peaked to 1.4504 just after the announcement. The dollar dropped to a 23-year low against the Australian dollar and to a 40-year low against the Canadian dollar. Across all of these currencies, there continued to be major movement throughout Wednesday. Commodity linked currencies rose in parallel with gold and oil and were further supported by the Fed's action. For forex currency traders, all of this represented major pip movement. All of the USD related currency pairs provided profit opportunity if you traded it accordingly.

If you read our last blog, then you were positioned to profit and make money from this announcement. Based on the Fed's announcements additional opportunities still exist on trading the dollar for the remainder of the year as the financial markets adjust.

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


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Forex Trend - US Dollar at Historic Lows

The US dollar continues to trade at historic lows as compared to other currencies. This is in sharp contrast to the broader stock and commodities markets. The record high price of oil per barrel affects the dollar as well. The Fed decision this Wednesday may have a huge impact on how the dollar performs for the remainder of the year. Forex traders can benefit from this knowledge by planning their trades accordingly. Wednesday should serve as a big news days for currency traders trading the US Dollar. For those paper trading, be sure to make note of the impact of a news announcement like this on all of the majors and USD currency pairs. While most of the news' impact has already been built into the price, this remains one to watch. As always, use this knowledge to learn, make money and profit.

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


Technorati tags : forex, forex trading, currency, currency trader, currency pairs, learn forex, make money, forex trading essentials, global currency exchange, trade currencies, forex broker, forex trading systems