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.


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

Forex and China's Trade Surplus

The 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.


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

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

Forex Top Ten Traded Currencies in 2007

2007 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.


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

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

Top 10 New Years Forex Trading Resolutions

As we start a new year, now is the time to contemplate how we can improve our trading results. Below are the top 10 New Year's Resolutions Forex traders can include in their goals that can help them in their quest to dominate the forex market in 2008.

1. Resolve to simplify your forex trading strategy and stick with it.
2. Resolve to always enter a trade based on a specific plan that is part of your core forex trading strategy.
3. Resolve to analyze the performance of your forex trading tools. This includes your forex broker, platform, and signal provider. This assessment should be done on at least an annual basis.
   
4. Resolve to carefully plan your exit points as well as you do your entry points for all your forex trades.
5. Resolve to remove emotion from your currency trades. Only execute the trade after you've done your homework and the trade makes sense based on your forex trading strategy. Let the forex strategy guide your trigger points and eliminate second-guessing.
   
6. Resolve to trade the forex market only after careful analysis and research.
7. Resolve to protect your profits. Protect those pips! Don't be afraid to take profits off the table. Remember to pay attention to the pip spread. Is too frequent trading affecting your results and your profit?
8. Resolve to analyze your forex trading results on a periodic basis.
   
9. Resolve to invest in yourself by continuing your forex education and training.
10. Last, resolve to get some sleep! Just because the forex market is a 24-hour market does not mean you have to trade all of them. A better performing forex trader is a rested forex trader.

Happy New Year and happy forex trading and investing!

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.


Technorati tags : forex, forex trading, currency, investing, forex platform, forex signals, forex trading strategy, learn forex, pip spread, currency trade, forex education, forex trading essentials, global currency exchange, trade currencies, forex broker, forex trading systems

Forex Mixed - Oil flirts at $100 a barrel

Oil reached yet another record high yesterday pushing the forex market into a frenzy if only just in anticipation of the magic $100 dollar mark. The stock market continued its meteoric downward spiral. The yen and euro and their related currency pairs enjoyed elevation to new record heights in the forex market. Both the sterling and aussie showed strength and posted positive gains in late trading. Gold continues to march in step with increasing oil prices.

The US dollar continues to fall. Expect more weakness in US currency. However, take heart and stay tuned forex traders. All of these events provide great volatility in the forex market and create great forex trading opportunities. For those forex traders who invest their time wisely to learn forex, these are very exciting times indeed. ...And very profitable ones as well as it provides a unique opportunity to make money.

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.


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