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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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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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!

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!

Top 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.


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!

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.


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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.


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The Rebounding Dollar

The US Dollar is not dead yet! During early European trading sessions, the US Dollar rebounded to a two-month high against the Euro. Furthermore, the Asian currencies have shown marked losses. This year-end rally of the dollar shows amazing strength and resiliency of the US economy. As forex traders, we all know the volatility of the foreign exchange market. The need to lock in profit and announcements of key economic indicators could provide additional boosts for the dollar in the week ahead. Stay tuned to the forex trading digest as we ride the forex wave into the new year.


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.


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

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.


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Forex ponderings - Will the US Dollar loose its place in the world?

The US dollar continues to drop and lose value against other major currencies. While the dollar has been considered the world's reserve currency for decades, growing concern rises as to whether the US dollar will be able to maintain that status. Pressure from both record gold and oil prices further depresses the value of the dollar.

Last week, vice chairman of China's National People's Congress, Cheng Siwei, suggested that China might diversify away from the dollar favoring "stronger currencies over weaker ones" through their foreign exchange reserve policies. This coupled with rising energy and commodities prices increases the likelihood of possibly the dollar loosing ground on the world stage.

However, the dollar has faced challenges before. The US dollar like its people is quite resilient. Forex traders have been aware of the trends with the US dollar for quite some time looking for profit opportunity on the upside as well as the downside. Global economic events surrounding the dollar should not go unnoticed for those involved in forex trading.

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.


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Yen and Swissy take center stage in forex market

Last week's Fed announcement on Wednesday sent additional ripples through the currency market. The US dollar fell to decades' lows against many other major currencies including the Euro, Canadian dollar, the Australian dollar and the British pound. However, the Yen and Swiss franc were bolstered during the week. Interestingly, the strength in the swissy and yen cross currencies, helped the US dollar cross currency pairs recover a bit by week's end.

Additional economic news in the coming week may prove interesting for forex traders. With gold and oil continually reaching new highs, global pressure on the dollar should remain strong. Those wishing to profit from forex trading may particularly want to watch the swiss franc and yen over the coming month.

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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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