Forex and currency trading
It has been only couple of months when financial press was lamenting the fate of US dollar. All time or multi year low against many currencies, credit crisis, housing market in shambles, nightmarish deficit. Seemed like every news hitting the wire was wor...
All financial markets exhibit some seasonal tendencies. These behaviors are more visible in some trading instruments, while others are subjected to less of an impact. Generally speaking, these patterns are considered important enough, that an entire "scie...
China is making business headlines everywhere we look. It has the largest population, the fastest growing economy, the biggest export/import imbalance, most imposing foreign reserves. And, by many accounts, the most undervalued currency, which is, in par...
The explosion of over the counter Forex trading led to increased competition on part of brokers. Over last few years trade execution has become much better, spreads went down and trading platforms have seen dramatic improvement in performance and functio...
There is a lot of ways to trade Forex market. Some people are attracted to participate in it because of its long lasting primary trends. Others like large leverage available. Others still might like 24 hour nature of this markets, while yet another ano...
With oil prices seemingly reaching new highs daily, a lot of Forex market participants have been trying to use this fact as a proxy for currency trading. General consensus is that some national currencies are correlated, to some degree, to major commod...
Popularity of Forex trading is bringing hundreds, if not thousands, of new traders into the markets every day. Most of these new participants are introduced to currencies because they purchased a trading book, course or some other tool which promises t...
With financial markets in turmoil, press is full of speculation regarding US dollar and Euro. A lot of coverage is given to unprecedented commodities boom, especially record prices for oil and grains. Precious and industrial metals also draw a lot of atte...
For a number of years US economy has enjoyed a relatively low inflation rate. According to official statements, annualized inflation over last decade or so has been in very low single digits. Depending on the source and method of calculation, the rate ha...
The carry trade is an investment strategy involving basic arbitrage between interest rates. Any Forex transaction comprises of simultaneously selling one currency and buying another. Object of the carry trade is to sell a currency with a low interest rate...
Very quietly and almost unnoticed by financial media in US , the European Central Bank has reached an important milestone - 10 year anniversary. The ECB came into being June 1, 1998, as 11 European countries drew closer to merging their currencies. The Eu...
Federal Reserve Bank's role as a market stabilizing force has been taken to new highs over last few months. In the aftermath of the "housing market bubble" and "credit crunch", popular media and Wall Street executives were pleading, well, demanding, f...
Over last few weeks, some of the strongest behaving currencies have experienced measurable corrections against US Dollar. After marking all time highs, Euro pulled back about 700 pips and Swiss Franc bounced almost 1000 pips, Japanese Yen lost 900 pips....
We all know that prices of certain products and goods have reached the highest levels ever. Most people notice it daily during trips to a gas station. Four dollar a gallon gasoline certainly draws attention. Everybody is also aware of the fact, that U...
For years now we have been witnessing, and even participating in, an unprecedented weakness of American Dollar. Since 2001 EUR went from about 0.8200 to 1.5900 last week against USD. That is, Euro almost doubled its value, or Dollar lost about half. This...