Free Weekly Forex Trading Blog!
Many factors affect the values of currencies versus their counterparts such as: interest rates, money supply, inflation, gross domestic product, commodity prices, and various other industry reports. This plethora of information can be hard to synthesize into a useful format to decide which currency pairs to invest in. Hopefully this weekly forex trading blog will help you. Forex trading carries substantial risk of loss and only risk capital should be used. Forex does not trade on an exchange.
11/4/10 More quantitative easing by the Federal Reserve
Bank killed the USD on Tuesday and strenthened other currencies. Other
currencies may retaliate with tarriffs and trade wars if the USD
continues to fall.
10/8/09 Forex trading blog- The USD hit a 12 month low today and the AUD is running to its highs again. The idea that the global recovery may happen soon and the idea that many central banks are diversifying assets out of dollars and into other currencies is weakening the USD even further than deficit talk. The EUR is running again to the upside and nearing its highs versus the USD. The JPY is also running up again versus the USD and nearing its highs as well. 9/8/09 Forex trading blog- The USD hit its yearly low today versus the EUR as the markets seem to be focusing on the fundamentals of the markets again. China has pledged to diversify its currency holdings away from the US Dollar and other countries may soon follow suit. The AUD is rallying as the commodity markets begin to heat up again with gold over $1000 an ounce again and oil above $70 per barrel again. This commodity rally is also helping the CAD rally as it is another currency often affected by rising commodity prices. The JPY is also gathering strength as money diversifies away from the USD. 3/2/09 Forex Trading Blog- Forex trading is still very volatile at the world still sees that USD as the sole safe haven currency, besides gold, and it is still the number one reserve currency. Secretary of the Treasury Geithner will speak this week about the massive spending plan and tax increased on the more productive members of the US workforce this week. The JPY just had its worst trade numbers in 50 years and more horrible numbers are expected to follow. The USD/JPY is in an uptrend still. The EUR is weak versus the USD as the market is still finding out just how massive the EU's exposure to emerging market debt is. The BOE is expected to cut rates on Thursday by 50bps to a new record low of .50%. This will probably weaken the GBP even more. 1/30/09 Forex Trading Blog- Forex trading has been very volatile recently as the USD has found strength again in spite of multiple bad economic reports and the massive printing of money and record low interest rates. The JPY continues to find strength as currency traders flock to the JPY and USD for safety. The Japanese admitted recently that they have been in a recession since 2007. The EUR has been falling in lock step in an inverse correlation to the rise in the USD. The GBP is falling to levels not seen in decades as poor economic news and rates not seen in a while are hurting the pounds' currency valuation. 12/8/08 Forex Trading Blog-The USD looks to have put in a top and because of its recent sell off many of the European currencies had had huge rallies in spite of cutting interest rates in many countries. The JPY continues to be strong in spite of its stock market being at levels seen in the 1980s. 11/30/08 Forex Trading Blog-The USD is selling off from its recent highs. The JPY and the USD are the strongest currencies as of late. Eventually the massive printing of money in the US to bailout the banking system should weaken the dollar. 10/30/08 Weekly forex trading blog-The USD is falling after its huge run to the upside as US Dollar denominated investments are liquidated and repatriated. The Federal reserve bank cut interest rates by 50 bps causing the USD to fall versus its counterparts. The EUR and GBP are both rallying with the massive 2 day decline of the USD. 9/22/08 Weekly forex trading blog-The USD is falling after the government intervention to buy toxic mortgage assets to stop the current financial crisis. The USD has fallen over 3 basis points over the last few days as the government must continue to print more US currency to fund these endeavors. This may be the end of the USD rally over the near term giving strength to the EUR, GBP and JPY. 9/12/08 Weekly forex trading blog-The USD has been rallying all week until Friday when the market began to price in another Federal Reserve interest rate cut. This reversal in the USD may hold if the Fed cuts rates. 9/1/08 Weekly forex trading blog-The USD is still very strong versus many of its European and Asian currencies. There has been a massive flight to quality as the USD is still considered a safe haven. The Russian invasion of Georgia has many leaders wondering if their imperialistic goals may spread past Georgia into other neighboring countries. The GBP has been getting crushed by the EUR as of late because of the horrible economic reports coming out of the UK.. Manufacturing has contracted for 4 months in a row and mortgage approvals are at a nine year low for Europe's second largest economy. The EUR is having problems as Germany manufacturing numbers fell to a record low. 8/16/08 Weekly forex trading blog-The USD is still skyrocketing higher which is crushing its European and Asian counterparts' value. The EUR is having poor economic problems along with the GBP. JPN has not been able to raise rates more than .25 basis points in a dozen years. The CAD is falling with commodity prices. This is what happens when commodity prices come down. The GBP is having stagnation issues and may have to cut rates. 8/8/08 Weekly forex trading blog-The USD is rallying big time again because the consensus is that the Federal Reserve Bank will not lower rates again and the European Union may be forced to because of rampant inflation. The CAD is down because commodity prices are correcting over the last few weeks. The EUR is correcting mightily because of the recent strength in the USD. The GBP is also correcting because of the strength in the USD. 7/18/08 Weekly forex trading blog-The USD had a rollercoaster ride this week starting with the potential failure of Fannie Mae and Freddie Mac and record high oil prices which pushed the US Dollar down versus its foreign counterparts. The Federal Reserve Bank bailed out the loan giants and crude oil sold off by nearly $20 which in turn strengthened the USD again. In the US inflation is rising at the same time that consumer spending is declining. This sounds like a bad indicator for near term economic growth. The EUR came down as the USD rallied. Eurozone growth is also slowing at the same time inflation is on the rise. The JPY is down as the Bank of Japan admitted that the Japanese economy is in trouble. They said that the downside risks to economic growth supersedes the higher risks of rising inflation. 7/4/08 Weekly forex trading blog-The US Dollar had been sinking for the last week or so until the Non Farm Payrolls came out in line with expectations. Also lending steam to the USD was the 25 basis point rise in interest rates by the ECB which led traders to believe that the ECB is not planning on raising rates again this year. The EUR dropped 200 points after the intest rate increase was announced. Traders are expecting the Federal Reserve Bank to begin to tighten more aggressively than the ECB over the next 12 months. 6/21/08 Weekly forex trading blog-The US Dollar is sinking again as potential rate increases may be put on hold because of the problems in the stock market and recession fears. The other currencies have been rising against the US Dollar. 6/13/08 Weekly forex trading blog-The US Dollar is still rallying and having its affect on the other majors. It is also affecting commodities especially crude oil and the metals. The worry on the street is that the rise in oil will echo the economic fallout of the 1970's. The euro dollar futures have factored in nearly a 96% chance of a rate hike by the US Federal Reserve Bank in the September meeting. 6/10/08 Weekly forex trading blog-The US dollar just hit its highest level in 3 months versus most major currencies because of Secretary Paulson's hawkish talk that was judged bullish for the USD. 5/26/08 Weekly forex trading blog-The US Dollar was pulled down this week because of record crude oil prices and the declining stock market. Inflation concerns are also hurting the USD bulls muster up a rally. The other major currencies rallied versus the USD. The EUR was up 1.2% versus the USD and the JPY was up .7% versus the USD. The CHF reached its highest level versus the USD since April 23. 5/19/08 Weekly forex trading blog-Most of the major currencies remain range bound which probably shows the central banks of the major currencies are probably all on hold as it pertains to setting interest rates. Most of the majors are contending with high inflation rates and slowing economic growth so the lack of changing interest rates will probably stay on hold for a while. The USD has fallen versus many of its counterparts over the last week as the rally seems to have run its course for now. 5/5/08 Weekly forex trading blog-The USD is still climbing, especially versus its European counter parts. The EUR. CHF, and GBP are all near the bottoms of their ranges but the JPY is near its high points. The US Federal Bank chairmans are hinting that their may only be one more rate cut if any and that is giving steam to a very weak US Dollar. 4/30/08 Weekly forex trading blog-The USD has been on a tear this week against the EUR GBP CHF and JPY. The Federal Reserve bank is expected to cut 25 basis points at the end of today's FOMC meeting but the markets have factored in a 16% chance that there will be no cut at all. The Bank of Japan left rates unchanged this week. 4/20/08 Weekly forex trading blog-Bad economic news in the US did not stop the USD from rallying again this week. The market seems to think that the worst is over for the US and the subprime crisis is going to be less of a factor. The Euro pulled off of its highs as the USD rallied. The ECB is worried about inflation at the same time worried about high valuations. The JPY sold off this week as the USD rallied to multi week highs. The British Pound followed that USD higher this week in spite of many economic problems across the pond. 4/14/08 Weekly forex trading blog- The USD rallied this week in spite of bad economic news and the expectation of more bad news this week. The EUR set all time highs around 159 last week as the ECB left rates unchanged. Trichet is more worried about the rising inflation figures than stimulating growth with a cut. The JPY is expected to sink as Japan tries to strengthen the USD because it is affecting their economy in a negative way. Japan's recent economic data was weak. The GBP sank last week with the BOE rate cut to 5%. The tight credit market conditions and a problematic UK housing sector are showing US like problems. Banks in the UK are very reluctant to lend. 4/7/08 Weekly forex trading blog- The USD is selling off and looking weak again after its recent rally. There is still some concern that the financial markets may still be in store for more problems. The EUR is near its all time highs again and inflation is at a 15 year high in the Euro Zone. The ECB is meeting on Thursday to decide on interest rates. The expectation is to see no increase this meeting. The GBP is having some problems because of the UK housing bubble. The BOE is meeting on Thursday to make a decision on interest rates. The expectation is to see a 25 basis point cut in rates. The JPY is losing strength recently against most currencies. 3/31/08 Weekly forex trading blog- The USD sold off after its rally this week. The US consumer is not shopping and home prices continue to decline. The EUR is finding support with a strong labor market and strong consumer spending. The ECB is worried about inflation and pricing stability so a cut in interest rates is not expected any time soon. The JPY is finding strength as investors repatriate Yen as the Japanese fiscal year ends. Investors are exiting existing trades outside of the country. 3/23/08 Weekly forex trading blog- The USD bounced this week versus most major currencies this week probably based on profit taking on short USD positions. The fifth largest US brokerage house is gone, the Fed cut rates 75 basis points, commodities crash more than anytime since the 1950's. The EUR fell through 156 on the rally in the USD. EUR market data will occur on Wednesday which may affect levels. The JPY is the only currency to hold its ground versus that greenback this week. 3/18/08 Weekly forex trading blog- The USD reacted barely reacted to the Federal Reserve Banks 75 basis cut in interest rates. The USD had been collapsing after the Bear Stearns debacle which caused commodity and stock prices to free fall. The EUR hit its highest levels ever against the USD as the ECB keeps rates the same. Inflation is hitting the Eurozone and rates may be raised. The JPY hit an 13 year high versus the USD. This is a worrisome development for Japanese exporters. The Swiss Franc hit parity versus the USD for the first time in history. The British Pound is trending sideways and interest rates will probably stay put at the next BOE meeting. 3/10/08 Weekly forex trading blog- The USD continues to drop verses the other major currencies. The weak unemployment report and the continued printing of money and interest rate cuts is adding to the weakness. The EUR rallied to an all time high versus the USD. The JPY continues to rally versus the USD. The CHF rallied to another all time high versus the USD. 3/2/08 Weekly forex trading blog- The US Dollar was down again this week as the US fears about the economy increase. US Consumer Confidence weakened and jobless claims increased. Fears of stagflation increased based on the weak growth of the economy and higher inflation potential. The Euro Currency hit record highs versus the US Dollar this week based on strong economic data. The GBP experienced a lack of confidence in the financial sector and corporate results are poor. The BOE warns of weaker growth and higher inflation. The JPY strengthened to a 3 year high vs. the USD. The CHF strengthened to all time highs vs. the USD. 2/23/08 Weekly forex trading blog- The US Dollar had more problems this week because the CPI report showed higher inflation and lower building permits do not bode well for a real estate bounce. The Fed is more worried about stabilizing the US economy instead of battling inflation. The USD weakened versus most major currencies because of more potential rate cuts by the Fed. The Euro Currency saw a rapid rise in monthly inflation numbers. This high current inflation rate makes it improbable that the ECB will change current interest rates. German producer prices were higher. The Japanese Yen saw large repatriation of currency to square up the yearly books because the end of the Japanese financial year is the end of March. Asset managers often convert assets on the books into Yen to help out the balance sheet. 2/15/08 Weekly forex trading blog- The US Dollar had some problems this week holding onto the recent strength. The various economic reports that came out this week pointed to more economic problems on the horizon. Fed chief Bernanke is still very negative on the potential for economic growth over the near term. He also showed his willingness to cut rates even more to stimulate the economy and bail out the financial sector. The Euro Currency is not likely to see any rate cuts because Trichet does not seem likely to stimulate interest rate cuts because of the current inflation concerns. The British Pound is rallying because the Bank of England is not likely to cut rates very much over the near term because the quarterly inflation report showed enough inflation growth. The Japanese Yen cross trades are unwinding as volatility decreases. The BOJ left rates on hold as GDP was stronger than expected. 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