fx trading

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.

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.