FOREXYARD: Forex News Blog | |
- The Greek Debt Crisis: A Must-Read for Forex Traders!
- Employment Data Does Not Bode Well For USD
- USD Forecasted to Drop Further Based on Unemployment Data
- Aussie Dollar Moves Closer to Parity
- Is Gold Really Trading at Record Highs?
| The Greek Debt Crisis: A Must-Read for Forex Traders! Posted: 07 Oct 2010 06:22 AM PDT
Today, FOREXYARD's Chief Market Analyst Greg Holden releases his much anticipated study of this year's Greek debt crisis. From his unique Forex analyst perspective, Greg has been able to provide stimulating insights into how traders managed to ride the economic wave to secure sizeable profits. Economic analysis is difficult without an understanding of the bigger picture. As a trader, you want access to the most up-to-date market news you can get your hands on. But even with all that information, you find that you still don't understand the bigger picture. This in-depth analysis on the "European Debt Crisis of 2010" (PDF) will give you precisely what you are looking for. What factors gave rise to the Greek crisis, and how did it spread? What sort of risk was the euro zone facing exactly? Has this crisis come to an end, or is it continuing to spread? These are all questions which you'll be better able to answer after downloading and reading this analysis. But how does this help you, a forex trader, to make profits through your home trading platform? Not only will you understand the history of this crisis, but you will also have a better understanding about important trading elements such as long-term trends, normal vs. abnormal market trading, risk averse markets, as well as a better feel for how the major currencies trade in times of crisis. If you have ever looked for that one article to put the past year's major economic events into perspective, this is it. Greg Holden, Chief Market Analyst at FOREXYARD, walks readers through the issues and climates that gave rise to this debt crisis and how it spread. Holden said, "I've attempted to put before you a chronological description of the events, and the punditry surrounding those events, which helped spread the panic and create an environment where savvy Forex traders were able to make serious profits." Included in this analysis is a short description of the other major European economies hit by the debt crisis. These major European nations, which compose the odious acronym PIIGS (Portugal, Ireland, Italy, Greece, and Spain), all received their fair share of economic worries following the sudden panic fueled by Greece's debt crisis, but were affected in different ways. By knowing the risks these countries faced, and continue to deal with in their own way, you will also have a much better grasp of the news coming out of each of these countries today. Holden continued, "My team and I have laid out interesting trends and explanations to show how the panic made things worse than they should have been. Whilst we at FOREXYARD believe that economic education is the key to success in this market, there's nothing like the opportunity to analyze previous events from a 'that could have been me' perspective." This In-Depth Analysis does just that, by understanding how traders made money on the last major economic quake, traders can be better equipped to take advantage of the next. So download your copy of this in-depth analysis today and learn how to finally trade like the professionals. About FOREXYARD Since formation over 4 years ago, FOREXYARD has utilized the experience of professional forex traders, as well as internet and financial sector specialists, in order to successfully establish itself as one of the premier online brokerages operating in today’s market. We offer a secure, dynamic trading platform which provides superior order execution, advanced reporting and analytical tools, yet remains intuitive and user-friendly. |
| Employment Data Does Not Bode Well For USD Posted: 07 Oct 2010 06:01 AM PDT
The US employment situation continues to defy expectations. Traders will likely remember the ADP Non-Farm figure that came in much worse than predicted on Wednesday. The poor employment data was one of the leading reasons the USD tumbled to record lows in the last few days. Today, analysts once again failed to accurately predict the weekly US Unemployment Claims figure, only this time the actual number came in slightly better than originally predicted. While the difference between the real and predicted number was not drastic, it illustrates just how hard it is to accurately predict US employment data. Tomorrow, all eyes will likely be on the US government issued Non-Farm Employment Change figure. The number is the leading indicator of employment conditions in the United States, and to say that it generates volatility is an understatement. At the moment, analysts are predicting a figure of around 3K, as opposed to last month’s figure of -54K. Should the predictions come true, and the employment situation is actually improving, the dollar may see some respite from its recent losses. That being said, Wednesday’s data does not bode well for a positive figure. Should tomorrow’s figure come in significantly worse than expected, the Fed will likely come under pressure to institute further monetary easing policies aimed at preventing the US from going back into recession. This is likely to drive investors away from the ailing greenback, and to the more profitable euro or Australian dollar. In this scenario, the dollar’s current downward spiral could be just the beginning. |
| USD Forecasted to Drop Further Based on Unemployment Data Posted: 07 Oct 2010 12:45 AM PDT
Following yesterday’s disappointing US ADP Non-Farm employment figure, the greenback continues to slide against its major currency rivals going into today’s trading session. The USD/JPY has already hit a 15-year low, while the EUR/USD is approaching the psychologically significant 1.4000 level. Tomorrow’s Non-Farm Employment Change report will be the official employment figure, and is likely to determine dollar values for some time. Ahead of tomorrow’s report, traders will want to pay careful attention to today’s weekly US Unemployment Claims figure. While not nearly as significant as the Non-Farm data, the unemployment number gives traders a good idea of the current economic climate in the United States, and consistently leads to volatility in the marketplace. Predictions for today’s unemployment figure are around 454K. If true, this would not mark a significant change from the last few weeks. Investor concerns regarding how the unemployment situation is affecting the US economic recovery are very real. Rumors that the Fed will enact a policy of quantitative easing have caused traders to flock to higher yielding currencies like the euro and pound. Should today’s figure come in line with expectations, the dollar will likely continue to fall as the rumors of quantitative easing intensify. |
| Aussie Dollar Moves Closer to Parity Posted: 06 Oct 2010 09:27 PM PDT
Strong employment data from Australia helped to lift the Aussie dollar as the AUD/USD eyes the 1.00 level. An interest rate differential between Australia and the US has given traders reason to continue buying the Aussie Dollar. As the Fed mulls further easing of monetary policy the gains in the pair should continue. Today's Market Events: GBP – MPC Rate Statement and Asset Purchase Facility – 11:00 GMT Economists are not expecting any changes to British interest rates or to the levels of quantitative easing by the Bank of England. Inflation expectations and comments on the British government's talk to lower government spending could make waves. The next target for the GBP/USD is the 1.6000. EUR – Minimum Bid Rate – 11:45 GMT No change is expected in the European Central Bank interest rate but President Trichet may put further support behind the euro while encouraging further buying. Now that the EUR/USD has taken out the March resistance at 1.3817, the 2010 high of 1.4578 may come into play. USD – Unemployment Claims – 12:30 GMT If yesterday's ADP unemployment data was a preview of what the weekly unemployment numbers will look like, the dollar may be in for further selling today. The USD/JPY could continue to fall towards its all-time low of 79.70. |
| Is Gold Really Trading at Record Highs? Posted: 06 Oct 2010 10:45 AM PDT
After seeing the headline, most of you must have thought that this was a rhetorical question – of course gold is trading in historical highs, it's trading near $1,350 for the first time, isn't it? Well actually, the answer is no – gold is not trading at real historical highs. Back in January 1980 gold was traded at the level of $879 an ounce. $879 in today's terms is worth approximately about $2,400; way above the current value of gold, which fluctuates near $1,350 an ounce. Remember, the nominal value of an asset is very easy for measurement, and can create awfully dramatic news releases, but there are several adjustments to make before you can claim its real value. Does this mean that we should all disregard the recent nominal highs of gold? Definitely not. Sometimes there is real economic logic behind it, and sometimes not, but the general acceptance of the top barrier is broadly understood. A breach of such an historical high – be it merely a nominal high – means that something broke; the market is no more relying on this top barrier, and usually there could only be one outcome: a massive bullish trend. How massive you ask? Since the beginning of the year, gold gained over 20% of its value. Moreover, gold is about to complete a 10th consecutive yearly rise – its largest streak in almost 100 years. The reason for this unusual trend (20% appreciation in less than a year is indeed quite unusual) is very clear, and widely known: in times of uncertainty, when fears from recession are dominating, investors tend to find gold as a safe investment. Especially now, when global markets are flooded with highly sophisticated financial instruments, the simplicity of gold appears to be quite appealing. This proves to be a self-fulfilling prophecy; gold is boosted almost on a daily basis. It is almost impossible to find a long-lasting trend with hardly any corrections, but guess what, since October 2008 gold has been rising, and rising and rising… From $682 an ounce to almost $1,350 an ounce in merely 2 years. Just to clarify, which date was that again? October 2008? Pretty much when the global economic crisis began, is it not? Now we all must ask ourselves, what is the conclusion? What's next? Well, the answer isn't as easy as you may want it to be. In general, everything indicates that gold's value can only strengthen during the next year, and $2,000 an ounce doesn't seem to be an abnormal development any more. In fact, chances are that gold might reach $1,500 an ounce before 2012. The most significant risk factor is a series of positive data from the U.S. economy. Once fear from another recession is faded, gold is very likely to correct a big portion of its gains. In addition, when it comes to gold, a big part of the trend is psychologically based. This is why the bullish trend can last for so long, but this is also why the trend can reverse without any real economic logic to explain it. |
| You are subscribed to email updates from Forex Trading Education : Forex Trading Blog by FOREXYARD To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment