Tag Archive for currency trading

Adventures of a Trader in the Forex Land (8) – Where Is the Dollar Going?

doitinvestcom-forex-trading-blog-where-is-the-usd-going-eur-usd-chart-showing-the-euro-growth-over-the-beginning-of-2011 I am sure this is a question that haunts most of the today’s traders. And of course if you would know the answer, we would not know on which island you would live :).
A simple graph (at the beginning of this blog) is showing that the EUR/USD pair has ramped up from 1.3552 to 1.4825 (as of today May 4). This is a historically large level, as the EUR/USD has rarely jumped above 1.5 (and this only in the great crisis). So why is the dollar so weak nowadays versus the Euro?
There are several reasons for that I guess:

1. Large USD deficit
I was recently reading an article in The Economist showing that by the same method of calculation, the US budget deficit is larger (as a % of GDP and at 11% or so) tha the one of Portugal. A large deficit also means problems for the dollar, since the US government has to finance this somehow and devalue the currency. Thus the consequence. Read more

Adventures of a Trader in the Forex Land (7) – EUR USD

eurusd-image-doitinvestcom-currency-trading-adventuresAt the beginning of the month we were talking a bit about the EURUSD currency pair and its evolution. We have anticipated a bit then by saying that the most traded currency pair in the world, as known as the cable, might not grow further, despite the boiling in the market.
By now, any decent currency trader has found out that the cable pair went down from the resistance level at 1.42 to 1.3, with a good chance to break the latter too. Well, yes, some traders might say that noone could anticipate the Ireland problems and its $85 billion bailout, huge by any means. Especially when you compare the amount with the Ireland GDP, this is one of the largest bailouts ever in the financial history of the world. Read more

Book Review – “Currency Trading For Dummies” by Brian Dolan and Mark Galant

A simple search on this title over any search engine will show you the true power of the concept – there are 118,000 results only on Google. I don’t know if this because of the “Dummies” franchise or because of the number of traders willing to learn the ropes of the field. Certainly there is an incredibly high demand for this title and the reasons are simple – the demand for online currency trading is surging. Read more