Archives: 2008 April

Daily forex trading news is provided by Easy Forex and includes current prices for the major currency pairs. Check back often for the latest forex market news.

You will find the write up and analysis to be very up to date and helpful. Support and resistance levels are given as well as the news and opinions that are moving the markets.

Of course, things can change quickly in forex trading so you should check back often for the most recent updates as well as carry out your own research. Should you decide to open your own forex trading account I recommend that unless you have some experience with forex trading that you start out with a demo account. That way you can get used to the forex trading platform as well as test out your own ideas without placing real money at risk.

Since the last G7 meeting about two weeks ago the price action of the US Dollar suggests that an important Dollar low and a change of direction may have been reached against the Euro. The Euro made an all time high against the Dollar at just above 1.6000 only three trading days ago. The 1.6000 level was a widely anticipated one by forex traders. Early Thursday morning on April 24, 2008 we are just under 1.5700.

The same type of price action can be seen in Dollar Yen. From a recent low of under 100.00 the Dollar is trading about 104.00 this morning and looks ready to move quickly to challenge the 105.00 level.

While a few days trading action does not make a trend the Dollar’s new strength must be respected. While the FED reserve will probably cut interest rates again at its’ April 28th and 29th meeting forex and bond traders expectations are now that the rate cut will be only by 0.25 basis points instead of the 0.50 basis point cut expected just a few days ago.

This change in sentiment is caused by the increased inflationary pressures that are occurring in the US and indeed around the world. With a lower Dollar helping to accelerate the increase of all imported goods into the US inflation has flared up in an alarming way, especially in crude oil prices and food prices.

The Fed has a tough decision to make at its next meeting. A 0.25 point rate cut would signal that the rate reduction business is over and that the Fed will begin to focus on fighting inflation even if it means that the economy slides further into a recessionary phase.

Forex Trading Guru is one of a family of blogs with Taipan as the owner and editor.

Taipan is a retired commodity broker, forex trader and portfolio manager who after many years of active involvement in trading activities still enjoys following the forex, stock, and commodities markets and drawing upon his 40 years or so of trading experience to post articles to a series of blogs.

While Taipan is not always right with his forecasts he usually offers some interesting insights into markets. Actually if he weren’t so modest he would tell you that in the big strategic picture he is almost always right. Taipan is very distrustful of statements made by stock brokers, stock analysis, so called forex experts, and in general talking heads.

The investor who thinks that the playing field is level and that he can depend upon MSNBC and CNN for inside trading information has got to be at least a little nuts. If you want to trade well you had better develop your own style and your own sources of reliable information.

This blog will attempt to provide market trading information that will be helpful. However, always keep in mind that any decisions made to trade using this information are your sole responsibility. Taipan has been around long enough to know that the markets can make a fool out of anyone so never blindly follow what someone else suggests. To trade well you have to think well and the thoughts need to be your own.

To visit another one of our interesting family of financial related blogs go to Taipan Investor

Forex market international currency trading is trading one currency or money, or what passes for money in today’s world, for another fiat currency. In currency trading you are always dealing with two currencies, buying one and selling the other. That is why the term “pairs” is used in describing currency transactions.

Most countries are involved in the forex trading market, where money is bought and sold, based on the value of that currency at the time. As some currencies are not worth much, they will not be traded heavily. Currencies that are used as settlement currencies for international business transactions, like the US Dollar in settling crude oil purchase and sell accounts, , or increasingly the Euro are going to be heavily traded every business day.

Forex trading does take place daily, where almost two trillion dollars are traded every day. Obviously that is a huge amount of money. Think about how many millions it takes to bring about a total of a trillion and then consider that this is done on a daily basis - if you want to get involved in where the money is, forex trading is one ’setting’ where there is plenty of money exchanging hands daily. You just need to become a good enough forex trader to get your hands on some of those trillions on a regular basis.

Currencies that are traded on the forex markets are going to be those from every country around the world. However, as a trader it is usually better practice to trade only a very few of the more actively traded currencies. It’s far better to be an expert on trading one or two currencies than to know a little bit about trading a lot of them.