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.

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The following chart from a Whiskey and Gunpower  newsletter shows how over the past few years the price of gold has gained against the G5 currencies.  

Gold has already made an all time high against the British Pound Sterling as well as the Japanese Yen.  Gold has not yet made a new all time high against the US Dollar but it is coming close. Gold is trading at about $812 an oz as I write after correcting to about $797 from $832.

While the physical demand for gold is part of the bull market story a lack of confidence in the US Dollar as well as other paper money is likely more significant.

How high can gold go this bull market run? Ahhhhhhh, that is the question, isn’t it? I expect a great deal higher. Some respected analysis are already taking about $2,000 an oz. When you look at the uptrend right across the board in commodity prices as well as the falling Dollar that number no longer looks so ridiculous.

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What a day for gold, crude oil, and the Euro.

At Wednesday’s Federal Open Market Committee (FOMC) meeting  a small one quarter percent cut in the Fed funds rate to 4.50% was enough to propel crude oil to new highs about $94.50 a barrel, push gold above $800 an oz., and drive the Euro above 145.00.

While many market analysis thought that perhaps the Fed would pause and leave rates unchanged this time around, the men who really matter, Ben Bernanke and the Federal Reserve Board member partners in crime, apparently were still concerned enough about the sub prime mortgage mess and a declining housing market to go for a rate cut.

In its minutes the Fed did mention that it is becoming increasingly concerned about inflation becoming more robust in coming months and indicated that rate cuts may not be in the cards at the next Fed meeting.

Of course, gold, crude oil, and almost all currencies are in strong up trends against the US Dollar. As the Dollar sinks the prices of commodities in general will rise.

The Euro at 1.50 to one Dollar might have seemed to be a pipe dream a couple of years ago but is now looking pretty darn close to happening.

The only red flag at the moment for Dollar bears and for crude oil, gold, Euro and currency bulls is that it all looks too easy.  I seriously doubt that the bear market for Dollars is even nearly over nor the bull market in gold, crude oil, and most commodities. 

The Dollar followed the US stock market higher this week as the Dow made all time highs then paused in front of Friday’s unemployment report.  As the Dollar moved higher from all time lows in the Euro and other currencies the move was probably more of a correction than any sort of turn around.

Since making all time highs the stock market has paused for most of this week as it is waiting for the September unemployment report which will be released tomorrow morning. Economic data released this morning indicates that the data may be on the soft side.

The number of newly laid off workers filing claims for unemployment benefits shot up last week by the biggest amount in four months.

This morning the Labor Department reported a total of 317,000 applications for unemployment benefits last week, an increase of 16,000 from the previous week. It was the biggest gain since jobless claims rose 18,000 during the week of May 9.

The rise was bigger than analysts had expected and could be a further sign that the labor market is slowing under the impact of the worst slump in housing in 16 years and a severe credit crunch that roiled global markets in August.

The stock market may rally on a distressing unemployment report as Fed watchers would guess that the Federal Reserve would continue to lower interest rates in the face of a slowing economy. However, lower rates are not favorable to dollar strength so the long term Dollar downtrend would likely immediately kick in given a less than expected unemployment report.

To cut rates or not to cut, that is the question that Ben Bernanke and his fellow associates at the Federal Reserve must still be mulling over as the September 18, 2007 highly anticipated FOMC meeting looms ever closer.

There is ample evidence that a good dose of inflation, like an ill wind, is headed our way. For example take a look at this Commodity Research Bureau (CRB) Spot Index Chart that plots the index of 23 industrial commodities.

Then consider that we have wheat at record price levels. Gold is trading at over seven hundred Dollars an oz. There are record prices for crude oil at over $80 a barrel. Milk is at record levels as is the price of beef. I could go on but I’m sure that you get the inflationary picture.

If Ben Bernanke and company were to focus simply on the inflation outlook, the real inflation outlook, not the watered down official government one that excludes energy and food prices, they would not dare to cut interest rates at this time.

However, it is not as simple as that. The trouble originating out of the sub prime mortgage lending market and the resulting infection of troubles throughout the US housing market must be deeply troubling. With housing foreclosures already at record levels and with housing such an important part of the US economy some rate relief would seem to be in order.

The markets seem to have already priced in a 25 basis point reduction on the federal funds rate. Some analysts think that the discount rate will also be cut by 25 basis points. Others think a rate cut of 50 basis points is in order.