"When we honestly ask ourselves which person in our lives means the most to us, we often find that it is those who, instead of giving advice, solutions, or cures, have chosen rather to share our pain and touch our wounds with a warm and tender hand."Henri Nouwen
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Beginning FOREX - How Are Lots Traded & What The Heck Is A Pip?
If you are new to Forex, no doubt you are confused by all of the strange and unfamiliar terminology. For example, what is a pip? Also, you are probably already aware that Forex trading can be risky. How can you limit your loss and best protect your ...
How Can I Make Money Currency Trading?
Basically you can make money from trading money. If you have US dollars you can buy British pounds for a set rate and they trade the money back in the future at a different rate. This can make your gains immense. Much larger than gains made on the stock ...
"How To" Start Trading The Forex Market?
What Is FOREX or FOREX MARKET? PART I The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day. That is larger than all US equity and Treasury ...
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A brief overview of how different pairs of currencies will affect each other. How the activity of a single currency may affect movement in a pair.
Global currencies don't ride the trends in isolation. The apparent technical movement between two currencies in a pair may cause an effect in the behaviour of each separate currency. A third currency will also have some bearing on the rise or fall of a seemingly unrelated pair, in the view of an intermediate or beginning trader. Even seasoned trend cowboys may miss the odd significant event that results in a trade loss.
Technical analysis often comprises the bulk of the independent speculator's trade decisions, but some attention to fundamental news must be included for a complete overview of what is happening in the market at that particular moment. Neither weather, beetles, drought, hostile takeovers nor indicted CEO's have much real bearing on currency values, but the timing of the release of economic reports should determine if a trade is viable or not.
A rising tide raises all ships, but the trading ocean is made of waves, with deep troughs and high crests. A rising ship may have a tether to another that is dropping down the other side of the swell. As one currency in a trade pair rises, it may pull another currency up with it, or just the opposite. A drop in the Euro may allow an increase in the value of the GBP, which will certainly have an influence on the USD/GBP spread.
So when considering the merits of a good trade, also take into account the activity of each currency's most closely related cousin. When trading the Canadian dollar, you must certainly consider the relative movement, or lack thereof, in the US dollar. Canada's largest trading partner is the US, so fluctuations in the US economy may or may not have an effect on the Loonie, depending on the gravity of the news.
The UK maintained their own currency, the British Pound, but the economic business of Europe can still influence the directional trend of the Pound Sterling. The French Franc will also be swayed by the enterprise of the communal Euro. As you analyze your charts, take care to make a quick examination of any volatile activity in any similar currency.
The average day trader and individual speculator cannot possibly keep up with all the economic news released each day and still have time to trade and eat lunch, and old news has already shown itself in the charts. One must pay attention to important published economic developments, and generally avoid trading on report days. But the trend will indicate market sentiment, and great profits can be made by keeping the major focus on technical analysis.
International bankers and currency houses have developed complex mathematical models to track currency correlation, but these are beyond the scope of this article. In summary, just check how related currencies are trending, when preparing a trade. Another quick analytical tool for the traders' arsenal is always a good thing. May your winners run long.
Good Trading, Kelly Archibald.
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 Jordan's mufti issues fatwa against electronic currency trading (EARTHtimes.org)
Amman- Jordan's top religious official on Saturday issued a fatwa (judgement) that bans electronic trading of currencies owing to the financial risks involved in such a type of business. Trading of currencies is a taboo and illegal from a religiou...
Canadian Dollar Advances Against US Currency (Nasdaq)
(RTTNews) - In early trading on Friday, the Canadian dollar gained against the US currency. The greenback-loonie pair that closed yesterday's deals at 1.0696 is now worth 1.0665. If the loonie climbs further, it may test near term resistance around the 1.055 level.
European currency gains from 1-year low against yen (Nasdaq)
(RTTNews) - Friday, the European currency recovered its early Asian trading losses against its major counterparts. The euro thus climbed from a 1-year low against the Japanese yen, new multi-month lows against the currencies of Europe and Switzerland and a 5-day low against the US dollar.
Alaron Currency Comment (Ag Report)
CHICAGO - Sep 4/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp. The DX opened 'flat' at 78.165 and slid to a morning Lo of 78.07 after a higher than expected Jobless Claims report showing an increase of 15K vs the expected decrease of -1K.
Forex Trading Sentiment Forecasts British Pound Rallies (Daily FX via Yahoo! Finance)
Our forex sentiment indicator forecasts that the British Pound is likely to rally against the US dollar through short term forex trade, as traders have actually flipped from net-long the GBPUSD to net-short in the past day of currency trading.
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