Forex Blog

U.S. dollar started its decline against other majors almost with the beginning of today’s Asian trading session. EUR/USD broke through 1.4600 level but fell from it several times. Overall trading day for EUR/USD can be described as the “highly volatile correction”.

The only important (to Forex market) economical data from U.S. today is Federal budget deficit figures by U.S. Treasury. It came out better expected - lower by almost 4 billion dollars than consensus number, landing at -$55.5B. It is a good result, considering September $111.5B budget surplus, but it is worse than previous October -$49.3B.

Budget results report’s effect on currency market will be mostly determined by traders’ reaction; positive or negative, it will depend on their own interpretation of the budget deficit influence on the FOMC’s decisions.

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: sell.
EUR/JPY trend: sell.

Currency Trader is one of my favorite monthly read. It is published every month by http://www.currencytradermag.com/ website and contains many articles by professional authors. Articles vary from covering recent news topics to technical analysis matters, to fundamental macroeconomic factors. From every issue I learn a lot of important information on global economics and some interesting connections between various financial markets and Forex. For those who don’t have economic education this magazine is a good way to get some, at least to improve trading experience. The best thing about Currency Trader is that it is completely free - you can subscribe for it here: http://www.currencytradermag.com/subscribe_acrobat.htm. The worst thing — it has a lot of advertising. There is so much of it that content is almost lost in ads.

For some reason guys from Active Trader Magazine Group, which publishes Currency Trader Magazine, doesn’t want it to be freely downloaded from anywhere. So, I had to remove it all from my site. If you still want to read this magazine, you can subscribe to the new issues for free, or you can always find past issues somewhere else (P2P networks, for example).

I’ve added a new MetaTrder 4 Forex broker to the Forex brokers section today - iTradeFX. It’s not a new broker to the on-line market, in fact it offers trading services since 2004, but it is a new broker to my site. iTradeFX has its own trading platform - WinTrader (along with a more common MetaTrader 4), which in my opinion is much inferior to MT4, though I’m sure it is quite popular among beginner Forex traders. Another good thing about this broker is that it is NFA member and regulated by CFTC, meaning that the funds deposited will be less likely to disappear.

Welcome to the November 4, 2007 edition of Carnival of Forex trading. More general articles these time with a more detailed approach on pivot points trading and trailing stop technique.

Allen Taylor presents Doubling Stocks With A Small Bankroll posted at Investing World Today, saying, “Successful traders know that you should never risk more than a small fraction, like maybe 5%, of your bankroll at any given time. When I say risk only 5% I’m not suggesting you only spend 5% of your bankroll on shares, but rather that, for a losing trade, you exit the trade when your loss would only represent 5% of your bankroll.”

Sam presents Can YOU Make Money Trading Forex? The Foreign Currency Markets. Trade Foreign Exchange. posted at Surfer Sam and Friends, saying, “Can YOU make money trading Forex? Trading currencies in the Forex foreign exchange market, the small investor takes on the global money markets. Forex is the new Gold Rush of the Internet Age.”

Dr. Barry Burns presents How Football Ruined My Trading posted at Top Dog Trading, saying, “An unusual article, but it’s absolutely true about how watching football ruined my trading results for a short period of time. This story is a little embarrassing. I was going to write it last year. But finally got up the courage to reveal it as I thought we all have weaknesses and perhaps if I share mine, it will help you deal with yours.”

Ian Welsh presents More Abandonment of The Dollar posted at The Agonist.

Tony Rich presents How To Start Winning Again In Forex posted at NiaTradingSignals.

Sagar Satapathy presents How China Could Crash the US Dollar on a Whim posted at Currency Trading.net.

Ray Chong presents Protecting Profits - The Art Of The Trailing Stop posted at Trading Tips, Strategies and Insights.

ganes presents Pivot Point posted at Forex Trading Tips.

Dr. Barry Burns presents What Keeps You From Trading Success? posted at Top Dog Trading, saying, “Find out what REALLY prevents traders from making money. Here it is directly from the source!”

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: buy.
EUR/JPY trend: hold.

For some strange reasons good data on October nonfarm payrolls which came out today had a very bad impact on dollar’s pricing against major currencies. With 1.4524 on EUR/USD greenback fell down to its new historical minimums as with Canadian dollar - USD is now worth only 0.9326 CAD.

Monthly nonfarm payrolls is one of the most looked at health barometers for U.S. economy. With a very weak past two month numbers (96k in September; 93k for August), report for October gave a far more better picture of the employment market - 166k new nonfarm payrolls. With the expectation averaging at 80k, this should have added to dollar’s value on Forex. Overall unemployment rate remained at 4.7% percents and will hardly move up or down until the end of the year.

Factory orders for September gave another pleasant surprise for dollar bulls increasing by 0.2%. That is compared to -3.5% in August and expectations near -0.4%.

All these positive factors could move EUR/USD back to 1.4300-1.4400 range, but instead it rallied to new historical maximums. In my opinion this can be explained only by historically high oil and gold prices. It can be almost certainly that next week we’ll see a correction on EUR/USD, in which today’s employment data will play the role of catalyst.