Archive for June, 2008

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Currency Pairs and Forex Trading

Monday, June 30th, 2008

FX trading on the currency marketOne of the most important things to keep in mind in currency trading is the use of pairs. Currency pairs are the only way that forex trading takes place.

FX trading takes place only in pairs on the currency market, which means that when you favor one currency, you autmatically believe that the other will fall. However, this is only true in each pair.

The euro could be falling in forex trading against the Japanese yen at the same time it is rising against the US dollar. This means that you would short the euro at the same time were going long, depending on which currency pairs you were using.

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Watch for a Euro Interest Rate Hike This Week

Monday, June 30th, 2008

Forex trading strategy for the euroOne of the items to watch for this week is a euro interest rate hike. Even though many thought that the ECB would be lowering rates by now, the outlook has changed.

Forex trading strategy for the euro should consider that inflation is a concern in the eurozone, and ECB rates could address this at its meeting later this week. Reuters reports on the euro and FX trading:

Analysts said the data would go further towards hardening the euro area central bank’s resolve to hike interest rates when it meets later this week, with some seeing risks increasing for a post July tightening as well.

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Euro Forex Trading Forecast

Monday, June 30th, 2008

Currency trading with EUR/USDThe euro forex trading forecast is calling for increased strength for the 15-nation currency, as the US dollar falters in FX trading.

Indeed, there are thoughts that this week the euro forex trading forecast could see a triple top against the US dollar, reports Action Forex:

We will look for the pair to confirm a triple top below the 1.5800 level and go short eyeing a return lower to 1.5400.


However, it is important to remember that in currency trading, especially with the EUR/USD lately, things can turn around quickly. Currency trading is volatile, and the story can become different, according to the economic climate and the latest forex trading news.

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US Dollar Weakness in FX Trading

Monday, June 30th, 2008

Currency trading with the greenbackUS dollar weakness is continuing from last week in FX trading on the currency market this morning. Currency trading with the greenback should consider shorting, since it is struggling so badly.

Indeed, the US dollar has suffered a "double punch" in FX trading with poor inflation data and high oil prices.

Forex Info Center reports on what is plaguing the US dollar in forex trading:

Bad U.S. inflation data last Friday weakened the USD again, and the weak start in Asian and early European trading, undermined by again higher oil prices, has led to cascade-style selling.

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Yen Continues to Climb in Forex Trading

Monday, June 30th, 2008

Japanese yen rises in currency tradingThe yen is doing well in forex trading on the currency market this morning, as risk aversion sets in. The carry trade is becoming more difficult to maintain, and FX traders are opting to unwind.

With oil prices up yet again, and with the stock markets uncertain, risk appetite is low as investors seek safer places to invest their money. This means that the Japanese yen is at an advantage right now in currency trading.

Another item that has been helping is the upgrade that Japan received to its local currecy debt rating. Bloomberg reports on this development for the yen in forex trading:

“The upgrade has given a bullish tone to the yen,” said Antje Praefcke, a Frankfurt-based currency strategist at Commerzbank AG, Germany’s second-biggest lender. “The yen’s gaining on increased risk aversion.” The Japanese currency may advance to 158 per euro and 104 versus the dollar in the third quarter, Praefcke said.

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