Sep 07
2009
2009
Aug 30
2009
2009
August Edition of Currency Trader Magazine!
Posted by Yours Truly in ForexThis month’s edition is action pack full of tips and hints onto strategies to capitalize on the upcoming global recovery.
Also, last month’s edition can be found by clicking the below link:
(1 votes, average: 3 out of 5)
Loading ...Aug 30
2009
2009
The Japanese Trade Deficit and the JPY Yen.
Posted by Yours Truly in ForexThere was big news in the forex this week with a shift in Japan from a current account surplus to a deficit. It has been 13 years since this has happened and it does present changes that forex traders should be thinking about.
The current account is also known as an economy’s trade balance. If you have a surplus trade balance it means the economy is exporting more than it is importing. The Japanese traditionally have a surplus while the US has had a large deficit for decades.
The current account is one half of the balance of payments. The balance of payments measures all capital and trade flows in and out of an economy. The other half of the balance of payments is the capital account. The capital account should be nearly the mirror image of the current account and therefore “balances” the trade surplus or deficit.
Because the U.S. sustains a large current account (trade) deficit it has a large capital account surplus. The capital account tracks all changes in asset ownership. For example, the U.S. “finances” its current account deficit by selling debt. The transfer of that ownership in debt is tracked in the capital account. The balance of payment in Japan works similarly.
Now that you know what the balance of payments is and how the current account or trade deficit fits within that measure, you can start to apply that information to the trend on the USD/JPY. If exports continue to drop in Japan and the deficit grows, demand for the JPY should weaken. The deficit also creates problems for economic growth in Japan, which should also weaken the JPY.
If you know that the fundamentals are aligning themselves in favor of a weaker JPY you know what direction the USD/JPY or other JPY forex crosses are likely to trend in the near term. Take the chart below as a good example of this application. The JPY has strengthened a few times over the last few weeks and each time has bounced back up from the 23.6% retracement support level.
Daily Chart of USD/JPY
The USD/JPY is at the 23.6% retracement level again and may be lining up for an interesting buy opportunity. A move up from this level could extend all the way to the neckline of 2008’s head and shoulders pattern near 105.00. Aligning fundamentals with technicals like this can help forecast the near term trend.
(1 votes, average: 5 out of 5) Loading ...Jul 28
2009
2009
July 2009 feature packed edition:
June’s information edition:
(1 votes, average: 4 out of 5) Loading ...Jul 28
2009
2009
In relative terms, the forex as a retail market is still very young, especially in the US. The US government is passing regulation annually to give the industry more regulation to bear, but it’s still pretty light compared to other, more mature capital markets. This makes the forex a tool of opportunity for frauders and scammers
To help combat the rampant slime in the market, we frequently offer tips and hints for avoiding forex scams. Here’s a link to our most recent article on Avoiding Trading Scams.
To supplement that, I thought I’d give a few links to recent forex scams in the news as a warning for traders to watch and be prepared.
A man in Washington state used his church connection to run a forex scam:
http://www.hedgeco.net/news/04/2009/seattle-scam-targets-church-members-senior-citizens.html
The CFTC raids a Florida company in the middle of the night and secured documents proving the company’s forex investment product was a $17 million scam:
http://www.naplesnews.com/news/2009/apr/07/naples-man-part-group-charged-17-million-investmen/
Surprise! A Forex Investing company in Nigeria wasn’t quite on the up and up:
http://www.thetimesofnigeria.com/Article.aspx?id=1581
An article on the general cost and pain of investment scams:
http://www.politonomist.com/the-unspoken-ponzi-price-tag-002096/
(1 votes, average: 5 out of 5) Loading ...Jun 07
2009
2009
June Edition of Currency Trader Magazine
Posted by Yours Truly in ForexBelow you can find the latest jam packed edition of Currency Trader Magazine! The particular articles relating to the trading patterns and China are excellent and highly recommended.
And in case you’ve missed last month’s edition, you can find it below:
(2 votes, average: 4 out of 5) Loading ...May 19
2009
2009
One of my favourite sites has now been rebranded and updated to ForexLive.com and there is a special bonus to all new guests for a limited time, you will be able to obtain and watch a free DVD instructional video.
You can hit up the website by click on the following link: ForexLive!
(4 votes, average: 3.75 out of 5) Loading ...
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