Having been a forex trader for many years, I can honestly say that the last few months trading in the currency markets have been unprecedented, both in terms of their volatility, but also in terms of how the world landscape of currency exchange has been dominated by one issue, and one currency, the once mighty dollar, which has now embarked on a long and extended decline as the monetary policy makers battle against deflation, a stagnating economy, and unemployment levels which refuse to fall. The US, and the US currency, now dominate our trading decisions daily, and as major economies around the world battle to stave off the possibility of a double dip recession, with strong currencies and increasingly expensive exports, each is now setting their own course of self preservation.
In the last few days, the FED has released details of it’s own plan, which is simply to increase money supply using quantitative easing, a strategy which is likely to see the US dollar decline further. This policy has angered many around the world, who see this as a policy of clear self interest, a charge strenuously denied by the Federal Reserve and the US President, but nevertheless, this policy will clearly help the US export its way out of trouble in the longer term, whilst also having a major impact on it’s trading partners. Other major exporters such as China are pursuing their own policies on currency manipulation, with China keeping the Renminbi artificially low, and the Japanese taking a different approach to their own problem, the increasing strength of the Japanese yen, using direct intervention as the weapon of choice!
All this has of course led to acrimony and a war of words around the world, as each nation accuses the other of self interest in these troubled times, making life extremely hard for us as currency traders, and whilst the same opportunities remain each and every day, the established correlations and trends which were once clear and well defined have either slipped out of step, or in some cases broken down completely. No doubt in the future a semblance of normality will return to the forex markets once we begin to emerge from the current world recession which still threatens to drag major economies into a double dip recession, and all I can suggest is that you read my daily forecasts for my latest analysis and help with your trading decisions. I can’t guarantee to always be right, but at least you will read some simple, clear and unbiased analysis of where the currency markets are heading in the future. You can follow my latest forecasts on my forex trading site, and if you would like to take your trading to the next level simply sign up for my FREE 55 page forex trading guide in which I reveal how I have managed to succeed and become a successful forex trader.
Euro rises on Greek bailout hopes despite uncertainty
8 Feb 2012 at 9:28pm
The euro hit a fresh two-month high amid speculation that Greek politicians were ready to yield to the demands of their troika paymasters despite coalition leaders failing to sign off on tough austerity measures.
Euro soars as ECB offers debt deal to Greece as talks continue
8 Feb 2012 at 9:28pm
The euro neared a two-month high amid speculation Greek politicians were ready to yield to the demands of the troika, but talks carried on into the night after discussions got stuck on the issue of pension cuts.
Euro soars as ECB offers debt deal to Greece
8 Feb 2012 at 9:28pm
The euro neared a two-month high amid speculation that Greek politicians were ready to yield to the demands of their troika paymasters, despite a chaotic run-up to the talks.
Greek trump card fails as stronger Europe shrugs off break-up threat
7 Feb 2012 at 7:32pm
Europe's dominant powers and institutions are for the first time willing to risk a Greek default and ejection from the euro if Athens refuses to comply with austerity demands, calculating that the eurozone system is now strong enough to withstand a contagion shock.
Can Bristol's banknotes match the world's most beautiful currencies?
6 Feb 2012 at 3:26pm
Bristol's budding designers can take inspiration from our collection of beautiful banknotes from around the world.
Procter & Gamble cuts profit forecast on strong dollar
27 Jan 2012 at 7:03pm
Procter & Gamble cut its profit forecast for this year, as the maker of Gillette razors became the biggest US company so far to pin the blame for a weakening performance on the strengthening US dollar.
Davos 2012: Can the Germans stop being German?
26 Jan 2012 at 8:24pm
Angela Merkel will eventually be forced to accept the inevitable, says Jeremy Warner.
The IMF is no longer serving its purpose
19 Jan 2012 at 8:45pm
To save the eurozone, it needs to dispense tough love, not endless bail-outs, writes Jeremy Warner.
Kashya Hildebrand apologises to the Swiss over currency trade
12 Jan 2012 at 10:42pm
The wife of Switzerland's former central bank chief has made a startling TV apology to the Swiss people and her husband for the currency transaction that led to his resignation.
Swiss National Bank chief Philipp Hildebrand resigns over wife's currency trade
9 Jan 2012 at 10:52pm
Switzerland's top central banker has been forced to resign after admitting he could not prove a controversial $500,000 (£324,067) currency trade made by his wife was done without his knowledge.
