Popular pairs in Forex

Without a doubt the EUR/USD and GBP/USD, as currency pairs, receive a great deal of attention by online Forex traders.

Each provides tradable patterns almost every day. Why some traders prefer trading one of these pairs versus the other is almost a matter of personal preference. Both pairs will reflect global sentiment regarding the dollar. As a result, it is usually the case that they will share the same trend patterns.

If world reaction to economic news is positive for the US economy, as a general rule, both the Euro and the GBP will tend to weaken. The chart below, for example, shows how the EUR/USD and the GBP have moved on the 1 hour pattern. Notice how similar the patterns are. The hour charts below show that both pairs provided a similar reaction to the Nov 4th economic release of the non-farm payroll report.

Clearly, it is hard to develop an argument of which pair is better to trade. But there is more that the online Forex trader can do with these pairs. online Forex traders can generate totally new trading opportunities by dropping the US dollar component of the pair and, thereby, creating a Cross-pair known as the EUR/GBP Before we take a look at the EUR/GBP chart, let's try to understand what makes this pair a good source of trades, particularly, in the coming year.

The best way to understanding this Cross-pair is to realize that it generates a picture of the battle between two different economies- the EU vs. the British economy.
The EU countries experience different levels of economic growth and expectations of growth than that of Great Britain.

As a result, there is a constant flow back and forth of capital between these regions and this flow results in frequent range like behavior and price swings as can be seen in the day chart below.

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5 Unusual Things That Adversely Affect the U.S. Dollar

Automate your trading! Forex System Selector



There are many factors that can cause a quick fall for the U.S. dollar, such as budget deficit or gas prices. However, those are commonly discussed in financial circles. What are really interesting are the more unusual things that cause a dip in the currency’s worth. Here are the most unexpected factors that adversely affect the dollar:

1. Weather – Strangely enough, something like as banal as an unusually hot summer or cold winter can have an effect on the dollar. As energy costs increase in every household, industries are also strained in their spending. Likewise, any sort of natural disaster (hurricanes, blizzards, flooding, etc.) can do the same thing to the community. As a result, the weather can adversely affect the currency.
2. Foreign Goods – Many Americans commonly purchase foreign cars or household products. Indeed, almost everything sold in a neighborhood Wal-Mart was made in China. Although many people flippantly use the term “trade deficit,” they rarely analyze the causes of such a deficit and buying foreign goods is certainly one of them.
3. Slow Spending – Americans can’t seem to get it just right, can they? When they are spending too much, it adversely affects the U.S. dollar. When they are spending too little, well, the same thing happens. Slow sales around the mall during Christmas time, for example, can actually have a domino effect on the entire economy.
4. Predictions of Inflation – Sometimes, it doesn’t even take the actual event of inflation to cause strife in the economy. Merely a large news report of a possible inflation is enough to send traders into a panic, causing the dollar bill to suffer.
5. Social Security – As the Social Security system continues to falter, so does the world’s faith in the U.S. economy. Like news reports of a possible inflation, widespread documentation of the failing Social Security system can drive the dollar down. Alternatively, attempts to reform Social Security can restore that faith in the market, causing the dollar to rise again.



It is hard to believe that a hard rain in the South or poor sales at the local shopping mall can send the U.S. money management system into a tailspin. Think of it as a financial butterfly effect and you may never look at these things the same way again. The ongoing list of factors is enough to make a Forex trader paranoid about the littlest things, no?





By-line:

Heather Johnson is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information. Heather welcomes comments and freelancing job

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5 Reasons Why the Federal Reserve is a Failure!

Automate your trading! Forex System Selector

No single quasi-private institution has as much influence on the worldwide economy as the Fed, and as a leader can head this institution for an indefinite term, no one man is as influential on the markets as the Fed Chair.

The Dollar has plummeted in the currency markets and shows few signs of recovery or even stabilization. The new style and policies that accompanied Bernanke into office have made the Forex markets more volatile than ever and even more difficult to predict. An examination of what has gone awry can help Forex traders understand this new era at the Fed.

1. The Fed ignored the signs
The Fed has stated that it will never act as a regulator in any financial market, but it has the duty to use its influence for reform when it sees signs of consumer exploitation. Since as early as 2001, at least two senior officials inside the Fed urged its board to call for tighter regulations in the housing markets, especially in abuses that were clearly evident in the handling subprime mortgages. At the time, the White House was singing the praises of America’s new society of ownership, so the Fed took this cue and did nothing.

These deceptive loans were making possible the dream of home ownership to millions of Americans, even to those who could not come close to affording it. Now these same Americans are living through a nightmare of foreclosure and debt, much in thanks to the Fed’s willingness to ignore long-term repercussions and revel in immediate accomplishments, no matter how hollow and transitory they might be.

2. The Fed did too little too late
Other than advocating for reform, the Fed should have fully committed to a strategy of lowering target interest rates. Instead, Bernanke procrastinated, and when he did finally announce a cut, it was insufficient and ineffectual, at best. On December 11th, the Fed dropped its benchmark rate by a quarter of a percent rather than the half of a percent that had been called for by analysts and investors. Wall Street promptly responded, as the Dow plummeted nearly 300 points in one day.

The Fed might argue that this cut was prudent and that a more drastic cut would have unnecessarily fueled a rise in inflation. However, many view the Fed’s temerity in this matter as merely an extension of its inertial proclivity towards inaction.

3. The Fed kept interest rates too low for too long
Though this may seem to contradict the statements above, one of the reasons that the Fed might have hesitated in cutting rates is that they were already too low to begin with. Greenspan’s long tenure at the Fed was defined by a tendency to aggressively cut interest rates, which he began to do frequently in 1987 after the drastic correction in the stock market.

This initial move helped stave off disaster, but the further rate cuts of the late 1990s eventually led to the dot-com bubble. Rates should have been raised again in the early 2000s; if this had been done, the US might have avoided the furious borrowing that has led to the current credit crunch.

4. The Fed’s view of inflation is flawed
The Fed seems rather befuddled by this important economic indicator. The soaring costs of food and energy are a phenomenon is the US and worldwide, but the Fed does not take these developments into account.

The Fed’s analysis focuses on “core inflation,” which excludes a number of indices that it views as transitory, including energy and food costs. “Headline inflation,” which does take these costs into account, is favored by European economists, who view high energy prices as a long-term trend. By choosing to disregard the rising costs of a barrel of crude oil and a bottle of olive oil, the Fed is ignoring reality.

5. The Fed gives gold stars to those deserving detentions
Fed policy following the recent economic slowdown has done nothing but reward those who helped caused it. The majority of financial stocks have suffered of late, and justifiably so. However, the Fed seems dedicated to bailing out even the worst of the perpetrators with the recent set of economic interventions that it has enacted.

While working to eliminate any downturn in the market might seem feasible for short-term success, it is a purely shortsighted endeavor that will hurt the economy in the long run. In order for a free market to truly exist, bear markets must coexist peacefully with bull markets. Unfortunately, the Fed has its bright orange vest on and is going bear hunting. This is a doomed outing, and one that is going to get us all hurt in the end.

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8 Common Sense Tips for New Forex Traders

Nothing is certain in the world of investment, but there are common sense tactics you can take that will increase your chances of success. The wise trader will pace him or herself in order to stay in the game for the long haul. Following the tips below will help you to do just that.

1. Use a trustworthy broker. Research every person / company you deal with before you invest anything. Forex scams are on the rise, particularly online, so use caution.



2. Be sensible in your everyday money management. You will want to save some reserves in case you experience a large loss.



3. Don’t use charts that you find confusing. Trends come and go with Forex charting, but you need to be able to thoroughly analyze the information in front of you. Therefore, you should choose which one is right for you.



4. Don’t trade with your emotions or because you are simply bored. Back up every move with a strategy.



5. Don’t base a strategy around one successful trade. You need to look for consistencies.



6. Stay on top of current events, not just financial news. After all, currency can be affected by unusual things.



7. Become familiar with how each major currency affects the others. You are, after all, trading in pairs.



8. Don’t try to “ride out” a bad trade in hopes that it will turn around. If it isn’t working out for you, then it is time to make an exit. Otherwise, you will most likely just compound the problem and lose more money.



By heeding the advice above, you will be able to avoid many of the common pitfalls in Forex trading. Don’t let the market intimidate you, as all traders have to start somewhere. Many people make money from Forex trading and you can find the same success with a little common sense and some patience.





By-line:

Heather Johnson is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information. Heather welcomes comments and freelancing job inquiries at her email address subaedahcantik@yahoo.com

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FXcast Forex Broker Review

FXcast is an online forex broker based in Antigua that provides trading facilities to forex traders all over the world.

They cater to both beginners and professional traders. Inexperienced traders can open a demo account to try out their platform and to become accustomed to placing trades, or they can start trading with real money for just $10.

The more experienced traders can benefit from the excellent Metatrader 4 platform, widely regarded as the best charting software available, which is ideal for traders who use technical analysis to determine their trading entries and exits.

Traders can also benefit from tight spreads and the ability to trade up to 35 different currencies if they so wish.

Also, one of the major benefits of Fxcast is that they promise guaranteed order execution and ensure that there is no slippage even during volatile periods. There are also no hidden costs or commissions.

You can deposit and withdraw money extremely easily with a range of payment options available including credit card, wire transfer and a host of e-currency and e-gold options.

Overall I can highly recommend Fxcast because their spreads are extremely competitive, they provide live support during trading sessions, have easy deposit and payment options and use the popular Metatrader 4 platform, plus you can open an account and start trading in minutes.

Click here for more information.

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Forex Trading Machine Review

Avi Frister's Forex Trading Machine is essentially an ebook package consisting of three profitable forex trading systems that the author uses to great success, and best of all they are all price-driven, which means that no technical analysis is required.

It sounds impressive but can you really be a profitable forex trader using only price as your leading indicator?

Well Avi Frister has spent many years studying hundreds of technical indicators, systems and strategies, and finally came to this exact conclusion, that the only indicator you really need is price.

The 180-page Forex Trading Machine package is basically the result of his studies, and includes three unique strategies that you can use to successfully trade forex currencies. So what are these trading strategies?

Well without wanting to give too much away, they are as follows:

1) Forex Cash Cow Strategy

This is a great strategy for less experienced traders and those who have full-time jobs because it doesn't require you to be constantly watching the market all day, and is completely mechanical. It basically requires a few minutes of your time at the end of the trading day to look for possible set-ups and then place your orders if the criteria are met.

This is more of a long-term strategy as you will have to be patient and wait for suitable entries (you may only get a handful of set-ups per month), but when you do get good set-ups it's proven to be a very profitable method, yielding 100+ pips profit, and is fairly low risk as well.

2) Forex Runner Strategy

If day trading is more your thing then you may well find this method (and the next one) more suitable. This is another mechanical system that again does not use any technical indicators, but this strategy produces far more set-ups.

Indeed I've had great success using this method just trading the GBP/USD pair during the day, and although not perfect (what system is?), it is a profitable system because it keeps your losses to a minimum and aims to produce a far greater profit with each trade.

3) Forex Flip And Go Strategy

Another day trading method, this is arguably my favourite strategy as it aims to produce consistent profits of around 40 pips and limits your losses to around 15 points or less.

It focuses on the EUR/USD pair, and generates profits by taking a slice of the daily trading range of this pair, and takes advantage of the pair's unique behaviour.

So to conclude this review, I should state that this ebook package detailing three profitable forex trading strategies is of course not the holy grail which so many are looking for (it doesn't exist), and you will still incur occasional losses whichever method you use.

However, in the long run, with losses deliberately kept small, each of these strategies should produce consistent profits over time, and the best thing is that you don't have to use any technical analysis at all. Price is the only indicator you will need.

Overall, I can highly recommend this product as each strategy is easy to follow and implement, and more importantly is capable of producing regular profits.

For more information about Avi Frister's Forex Trading Machine package please click here.

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Best Forex Trading Signals

here are very few forex trading signals providers that are genuinely consistently profitable month after month. There are many that claim to be and have impressive looking performance records but very often it transpires that they massage their numbers, and use hypothetical figures in their calculations, rather than trade their signals themselves.

I've come across many different forex signals providers in my time. It's hard not to as the internet's full of them. Nearly all of them have turned out to be a waste of time. I thought I'd found a great site a while back in the shape of Forex Live Pro, but after having several highly profitable months, even they ended up going on a losing streak and have since closed down.

That's why there's only one company that I'm more than happy to recommend and that's ZuluTrade.

ZuluTrade is basically an extensive database consisting of some of the best forex traders from around the world. You can trade any of the signals that these traders provide automatically in your ZuluTrade account. All you do is open an account, deposit some cash, and choose which traders' signals you wish to trade (based on their past performance record). Then whenever the signals are provided by your chosen provider(s), the same positions are opened and closed automatically on your behalf in your account.

It's basically a managed forex trading account where you're in complete control over which signal providers you use, and all trading is completely automated.

Click here to find out more and to open a free demo account where you can experiment with different signal providers before trading with real money.

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Using The Relative Strength Index Technical Indicator

Many traders use the Relative Strength Index indicator, or RSI for short, but it can be a very dangerous indicator if used in isolation and indeed a lot of traders don't use this indicator correctly.

I remember not long after I first started trading I discovered the RSI indicator. I was immediately impressed. I had read that an RSI reading above 80 indicated an overbought position and a reading below 20 indicated an oversold position. After doing a lot of back-testing I realised how good this indicator was at predicting reversals.

However after doing a lot of live trading on both shares and forex, I quickly realised that trading wasn't this easy. Many times the RSI will indicate an oversold position, only for the price to reverse slightly before falling even further and creating another oversold position.

In short, the RSI indicator should not be used in isolation. It should be used in conjunction with several indicators like stochastics, MACD and moving averages, for example, in order to build up a bigger picture of what the price is likely to do in the future.

In addition there is arguably a better way you can use the RSI indicator to enter positions and that's by using the 50 level rather than the extreme 20 and 80 levels.

Very often the price will be overbought, for example at say 70 or 80 and will reverse to about 55 or 60, taking the price down slightly, before continuing it's uptrend. In other words it was a false reversal. However when the RSI moves through 50, this is a strong indication that a true change of trend is taking place. So the RSI crossing upwards through 50 indicates a bullish trend and vice versa.

You do miss some of the initial reversal trading this way but at least you can be more confident of your position when the RSI moves through 50.

For an even more productive method of trading you can combine the RSI with other indicators. For example when short-term trading one of my trading methods is to go long when the RSI crosses upwards through 50 in conjunction with the stochastic crossing through 50 and the MACD and EMA's crossing at the same time, for additional confirmation.

This is a much more profitable and reliable trading method, in my opinion, than just using the RSI on it's own to identify overbought and oversold positions.

(If you would like information about my main 4 hour trading method please subscribe to my newsletter by filling in the short form above).

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Weekly Trading Update - July 14-18

A quick trading update this week because I only ended up making one trade. That one trade, though, turned out to be a beauty.

It was on the USD/JPY pair and occurred on Thursday. I should really only have been looking to go short on this pair because the daily Supertrend had turned red, but there was an upwards EMA crossover on the 4 hour chart that was backed up by certain other indicators so I decided it was worth the risk.

As I say the EMA's crossed upwards whilst at the same time the RSI was crossing upwards through the 50 mark, the CCI was crossing upwards through 0, and the MACD and TRIX were both crossing upwards as well. So this looked like an excellent long position and I entered at 105.39.

Luckily for me the price surged upwards during the afternoon session (UK time) and I resisted the temptation to close half my position like I usually do because the various indicators were all so bullish. I was looking for at least 100 points but ended up holding on until 106.85 to bank just short of 150 points, which was nice :-)

So overall it was a nice profitable week and it just goes to show that you don't necessarily have to be scalping the markets all day taking multiple positions in order to make big profits. Just one decent trade a week is all you need.

If you would like full details of my main 4 hour trading strategy please subscribe to my newsletter by filling in the short form above.

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I Challenge You!

The following search terms have been highlighted: cosaranda

Sebelum masuk ke menu utama, saya beritahukan bahwa pemenang dari kontes berhadiah buku “Forex Online Trading” adalah ajemanis DAN izza. Ya, melihat perkembangan diskusi yg cukup menarik, saya memutuskan untuk menambah slot 1 pemenang lagi. Jangan khawatir, bukunya gak akan dibagi dua kok :) Metode pemilihannya sendiri dilakukan secara acak menggunakan sistem arisan (tadinya mau saya rekam proses pengundiannya dan di posting ke sini, tapi sepertinya gak penting2 amat, hehehe) dengan terlebih dahulu mem-filter komentar2 yg tidak berhubungan dengan topik artikel. Jadi seperti biasa, untuk pemenang, contact me with your shipping address yah.

Nah sekarang, mari menikmati sajian utama.

Rekans (nyolong istilah yg sering dipake mbak Jennie), mungkin Anda sudah mengira bahwa di hari jadi domain CosaAranda.COM yg pertama ini akan ada kejutan atau kontes lagi. Sama seperti waktu saya melakukannya di hari ulang tahun saya lalu. Memang tidak salah. Namun yg akan saya tawarkan kali ini sedikit berbeda dengan kontes2 sebelumnya. Bahkan mungkin di seluruh sudut blogosfer belum pernah ada yg menyelenggarakan kontes seperti ini. CMIIW.

Kontes kali ini adalah saya menantang Anda untuk melakukan apa saja demi berbagi dengan sesama.

Beberapa hari terakhir ini masing2 dari kita sudah menerima “hadiah”. Teman2 yg udah me-review blog ini (dan udah di-acc) mendapatkan domain gratis, sedangkan saya mendapatkan promosi (tidak) gratis, baik di mesin pencari maupun secara words of mouth.

Bukankah sudah seharusnya kalo berikutnya adalah giliran mereka yg membutuhkan?

Penghitungan donasi yg akan saya berikan kepada mereka adalah sbb:

Donasi = (Komentar + Pelanggan Email Feed + MBL Community Member) * Rp 100,-

Donasi = Total donasi yg akan dibagikan ke mereka yg membutuhkan.

Komentar = Total komentar yg ada di seluruh blog ini. Pada saat artikel ini ditulis, jumlahnya adalah 3623.

Pelanggan Email Feed = Total pelanggan feed melalui email. Pada saat artikel ini ditulis, jumlahnya adalah 41.

MBL Community Member = Total anggota komunitas CosaAranda.COM di MyBlogLog. Pada saat artikel ini ditulis, jumlahnya adalah 56.

Nah, seperti terlihat dari elemen2 penghitungan donasi di atas, jumlah donasi yg akan saya berikan adalah tergantung dari Anda semuanya. Seperti saya katakan sebelumnya, di sini saya tantang Anda untuk melakukan apa saja demi berbagi terhadap sesama. Dari berkomentar, berlangganan feed via email, bergabung ke komunitas MyBlogLog, hingga membantu mengabarkan kontes ini ke teman2 yg lain dan mendorong mereka untuk ikut berpartisipasi.

Durasi kontes kali ini tidak lama, hanya 3 hari. Untuk donasinya sendiri nantinya akan disumbangkan melalui Pundi Amal SCTV. Atau jika ada yg mau merekomendasikan saluran sosial yg lain, ditunggu sarannya.

So, berani terima tantangan ini?

Update:

Terima kasih buat rekan2 berikut yg sudah membantu mengabarkan tantangan ini:

• 1 Komentar Amal Rp. 100, Gampang Khan


• Nyumbang Ala Cosa Aranda (You Go, Boy!)


• Tantangan CosaAranda Untuk Anda


• Cara Mudah Beramal di Internet


• Cosa Challenges You!

PS:

(1) Gambar diambil dari http://www.val-gardena.com/hockey/bulls/Bull.gif

Artikel ini ditulis oleh Cosa Aranda dan pertama kali dipublikasikan pada tanggal 13 April 2007. Artikel ini disponsori oleh LowonganPekerjaan.Net, situs penyedia informasi lowongan kerja terbaru. Artikel bebas untuk didistribusikan ulang untuk keperluan non-komersil selama mencantumkan nama penulis dan sumber artikel serta tidak merubah isi.

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A Very Flat June

Investing and Trading
Sunday, July 23, 2008

When June started, I said that I was going to try to be consistent in following my forex trading systems. Fast forward one month and I did nothing I said I was going to. Fortunately I know what the problem is. I've been putting in overtime at my job and when I do have free time, I spend it concentrating on subjects relevant to my job. How did this happen. I've been trading forex over the last three years to become less dependent on corporate America yet I now find myself more dependent than ever. Today I reflected on the last couple of months and came to this realization. I've strayed far off the path to self sufficiency. I want to get back on that path. I'm going to try to do this now before it's too late.

Six months through the year, my forex trading has produced a return of 3.6%. I could have just as easily deposited the funds in a money market account and got about the same return in interest. I have to pick it up over the next six months. I plan on trading more by bringing additional systems online this month. I still won't risk more than 2% on any given trade but I believe that I have to trade more frequently than I have been.

I've updated all of my forex trading graphs that show my monthly profit/loss in USD, equity curve, monthly profit/loss percentage, rolling 12 month profit/loss percentage. http://www.forexproject.com/My_Forex_Graphs/

Rankings of the most visited forex websites were updated last week. http://www.forexontop.com

All Financial Commission Merchant reports have been processed at Broker on Top. See where forex brokers rank based on excess net capital and see trend data associated with this. http://www.brokerontop.com

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Introduction to Forex

What is Forex?

Foreign Exchange describes the purchase of a particular currency from an individual or institution and the simultaneous sell of another currency at the equivalent value or current exchange rate. Essentially, the process of exchanging one currency for another is a simple trade based on the current rates of the two currencies involved.

At the core level of the world’s need for money exchange is the international traveler. When traveling from the US to England, for example, you will of course need the local currency to pay for transportation, food, and so on. Upon arrival at the airport you will surrender (sell) your US Dollars in order to receive (buy) the equivalent in British Pounds. In this example, you sold the USD and bought the GBP, conversely the foreign exchange counter bought the USD and sold the GBP. The prices at which you buy and sell currencies at are known as exchange rates. This rate or price fluctuates based on demand, political, and economic events surrounding each country’s currency.

The example above illustrates foreign currency trading in basic terms as it relates to world travelers. However, the market is also utilized globally by each country's central bank (i.e., America's Federal Reserve), investment and commercial banks, fund management firms (mutual funds and hedge funds), major corporations, and individual investors or speculators. Depending on the timing of such transactions, purchasing a currency with the intent of later selling it at a better exchange rate (and vice versa) can potentially yield profits for investors, of course there is a strong potential for loss trading currencies as well.

Utilization by so many parties is why the Foreign Exchange market is the world's largest financial market, with a daily dollar volume exceeding $1.9 trillion ($1,900,000,000,000). This mind boggling volume is probably what led you to research the topic.

Now let's put the market's trading volume in perspective. In 2003 the reported trading volume for the NYSE (New York Stock Exchange) was a mere $9.6 trillion; the previous year was just above that at $10.2 trillion. These seem like respectable figures, but in comparison to the Foreign Exchange Market, which is commonly trading $1.9 trillion in a single day, these numbers pale in comparison. This is probably why so many fund managers and Fortune 500 companies invest heavily in this highly liquid market. The high volume of this market makes it one of the riskiest markets to trade in.

It is important to note that retail traders, such as yourself, will most likely be accessing the off-exchange foreign currency market (or Forex market) via an FCM (Futures Commissions Merchant) or broker. You will not be trading in the actual Interbank market itself. Your access to the total market will be determined by your chosen broker’s limitations. FCMs or brokers act as a bridge between you and their liquidity partner (sometimes larger global banks) that you would otherwise not have sufficient capital to do business with. The large majority of off-exchange retail foreign currency brokers act as market makers, meaning that by keeping many trades in house they create their own liquidity. Some retail brokers clear trades directly through to the larger banks that provide their liquidity. If you are new to the Forex market it would wise to research and understand your broker’s particular business model and method of clearing trades.

Unlike other financial markets, the Forex market operates 24 hours a day, 5.5 days a week (6:00 PM EST on Sunday until 4:00 PM EST on Friday). Through an electronic network of banks, corporations and individual traders exchange currencies, though as the market is primarily used as a means for speculative investing, actual physical delivery of currencies is almost never intended. Forex trading begins every day in Sydney, moves to Tokyo, followed by Europe and finally the Americas.

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What you should know before you invest in the forex

I'm posting a link to an article that was written about all markets with a lean toward stocks, but the principles are universally applicable, and certainly apply to the forex.

Basically, it's what you should know before you invest a single dollar in the markets.

Lots of food for thought in the article. Here's the link:

http://www.learningmarkets.com/index...cks&Itemid=144

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Early Nonfarm Payrolls Help Dollar Despite Bad Data

EUR/USD fell sharply today paring the weekly gain as the employment statistics in U.S. was released. Not only employment figures disappointed market participants, but also ISM services index declined faster than expected in June. But for some strange reason that supported the U.S. dollar and it showed the fastest daily gain since April 24. EUR/USD declined from 1.5890 to 1.5695.

Nonfarm payrolls lost 62k in June, that loss followed the same decline in May (revised up from 49k loss) and was worse than 60k of the forecast. Unemployment rate remained at 5.5%, while it was expected to fall to 5.4%.

ISM services index lost 3.5% in June and is now at 48.2%. It was expected to go down to 51.0% only. The current decline in this index followed decline in May, which indicates a real stagnation in the non-manufacturing sector.

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Carnival of Forex Trading — July 6, 2008

Everything Finance presents Five Online Resources for Forex Beginners posted at Everything Finance.

Heather Johnson presents Five Online Resources for Forex Newcomers posted at MojoStock.

Neelakantha presents 8 Ways the Bush Administration Has Caused the Oil Price Boom posted at Currency Trading.net.

Alvaro Fernandez presents Your Brain On Trading 101 posted at SharpBrains, saying, «A trader and neurologist introduces us to the world of the Brain on Trading and the differences between expert and novice traders.»

Lane Wright presents Three Forex Trading Strategies posted at Awesome Forex Alerts.

That concludes this Carnival of Forex Trading edition. This time only five interesting Forex related articles were submitted for publishing. The first two articles look almost the same, but they list different resources and they should be really useful for the new traders. Other articles are too worth your attention.

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Dollar Falls on Trade Balace and Budget Deficit Decrease

EUR/USD soared to the new highs near 1.5885 after the data on exports and imports was released in U.S. today. And, although the indicators came out better than expected, the dollar dropped at a very fast pace against all major Forex currencies.

Import (excluding oil) and export (excluding agricultural) prices both grew by 0.9% in June. This growth followed 0.7% (revised up from 0.5%) and 0.3% (revised down from 0.4%) growth in May for import and export prices respectively.

Trade balance deficit unexpectedly narrowed in May. It decreased from $60.5 billion (revised down from $60.9 billion) to $59.8 billion as the exports rose faster than the imports.

The University of Michigan consumer sentiment index showed a slight increase from 56.4 to 56.6 in the preliminary report for July, while analysts expected a decrease to 55.8 this month.

Treasury budget deficit declined in June and the monthly surplus rose to $50.7 billion from the year before ($27.5 billion). Markets expected the surplus to grow to $33 billion in June.

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