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Monday, March 2, 2009


The highlight of last week’s Forex trading session was the fact that despite the continued printing of money they don’t have, despite the continued failings of banks and government “takeover” of a major bank, despite the dire GDP and unemployment numbers that continue to grow, the US Dollar had a banner week. It defies all financial market logic that Forex traders and investors would pump up a currency that is so seemingly troubled. However one look at the field of competition out there for the dollar and you can understand why – there is no place to turn.

Japan’s economy is battered and bruised – the Online Forex world has all but abandoned the Yen because they see they economic climate worse today than it was in the 90’s – and it was really bad in the 90’s. The finance minister gets drunk at a conference and embarrasses the Japanese state – what should be embarrassing is the attempts by the Bank of Japan to hinder the Yens growth in the name of their exports, because now not only the exports are suffering, but also the Yen. Hey, if I were the Japanese minister I would have gotten plastered too – there is no much to be excited about in Japan (with exception to the Sushi and Saki, of course).

The EU is concerned about the Eastern bloc states – there are riots in the streets causing people to think that the iron curtain will once again be lifted. The single currency idea doesn’t look so good now that things are bad, huh? And to think, that over the weekend the EU heads stated there will be no financial bailout for the Eastern countries as a whole – and they expect this not to cause more problems? I am telling you this today, and know that you read it here first – the Euro currency is in bigger trouble than everyone thinks, and the reason for this is more because of political reasons than anything else. Forex traders and readers of Online Forex information sites do not see this factor – and they need to because if the Eastern bloc blows up – which is happening, there will be a war. As well, the Western states, also known as the PIGS (Portugal, Italy, Greece and Spain) are in dire trouble and the EU better have the same answer for them that they gave to the Eastern states – but chances are there are different rules for different member states and we are likely to see some handouts given to the PIGS sometime soon.

Anyway, Forex trading is tricky, as you can see- it’s not all about resistance and support levels and trading ranges – and it is for this reason that the US, with all their problems, continues to dominate and remain strong. Stay tuned for more – I might get into the business of war reporting before this crisis is through.

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