The US dollar has been through the mill recently, losing ground against many of its counterparts over the last few weeks, with investors seeking positions elsewhere. It really has been a bad month for the dollar, the worst since September, ending with the US currency falling to a 2 ½ year low, with the US Federal Reserve’s ultra-loose monetary policy seeming to be the major factor in the dollar’s recent downfall.
The only saving grace for the dollar during Friday’s trading sessions was the measures taken by traders at ForexYard and other brokers to settle positions ahead of the weekend, allowing the struggling US currency a little breathing space to recover. However, many market insiders and analysts believe that the fortunes of the dollar will continue in a similar fashion on Monday when Forex trading resumes.
Fears of inflation pushed gold prices up during Friday’s trading sessions as traders at ForexYard and other online Forex brokers saw the precious metal as a safe hedge against the impending inflation rise expected in the US. A rise in inflation will often suppress a currency, which is the US dollar in this case. And traders have been selling dollars and buying gold, which has pushed its price to new highs.
During Friday’s US trading session gold climbed by 0.9 per cent to $1,486 per ounce before declining a little. However, it wasn’t just gold that was on the move. Traders also opted for silver as a safe haven commodity as they sought risk aversion tactics as the dollar fell. Silver closed this evening at $42.57 an ounce, which is a 31-year record high for the popular precious metal. The advances of silver made an overall gain of 2.2 per cent on the week.
The British pound recovered against the euro during this morning’s European trading sessions, even following rising speculation that the Bank of England are due to raise the interest rate in the UK. Traders at ForexYard witnessed the pound climb away from Monday’s five-month low but the euro fought back, halting any further advances from the pound.
Even though the Bank of England is likely to raise interest rates, which will strengthen sterling, most investors and speculators now believe that the rate hike will take place later in the year. However, the European Central Bank has said that it was also likely to raise interest rates but investors believe that the European interest rate hike will take place sooner. This is why the British pound has not managed to break away from the euro today, instead making moderate headway against the single European currency.
Today, traders at ForexYard and other leading brokers experienced a day where the Swiss franc advanced as Forex traders and investors employed further risk aversion strategies and tactics following the civil unrest that’s currently engulfing the Middle-East.
In the last 48 hours we have seen and heard some horrific news regarding the civil unrest in Libya, which has caused the expected tidal waves across the world’s markets, especially the world’s Forex markets. In a similar fashion to what happened in Egypt traders and investors have moved their money to safer ports but at some point in the not-too-distant future, just like last time, the traders will sell their safe currencies and this could offer Forex traders some inviting positions.
Today, traders at sites such as ForexYard witnessed the US dollar and Swiss franc suffer as investors’ appetite for risk begins to grow again following the unrest in Egypt. Both the US dollar and the Swiss franc are traditionally deemed as ‘safe haven’ currencies. This means that when civil unrest, such as the recent troubles in Egypt, takes place many investors move their money into these ‘safe’ currencies.
However, safe haven currencies are exactly that, safe option in times of turmoil but once the current drama dies down these risk aversion tactics are put on the shelf and gambling recommences, which is what has happened to the safe havens that are the US dollar and the Swiss franc. As the troubles in Egypt have subsided so has the appetite for francs and dollars.
This week there are some major events and reports that will have significant impacts across the world’s Forex markets so we’re bringing you our selection of the most significant events. The Forex trading week ahead will see news from the US, the UK and the Eurozone that will play their part in the fortunes of currency pairs at Forex trading sites such as ForexYard.
On Tuesday morning we will hear news from the UK when the Bank of England regarding the UK’s annual inflation rate. Inflation has been on the rise in the UK during recent months thanks to a rise in the price of just about everything from fuel to shopping. However, even though the new 20% VAT rate is expected to push the UK’s CPI to 4% it is believed that inflation will remain at 3.3%.
As another year draws to a close we’re hearing that Japan may be ready to intervene, once again, in the Yen’s fortunes. The ever-strengthening Yen may need moderating in the not too distant future, according to Japan’s finance minister, Yoshihiko Noda. This move will be closely followed by Forex traders as there may be some profitable positions to be had.
Back in September we heard the news that Japan had sold billions of yen in a bid to devalue the Asian currency and increase manufacturing and export orders, a move that saw many currency pairs rise sharply against the yen but it is believed that another round of economic intervention is in the pipeline for the ever-strengthening yen. If Japan were to intervene in the fortunes of the yen then Forex traders at sites such as ForexYard would be in line to make a quick profit once again from buying at just the right time.
While Forex trading, losses are inevitable, even to the most astute and experienced trader. However, the key to making a profit while Forex trading is to make the most from your winning trades and keep your losses to a minimum. This is why we’ve put together a selection of hints and tips the help you reduce your Forex trading losses.
The first and most obvious way to keep your losses low is to trade at a sensible size and use as little leverage as possible. As a guide we would suggest that any one trade should involve no more than five per cent of your Forex trading bankroll, so relatively speaking each trade will be small. Leverage can be an instant killer for a position. If you are trading with 200:1 leverage and a position starts to turn bad you can soon find yourself triggering stop losses or worse, wiping your trade out completely.
Today, traders at online Forex sites such as ForexYard witnessed a rise in the fortunes for the struggling euro. The euro rallied following news that Ireland may receive support from the IMF in a bid to ease their economic difficulties and debt problems.
This morning, Ireland welcomed representatives from the International Monetary Fund and the European Union, who attended meetings in Dublin at the Irish central bank, the Irish finance ministry and the city headquarters of the European Commission in a bid to find a solution to Ireland’s rising debt issues.
Today the price of gold has hit a new record high of $1,422 per ounce as many traders choose to invest in the safe-haven that is gold. Traders at ForexYard saw the value of the precious metal climb following the US Federal Reserve’s announcement of a second round of quantitative easing measures. Gold prices continued to flourish despite the strength of the US dollar, and it was hitting new highs in other denominations too, coming in at EUR 1,020 an ounce and GBP 878 today.
As is normally the case, the price of silver has shadowed the price of gold, with silver prices hitting a 30-year high just shy of $29 per ounce. Other precious metals such as palladium have also been boosted by the weak US dollar and uncertainty surrounding the US economy.
