Top Forex Trading

The ancient battlefields of the Roman Empire are not gone, they have just changed a little. Many years ago conquest of lands by army force was a necessary practice for usual men desired to begin their empire. Now usual men like you and I can conquer markets through our own force for creating our financial empires. As the armies were necessary to change the empires of the past, also the capital is necessary now to make modern commercial plans of expansion real.

That’s why so many traders fail. They go into battle and risk too many soldiers (capital) and begin war without the knowledge of the tactics needed to win the fight. Again, you mustn’t risk too much capital and you should understand the Forex market processes. Read more…

The Yen fell against most of the major currencies during last week’s trading session. The Yen dropped about 100 pips vs. the Dollar and about 300 pips against the Pound, and the GBP/JPY pair is now trading near the 135.50 level.

The Yen dropped last week due to speculations that Asia’s economic recovery is advancing. These speculations have increased risk-appetite in the market, and have turned investors to look for riskier assets. The Yen is considered to be a safe-haven currency, and tends to fall as risk aversion weakens. The speculations came following several reports which showed that South Korea’s economy grew faster than analysts forecasted, and Japanese exports rose more than expected.

As for this week, many interesting publications are expected from the Japanese economy.

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The European stress tests are now behind us and unfortunately they failed to be the buzz kill or euphoric event that was needed to break the EUR/USD out of its recent trading range. The goal of the stress tests was to restore confidence in the European banking sector, but based upon the price action in the currency and European equity markets this morning, investors were not impressed. The results scream leniency because all of the big European banks passed and those that failed were either very weak to begin with or already expected to do so. There will be no major capital injections into banks, which was what followed the U.S. stress tests and was instrumental in rebuilding confidence in U.S. banks.

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The Yen fell against mot of its major rivals during yesterday’s trading session. The Yen dropped about 100 pips against the Dollar, and about 250 pips against the Euro. The Yen also slid 200 pips against the British Pound.

The Yen tumbled yesterday on speculations that the Japanese leadership is looking to weaken the national currency in order to stimulus economic growth. The Japanese press is reporting that the government will pressure the Bank of Japan to take more steps to support the economy. The Japanese economy relies greatly on its exporting, and a weaker Yen will support Japanese exporters. In addition, the current instability in Japanese politics is damaging the Yen’s safe-haven image, and as a result the currency seems less appealing in times of uncertainty.

As for today, traders are advised to follow the major publications from the U.S.

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Mainstream financial analysts always look for ways to explain market action through news stories and events. Conventional wisdom states that news and inter-market correlations cause market booms and busts, but such explanations rely on selective presentation of the data.

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I was on the Business News Network this afternoon talking about the impact of the EU Stress Tests on the euro. Enjoy! Click on the image to access the video