Weekly Trading Update – 31 October – 04 November 2011

There were no trades for me this week. Regarding my 4 hour trading system (see right for more details), there were no decent set-ups on any of the major pairs, and I havent used my early morning breakout system this week because to be honest I have preferred to watch the share price movements of Tomco Energy instead.

This is the only small cap stock in my portfolio and it has continued to soar higher this week, despite a little bit of selling today after the latest RNS. I have already decided that if this stock gets to 10p in the next few years (which Im sure it will), I will probably give up forex trading and put this blog into retirement because I will have more than enough to live on. If it goes beyond that or gets taken out at a higher price, then I definitely will.

Forex trading is proving to be very tough right now with all the uncertainty surrounding the Eurozone, and I am finding very few decent set-ups as a result.

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New Zealand Dollar Performs Unexpectedly Well in Forex Trading

The New Zealand dollar is performing quite well today in forex trading on the currency market. Taking a break from the focus on the euro zone and the U.S., some forex traders are turning an eye toward the positive news coming out of New Zealand.

Kiwi is gaining in currency trading as good economic news bolsters the Down Under currency. New Zealand’s economic growth figures beat expectations, and the economy in general is expected to be firm. The news is boosting the kiwi and, according to FX Street, making it the best G10 currency performance today.

It will be interesting to see how long the New Zealand dollar can maintain its gains in forex trading. Between the euro zone and the U.S. debt default worries, risk aversion may soon be coming. 

Key Markets in Forex Trading

While trading in the euro or British pound, the traders usually focus on the technical indicators while trading. More explicitly, they focus on a list that includes the likes of seasoned and new, moving averages and trend lines.

As for the market hints on that lead to the market is hardly emphasized upon. However, these markets are sometimes more important than these traders can think of. The thing is, these markets are often the beholder of a profitable position or a losing trade, on the other hand, in the foreign exchange market.

In order to confirm a position, it has usually been a common practice to take a look at the secondary markets. The doers of a such practice have been none other than the professional money managers.

These individuals find out the relationship between the markets under study and thus se a variety of advanced charting programs.

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Euro Looks for Weekly Gain in Forex Trading

The euro is heading for a weekly gain in forex trading on the currency market. Unless something dramatic happens tomorrow, the euro will likely end on a much higher note, following a week-long rally.

Euro is getting plenty of support right now as the Greek austerity measures become finalized. Additionally, there is some hope that some sort of process for funding can be arranged for other euro zone countries dealing with possible financial failure.

Also helping the euro in forex trading is the fact that many expect the ECB to raise interest rates next week. Contrasted with the U.S. dollar, whose rate is likely to remain near 0% for a while, the euro looks like a good bet.  

U.K. Pound Heads Lower in Currency Trading

The U.K. pound is heading lower in currency trading on the FX market, thanks to the release of the latest minutes from the last MPC meeting. 

Minutes show that there are concerns about unemployment and other issues related to a slowly recovering U.K. economy. As a result, it doesn’t appear as though the Bank of England is likely to raise interest rates anytime soon.

The news sent the sterling lower in currency trading today. Even with stocks recovering around the world, and commodities on the rise, sterling is dropping against the U.S. dollar, unlike the euro, which is gaining against the dollar. 

Sterling Retreats in Forex Trading

The sterling is retreating in forex trading on the currency market as risk appetite takes a break, and as concerns about the U.S. economic situation become more apparent.

At the end of last week, many currencies were gaining against the U.S. dollar. The U.K. pound was one of these, rising on the FX market as PPI data helped provide a boost. However, the story has changed somewhat. While some of the drops are due to profit taking, there are also some other issues.

The IMF just revised its forecast for the U.S. economy, and it is a less positive picture, resulting in high beta currencies losing ground. Another issue is that energy stocks — and other stocks — are lower. Worries about Japan and the state of euro zone countries are also re-surfacing. All of this means that the U.S. dollar is preferred to currencies like the sterling and euro. 

Overview of Forex Trading

Forex is the biggest liquid trading market in the world. It is the most sophisticated home business for traders who work from home. The basic instrument that is used for trading in this industry is the currencies of different countries. Fluctuations in the rates of these different currencies generate huge profits.

Role of Forex Information

If you want to make real profits being a forex trading then you must get enough information and knowledge about forex market. With the healthy information about forex trading market, you will be able to trade confidently and gain benefits from it.

Where to Find Forex Information?

You can find information about forex industry from a number of sources such as forex magazines and books. The advanced way of collecting information about forex is internet.

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