As a new trader in the market, I would be grateful if anyone could tell me how to look a head if the market is not upto your calculations? I know it is bit silly question because no one see and can predict where the market is heading but careful study and with the help of experts one can save his amount.
- #2
- Dec 20, 2006 12:21am Dec 20, 2006 12:21am
Then as you said,study them carefully.begin with the beginner forum.it's great.all about learning forex is hard time learning.I started at that forum too and i dont want to be on that forum forever 
.go my man.read them all.
.go my man.read them all.As a new trader in the market, I would be grateful if anyone could tell me how to look a head if the market is not upto your calculations? I know it is bit silly question because no one see and can predict where the market is heading but careful study and with the help of experts one can save his amount.
- #4
- Dec 20, 2006 6:39am Dec 20, 2006 6:39am
- Joined Mar 2006 | Status: THANK YOU MERLIN,TWEE and FF Team | 4,603 Posts
- #5
- Dec 22, 2006 5:42pm Dec 22, 2006 5:42pm
If you want to know where currnecy markets might be headed. You must understand interest rates of various countries and how they interact with each other. .... If a country raises their interest rate, their currency will become stronger. If they lower it, it will become weaker. .... The only real thing in the end that moves currencies is interest rates. Everything else just helps to determine what rates will do.
I can see you thinking there, but please explain, why is USD losing to GBP and EUR. Particularly EUR interest rate is much lower than USD.
Thx
Minesweeper target: 284
- #6
- Dec 22, 2006 7:02pm Dec 22, 2006 7:02pm
I can see you thinking there, but please explain, why is USD losing to GBP and EUR. Particularly EUR interest rate is much lower than USD.
Thx
<table border="0" cellpadding="0" cellspacing="0" width="575"> <tbody> <tr><td>
By Vadim Pokhlebkin
</td> <td height="12"> </td></tr></tbody></table> <table border="0" cellpadding="0" cellspacing="0" width="575"> <tbody> <tr> <td width="6">
</td> <td class="article" valign="top"> The year is almost over, and if there was one "theme" to this year's currency trading, it has to be the U.S. Federal Reserve's interest rate policy. The forex media’s fixation on the Fed has been relentless.
Most forex analysts are convinced that if the Fed keeps raising rates, the U.S. dollar will benefit. It's hard not to see, though, that while the Fed raised rates for most of this year, the USD has been losing since January.
Wait, does this mean that higher interest rates have been hurting the dollar? Isn’t that the opposite of what should've happened?
It is. But if this baffles you, you’re obviously not a fundamental analyst. Because here's their “explanation” – are you sitting down? The dollar has fallen this year, they say, “…on anticipation higher borrowing costs are slowing U.S. economic growth” (Bloomberg).
S-so... When the Fed raises rates and the dollar gains, it’s because “higher rates boost the dollar.” And when the Fed raises rates and the dollar falls, it’s because “higher interest rates are slowing U.S. economic growth”?
Yup. That’s the double-edge sword of conventional economic forecasting for you.
</td></tr></tbody></table>
Stubbornly persistent
