Article Summary:

Here is a collection of Forex News Updates, Other Forex Trading System Resources and Information.Yesterday, the markets started off in risk-taking mode and that quickly reversed to post huge gains as the market flipped to risk-taking.  As I mentioned yesterday, there was no real reason to induce risk-aversion as the there was no news driving fear.  That proved to be prescient. 


Article Content:
Yesterday, the markets started off in risk-taking mode and that quickly reversed to post huge gains as the market flipped to risk-taking.  As I mentioned yesterday, there was no real reason to induce risk-aversion as the there was no news driving fear.  That proved to be prescient.  This goes to show how the 24-hour nature of the currency market can provide opportunities as different markets gauge risk.



Overnight, the BOE left rates unchanged and did not expand its asset purchase program reflecting a view that their economy may be stabilizing.

The ECB also left rates unchanged, but did begin its own asset purchase program to try to help ease pressure on its banking system.

In Australia, employment figures came in much better than expected showing signs that the economy is not slowing down and bringing back the chance that the RBA could move on rates again this year.

In the forex market:

Aussie (AUD):   Overnight, the Australian unemployment rate fell to 5.1% as the economy added 46K jobs vs. an expectation of 15K.   This has sent the Aussie higher and has encouraged risk-taking, as the market is increasing its bet that the RBA may have to resume interest rate hikes.  The fear of a potential Chinese slowdown had left the market betting that the RBA was finished for the year.

Kiwi (NZD):  The Kiwi is higher trading along with the Aussie as risk-taking is continuing from yesterday’s gains.

Loonie (CAD):  The Loonie is also higher on risk-taking ahead of tomorrow’s employment report in Canada.  Oil is catching a bid and is higher as the demand for risk assets has increased.

Euro (EUR):   The Euro is mixed this morning keeping in line with risk-taking.  The ECB left rates unchanged at 1%, and showed that it is willing to buy government debt to shore up the banking system.  However, there is a sense that the ECB may need to expand those purchases going forward.  German industrial production figures came in much better than expected, providing a bright spot to economic health.

Pound (GBP):   The Pound is trading lower against all but the Yen, as the BOE left rates unchanged at .5% which the market had been expected.  They also left their asset purchase program unchanged, and there may be slight disappointment that it hasn’t expanded.  In addition, industrial and manufacturing production figures came in slightly lower and home prices were also lower, showing signs that inflation may be shrinking as the BOE had hoped.

Dollar (USD):   The Dollar is lower against all but the Pound and Yen, as initial jobless claims figures came in slightly better than expected.  Initial claims were 454K vs. and expectation of 460K, which may be showing that the US is losing jobs at a slower pace.

Yen (JPY):  The Yen is lower across the board as risk-taking is continuing from yesterday.  In addition, Japan’s current account balance decreased revealing that domestic demand may be picking up.  This is seen as positive as it could help fight the deflation they have been experiencing.

As you can tell by now, there is A LOT of volatility in the market and frankly, I couldn’t be happier.  Volatility provides opportunities for traders to profit from changes in sentiment worldwide.

Right now this is most definitely a trader’s market, as the short-term movement is out-pacing longer term position-taking.  There is still fear in the marketplace and many hurdles to get over to return to global economic stability.  I don’t know where the market will be in 6 months from now; let alone 2 days from now!
What I do know is that there will be ample opportunities for me to make money in the forex market as different news events drive sentiment between risk-taking and risk-aversion.  My stocks may be flat, and bonds paying no interest, but there are always ways to profit from forex!

Isn’t it time you got involved to find out for yourself why the forex market is the fastest growing financial market in the world?

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here!  Don’t miss out on the world’s fastest growing market!

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