FOREX TRADING

It appears as though the momentum has shifted away from the Dollar. Don’t say I didn’t warn you all. The problem is, and it was evident in my last few posts before I embarked on week’s respite, that all these officials, also known as politicians, are making big and bold statements that are not supported by fact.

Two weeks ago had I said to you that the unemployment situation in the US was bad and getting worse you might have laughed – after all the initial numbers two Thursday’s ago were great, less people were filing for unemployment.But, as you look backward I did tell you this – and this past Thursday we saw what happens when you count your chickens before they hatch.

If you weren’t watching the numbers, let us just say that they weren’t pretty. From the mid-200,000’s to the mid 500,000’s in new filers for unemployment – the large drop took everyone by surprise.

And if we were to focus on the retail sales, dropping like a stone – or on the consumer confidence, nonexistent – or on the durable goods orders , flat – what is the bright spot for the US Dollar right now? Only ten days ago, Ben Bernanke, Timothy Geithner and President Obama were touting how they saved the US economy – how and from what? I must ask.

When the rest of the world looks to be emerging out of recession (see France, Germany, Australia and New Zealand and most recently this morning, Japan), the US is still in deep trouble.

Not that I buy the GDP numbers from those countries just yet – the Eurozone is still in bad shape, England is having problems and Japan is too reliant on exports to feel that safe yet.

Forex traders and Forex online enthusiasts are confused by all this and the trading patterns of these currencies prove it.

I said this before and I’ll say it again, go with your gut – don’t believe everything you hear from a public official – read the numbers and then read how they figure them and then use your brain.

Trading the Forex isn’t difficult if you put in your time to research. This week will be an interesting one, stay tuned for more of the same from the Dollar and keep your eyes down under.