FOREX TRADING

The Central Bankers of the world met this past weekend in Jackson Hole, Wyoming. Known for hoards of Deer, Elk, hunters and hamburgers, this relatively small frontier town became the center of the financial world for a couple of days – and will be widely remembered from this day forth as the place in which the global recession was officially declared over.Just do not tell those 14% of industrialized workers who are without work, do not tell those farmers who are selling items at 2/3rds less than what they were last year because of trade restrictions, and do not tell the Central Bankers themselves, because finally – the meeting and declaration was more politically motivated than factually motivated.Jean-Claude Trichet, the EU Central Bank President, gave a speech that can be defined as optimistic, or if you’re one of those protagonists, you could have derived a negative message from him.

Ben Bernanke who heads up the US federal reserve was chipper and growth focused in his remarks – notwithstanding the actual numbers, he used words like “I feel” and “in my opinion” to identify the economic recovery – terms commonly reserved for politicians and not numbers oriented Central Bankers. Good for him although as President Obama rewarded him with another term as Fed chairman for his efforts.

The Forex marketplace this week has been slow and light, most everyone is off in some vacation spot, perhaps hunting Deer and Elk or eating burgers. Forex traders haven’t been moving the markets these past few days – and neither has any news for the most part.

The summer is winding down, quarter 4 is around the corner and the world is apprehensively awaiting something to happen. In Europe, Germany’s growth and true recession exit is marred by the other EU countries that are still suffering double digit unemployment and negative growth.

In the US everybody, including the politicians and policy makers are on vacation, trying to regroup and work out how to spend another Trillion Dollars that they do not have on a healthcare package. And in China, they’re selling their Dollars (shhhhhh).

In a world in which the lines between fact and political fiction, it’s hard to pin just where this economy is going. Yes there’s some signals that things are getting better, but there also so many signals that there’s bad news on the horizon.

In the past 3 months alone, 650 banks have closed in the EU and US – the pains are still there from last year. Unemployment numbers are still rising – and the politicians warn us this is going to happen for a while longer.

But something is happening, we’re arriving at a critical point in which something will happen. My belief is that it won’t be good, but it can turn out to be positive – the haze of summer is upon us and Forex traders and online Forex bloggers like me are looking for a break in the air – a little clarity – and we are not getting it from those who are charged with honesty and truthfulness.

Keep your eyes open – next week will be a good one for numbers. For this week, enjoy the quiet, it’s typically like this before the storm.