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13th, Jul 2008 Fannie and Freddie’s Troubles are a Lose-Lose for the US Dollar

Kathy Lien Calling the financial markets active today is practically an understatement. The combination of soaring oil prices and problems with Fannie Mae and Freddie Mac triggered sharp volatility in the equity and currency market. More

13th, Jul 2008 Euro Within 1 Penny of its Record Highs

Kathy Lien The Euro traded within 1 penny of its record highs on fresh fears that another major financial crisis may be around the corner.
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06th, Jul 2008 Will the G8 Meeting Impact the US Dollar?

Kathy Lien With the stock and bond markets closed for Independence Day in the US, the foreign exchange market was extraordinarily quiet. The dollar has fluctuated within a tight range against the Euro and Japanese Yen as the non-committal nature of the Federal Reserve and the European Bank leave little direction for the US dollar, let alone the EUR/USD More

06th, Jul 2008 Euro: No Bias Equals No Action

Kathy Lien The Euro has weakened modestly against the US dollar following a surprising drop in German factory orders. For the sixth month in a row, factory orders have been negative, which comes in sharp contrast with the stronger manufacturing PMI report released earlier this week. More

06th, Jul 2008 British Pound Faces Bank of England Rate Decision

Kathy Lien The currency pair with the most market moving data next week is the British pound. The Bank of England has an interest rate decision scheduled while the UK will release their industrial production and trade balance reports. More

06th, Jul 2008 Australian, New Zealand and Canadian Dollars Edge Higher

Kathy Lien Australian, New Zealand and Canadian Dollars Edge Higher
Japan: Busy Economic Calendar More

03rd, Jul 2008 Dollar Rallies after NFP - How Much Further Can it Rise?

Kathy Lien Non-farm payrolls were right in line with expectations, triggering a broad based dollar rally. Even though the US economy saw a net job loss for the sixth consecutive month, the sheer fact that non-farm payrolls was no where near -100k, was enough to drive the dollar higher (More details on Non-Farm Payrolls). More

03rd, Jul 2008 Euro Collapses as Trichet Proves to be a Big Disappoint

Kathy Lien For the first time since 2007, the European Central Bank raised interest rates by 25bp to 4.25 percent. However despite this move, the Euro dropped more than 200 pips when ECB President Trichet failed to signal to the markets that interest rates would be increased again this year. More

03rd, Jul 2008 British Pound: Economic Data Continues to Worsen

Kathy Lien The British pound extended its losses as bad news continues to pour out of the UK. Service sector PMI fell to the lowest level since October 2001. More

03rd, Jul 2008 Australian, New Zealand and Canadian Dollars Hit by US Dollar Strength

Kathy Lien Broad dollar strength has pushed the Australian, New Zealand and Canadian dollars lower. The Australian trade deficit was slightly wider than expected as exports slow and imports grow. Like the rest of the world, oil is the primary culprit. More

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*Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
Before deciding to participate in Forex trading, you should carefully consider your investment objectives, level of experience and risk appetite. There is a significant learning curve to trading successfully in Forex. Most importantly, do not invest money you cannot afford to lose. Forex investing is not ideally suited for investment of retirement (IRA) accounts.

There is considerable exposure to risk in any foreign exchange transaction. The market remains open 24 hours a day for 5 ½ days. This means that unexpected events may affect your investment while you are resting. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price, spread, or liquidity of a currency. The most enticing aspect of trading currencies is the high degree of leverage used. Leverage seems very attractive to those who are expecting to turn small amounts of money into large amounts in a short period of time. However, a high leverage refers to the speed at which an account gains or loses money. One cannot hope to make extraordinary gains without taking extraordinary risks. Leverage should be gradually increased, as trading performance improves.

There also additional risks that affect your Forex investments, such as, but not limited to: losing internet connectivity for various reasons (your machine, your ISP provider, your dealer's servers, your dealer's ISP provider), computer or server malfunction, software upgrade disruptions, and inappropriate usage of trading tools. As a result, prudent investors should be prepared for unexpected contingencies by implementing appropriate procedures such as having: multiple computers setup for trading, multiple ISP providers, your dealer's phone number on speed dial to assist with trades, and print outs of account number and open tickets. In addition, investors should always gradually upgrade their operations by starting with a demo testing period, followed by setting up a mini account, and upgrading to a live account if all tests are working to plan.

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