It appears that we have an agitated, unhappy world, which has created tension and political uncertainty in North Africa, and the Mid-East. This, combined with a glut of economic data which has all served to attract speculator attention. At the CME yesterday, there was an increase of over 31,000 contracts of foreign exchange futures and 5,300 of options. With 1,133k of futures contracts, and 603k of options this is not a large percentage increase, but the open interest did go up in all of the...

This morning it was reported that the Euro CPI y/y was up 2.3% above the 2% target. The core rate increase was a subdued 1.1% y/y, a nice number but not nearly as important as the higher CPI. Yes, the 2.3% increase was a clarion call for the European Bankers to suit up into their battle gear, and get ready to fight inflation. Never mind that food and oil price increases, something beyond the control of the bankers was the cause, these pugnacious bankers were getting ready for battle.
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The forex rate of US dollar against Euro went up in the forex market as American economic data was much better than expectation. US non-farm unemployment decreased much on January in 2011, so the forex investors have more confidence on the measures for economic prospects by Federal Reserve. Meanwhile, the forex investors hoped that Federal Reserve could reduce the scale of the second round of Quantitative easing policy.

In addition, the forex rate of Euro versus US dollar went down...

Euro and Great Britain pound went down on the morning session in the forex market today(Feb.15,2011). Today the forex market was so unquiet as a serious of important economic data had been issued. Forex analyst pointed out that US dollar would continue to rise as the trend of forex market was as the same as expectation.

It was predicted that British CPI would increase to 4.0% on January. Bank of England would raise interest rate to restrain inflation.

Bank of England...

In my last article I spoke about getting back to the basics of trading when you find yourself struggling. I also mentioned that it was not the complete picture and that an exit strategy is more a function of the trader themselves. In this article I explain why.

There are many ways to formulate an exit strategy. Other than an initial stop loss, which is there to get you out of a bad trade, exit strategies are used to achieve a goal. A lot of traders don’t understand this concept and...