Forex ... How To..

This is my take on How to extract the (possible) market moves from the daily summary feed...

This article provides insight into the two major methods of analysis used to forecast the behavior of the Forex market...

Using this, you can become well informed more quickly, meaning more PROFIT for YOU!

Let's get started...

Here is a snippet of the latest currency trading news
19th November 2007

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USD weaker as Fed warns on future rate cuts. Rebounding stocks reignite carries.

CURRENCY TRADING SUMMARY – 19 NOVEMBER 2007 (00:30GMT)

· U.S. Dollar Trading (USD) was volatile once again on Friday triggered by comments made from the Central bank. (1)

Federal Reserve Governor Kroszner warned markets that policy makers may not look to lower borrowing costs further from the current 4.5% levels in order to weather a “rough patch” in the upcoming 12 months, despite major financial institutions having announced more than $50 billion worth of write downs in relation to sub-prime mortgages. (2)

In data news, Capital Net Flows failed to give the greenback any added support coming in well below expectations for the month of September at 26.4 billion, forecasts were at 70 billion. (3)

Production contracted over the month of October with Industrial output falling from 0.2% for the previous month (revised) to -0.5% (Forecasts: 0.1%) pushing the currency lower by 0.3% versus the Euro. (4)

(1) The central bank made comments.. And the dollar was then more volatile...
(2) Lenders trying to attract more borrowers by lowering rates?
The Reserve bank governer said don't try it..
(3) No support for the greenback...
(4) Production contraction

This all means to keep your bets on the US dollar to drop...

ps..
This weekend the Australian Government elections are on.
All the bets are on the gevernment to change...

What will happen to the AUD versus USD?
I'll put the technical details into Forex Killer and see...
I'll keep you posted...

pps...
Many profitable trades are made moments prior to or shortly after major economic announcements.