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Profiting With Forex (PFX) started as the fulfillment of a promise made in the book, Profiting With Forex. There are so many books and sites out there that offer information and education around the forex, but we wanted to make sure traders could take the principles we offered, and apply them in the actual market.
The PFX site (www.PFXGlobal.com) is designed to give you straight-forward and applicable information that you can use in your trading today, and forever." In this blog, we will include education articles and regular commentary.
*No warranties or guarantees are made with respect to the content contained herein. The website and the guests on this site do not take into account the investment objectives, financial situation or particular needs of any particular person. The advice and trading ideas provided on this website are for informational purposes only and are not intended as a trading ideas. Under no circumstances does any advice or trading idea contained herein constitute a solicitation to buy and sell currencies. We do not endorse and cannot vouch for any of the guest traders on this site.
Profiting With Forex (PFX) started as the fulfillment of a promise made in the book, Profiting With Forex. There are so many books and sites out there that offer information and education around the forex, but we wanted to make sure traders could take the principles we offered, and apply them in the actual market.
The PFX site (www.PFXGlobal.com) is designed to give you straight-forward and applicable information that you can use in your trading today, and forever." In this blog, we will include education articles and regular commentary.
*No warranties or guarantees are made with respect to the content contained herein. The website and the guests on this site do not take into account the investment objectives, financial situation or particular needs of any particular person. The advice and trading ideas provided on this website are for informational purposes only and are not intended as a trading ideas. Under no circumstances does any advice or trading idea contained herein constitute a solicitation to buy and sell currencies. We do not endorse and cannot vouch for any of the guest traders on this site.
Retail sales, consumer confidence and a strong trend
Posted 09-06-2008 at 12:08 AM by LearningMarkets.com
The week ends with a strong trend in the market towards weak commodities and a stronger USD. These kinds of breakout trends are great profit opportunities and come along all too infrequently. At this point our job becomes less about forecasting and more about preparing for potential disruptors to the trend. The coming week isn't as heavy of a news week as the preceding two weeks have been but we will still want to watch the retail sales numbers due from Australia, New Zealand and the US as well as trade numbers in North America for potential disruptions to the trend.
Retail sales are a good measure of consumer health in an economy and is therefore one of the ways traders forecast currency strength. More of the most recent retail reports in Australia have been below expectations than above but a positive surprise this week could be a fundamental that AUD bulls rally around in the short term. That may lead to a pause in the trend in the commodity currencies.
In addition, we are watching US trade numbers on Thursday for signs that the very positive export numbers revealed in a recent GDP release are likely to continue supporting economic growth. The decline in the USD over the last few years may be very supportive for exports in an economy that needs growth anywhere it can get it. Ironically, exports that are boosted by a long term weak USD are likely to help increasing its value in the short term, which could be good for the existing trend.
Click Here to view the video
Retail sales are a good measure of consumer health in an economy and is therefore one of the ways traders forecast currency strength. More of the most recent retail reports in Australia have been below expectations than above but a positive surprise this week could be a fundamental that AUD bulls rally around in the short term. That may lead to a pause in the trend in the commodity currencies.
In addition, we are watching US trade numbers on Thursday for signs that the very positive export numbers revealed in a recent GDP release are likely to continue supporting economic growth. The decline in the USD over the last few years may be very supportive for exports in an economy that needs growth anywhere it can get it. Ironically, exports that are boosted by a long term weak USD are likely to help increasing its value in the short term, which could be good for the existing trend.
Click Here to view the video
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