That is a good quesiton, gwct. You are partially correct when you said exchange rates were determined by the normal supply and demand mechanisms. The fact is, exchange rates are not fixed. In fact, it fluctuates
as we speak.

Let me give you an example of arithmetic relationship of the currency pairs. let's say, x is the exchange rate between EUR:USD, y is exchange rate between USD:JPY; of course, x/y is the exchange rate of EUR/JPY, because USDs cancel out with algebraic division. The result should not vary between any base points. Because of the computer/calculator's rounding off numbers at the fourth decimal places, we have variations within a couple of base points.

I have not been reading a lot about the US economy but I've listened to market analysts who have past experience that may be able to predict the outcome of the US economy, the value of USD in this respect.

First of all, thank you for opening up this topic here. I like fresh out of the box topics once in a while. I just am excited and delighted to respond to your concern, TrixieTrader. Quite Frankly, I think this is a hot topic and will be hot for financial analysts, political parties, and traders of all sort.

Let's get back to the US economy and USD.

I will have to say that: Don't bet on USD value to revive any time soon.

I am no political expert but I have a couple of scenarios to make:
First of all, let's say that Republican wins presidential election. John McCain is going to continue Bush's footsteps. We are in the same direction as we have been for 4 years. Iraque war, oil prices rocketed, inflation, and lastly economy in recession. US govenment will print out more rebate checks causing the country to be in deeper debt. There are more US dollars floating around and will cause its value to drop further.

Second of all, let's say that Democrate wins. In the history of United States that the first black or female president takes office and we, as citizens, expect "Change". How soon will we see this "Change"? I am going to say NOT ANY TIME SOON. Change takes time especially coming from Democrats. Hillary will focus on healthcare reforms, education, and well-being of the people and no funny or risky business in nature of most women. She will have a lot on her plate to straighten the already slow slump economy. It's also going to take time even if she's a heroin.

Like Kate said, this forum is not intended to give advice on your trading techniques but a forum that hopes to enhance your trading skills after being informed of the basics, fundamentals, suggestions, and recommendations from various Forex traders. I call myself "forexpert" is because I know the basics of the exchange market and if I know the market's next move, I may give you a hint/sign. I will not deliberately come out and say: Buy USD!

This is "The Beginner's Area". If you need to refresh on certain Forex topics, please feel welcome to post it here.

The answers can be found here

http://forex.acrobat.com/p31044645/

why did euro rise from 1.52ish to 1.58 before?

High Oil prices?

Hi Kate,

I shorted the EURUSD on 3 June 08, at 11.22am (US time) at 1.5445 and put my stop loss at 1.5465 (20 pips). I put my limit at 1.5340 near the lower BB.My reasons for entry is that I see the pair has some way to go down to the lower band, MACD is -ve, crossovers of 3 & 7 period is negative, candlestick negative and Bernanke has passed remark of economic improvement despite inflation.I got stopped out in 8 hrs time .Currently it is at 1.5398 which if I didn't put my stop loss would result in me having 47 pips.Can you please advise me where I've gone wrong and what I should do for my next trade?Thanks very much.

Hi Boris and Kathy,
What would you recommend for a successful trader to do, to get clients interested in having a successful trader to manage their account? Web site maybe? Thanks.

We assume that you are looking at hourly charts since it tagged the lower BB at the time that you specified. You have to be careful with selling at the lower BB on the hourly charts because quite often, as in your case, you sold the low.

A website with a detailed track record is absolutely necessary.

Hello:

From what source did David Rodriguez get the the Trend and Volatility Percentiles' Graph found at the end of his commentary in the link below?

http://www.dailyfx.com/story/tophead...023306951.html

Thank you

Hello Everyone
I am the first time to enter into foreign forum,I still have so much need to know.
I come from China,and now I am a domestic trader in China.But my profession is English language when I were in the university.I have been foreignal trader for one year(last year).I still want to do that.
So I come here to learn more about how to become a good trader.
Can you help me ,everyone.
Best wishes
Melinda

I know certian indicators are to be used in trending markets and certain indicators for ranging markets. My question is, are there certain indicators that may be more accurate for uptrends and other indicators for downtrends? Thanks in advance for your help.

I apologize for my ignorance but I have been trying to subscribe to the EUR/USD thread. I cannot find the way to make that subscription. I have look at everything it seems. I have been in the USER CP under subscriptions as well. How do I subscribe to a thread?

thank you

lijiang7

I have noticed that the weekly news of the Dailyfx Calendar is only one aspect of the actual news for the week.

Others are speeches and to-the-minute events which are great market movers at times.

Could be tell me where to get these forecast of events, for example, which tv station or website, before the actual annoucement.

Thanks

Hi i have a question on the dailyfx plus intraday analytics its says to hedge CHF/JPY, the long term is bullish, and the short term is bearish, but there is only stop , entry, limit for the bearish term. i mean do i wait until it hit the bear target to go long? or should i go long now too , but where should i set the stop loss for long? thankyou