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Brother, Can You Spare A Euro?

Brother, Can You Spare A Euro?

Since its creation in 2002, the “euro” —-a Frankenstein creation that replaced the former currencies of 12 European countries like France, Germany and Italy— has beaten the socks off the American greenback. Back then, the euro limped out of the gate at a parity with the greenback. It quickly dropped to around 86 cents for every dollar.

That was then. As of November 11, 2007, Veteran’s Day here in the U.S., the euro is worth 1.46 American dollars. A single euro now buys 46% more than its American peer.

We’ve scratched our heads in this column about the decline of the dollar. What’s happening now is unprecedented.

The dollar has fallen to a 26-year low against the British pound. It has fallen to a 33-year low against the Canadian dollar.

What has happened to put the dollar in a free fall / Throughout the last century, every American President and every American Treasury Secretary has repeated the mantra that “a strong dollar is American policy”. As recently as October 10, two weeks before the G-7 Summit, both the current President and the current Treasury Secretary recited the mantra by heart.

“ I feel very strongly that a strong dollar is in our nation’s interest,” stated Treasury Secretary Henry Paulson, formerly Chairman of Goldman Sachs.

What’s missing is the “and therefore”. In the past, severe drops in dollar values have brought strong corrective actions, a buy back of the dollar in effect to prop up the value. No such cavalry charge is coming in the current climate. In fact, some have suggested that the current U.S. policy is a smug contentment that the decline of the dollar has boosted US exports by about 15%, since our exports are now cheaper for foreigners.

Which leaves all of us to wonder aloud—what happens if the dollar’s free fall continues? Is there any safety net down there?

Don’t bet on it. Secretary Paulson ha started adding a caveat to that ol’ strong-dollar mantra. “and we believe that currency values should be set in a competitive marketplace based on underlying economic fundamentals.”

Those underlying fundamentals are weak now in the U.S. A mortgage market meltdown, coupled with an economy strained by the 6 billion cost of war have all but tapped out the U.S. economy for the time being. We are now in hock. We are the largest debtor nation on earth.

And what happens when we take out some of our retirement in the form of those weakened dollars? A hidden costs of letting the dollar sink is that the buying power of those retirement savings —once they are converted to dollars –is getting pretty pitiful. Worsening the situation is that, unlike many citizens of foreign countries, Americans who desire to keep their cash in euros find very few US banks offering that flexibility. Some German banks (Deutsche Bank) and on-line banks (everbank) have begun offering accounts to Americans denominated in other currencies.

Brother, can you spare a euro?

See “The Incredible Shrinking Dollar”, www.collectivewizdom.com

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What Is Forex Trading – An Introduction To Foreign Exchange Currency Trading

What Is Forex Trading forexsecretsx.com – Learn The Secrets To Profitable Forex Trading From A Pro Trader With Over 25 yrs Experience In The Markets. In This Video We Look At The Foreign Exchange and Currency Markets And What Forex Trading Is. You can also watch this video at youtu.be

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FX Instructor Live Forex Trading Room Results | 09/28/2007

We had covered several important topics this week – Money Management, Risk Management, Correct Use of Stops, Position Sizing, how much to risk in your trades, and other topics – all of these topics are designed to encourage our members to follow a trading plan and money management policies, incorporating both risk management and money management together in their trading. Without it, your trading plan is incomplete. Incorporating money management into technical analysis and day to day trading requires taking advantage of technical systems and strategies which enable us to follow these principles. Before you take the trade, you are in control – once you pull the trigger, however, the market takes over and you are no longer in control of the outcome. Trading a game of probabilities – so you should control whatever factors you can. The only factors still in our hands after a trade is initiated are Risk Management and Money Management. What I have covered today are the basics – the fundamental stepping stones of what we follow here in our Live Forex Trading Room – and next week we will return to cover more trades based on our techniques, more setups, and more interesting discussions. Visit www.fxinstructor.com to learn more.

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Reading Divergence in the Forex Market

razorsforex.blogspot.com In this video I give give a few examples of how I analyze divergence in the forex and other markets and how you can incorporate this technique into your traders arsenal. I use RSI (Relative strength Index) for my divergence studies.

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Forex Trading

www.etoro.com – (min deposit : $50) Sign up with link and use the practice account before using real money if you like.

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PM Forex Trading Outlook – DailyFX February 19, 2010

Johns Trades: EURGBP; Long USDJPY Daily wrrap-up of the USForex market trading session with DailyFX Currency Strategist John Kicklighter. Includes coverage of economic and financial market news, as well as an outlook for the next 24 hours and trading ideas. Produced by: www.DailyFX.com

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Fast and Furious Trading: High Frequency Forex Trading Techniques

More Videos: www.fxcmexpo.com High frequency forex trading for individual investors differs from institutional trading in various ways. Individual investors are limited in their trading capacity when compared to financial institutions, and as a result, there are some techniques individual investors can implement when trading the major currencies on an intraday basis. Day traders should look for currency pairs with tight spreads, and take a position when there is a high level of depth in the market to avoid slippage. Assessing the times when market liquidity is high can help fill market orders quickly, which could help to avoid missing a profitable opportunity.

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EURUSD Top Trade Potetential as Market Measures Risk, Stimulus

This past week delivered the kind of activity that supports the theory that a larger shift in risk trends is underway. Momentum, however, has yet to fall into bears hands. Should risk sentiment gauges like the S&P 500 align to a market-wide deleveraging move, the opportunities across the currency market are boundless. Yet, it is important to reserve our large risk-off position for confirmation of true unwinding. In the meantime, tracking the progress of underlying sentiment means following the primary fundamental themes. And, no pair is better at representing what truly matters to the market than EURUSD.

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Top Ten Basic Technical Indicators

More Videos: www.fxcmexpo.com Thomas Long takes a look at ten of the most popular technical indicators available to traders in todays forex markets. Thomas explains how these indicators are calculated and discusses some of their strengths and weaknesses. This presentation is meant for traders who wish to learn more about these tools to get a better understanding of how they can be used when trading.

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Forex Strategies

Trade:Forex, Oil and Gold

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