Forex Seer

In today’s trading, the US Dollar fell to nearly a 15 year low against the Yen. The greenback went as low as 84.9 Yen, but later gained some ground to 85.345. This is still a very low level historically.

The Swiss Franc also gained on the dollar, rising about 0.8% in total, though it was even higher during the trading session.

What may seem strange is that the US Dollar gained against the Euro rising to 1.2817$ per Euro.

This seems a bit contradictory. Why has this happened?

The answer is that a combination of risk aversion and bad financial news out of the US have appeared together.

Risk aversion is connected to the bad news out of the US and a general feeling of uncertainty that has spread through the global market. No one seems to know what the future hold, not even the financial experts we rely on. This causes investors to rush to “safe haven” investments such as gold, the USD, Yen, and Swiss Franc. This is why the USD rose against the Euro. It is simply considered safer.

However, as far as safe havens go, the US Dollar appears to be less attractive these days with less than positive news coming out of the US. New jobless claims rose to a new 9 month high a few days ago. Coupled with other financial data that paints the supposed US economy recovery in bad light, it is clear why the US Dollar is considered the least safe of all the “safe havens”.

This is why the US Dollar lost ground to the Yen and the Swiss Franc. There is just more uncertainty at the moment with the greenback than with those other two currencies. However, in times of risk aversion, any safe haven is better than none which is why the EUR/USD went down.

What the future holds is, of course, anyone’s guess. It seems that we’re entering a period of weakness for the dollar, until more positive financial data emerges.

As you may know, I believe strongly that to become an independent trader, the kind that can make money over and over again in the long run. It’s not enough to have knowledge as the tension and the stress of the market can wreak havoc for any trader and cause him to make silly emotional mistakes that will cost dearly.

I estimate that not having a strong trading discipline can cost you thousands of dollars year after year. It is just that important.

This is why I am happy that Norman Hallett, one of the world’s leading experts in trading discipline, has released 4 Free reports on how to create a powerful mindset for success in any market (not just Forex) and be able to make the right decision according to your trading system time and time again.

Click here to download the 4 Free trading reports

Now, it won’t matter whether the market is fluctuating or not. You’ll be able to resist the emotional pull of your fear and greed and stick to the trading plan that get you the best chances of success in the market regardless of how it’s going.

Now is the time to learn how to have a powerful Forex trading discipline to ensure you have the very best chances of success in the market. Norman Hallett will not be keeping these reports free and available for long. In fact, they may be gone in just a few days. Go ahead, download them and study them. Your trading results may depend on it.

Click here to download the 4 Free trading reports

The USD is in its fourth straight day of weakening in relation to the Euro and other major currencies. This continues a formidable move made by the Euro from the lowly levels of 1.2000$ to current levels of 1.3187$.

Why is this happening and what can we predict for the future?

It seems that once again the correlation between the USD and risk aversion has been shown in the market. Ever since the financial crisis made its dramatic appearance in 2008, the USD has been perceived as a safe-haven currency, even when the US economy seemed to be heading to catastrophe.

In fact, it was the risk aversion that was rampant in those days that helped the USD gain ground versus the Euro and other currencies. Now, it seems that the appetite for riskier investment has risen and more investors are taking their money out of the USD and USD quoted investments and placing them in other tools. This is driving the Euro up and the USD down.

Further proof of the market’s risk appetite is shown in the data which this month was the largest global IPO month since 2007. IPOs or initial public offerings are when a company offers its stocks to the public for the first time and becomes public. This doesn’t happen in great numbers when people are averse to risk.

IPOs are always a risky business as you’re dealing with new stocks which have no track record at all. The fact that the public is eager to buy these stocks is a sure signal of less risk aversion.

What can we deduce from this?

It will be in the Forex trader’s best interest to watch for signs of risk aversion rising or continuing to fall as this may lead to a change in the USD’s value which may be turned to profit in a smart Forex trade.

Naturally, this isn’t the only thing that’s influencing the value of the dollar but it is something worth paying attention to.