Disclaimer Futures, forex, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using these methodologies or systems will generate profits or ensure freedom from losses.
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The Euro is the big story of the day as the European currency dropped about 1.4% versus the Dollar to a 2 months low today (Check out the trend of the EUR/USD). The EUR/USD traded as low as 1.3092$ as fears soard regarding the debt and financial conditions of certain Eurozone members.
The aid package for Ireland, the current hotspot of Euro trouble, which was announced recently did little to allay the fears of traders that more European nations would soon follow and that more aid funds would be required. I’ve written about this in a previous post here: Euro falls Dollar Rises. The prospect of Portugal and Spain following Ireland in requiring bailouts is weighing on the Euro. No one knows what the future holds. Remember, even Ireland recently assured investors that it requires no aid and now it’s taking over 100 billion dollars worth of it.
The end of this trend is no where in sight. We may see a correction soon as immediate fears relax. However, I am fearful for the Euro. Once more you can read analysis which predicts the end of the Eurozone. Ever since the bailout of Greece earlier this year, I’ve not read such doomsday predictions. I expect the Euro to continue on its downward trend for the near future. Again, there may be a correction, but currently, the Euro is a currency in trouble.
The Dollar has had a good 3 weeks and has even reached a two-month high vs. the Euro. All in all, the Dollar rose against a basket of top currencies, proving once again that in times of uncertainty, it is considered to be a safe haven.
The Euro is in bad shape. The prospects of rising debts and additional bailouts of the PIIGS nations looms over the Euro. Now that Ireland has agreed to accept a bailout package of its own to the tune of 90 billion Euros the focus turns to Portugal, another euro nation which is undergoing its own financial crisis. The Prime Minister of Portugal is adament that his country doesn’t need any financial aid. Whether this is mere rhetoric or a realistic analysis is yet to be seen.
However, Portugal is not what has investors biting their fingernails off about the Euro. It is the prospect of a much bigger european economy collapsing: Spain.
Spain is not a small country such as Ireland or Portugal. It has a big population and also boasts of nearly 20% unemployment rate. If Spain follow Ireland and Greece and require external assistance, it will have to be huge. The richer Euro nations may not be able to find the resources for it.
The Euro will be the victim of this, obviously. The more money the Euro nations will need to pour into the markets to keep their 16 nation currency union alive will weigh down on the Euro. This is why the Dollar is soaring while the Euro is sinking.
The Euro gained a little ground today as fears of a potential meltdown of the banking system in Ireland abated. If you’ve been following the news,you know that Ireland has been hit hard by the financial crisis and the steps taked by the goverment in Dublin have not proven effective in dealing with the huge debt of the nation’s banks. In recent days, the prospect of a second Euro crisis, following the one in Greece earlier this year once again increased fears as to the stability, or lack thereof, of the European currency.
Now it seems that these fears have, for the time being, been allayed. There are signs that Ireland will accept a “small” loan of an estimated amount of 90 billion Euros to help its banks survive their current impending insolvency. The strange thing was the the giver of the loan, Ireland’s European partners and the IMF have pushed for this loan more than Ireland has done itself. This goes to show how little faith the market has in Ireland’s own ability to stop its crisis from deepening. And what they believe will happen to the Euro if it will.
The loan seems to on the verge of being agreed upon and will likely be sealed next week. This predictiom supported the recovery of the Euro. However, this does not bode well for the future. What will happen should this loan prove infufficient? Will Europe once again need to find a Trillion dollars to help out one of the weaker member’s of the Eurozone? And what about Portugal, Spain, or Italy, all of which are also showing signs of weakness? What will be their fate?
The Euro remains a currency in Limbo, swaying between the powerful nations of Germany and France (who also has its problems) and the other, weaker ones. It will be interesting to see how well the weaker Euro members will fare during the following months or whether another Euro collapse will soon be upon us.
Do you ever feel like you’re missing out on all the good Forex trades that the market offers? You know that they’re there. You see how other people are earning money, you watch the training videos, you read the stories… and yet you just can’t put your finger on the right trades at the right time.
You just know that those trades pass you by and you feel powerless to stop them. You want to be in on those trades, to take all the money you can from the market, but you keep missing those opportunities.
Well, you’re not alone. I just saw a video by Scott Downing in which he talks about the profitable trades that over 90% of Forex traders miss out on. The way he shows it in the video, these are high probability trades, easy to identify, pick off, and profit from. And yet, most traders are either unaware of them or only pay attention to them when it’s too late to get in on the action.
Click here to watch this video: Scott Downing Explains why so many traders miss profitable trades
The sad thing is that some of these trades are really quite obvious. It’s as if they just speak out to you from the charts, like they invite you to trade them. However, this doesn’t stop the vast majority of traders to totally miss them. This may mean thousands of dollars of less income each and every year.
Take a few moments and go watch this video. Just don’t be angry at yourself if you find out that you’ve been missing out on trades. As I said, it happpens to everyone and it’s not your fault. Just strive to be better from now on. This video will help.
Go here to watch it: The profitable trades that most traders miss out on
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