Numbers suck!

It seems a weak greenback is not helping the manufacturing sector too much. The numbers came in today and they are not very good: Industrial production down 0.7% in April, manufacturing activity in the New York region has gone into the big fat negative territory. The Philly Fed Index improved to -15.6 but really where was it going to go after posting -24.9 previously. The housing market continues its free fall. What should the forex trader read in to all of this?

The dollar strength we have been seeing lately should abate. I would expect the dollar to give back most of its gains as we head into summer. The great thing about trading forex is our ability to be somewhat insulated from the economy. The currencies are going to fluctuate regardless of the state of any economy. Actually this helps the fx trader as it is easier to catch a nice wave and line your pockets. Enjoy the ride!

They Did!

Of course they did. We're talking about the Feds here. There may be a light at the end of the tunnel though as Mr. B did change his rhetoric slightly and hinted that the easing of interest rates may be ending. Not to sure if I believe that as the big bubble may break soon. What bubble are we talking about? Stay tuned for some very interesting info regarding the bubble that is about to burst and make whats happened recently look very mild!

What's all this have to do with forex for profits? As most all you know I no longer post trades on this blog as I believe it is better to teach would be traders a bit about forex. The only way to be successful in this business is to learn. In the long run this what makes a successful trader, this is the difference between success and failure in the currency markets. A good understanding of the fundamentals behind currency trading and the forex markets makes for a better trader. Plus I like to vent about the inadequate US Fed strategies, it keeps me from getting to pissed off!