Archive for the ‘currency news trading’ Category
Currency Trading: One Year After Lehman Brothers Collapse
I never realized that today, was 1 year after the fall of the legendary investment bank, Lehman brother. That started the main financial troubles of the global economy. I am not a historian (just someone that likes trading online), but I decided to look back at history. I wanted to see how the Lehman brother news affected currency trading.
I looked at the charts of 2008, and I noticed that the news broke out in the weekend meaning that the market was closed at that time. When the market opened, all the 4 currencies I like to watching (EURUSD, GBPUSD, USDJPY, GPBJPY) had a gap in them. Since the news was bad for dollar, all the currencies pairs that were ending in USD had a gap when the currency market open for the week. And all the currencies pairs starting in USD had a gap down.
In relationship to how many pips a pair can move in a day, I can say the biggest gap among the pairs I watch was USDJPY, and the biggest among other pairs was USDCHF. You can see what I am saying from the attached graph.
The Fed Leaves Rate Unchanged At FOMC August Meeting
The FOMC meeting was held yesterday, 12th August 2009, and the fed decided to leave the interest rate unchanged. According to learningmarkets
The unchanged rate was no surprise to the markets which had placed the probability of a rate change at nearly 0% as indicated by the Fed Funds Futures price action.
The Fed led off the statement by saying it sees a “leveling out” in economic activity and indicated that substantial resource slack in commodities is likely to keep inflation down. The Fed did say, however, it expects the economy to remain weak for a time.
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The economy is recovering, but the fed wants to see recovery in the financial market. The financial market is the back bone of the economy.
The FOMC meeting usually have an effect on the market.
During the American section, GBPJPY looked like was looking bullish on the 4 hr timeframe. It wwas going up, but the FOMC disrupted the bullish trend. After the metting, the 4 hr candle closed was a doji meaning indecision.