Wednesday, May 14, 2008

Dollar gains popularity! IFCN Wk 23 -Wed- Equity: $741.17

It isn't just the pairs we trade!

Here are some of the headliners for forex news lines today:
  • Australian Dollar Declines To 13-day Lows against the Dollar
  • Malaysian Ringgit Slumps To New Multi-month Low against the Dollar
  • Indonesian Rupiah Plunges To Fresh Multi-month Low against the Dollar
  • Hong Kong Dollar Falls To New Multi-month Low against the Dollar
  • Aussie sets new multi-day lows against most majors
The dollar has been growing in strength against virtually all currencies.  After sending so many of its dollars overseas to purchase oil, and finally achieving a tenuous balance in its financial problems, the U.S. is enjoying the return of many of the dollars for investment in undervalued stocks and real estate.  While other industrialized countries are just beginning to realize that they've got issues to handle in their own currencies.

Don't be surprised if this trend continues for a good while.

The IEA (International Energy Agency) this week reduced its 2008 global oil demand forecast substantially for the second consecutive month--- as rocketing prices and slowdowns in advanced economies have been curbing oil demand. Even though some asian countries are possibly increasing some of their energy usage this year, European countries and America are definitely not.

People who --for years-- normally would drive to a grocery store 10 miles away anytime they thought of something they wanted, now stop and think about every trip they take. And combine errands as a rule instead of an exception. These changes in 'attention' are enough to permanently change behavior.

And ultimately, change major trends and capital flows.

Our Gbp/Jpy FirstStrike trade is still going strong.

It would be great if we had some of the other trades still with us that were prematurely killed off, but that too is part of the trading experience.

Current equity: $741.17

Have a good evening!

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: and tell me to which address you would like it sent. Please do not use AOL or Yahoo addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!

No comments: