Some time ago, I posted that the forex is looking for a catalyst to trigger a major currency pricing war between euro and USD, similar to what we had the last quarter of 2004 with the great USD panic sell off. so far, oil hasn't triggered it. neither has high gas prices. I'm thinking, hypothesizing, that this may be it... Credit. In particular, the massive failure that may soon hit the US credit sector both private and institutional level. this article indicates just how fragile consumers live their financial/credit life. If a collapse in the credit industry begins, it may domino into the housing sector that will inadvertantly give a massive blow to the US banking system that will rock the forex and the USD possibly to the tune of 20 cents or more. Is this the storm coming? sKaLpZ
*guzzles down another cup of coffee* DT, how can you say that?? Consider the implications! US consumers have, like, ZERO savings rate - everyone is up to necks in hock (btw, Mr. Hock invented modern credit, the founder of VISA International.). Massive Credit Failure (MCF) is the perfect candidate! think it over... and have another cup of coffee. fxsklpr
It would be difficult to trade profitably on the basis of that information because the markets are paying more attention right now to what Greenspan recently said about the US economy being flexible enough to adapt to higher energy prices. But it's definitely something people have in the back of their minds and that will always need somekind of offsetting information such as strong growth, flexibility, and political uncertainty elsewhere.
Z sKaLpZ .....your trading strategy must be reviewed mate...should you feel its becoming to be OBSOLETE....send me a private message i will instruct you on the ultimate wining strategy..How to make 385%on FX when others are losing money Z CoMaNdAtOrE
Isn't it just "buy when you think it's gone down too much and sell when it's gone too high"? [sic] Why bother with the reasons at all? Blah blah blah, you'll be long dollars after a few hundred pips down anyways.
COULD a catastrophic failure at a major US automaker (such as GM) start a dominos effect that rocks the forex, triggering a massive global currency pricing war, taking out super banks, taking out super-size hedge funds, sending the entire world's monetary system straight into Hell to the tune of trillions of dollars going up in smoke? GM may be closer than you think.... http://www.nytimes.com/2005/10/07/b...l=1&adxnnlx=1128675922-gUg1hHw64YASp5Hvww1e7g think it over (read everybody fires their cannons at once). Is this it?