In several issues of FX Forecast Update we have written about the risk related to the debt situation in the PIIGS countries. Admittedly however, we did underestimate the impact on the FX market not least on EUR/USD. We revised our 3M EUR/USD forecast lower on 28 April to 1.27,

Severe volatility returned to financial markets this month. Central banks had to step in once again to be the lender of last resort, with plentiful liquidity on offer to those borrowers that need it. Worries about the solvency of Greece was the proximate cause for the renewal of uncertainty and

Well, let me begin my answer with a quote from a national financial magazine dated October 1977. “Over the last few years, the Wave Principle has gathered too much of a following and, therefore, it has less value today. Almost invariably, you can write off a technique when it gets
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Economic data during the past month has largely surprised to the upside confirming that the recovery is firmly entrenched. The global purchasing managers’ index for both the manufacturing and services sectors moved further into expansionary territory in April. Labour reports out of North America have swung from a heavy weight

Most major economic indicators, including employment, retail sales and industrial production, improved notably over the past month, which raises the upside risks to our forecast. We continue to believe economic growth will moderate during the second half of the year, as the boost from inventory restocking fades and various stimulus

Even in the face of consistently positive corporate earnings and economic data surprises this year, risk assets were always going to face an uphill battle matching their 2009 performance, largely because prices were no longer a bargain. This task was made all the more difficult as the advanced world fiscal

As traders we all spend an inordinate amount of time obsessing about our trade entries. We shop brokers to make sure that we get the lowest spread possible. We put on limit orders to assure ourselves of not paying a tenth of a pip more than we intend to. And,
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In a recent article entitled,
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Trading the bounce from a recent price reversal that is hitting major support, will more times than not be more reliable than trading the break-outs to new highs. Contrarian trading the bounce tends to create more trades you are already in as the new break-out occurs at the other end;
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Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it’s not any specific trading methodologies that make traders successful, but instead it’s the overall rules to which those
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