Dollar high and Euro out of control



If you are a professional trader in Forex markets and even if you are one of the beginners, you have to be aware of a busy economic calendar coming to you this Friday, especially in American Session. At the head, NFP, jobless rate, average hourly earnings and much later hold your breath to Yellen speech.

A little positive squeeze would knock the door of Nan Farm Payrolls in October, but we expect no change in Jobless rate and earning average.  Max. readings will push the dollar to the high track to close the day in green, especially that we are not expecting more from Yellen this time. We foresee the same tone and words, from Federal Bank President, to be around about the robust of the US labour market and its reflection on the economy in the 4th quarter of 2014, especially after the positive employment component in ISM Manufacturing PMI index and better-than-expected ADP.

Otherwise, The Euro reliefs a little the first hours of European trading after The stable reading of German Trade Balance, 0.0%of French IP in November and French Trade Balance -4.7B (exp. -5.0B). This rally approached at the back of a down trend from Monday, but It could be hammered with more optimistic hints of Fed Chair to close the day in red.

Gold still Down


3 Tops have been formed by the yellow metal in the 14 March, 10 July and 21 October 2014, 1388.17, 1345.56 and 1255.33 respectively.
But we can notice from chart that gold is keeping its down trend after accomplished a reversal head and shoulders pattern and recovered a little for approximately 10 days. So, reaching level 1125 it is not ruled out in the coming few weeks unless the precious metal forms a strong green candle could push its steps up again till the cluster (1282- 1310), then Gold could retest this resistance (support zone previously) to continue its way to 1350 .

CENTRAL BANK’S ROLE THAT MAKES YOU A MILLIONAIRE

The central bank plays a vital role in any country of the world. But of course we have to exclude the idea of one bank controls the movements of the whole world, as every country has its own central Bank.
Good Market Mover
The Central bank monitor inflation figures, employment rate, job change percentage, the currency valuation, jobless claims, trade and account balance readings in order to decide the cash rate amount according to its monthly, quarterly or even annually Board meeting.
Bank Minutes consider one of the most important movements for the whole markets. The more hawkish, positive mode speech can be translated to a real high trend for the local currency, the more dovish talks can harm the local currency causing a huge red candle.
So, we can find that trading in such moments is very dangerous and high risk as many traders face a margin call as a result of stop orders and the bear attacks. And there are no chances for hunters here. The hunters can be found in carry trade transactions while the Cash Rate just released, as they buy or sell the local currency to make a good profit.
You Can Be a Millionaire Twice
In Forex Market you can make a fortune and being a millionaire in two conditions.
The first one, when you open a long position in the local currency and the Bank Governor speech is hopeful and optimistic and vice versa “open short transaction in local currency while Bank president’s speech coming unlike mainstream”. The second condition is the carry trade that we will write about later.

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