Forex Trading TV Video Blog

High Liquidity is the name of the game after the Thanksgiving holiday, as traders are back in the market after low trading volumes, and high price movement. Last week we saw the EUR/USD continue to break all-time highs only to reverse sharply on Friday, leaving the EUR/USD floating at a distance of 100 pips below those highs.
Risk appetite returned to the Asian markets after better-than-expected Black Friday sales suggested that U.S. consumer spending would remain solid towards the end of the year. ShopperTrak RCT Corp, who tracked sales at about 50,000 U.S. retail outlets, reported that combined sales on Friday and Saturday rose 7.2% on a y/y basis, while total sales on Black Friday rose by 8.3% y/y.
We need to understand that during this period, for the Europeans, America is one big discount bin, thanks to the current weak dollar that slid this week to another record low against the EUR. As a result, tourists are spending thousands to travel to the United States to snag blockbuster bargains on everything from iPods to designer clothes and handbags. This situation is injecting funds into the US economy with no manipulation activity which gives hope to the falling greenback.
The aforementioned foreign economics’ sources noted that shopping behavior is one of the majors’ remedies of the US economy to fight and deal with the credit crunch which was caused by the subprime mortgages crisis.
It still appears that the worst is still ahead of us and the USD may weaken even more, which will make the US exporters delightful and the importers more worried especially if they are paying with a foreign currency.

Yesterday was Thanksgiving holiday and the US dollar came under constant pressure, bouncing off another record low against the EUR touching the 1.4872 mark. It is still believed by many forex traders and major banks, that problems to U.S. economic growth still exists and more Americans are forecasted to suffer from the credit and the mortgage crisis. US housing crisis still remains the source of recent troubles with US development and therefore consequently the dollar is less preferential at this stage against other major currencies. The Greenback has not passed the pain barrier just yet and it is forecasted to suffer further collapses. At the heart of the dollar’s weakness is the outlook of a weakening US economy mainly influenced by the subprime crises still being felt just as inflation concerns are rising to the surface, which is chiefly influenced by the resent elevated oil prices. In addition, the last fall in weekly mortgage requests, symbols a stress in the labor market. The labor market shows signs of minor advance. We noticed, on the basis of data, which was published on Wednesday that the number of U.S. workers filing initial claims for jobless benefits was reported to have fallen by 11,000 in the week ended November 17, in line with expectations, but still the market was not very optimistic regarding this result. The U.S. currency undermined for a fifth day against the 13 nation currency. Losses from U.S. subprime-mortgage, attached with slowing economic growth and falling house prices, could rise to as much as $300 billion, the Organization for Economic Cooperation and Development said yesterday in a statement released in Paris, and as it stands, the Federal Reserve will cut interest rates to stop subprime-mortgage losses pushing the U.S. economy into recession. Therefore the outlook for the greenback still remains very bleak and we will see dollar continue to slide to new record lows against the EUR. The U.S currency is unlikely to reverse in the near future as many analysts believe that a weak dollar is in the Fed’s interest and that they are purposefully devaluating the currency, so until there is a change in attitude by the Fed there should not be any noticeable reversal.