Forex Trading News Week Wrap-Up EUR/USD

If you've been learning about forex trading on the rapid forex blog (or elsewhere), you've probably been told numerous times to go to fx360.com, follow the economic calendar AND subscribe to a bunch of good forex blogs to follow the news of what's going on in the online forex trading world.

This is Good Advice – But Who Has the Time?

There is a lot to keep up with to have the most current forex information online.  Fortunately, I've spent at least a dozen hours this week following all of the economic fundamental news for the forex market and I'll give you the ultra-condensed reader's digest version (if you want the FULL scoop, you're welcome to spend a few hours per day following all of the news).

Major Forex Events

The EUR/USD is one of the most popular currency pairs for forex traders in the US to trade (80% of rapidforex.com's readers are in the US).  There are some major factors affecting both sides of this currency pair right now.

Euro – Greece is in the middle of a huge debt crisis right now. As part of the Eurpean union, Greece's problems are having a negative impact on the value of the Euro, which was shown as the Euro weakened against the us dollar (USD) and the Japanese Yen (JPY).

Germany has offered to bailout Greece but that only puts a bandaid on the situation. From the perspective of the European Union (EU), it's like robbing peter to pay paul as assets shift from one side of the EU to another.  Clearly, Greece is a threat to the Euro.

US Dollar – Unemployment rates continue to rise in the US as 27 states reported rising unemployment rates in February.  With the passing of Obama's healthcare plan earlier this week, the US continue to steep itself deeper in debt.

The US Government is even preparing to sell off assetts to help offset some of the massive debt they've been accumulating.  This can be a good thing for the USD, but still shows signs of panic. Meanwhile, the cost of the Iraq war continues to grow by billions each day.

Forex Trading News Assesment

The news listed above is interesting. The news gives many reasons about why the EUR and USD are both set for longer term declines. The interesting part of this is, which one will fall more sharply? This is a question nobody knows the answer to, we can only speculate.

As a forex trader, the news is important because it gives me an idea about how rapidly the forex market will move. I'm still looking at my forex technical indicators, drawing trendlines,  looking at Japanese candle patterns, paying close attention to the valuable forex information called fundamental announcements,  applying basic money management guidelines, and following my trade plan (which is all taught in the free 20 part forex trading eCourse at rapidforex.com).

The market news helps us to see cause and affect relationships with forex chart prices. Following this news is like training your mind to see thing the way the Jedi would. You can read all of the news you want & find it completely interesting, but 99% of analysts won't give you a real opinion about what will happen.

That's because they don't know, nobody does.

But there's still value in knowing what's going on

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