Dec 29, 2009

Forex Crunch Forex Daily Outlook – December 29th 2009

Forex Crunch Forex Daily Outlook – December 29th 2009

Forex Daily Outlook – December 29th 2009

Posted: 28 Dec 2009 02:00 PM PST


After a day in which many countries were on holiday, today most markets are open, and there are a few notable indicators, with American consumer confidence being the most important one. Let’s see what’s up for today:

In Switzerland, the UBS Consumption Indicator is predicted to edge higher from last month’s 0.87 points. USD/CHF seems stable at the moment.

In Europe, the German Prelim CPI will be of interest to traders of EUR/USD. After many months around 0, the continent’s largest economy is expected to show a rise of 0.6% in prices.

For more on the Euro, read the EUR/USD forecast.

In the US, house prices will be reflected via the S&P/CS Composite-20 HPI. The year-over-year index is expected to show a smaller drop this time – only 7% compared to 9.4% last time.

Later in the US, the CB Consumer Confidence is predicted to rise above the 50 mark after scoring below in recent months. Two months ago, this indicator sent the Euro down. It’s now expected to rise to 53.3 points.

That’s it for today. Happy forex trading!

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5 Predictions for the Forex Industry in 2010 and Beyond

Posted: 28 Dec 2009 07:30 AM PST


The forex industry evolved nicely in 2009. Looking towards 2010, and the new decade, here are 5 predictions about the industry.

I wrote this post after reading Kathy Lien’s excellent article about the top 5 events of this decade. I’m looking at trends that already began recently, as well as trends that I believe that we’ll see in 2010 and in the following years.

  1. Forex trading will become more mainstream: Most people think of forex only in the context of buying hard currency when they go for a trip abroad. As the forex industry continues to evolve, I believe that it will become more mainstream, getting more attention in the media, and becoming an investment channel that the banks offer.
  2. BRIC currencies to become more popular: The big nations of Brazil, Russia, India and China aren’t very popular with forex traders. China’s economy is the third in the world, and will soon become second, but the currency doesn’t float. The other countries aren’t popular now. Not yet. I already wrote about the Brazilian Real. I believe that their popularity will rise: more brokers will offer them, people :in forums will talk about them, and their trade volume will rise.
  3. Consolidation of forex brokers: Currently there are lots of forex brokers out there. Some are market-makers, and others are ECN/STP. Most traders don’t know the differences. I think that many of the smaller brokers, and especially market-makers, will disappear or merge into bigger brokers. Consolidation happens in any maturing industry, and it will eventually happen in forex.
  4. Education will become important: Following the previous point, the level of education is rising among traders and this will be seen not only in choice of brokers but also in trading. Forex education will impact trading styles, profits and people who supply resources for teaching and coaching forex. Here’s more about the growing role of education.
  5. Commodities will grow with forex: Oil and gold are already quite popular. As the world recovers, more commodities will be in the limelight. Silver has gained traction due its rise, and a food crisis will probably make wheat very popular. Commodities don’t have to compete with forex: more brokers will probably offer both together. It’s becoming more and more common.

I’d love to hear more predictions…

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.
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