Forex Bull

Excerpt from:
Identifying Trades with DailyFX 10.20.08 (Daily FX)

The US dollar sold off against the Euro and the British Pound to start the trading week. With minimal event risk on the economic calendar, near term forex price action looks likely to fall in with stock market performance.

Mon, 20th of October, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD was traded softly weaker on Friday.

The head of the European Central Bank on Sunday pledged to do whatever it takes to restore confidence to rocky markets, as governments world-wide pour cash into banks and financial markets hit by the worse economic crisis since the Great Depression.

After Thursday, I was pretty optimistic about the short-term direction of this market. After seeing the market sell-off rather hard at the open Friday and then recover to put up large gains into the afternoon, I was even more optimistic that perhaps a nice bear-market rally was getting some legs. The sell-off in the last two hours Friday however turned all of those thoughts upside-down

- Barron’s cover story discusses reasons to be hopeful a recession can be avoided. Article notes consumer spending likely to get a boost from lower oil, while inventories remain lean, capital spending remains in check, and exports are likely to ……

South Korea joined efforts on Sunday to shore up banks and markets pummeled by the biggest economic crisis since the Great Depression which world leaders said called for a coordinated global response.

South Korea joined worldwide efforts to shore up banks and markets pummelled by the biggest economic crisis since the Great Depression that world leaders say calls for a coordinated global response.