eToro – Forex Trading Forum

[BlueinGreen]

hi all,

the dollar is yet to be stopped from its slide against EUR, (although the slide this week was much slower than we saw a week before).
Still worries of a global slow down and dropping oil price are fueling this move as we speak.
This was the strongest move of the dollar we had seen for the last 2 years.

When i was reading the news this morning there was not even 1 analysts who was siding against the dollar ( usually there are voices for both sides).
further more The Goldman Sachs Group (the leading global investment banking, securities and investment management firm) have just lowered their 3 months forecast for the Dollar from 1.560 to 1.4500.
we have to remember that this is something a lot of traders and investors look at.

today we might have some tradable news out of U.S, the Consumer sentiment is due later on. Analysts expect 62, an improvement from last month's 61.2.
A better than expected number here can add more to the assumption the U.S is out of recession- fueling the dollar's recent move even further.

main events today

1:30pm USD Empire State Manufacturing Index Forecast -4.3 Previous -4.9

2:00pm USD TIC Net Long-Term Transactions Forecast 60.0B 67.0B

2:55pm USD Prelim UoM Consumer Sentiment Forecast 62.0 Previous 61.2

Consumer Sentiment = Survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions; ; Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity;

happy trading

[jensen7]

Thank you for telling us about the "Goldman Sachs Group", that is very good information. How often do you look at their forcasts? How accurate have they been in the past? Thanks again,

jensen7

[BlueinGreen]

you welcome jensen7,

its always good to know what the big buys are thinking, but still these forecasts are very limited to us as privet traders. We use them mainly to get a viewpoint as to what the participants of the market are thinking and to set points of change in market sentiment ( like from dollar bears to dollar bulls).

the people who care more about what Goldman Sachs, or Deutsche Bank or any other huge financial institution are long term investors.

We, as forex traders, are trying to profit form this market every day – we might buy EURUSD today for 50 pips, close that position and reverse it tomorrow for a short.
Investors however, look for a longer term trading horizon.
They might enter short dollar today, and close this position somewhere in 2009, or even 2010.
They also have much dipper pockets than the average forex trader. they can enter heavy on a short EURUSD and hold this position even if the market moves considerably against them- since they have the time and money to wait for the market to turn around and reach their goal.

note – only a few days before Goldman Sachs changed their forecast to 1.46, their analysts said they still support the 1.56 target.

[piphunter]

so because goldamn sachs forecast 1.46 more investors will join this trade?