Forex Market Weather Report – Chance Of Rain

Well the weekend has come and gone, and so far I don’t see that the sky has fallen.

With a cold front only now developing in China, and investor complacency “still” at all time highs, we can likely look forward to a day of overcast conditions, with an equal likelihood of scattered showers and even a bit of sun. Conditions are mixed – obviously.

A few dark clouds looming over gold, with USD “just starting” to poke its head out, coupled with high pressure conditions – soon forcing USD higher.

Large storms developing off both the Atlantic “and” Pacific coasts of North America, with continued hurricanes, tornadoes, and possible earthquakes down through Brasil and Argentina.

Investors and traders are cautioned to stay indoors today, and not look to make any large trips / moves – until conditions clear.

I’m still eyeing the usual as USD has “almost” ( within a penny ) swung low on the daily, suggesting a short-term bottoming – and further turn higher. JPY has also pulled back so…safe havens take a breather. I wouldn’t be doing anything today as a bull or bear – other than continuing to raise cash / stay indoors and trade safe.


7 Responses

  1. Farhan Nasir (@FaniNasir) January 27, 2014 / 8:19 am

    Kong ,, this week a lot of economical news coming out of every corner of the world ,, what are your views about them ,, especially Dollar ,,

    • Forex Kong January 27, 2014 / 8:29 am

      I expect USD to move higher from here as……

      It would be ridiculous to consider ( even though I have ) that the Fed would pull the rug “this soon” and NOT continue with the language / suggestion that “tapering” is indeed going to happen.

      Could you really imagine? Pulling the taper “before” the supposed tapering has even taken place? If the Fed has any credibility left AT ALL – that would literally be the final nail in the coffin.

      So……they keep up the “sham talk” and as a result, USD continues higher no?

      As we’ve discussed Farhan – you’ve really got to start drawing a “fundamental picture” when looking at future moves in currency.

      The fundamentals “create” the charts not the other way a round.

      Personally…I can’t imagine trading forex without the intimate knowledge of “why” a given currency may rise or fall vs another. I feel like I’d just be stumbling around in the dark.

      • Farhan Nasir (@FaniNasir) January 27, 2014 / 8:37 am

        After the discussion i turned to fundamentals from technical ,, the thing is i know what makes a currency move higher or lower it’s just all these news coming out cant arrange got all puzzled up but hey reading your blogs have helped me understand the mechanics of the market , so trying my best kong to follow read the fundamentals ,, and understand what is gonna happen ,,

        • Forex Kong January 27, 2014 / 8:44 am


          You’ll need sharp technical skills “as well” a good eye on “what news will drive which currencies”.

          Keep on it man……just keep on it.

  2. Farhan Nasir (@FaniNasir) January 27, 2014 / 8:47 am

    Been with technical since the start so have good technical skills ,, its just the damn fundamentals ,, but m on it ,, and will update you on my progress mate and ,,,, on it ..

  3. Q. January 27, 2014 / 9:01 am

    Isn’t it pointless Kong to weaken a currency when everyone else is doing the same? It’s like everyone wants to come last in the currency strength race. It’s a relative thing.

    • Forex Kong January 27, 2014 / 10:05 am

      I’ts not called a currency war for nothing!

      You bet…but this is the course that Central Banks have chosen so…’s a race for the bottom, with attempt to stimulate exports.

      And yes a relative thing.

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