Grassroots Currency Speculation

Let's get one thing straight. Everybody is frustrated by how the Coronavirus has taken over the world's economy. There is no doubt about it. The Covid-19 is a juggernaut of epic proportions. Things came to a head this week when the United States' President, Donald Trump, insinuated that he would like to see China brought to task for the role they have played, in the Coronavirus epidemic spreading to almost every country. Now President Trump is not one to mince words. He says there is more going on with China's role in the epidemic and he is not at liberty to divulge this information just yet. The currency markets are very sensitive to geopolitical movements. When President Trump Tweets or PM Scott Morrison makes a statement and it reaches a crescendo in the news cycle. The currency markets react. Governments react, the big banks get into the act. I do not know much about PM Scott Morrison, I have not followed him for that long but he does seem to think, from what I ha...

The recent trouble that the United States was part of and Australia joined in on over the Coronavirus has disturbed the currency markets . The Asian session is showing no clear direction and currencies that were trending have stopped in their tracks and reversed course. It looks like the big players have decided to hit the pause button and just cash in some of their profits. We will have to stay tuned to see what becomes of the dispute between China and Australia. The last thing I heard was that the two countries were trying to work on a diplomatic solution. The market might find some direction later tonight or during the London Session but it looks like The Asian session is taking a cooling off period.  Follow me on Twitter

Currency Speculation in its highest form is far from a flip of a coin. Believe it or not, the forex markets actually have a strong degree of logic and science to them that insures that the basic premises of economics are to be respected and followed with the utmost care. A lot of stock traders have to put up with the notion that they are just gambling and that there is no fundamental reason to choose to sell or buy a stock besides a hunch. This is not true and I feel for my fellow traders even though it is not the same as currency trading. Currency trading is an art form in a way. People like George Soros one of the finest artists in his day. There are so many moving parts to the actual prediction of which way a currency pair is going to move in X amount of time that it takes the cake as one of the most complicated forms of trading. The amount of patience required to trade forex is immense. The foreign exchange market does not move nearly as fast as the stock market. The other fact t...