Forex Trading Strategies Blog

At the end of the trading season for 2005, the dollar is trading higher, and at the level it is currently trading at, it has had the highest gain against the euro since 1999. This is also the highest it has traded at against the yen in the past two decades.

It was shown to be trading against the euro at $1.1823 since yesterday, however the dollar gained 0.2% at 117.99 yen when traded against the yen.

The high rate of the dollar has been due to the fact that its been “piggy-backing” on the constant raises in the interest rates, which is scheduled to be raised again to 4.5%. When traded against the Swiss franc, the dollar was up by 0.1%, trading at 1.3154 francs.

Based on this, analysts are recommending a strong year for the dollar, even though they are predicting it will weaken in the later part of 2006.

This week it was reported by the International Monetary Fund (IMF) that the total amount for the world’s Forex reserves has reached an all-time high of four trillion US dollars.

According to analysis of the quarterly report released by the IMF, the Forex reserves increased by 2.4% since the last quarterly statement. This represents an increase of 95 Billion US dollars. This amount shows a tripling of the Forex reserves of 2000, which was then reported to be 1.88 Trillion US dollars.

The major currencies in the Forex reserves are the US dollar, the Euro, UK Pound Sterling, and the Japanese Yen. The US dollar consists of 66.2% of the Forex reserves, while the Euro, Pound Sterling, and Yen, make up 24.3%, 3.6%, and 3.7% respectively.

After the release of the recent inflation news, there was no change in the dollar after its recent fall.

The Federal interest rate has been rising steadily and it is predicted that the rate will also be increased by the in January as well.

However, today the dollar remained steady against the Euro, but was down when comparing it to the yen. It was found to be 0.4% than its previous trade against the yen.

Also when compared with the Swiss francs, the dollar remained steady at an exchange of 1.3125 francs.

Beyond this, the only other major currencies that the dollar traded higher at were the New Zealand and Australian currencies.

Market analysts had expected more favorable results with the release of the University of Michigan’s consumer sentiment index for December which was higher than average at 91.5.