The recent steady climb in the value of the euro against the U.S. dollar creates enormous profit potential in finding the answer to 2 simple questions: when and where will the appreciation elevator stop? In a report that was released on July 12 when the euro was nudging 1.2600 USD, analysts at the Royal Bank of Scotland (RBS) said the euro was approaching fair value against the dollar. This would suggest a reversal of any significant movements over a period of time, according to RBS. Developments over the past several days suggest the climb may soon be over, or not. Here's the kind of thing that a Forex trader will need to consider is setting a trading strategy: Moody’s has just downgraded Ireland’s credit while Fitch Ratings has just upgraded the credit of Estonia, a country poised to become the newest member of the euro-zone on Jan. 1. Those two points of view will collide at some point as goods and services move between Ireland and Estonia. The collission point will show, if charted correctly, and give a signal that the imbalance is about to disappear. If the signal is seen, the trader can act. Even though most people will see a supreme complexity in this kind of problem, an algorithm that properly identifies the break points will bring profit to the trader The latest data from the European Central Bank indicate that itsintervention in European bonds has been going down. In Washington and in financial centers worldwide, all eyes are now focusing on the July 21 appearance of Ben Bernanke, chairman of the Federal Reserve, before the Senate Banking Committee. And in Europe, the forex market has its eyes on the results of the E.U. bank stress tests which are due to be released on July 23. Such reports about stress tests will cause rapid movement in currency adjustments, creating arbitrage opportunities for those who can act.

The recent steady climb in the value of the euro against the U.S. dollar creates enormous profit potential in finding the answer to 2 simple questions: when and where will the appreciation elevator stop?

In a report that was released on July 12 when the euro was nudging 1.2600 USD, analysts at the Royal Bank of Scotland (RBS) said the euro was approaching fair value against the dollar. This would suggest a reversal of any significant movements over a period of time, according to RBS. Developments over the past several days suggest the climb may soon be over, or not.

Here's the kind of thing that a Forex trader will need to consider is setting a trading strategy:

Moody’s has just downgraded Ireland’s credit while Fitch Ratings has just upgraded the credit of Estonia, a country poised to become the newest member of the euro-zone on Jan. 1.

Those two points of view will collide at some point as goods and services move between Ireland and Estonia. The collission point will show, if charted correctly, and give a signal that the imbalance is about to disappear. If the signal is seen, the trader can act. Even though most people will see a supreme
complexity in this kind of problem, an algorithm that properly
identifies
the break points will bring profit to the trader

The data from the European Central Bank indicate that it intervention in European bonds is ending.

In financial centers worldwide, there is focus on on theappearance of Ben Bernanke, chairman of the Federal Reserve, before the Senate Banking Committee.

In Europe, the forex traders are watching the results of the E.U. bank stress tests.
Such reports about stress tests will cause rapid movement in currency adjustments, creating arbitrage opportunities for those who can act.