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Trading: What is Spot Market?
Its Just a Coincidence to Trust the Fed in U.S. Dollar
 Forex: Fed Cuts…and the U.S. Dollar Gains?!
Elliott Wave International discusses the importance of price action, rather than the news, to the trend in the U.S. dollar
 Souce: Elliot Wave International
Original Author: Vadim Pokhlebkin
Question: When the U.S. Federal Reserve Bank lowers interest rates, what is the U.S. dollar supposed to do, according to the conventional economic wisdom?
That’s right, fall – because “everybody knows†that lower U.S. interest rates make dollar-denominated assets less attractive to foreign investors. That’s one of the main reasons, said many analysts, why the dollar has been weakening ever since the Fed went on its latest rate-cutting streak.
So why then did the dollar gain today (March 18) after the Fed cut the rates by a hefty 0.75%? Against the euro, the USD gained almost 200 pips (or two full cents) in less than two hours Tuesday afternoon. (The dollar gained another 200 pips by mid-day on Thursday, Mar. 20 — Ed.)
Is it because the Fed “is perhaps getting a handle on the U.S. economic problems� (The Wall Street Journal) Sure, perhaps. But had the dollar fallen after the cut instead??, you know exactly what the same analysts would be saying.
Tuesday’s “illogical†reaction by the dollar brings to mind a Market Insight comment that Elliott Wave International’s Senior Currency Strategist, Jim Martens, posted for subscribers of his Currency Specialty Service two days ago, on March 17. Here’s an excerpt:
Market Insight, 3/17/2008 – Plenty of news these days. Certainly, this is the type of environment we’ve been looking for. Having cut rates significantly, the Fed is running out of bullets. But the Fed may not be done yet. …the expectation going into the week was that they would cut, the only argument was by how much.ÂÂ
For us [though] it’s a matter of what we can expect from their action, not what they might do.ÂÂ
That’s a much easier question to answer. It appears, at least to me, that a new dollar low will bring at least the decline that started last week to an end. If that new low has not been registered before the meeting Tuesday afternoon, look for the dollar to initially fall on the announcement. We’ll be looking for a bottom afterwards, and a rally attempt. If, just before the announcement, the dollar is already at new lows, then we will expect the reaction to the announcement to be dollar buying.
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These ideas of how the market should react to the news are based on the price patterns, and not on what the announcement will be. This is the same approach we use prior to all announcements. The news simply offers the trading environment that allows for a quick move.ÂÂ
Some see such an environment as a dangerous time, and that can be true. But if the [Elliott] wave pattern is clear, we can often take advantage of the reaction to the news without having to think as hard as our peers that agonize over every [economic] number. Our approach is much more direct. It doesn’t ask what should happen – but is based on what actually happens. …JJM…ÂÂ
Now that the Fed has used up three more of its “bullets,†many currency traders will be wondering – how will this affect the dollar? That’s a wrong question to ask. “All that matters is price. We might as well let price tell us what to do,†says Jim to his subscribers.
You can have Jim Martens’ latest forex forecasts on your screen in seconds - just scroll below to learn how.
You have only just begun to learn the power and complexity of the Elliott Wave Principle. So, don’t let your Elliott wave education end here. Join Elliott Wave International’s free Club EWI and access the Basic Tutorial: 10 lessons on The Elliott Wave Principle and learn how to use this valuable tool in your own trading and investing.

Malaysia : Asia Trader & Investor Convention, ATIC @Kuala Lumpur
Credit : Al-Yaqen
Asia Trader & Investor Convention, ATIC @Kuala Lumpur, 22-23 March 2008, Kuala Lumpur Convention Centre
Asia Trader and Investor Convention (ATIC)will be held at Kuala Lumpur Convention Center, Is good for trader and investor to get more knowledge about trading and investment. Trading and investment is a two different subject.
5 Reasons WHY you MUST Come!!
1. Learn new investment methodologies, trading strategies and money management techniques
2. Get your answers from over 30 industry and trading experts
3. Discover the latest financial products, services and tools
4. Enjoy special promotional offers by our sponsors & exhibitors!
5. Meet & interact with Asia’s trading & investment community
The Asia Trader & Investor Convention (ATIC) is an exciting platform for Asia’s local investors and traders to gather in different cities to learn and be educated about the latest products and services offered by local and international Exchanges, Brokerage firms, Banks, Asset management firms, Information service vendors and other financial service providers.
The ATIC @Kuala Lumpur 2008 will mark its 2nd edition with an increased exhibition space and seminar rooms to be held at the ultra modern Kuala Lumpur Convention Centre, for investors and traders to network, get update and educated with the new trading and investment landscape at a new time slot from 22nd to 23rd March 2008.
With over 65 seminars conducted by more than 20 international and local speakers, ATIC @Kuala Lumpur aims to attract more than 15,000 active retail investors and professional investors.
Here is the chance for you to get the FREE investment seminar ticket which is valid for 2 days to ATIC@Kuala Lumpur by clicking on the following link:
http://www.theatic.net/surveykl
Besides the Investment Seminar ticket which worth RM28, the ATIC also selling Master Sessions tickets & Featured Session tickets.
By purchasing any Master/Featured Session tickets, the Investment Seminar ticket is given FREE as well.
By purchasing 4 Master/Featured Session tickets, you are entitled for 4 FREE Investment Seminar tickets and limited training voucher worth RM50.
If you are interested in our Master/Featured Sessions, you can register via this link:
http://www.theatic.net/2008/atic_registration.php?city=kl&aid=39
For more information, please visit our official website:
http://www.theatic.net/2008/index.php?city=kl&aid=39
:: THERE’S SOMETHING FOR EVERYONE ::
| Over 65 ATIC Seminars of wide range of investment topics | |
| Discover answers to the most relevant & latest investment topics from over 20 international and local experts | |
| English and Local language seminars. | |
| A one-stop opportunity to explore and compare the latest products from over 160 exhibitors. Enjoy special available only @ATIC offers! | |
| Join us in other parts of |





