Soros Most Successful Currency Trader

George Soros has made billions trading currencies. He is probably most famous for ‘breaking the Bank of England’ in 1992. Mr. Soros is notorious for taking advantage of Forex opportunities. Mr. Soros achieved fame when he took advantage of an astounding Forex opportunity and sold short $10 billion dollars worth of British pounds forcing the Bank of England to withdraw the Pound from the European Exchange Rate Mechanism and to devalue the Pound. He is estimated to have made $1.1 billion from this move.

Soros Says Euro May Not Survive

Obviously when Soros speaks currency markets listen. As a man who knows a Forex opportunity when he sees one his words carry great weight. Recently Mr. Soros made remarks to the effect that the Euro may not survive the current crisis unless the European Union insists on an international agreement addressing toxic assets. Mr. Soros stated, “One would need a type of agreement on lost capital, so that the burden is shared, and in which every country is part of, otherwise more countries will suffer. The EU should do this. If they don’t do this then the euro may not survive the crisis.”

Markets React to Remarks

Forex markets immediately reacted and the Euro declined against the US dollar and the Japanese Yen limiting any Forex investment opportunities it may have provided. Since Mr. Soros is probably the most successful currency speculators in history his words carry great weight.

Safe Haven Buying

Adding to the pressure on the Euro ECB President Jean-Claude Trichet stated that policy makers could lower the central bank’

s rates further. Dismal US unemployment figures and stock losses sent investors to the safe haven and Forex opportunity that the US dollar and the Japanese Yen provide in troubled markets.

Soros Says Another Great Depression Coming

Mr. Soros has also stated that the US banking system needs $1.5 trillion dollars to be rescued and that the current economic crisis could be worse than the great depression of the 1930’s. Hopefully he is incorrect on both counts!

Quick Forex Tip: There are many factors that affect currency exchange rates and those who want to trade forex markets should be familiar with them. Economic factors are probably the most important in determining the value of a currency. Political conditions can also affect exchange rates. Those who want to trade forex markets would be well advised to keep abreast of current political and economic events. Thanks to the internet, those with the right knowledge and an internet connection can join this exciting market and take advantage of the lucrative opportunities it can provide for investors.