Foreign Exchange Reserves slipped to $12.85 billion from $12.96 billion.

Pakistan Foreign Exchange reserves slipped down to $12.85 billon in last week the figure was $12.96 billion, As per State Bank Of Pakistan on Thursday. The SBP's reserves fell to $9.36 billion from $9.47 billion a week earlier, although reserves held by commercial banks is still the same it is settled at $3.49 billion

Foreign Exchange Reserve got down lastly due to the import bills in November 2008, although before said period in October, 2007 Foreign Exchange Reserve jumped to its record high and it was at $16.5 billion.

Source: forexkp.com

Forex Market Comparison

Forex vs. Stocks

Trade Around the Clock

The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.

Pay No Commissions*

In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.

* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here.

No Uptick Rule

Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.

Forex Market Information Easily Accessible

Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.

We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.

To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739.

High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Source: fxcm.com

The Foreign Exchange Market for Beginners

The foreign exchange market or forex market as it is often called is the market in which currencies are traded. Currency Trading is the world's largest market consisting of almost $2 trillion in daily volume and as investors learn more and become more interested, the market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets. In addition, there is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter. Unlike the stock market, this decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients. The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.

All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency. The first currency of a currency pair is called the "base currency," while the second currency is called the “counter currency.” The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency. Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold. The opposite is true, when the sale of a currency pair takes place. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market. Registering for a demo account allows a new trader to download the online trading platform that is used by the company's clients trading live accounts and make trades as if they were doing it with real money. The demo account is an excellent way to experiment with the foreign exchange market while learning your way around the trading platform. It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.

Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders. These "educational webinars," as they are called are run by experienced financial strategists and range in topics from trading specific news events to trading the Euro. In addition to the webinars, FXCM also offers numerous online courses that teach investors how to trade the currency market.

Source: gocurrency.com

US Dollar Reaches Record Lows Affects Trade

The US dollar plunged to a record low against the Euro in April. This happened immediately after the economic growth figures for the U.S. were released by the U.S. Commerce Department reporting the weakest results in four years. The release of these figures has people worried that the United States is in danger of falling behind the rest of the world economically, especially with the USD losing over 3.1% to the Euro already this year. The USD low was partnered with a Euro high, reaching past its previous high in December of 2004, above $1.3680, for the first time ever. Euro and USD extremes are going to have significant affects on trade within both Europe and the United States. Some groups are happy and are benefiting from the weakness of the dollar and the strength of the Euro, whereas others are losing large amounts of both money and business. A number of American exporters have gained significant amounts as a result of the weakness of the dollar; however one major U.S. business has suffered greatly due to these exchange rates. Walmart, who produces over 70% of their goods in China, is suffering due to the weakness of the dollar. The company has tried to find less pricey areas for production; however there is only so much they can do to battle the plummeting dollar. Euro strength and dollar weakness are also affecting many European companies. The economy of the Eurozone is one that is export dependant. Under normal circumstances, export driven economies benefit from a weaker currency and typically hurt when the currency is too strong. With the rise of the Euro, European exporters and manufactures have much higher costs, which lead them to lose money unless they raise their prices, which most companies are reluctant to do. It is not just European and American companies that are suffering from the prices of the USD and Euro. Any country that trades with either the United States or an EU nation is at risk for exchange rate fluctuations affecting their imports and/or exports. Although, there is no way to completely eliminate foreign exchange rate risk and it will always be an issue for exporters and importers, there are ways to make yourself or your company less vulnerable. Hedging foreign exchange rate risks is not a new idea, but many companies are just recently learning the importance of hedging against these risks. As more companies take advantage of this financial technique, exchange rate losses lessen, and the price of a currency at any point in time has less of a chance of making or breaking a company. Individual investors can also hedge their foreign exchange rate risk through currency trading. Currency trading allows investors to speculate on the value of a currency. This can be done whether you are looking to hedge to lock in a specific rate or if you are looking to take advantage from currency rate fluctuations. There are many currency trading firms that allow you to trade online and also provide educational resources. You can learn more about the foreign exchange market at: Forex for Beginners.

FOREX TRADING IN PAKISTAN

I take this opportunity to bring to your knowledge an alternate financial trading opportunity available at your finger tips in Pakistan.

Until recently many people knew only the stock market to invest and trade for their financial desires, however technological developments have brought many new markets, new products and new services more closer to us. These are more independent, more transparent more regulated, more secure, more versatile and easier to trade.

Now you can trade in Foreign Currencies, Precious Metals, Crude Oil, Cocoa, Coffee, Sugar etc right from your office, through your laptop or at home and more over now we have also introduced, Mobile trading.

You can trade these international products Online with a 24- hour local support.

It is this vision of deploying the latest technological resources, maintaining the highest standards in trade executions and customer services, maintaining the leadership role and confronting the challenges in changing circumstances.

The Enclosed Brochure gives you a more detailed outlook.

If you are interested to discuss more on the subject U MAY CONTACT US or you can come visit us at our office and we would be happy to give you a live presentation in order for you to be more updated with our latest and more effective state of the art platform.

Top 10 Forex Trading Rules

Trading Is An Art, Not A ScienceThe systems and ideas presented here stem from years of observation of price action in this market and provide high probability approaches to trading both trend and countertrend setups, but they are by no means a surefire guarantee of success. No trade setup is ever 100% accurate. Therefore, no rule in trading is ever absolute (except the one about always using stops!). Nevertheless, these 10 rules work well across a variety of market environments, and will help to keep you out of harm's way

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a) Live Buy/Sell Trade Signals
b) Forex Charts and graphs
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g) Collect Positive Rolls on overnight currency placement
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Get A Forex Robot

First off, the FOREX or the Foreign Exchange market is the largest and the most liquid market in the world. With trade exchanges that amounts more than trillions of dollars each day and trades that operates for 24 hours a day and 7 days a week, you too would really want to trade in this very large and very liquid market.

It is true that a lot of people have made a lot of money in FOREX trades. However, you have to face the fact that these people are usually seasoned traders who knows what they are doing in the FOREX market. In short, they know all about the FOREX market and is able to easily spot trends in the market that can help them trade efficiently and profitably. By knowing how to do this, they minimize risk as well as maximize their potential in making a lot of money. And, most of the time, it works.

Today, many people who want to make more money out of FOREX trades are now relying on Auto FOREX trading systems or software that will be able to help them maximize their trade potential. However, there are some people who still don't get that Auto FOREX trades isn't a money making tool. Some people still view Auto FOREX trading software as a tool that will eliminate the risk of losing money and guarantee them huge amounts of profits overnight.

In the FOREX market, everything is unpredictable. And, as a beginner, it is important for you to understand whether it is right for you to invest in such automated trading systems or software. First off, software like this may be helpful for beginners usually contains programming that will let you do dummy trades. This way, you will be able to practice your trades and also your strategies without the real risk of losing money.

However, when it comes to automating your trades and trading in the real FOREX market, it is important to remember that Auto FOREX trading systems will only work based on your preferences. This means that you have to preprogram the system according to your trading needs and strategy in order for you to trade efficiently in the FOREX market and minimize the risk of losing money.

If you don't know anything about the FOREX market, it is best that you avoid software or systems like this as it will only leave you frustrated and you might end up losing a lot of money. Try learning about the FOREX market first as there is no way to accurately predict the FOREX market. Seasoned traders constantly reprogram their auto FOREX trading systems to suit a particular situation in the FOREX market. In fact, they employ different trading strategies in different trading platforms and different currency pairs.

So, before you get a FOREX auto trading system, make sure that you know about the FOREX market first and know about the different strategies. It may take some time but it will definitely maximize your potential in using the automated system

Online Foreign Currency Trading - How to Do it Right

Online foreign currency trading is more popular than ever. This is due largely in part to the fact that it's more available than it ever has been in the past. Anyone with a steady internet connection and a small amount of capital is eligible to trade currency. Unfortunately, the majority of beginners who throw their hats into the ring end up losing much or all of their initial investment.

Demo trading is important for anyone who is starting out. By using a demo trading account, you can trade with virtual money in the same conditions that real traders trade by. This is great for building confidence in your trading abilities so that when you're ready to transition into the real thing you'll be prepared. It's recommended that you use a demo online foreign currency trading account for two months before transitioning to the real thing, and to make sure that you've got a number of profitable virtual trades under your belt by then, as well.

The best way to secure a demo online foreign currency trading account is to get it coupled with an automated trading program. These are programs which trade partly independently of you and even analyze the market to predict where it will go next so that you can trade accordingly and ahead of the curve.

They are the future of online foreign currency trading, with 25% of all traders currently using some sort of automated trading in conjunction with their campaigns. This is 7% more than were doing it just three years ago. In general, using an automated trading program is a great deal more accurate and reliable and gives you a great advantage over your competitors. If you want to be successful in online foreign currency trading, there is simply no substitute for automated trading programs.

Forex Trading Program - 3 Distinct Advantages

by Max Branner
It's easy to see why more traders are using a forex trading program than ever. It's the most accurate way to trade, it works around the clock, and overall it's a much safer and guaranteed way to trade currency in a more fluctuating market than ever. The U.S. economy is sending the majority of the world's markets spiraling about. A forex trading program guarantees that you'll be on the winning side of your trades the vast majority of the time. Consider these 3 advantages.

Signal generations are arguably the best thing that a forex trading program has to offer. You obviously want the best information affecting your trading. While many traders still rely on brokers to analyze the market for them or worse do it themselves in their own time when they can, signal generations are created using tested and constantly updated mathematical algorithms which are remarkably accurate in predicting where the certain parts of the market will go next. They incorporate all of the trends, changes, and overall data of the history of the market into their signals so that you can trade confidently and precisely when you trade ahead of the curve. Many traders swear by the signals they receive as it honestly is the most accurate way to trade in a market way accuracy determines whether you lose or make money.

Many traders like a forex trading program that can auto trade for them around the clock. This is because the forex market keeps much longer hours than the traditional stock market. While this is advantageous, it also requires you the trader to have the ability of keeping track of the market at every hour of practically every day if you truly want to be successful. As this can be a daunting and impossible task, your forex trading program works tirelessly around the clock in order to best benefit and profit you.

Branching out on this point, you've got to be able to react quickly to be a successful trader, as well. At the slightest indication of an affecting change for you, positive or negative, the forex trading program snaps into action and buys or sells accordingly in order to maximize your profits, or just as importantly, to minimize your losses.

Daily Forex Outlook - US GDP beats Expectations

CURRENCY TRADING SUMMARY - 3^rd August (00:30GMT)

U.S. Dollar Trading (USD) better than expected Q2 GDP helped buoy Oil and Global Equity markets to finish the week strong at the expense of the USD. Q2 GDP at -1.0% vs. -1.5%. US July Chicago PMI jumped to 43.4 vs. 39.9 previously. GDP numbers showed the US economy is stabilizing. Crude Oil ended up $2.51 to close at $69.45. In US share markets, S&P ended +1 points (0.07%) at 987, NASDAQ ended -5.8 points (0.84%) at 1978 and DOW JONES ended +17 points (0.2%) at 9171. Looking ahead, July ISM Manufacturing is forecast at 56.5 vs. 44.8 previously.

The Euro (EUR) broke above 1.4100 in Asia and consolidated above this level before reacting to risk appetite on strong US data and surging Oil. 1.4300 was tested twice last week and will provide significant resistance on route to 1.4338 year highs. Overall the EUR/USD traded with a low of 1.4065 and a high of 1.4280 before closing at 1.4253. Looking ahead, German Retail Sales forecast at 0.3% in June vs. -1.3% previously. July PMI Manufacturing(Final) forecast to remain at 45.2.

The Japanese Yen (JPY) was weaker after US data induced Yen selling especially against risk currencies of AUD and GBP. USD/JPY actually slipped lower as USD came under broad selling pressure. June Unemployment jumped to 5.4% vs. 5.2% previously. Overall the USDJPY traded with a low of 94.51 and a high of 95.84 before closing the day around 94.80 in the New York session.

The Sterling (GBP) broke out of the recent range to the upside breaking resistance at 1.6550-1.6600 to trade to just under Year highs at above 1.6700. The GBP is receiving a lot of support form improved risk sentiment and strong oil as well as crosses such as GBP/JPY and EUR/GBP. Overall the GBP/USD traded with a low of 1.6468 and a high of 1.6732 before closing the day at 1.6698 in the New York session. Looking ahead, UK PMI forecast in July at 47.7 vs. 47 previously.

The Australian Dollar (AUD) broke to fresh year highs as the majors moved and commodities surged on broad USD weakness. AUD/JPY expressed improved risk sentiment trading up to just under the key 80 Yen level. Gold rallied over $20 an ounce. Overall the AUD/USD traded with a low of 0.8239 and a high of 0.8348 before closing the US session at 0.8363. Looking ahead, June Retail Sales forecast at 0.5% vs. 1.0%.

Gold (XAU) broke as USD slid and Oil broke higher. Overall trading with a low of USD$932 and high of USD$957 before ending the New York session at USD$954 an ounce.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.3833	1.4008	1.4250	1.4304	1.4338
USD/JPY	93.10	94.02	94.75	96.24	97.19
GBP/USD	1.6266	1.6311	1.6735	1.6745	1.7000
AUD/USD	0.8090	0.8126	0.8375	0.8378	0.8519
XAU/USD	918.00	925.00	954.00	958.00	965.00

Euro - 1.4250
Initial support at 1.4008 (Jul 29 low) followed by 1.3833 (Jul 8 low). Initial resistance is now located at 1.4304 (Jul 28 high) followed by 1.4338 (June 3 high)

Yen - 94.75
Initial support is located at 94.02 (Jul 29 low) followed by 93.10 (July 22 low). Initial resistance is now at 96.24 (Jul 6 high) followed by 97.19 (June 19 high).

Pound - 1.6735
Initial support at 1.6311 (July 22 low) followed by 1.6266 (Jul 13 low). Initial resistance is now at 1.6745 (Jun 30 high) followed by 1.7000 (Big Figure).

Australian Dollar - 0.8375
Initial support at 0.8126 (July 29 low) followed by the 0.8090 (July 21 low). Initial resistance is now at 0.8378 (Sept 26 high) followed by 0.8519 (Sept 22 low).

Gold - 954
Initial support at 925 (July 29 low) followed by 918 (July 14 low). Initial resistance is now at 958 (July 958 high) followed by 965 (June 10 high).

Korea's Forex Reserves Seen Hitting Record High

Korea's foreign exchange reserves are swelling rapidly due to massive current account surpluses and other factors. As of the end of June, the nation's foreign exchange reserves stood at US$231.73 billion. The volume could hit $270 billion by the end of the year "on the Bank of Korea's absorption of dollar liquidity amid stable currency markets and rising investment gains," an official with the Ministry of Strategy and Finance said.

The Korean government expects a current account surplus of between $10 billion to $15 billion in the second half of this year, on top of a record $21.75 billion surplus from the first half. Depending on market conditions, the government plans to reabsorb more than $5 billion it has loaned to exporters and banks. During the second half it plans to issue $3 billion worth of forex stabilization bonds, while the increased reserves have generated proceeds through investments.

Korea's foreign exchange reserves hit a record high $264.25 billion in March of last year, but shrank to $200.5 billion by the end of November as the government provided dollars to Korean banks amid the global financial crisis. But the reserves rose by more than $30 billion in the first half alone as banks and state-run companies were able to obtain loans from overseas and the economy posted current account surpluses.

There are growing calls from within the Finance Ministry and from financial experts for Korea to boost the reserves to at least $300 billion as a safeguard against external risks. But the government's approach is to increase the volume steadily rather than attempt a quick but conspicuous boost, so it is unlikely that figure will be reached by the end of the year.

"It would be better to have a larger foreign exchange reserve in order to better deal with economic crises, but attempts to buy dollars to artificially boost the reserve volume could lead to accusations of currency manipulation, while excess won in the markets could stoke inflation," a high-ranking ministry official said.

Kwon Soon-woo, chief macroeconomist at Samsung Economic Research Institute, warned that $300 billion may not be enough if a financial crisis erupts. "An effective measure would be to boost the reserve volume while strengthening international cooperation through financial pacts such as currency swap deals," he said.

Stocks End Week Up

Stocks held onto a gain Friday amid rising hope that the recession is moderating. The latest read on the U.S. gross domestic product revealed that the economy shrank by 1% in the second quarter, better than the Street's forecast.

The dollar softened, oil rose more than $2 a barrel, and the Dow moved higher. The Dow added 17, the S&P gained 1 point, and the Nasdaq dropped 6.

Auto stocks enjoyed a boost on speculation that the government's Cash for Clunkers program is increasing demand for cars. The program encourages consumers to trade old cars for credit to be applied to the purchase of new models. The U.S. House has voted to approve $2 billion in additional funding for the program. Ford Motor ( F - news - people ) added 8%.

Walt Disney Co. ( DIS - news - people ) was under pressure as J.P. Morgan downgraded the company to "underweight" from "neutral" on lackluster earnings. With consumer spending still weak, the company remains cautious on its outlook.

Defense contractor ITT ( ITT - news - people ) was a market leader on Friday, beating expectations by a wide margin with profits of $1.10 a share. ITT raised its full year forecast. Profits could come in as high as $3.70 a share.

Pakistan's forex reserves fall to $11.77 bln

KARACHI, July 30 (Reuters) - Pakistan's foreign exchange reserves fell by $80 million in the week that ended July 25 to $11.77 billion, the third straight weekly fall, the central bank said on Thursday.

The State Bank of Pakistan's reserves eased to $8.35 billion from $8.43 billion a week earlier, while reserves held by commercial banks were flat from the previous week at $3.42 billion, the central bank said in a statement.

Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.

Pakistan agreed in November to an International Monetary Fund emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves.

The fund recently reviewed the country's performance under the deal, and its board is set to meet early next month to decide on a third loan tranche of roughly $850 million.

The country has also requested about $4 billion in additional financing from the IMF as 'insurance' against the economic crisis.