The European Central Bank said Eurozone's annual rate of growth of M3 eased to 2.5% in August from 3% in July. The annual rate was smaller than the expected 2.7%.
The French consumer confidence index improved to minus 36 in September from minus 37 in August, the statistical office Insee said Friday. That was in line with expectations. The indicator rose for the second straight month.
German consumer confidence for October improved to 4.3 points from a revised value of 3.8 points in September, the latest monthly survey from GfK Group showed Friday.
The euro moved near its overnight levels against the dollar, trading close to 1.4670 in the early afternoon. The euro hit a three-day low of 1.4618 yesterday after hitting a yearly high of 1.4843.
A Commerce Department report showed that new home sales rose 0.7 percent to an annual rate of 429,000 in August from a revised 426,000 in July. Economists had expected sales to increase by 1.6 percent to 440,000 from the 433,000 originally reported for the previous month.
The euro rallied to a 5 1/2-month high of 0.9218 against the British pound, continuing a recent assault. The common currency has been trending higher for two weeks.
Total business investment in the UK dropped a seasonally adjusted 10.2% sequentially in the second quarter, better than a 10.4% fall estimated previously. Economists expected the decline to be 10.4%. In the first quarter, investments were down a revised 8.9%.
The euro dipped to an 11-day low of 131.57 against the Japanese yen. The European currency has been trending lower since Wednesday.
by RTT Staff Writer
Source: rttnews.com
Sunday, September 27, 2009
Euro Sees Mixed Results Versus Major Counterparts
Gold Continues To Slide Below $1,000
December gold dropped to $991.60 per ounce, down $7.30 for the session. Prices dipped as low as $990.40 earlier in the session.
In economic news, a Commerce Department report showed that orders for durable goods fell 2.4 percent in August following a revised 4.8 percent increase in July. The decrease surprised economists, who had expected orders to edge up 0.4 percent compared to the 5.1 percent increase that had been reported for the previous month.
The Reuters and the University of Michigan reported that consumer sentiment index was revised up to a reading of 73.5 from the preliminary reading of 70.2. With the upward revision, the index came in well above the August reading of 65.7.
The Commerce Department report showed that new home sales rose 0.7 percent to an annual rate of 429,000 in August from a revised 426,000 in July. Economists had expected sales to increase by 1.6 percent to 440,000 from the 433,000 originally reported for the previous month.
Also on Friday, Federal Reserve Governor Kevin Warsh has said that the central bank may have to start unwinding its monetary policy before it becomes apparent that it is necessary and that normalization might need to be more aggressive than what would be "customary."
Next week will feature some big economic data. Employment reports will come on Wednesday, Thursday and Friday, while gross domestic product data is also due on Wednesday.
The dollar held most of its gains versus the euro after rising off of a yearly low on Wednesday. The buck also gained on the sterling.
by RTT Staff Writer
Source: rttnews.com
Crude Oil Gains Slightly, Finishes Week Notably Lower
Light sweet crude oil rose to $66.20 per barrel, up 13 cents on the session. Prices had hit a seven-week low of $65.05 earlier in the session.
Goldman Sachs raised its fourth quarter forecast by 1.2 million barrels per day. The firm also boosted its demand outlook for next year by 1.6 million barrels a day.
Oil fell more than $6 on the week, its largest decline in more than two months. Prices fell sharply earlier in the week after Energy Department data showed crude oil inventories increased by 2.8 million barrels in the week ended September 18. A decline of 2.25 million barrels was forecast.
In economic news, a Commerce Department report showed that orders for durable goods fell 2.4 percent in August following a revised 4.8 percent increase in July. The decrease surprised economists, who had expected orders to edge up 0.4 percent compared to the 5.1 percent increase that had been reported for the previous month.
The Reuters and the University of Michigan reported that consumer sentiment index was revised up to a reading of 73.5 from the preliminary reading of 70.2. With the upward revision, the index came in well above the August reading of 65.7.
The Commerce Department report showed that new home sales rose 0.7 percent to an annual rate of 429,000 in August from a revised 426,000 in July. Economists had expected sales to increase by 1.6 percent to 440,000 from the 433,000 originally reported for the previous month.
by RTT Staff Writer
Source: rttnews.com
Sunday, September 20, 2009
FX Solutions - FX Sol
FX Solutions was founded in 2001 by two foreign exchange veterans who realized the Internet could provide the retail trader with the same instantaneous price and deal information that had previously been available only to bank traders via private networks. The company opened for business with five employees and has since grown to over 70 professionals. In 2003 FX Solutions began live trading on its Global Trading System (GTS) and began research and development on a proprietary "direct link" price feed. This revolutionary price discovery and delivery system would give retail traders their first true equality with the professional world of interbank traders. The speed and accuracy of the GTS platforms allow FX Solutions to serve retail clients, white label partners, and institutional trading partners. The company has been recognized as one of America's fastest growing private companies by Inc. magazine for three consecutive years. In a world cluttered with marketing and sales gimmicks, the FX Solutions commitment to its traders remains unique.
FX Solutions is regulated as a Forex Dealer Member by the Commodity and Futures Trading Commission (CFTC) and is a member of the National Futures Association.
The design of FX Solutions' Global Trading System (GTS) is based on the company's deep knowledge of foreign exchange trading and the foreign exchange marketplace. Since 2001, FX Solutions has had a single-minded value proposition - provide spot foreign exchange with exactly the same professional standard and advantages demanded by professional interbank traders.Through GTS, FX Solutions offers: Fixed Effective Spreads In all market conditions, even fast-moving or volatile markets While FX Solutions strive to display fixed price spreads at all times, there may be occasions, however rare, where a significant market or world event may force spreads to widfen without prior notice to clients.
Streaming Rates :
Real-time prices accurately reflect the interbank FX market
Automatic Execution :
99.45% of all orders are automatically executed and never touched by a human dealer. Check website.
Leverage from 50:1 to 400:1 :
Six different leverage ratios to choose from.
Multiple Order Types :
Place buy entry stops, buy entry limits, sell entry stops and sell entry limits as well as market orders
Integrated Risk Management :
Establish up to five stops and limits per order, including trailing stops.
Anytime, Anywhere :
A single username and password for GTS Pro, GTS Web and FX AccuCharts 7.0
Availability of FX Solutions - FX Sol CFD accounts, derivatives trading facilities, futures, traded options should be checked at site together with current status of stock broking and share dealing services, private banking or wealth management, check at the FX Solutions - FX Sol website or contact FX Solutions - FX Sol by phone.
These details could be out of date and FX Solutions - FX Sol services may change. Information about FX Solutions - FX Sol should be verified at the FX Solutions - FX Sol website. Visit the FX Solutions - FX Sol website at FX Solutions - FX Sol
FXCM
Forex Capital Markets -FXCM's no Dealing Desk aims to provide transparent and fair execution. Every trade is executed back to back with one of the world's premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. The best spreads available to FXCM are streamed to you with a small markup, which is generally one pip or less for major currency pairs.
Why Trade at Forex Capital Markets FXCM
FXCM’s trading volume, $350 billion worth of transactions monthly, may be the largest single source of retail currency trades in the world. As a result, FXCM have obtained close banking relationships with eight of the world's largest and most aggressive price providers. Having multiple price providers is especially important in volatile markets, when one or two banks may post wide spreads, or simply avoid quoting any price at all. With so many major banks quoting prices to FXCM, there are competitive spreads, even during market-moving news events.
FXCM does not take a market position—eliminating a major conflict of interest. A dealing desk broker, which acts as a market maker, may be trading against your position. With FXCM No Dealing Desk execution, FXCM fill your orders from the best prices available from the banks. While an individual bank may try to skew its prices off the market, the unattractive price on the bid or ask side will lose the price competition and as a result, not factor into the prices streamed to you. At FXCM, prices are not subject to manipulation by a broker or a bank’s dealing desk.
While competitors are beginning to follow FXCM example of offering No Dealing Desk execution, FXCM have successfully implemented it. Excellent bid and ask prices are not meaningful unless you have a reliable trading platform to execute trades. "Our trading platform is tested in all market conditions, routinely handling about 200,000 trades per day".
While FXCM aims to provide clients with the best pricing available, having all orders filled at a requested rate means execution risks will remain.
Lower Spreads
- Euro/US dollar spread is frequently 2 pips, British pound/dollar 3 pips
- Trade on rates provided to FXCM by multiple global banks
- FXCM's $350 billion in monthly volume drives price competition
- Fractional pip pricing facilitates the tightening of spreads even further
No Dealing Desk Execution
- No conflict of interest between broker and trader
- No dealer intervention in trades
- Price providers (Banks) do not see your stops, limits, and entry orders
- Competition reduces the potential for market manipulation by price providers
No Trading Restrictions
- Trade during breaking news
- Place entry orders anywhere—even inside the spread
- Scalp the market
- Rollover transparency—all amounts are displayed in advance
- Receive positive rolls at all margin levels
Availability of FXCM CFD accounts, derivatives trading facilities, futures, traded options should be checked at site together with current status of stock broking and share dealing services, private banking or wealth management, check at the FXCM website or contact FXCM by phone.
These details could be out of date and FXCM services may change. Information about FXCM should be verified at the FXCM website. Visit the FXCM website at Forex Capital Markets - FXCM
Easy-Forex
About Easy-Forex Online FX trading System
Easy-Forex™ Trading Platform, founded by a group of bankers, Forex and Internet experts, offers Forex traders direct access to the global currency markets. Easy-Forex™ revolutionary Online FX trading platform is the first online FX trading system allowing clients to deal Forex as a consumer product & one of the only platforms enabling users to start deals immediately. Unlike other Online FX trading platforms, Easy-Forex™ eliminates the need to download proprietary software, fill out tedious forms, open a bank account or deposit money in advance.
Personal account management
Easy-Forex™ technology breaks not only the administrative barriers, but also the minimum monetary entry level. With our system the user can open a FX deal for as little as 100 USD (the margin at risk). Furthermore, Easy-Forex propose very complex financial products and take the user step by step, in the easiest and most transparent manner, through the route to complete the transaction.
Live training, one-on-one help on first steps in online trading
Easy-Forex™ offers background information for the Forex market, Guided-Tour, seminars, one-on-one training, CHAT, telephone support, as well as other assistance tools, including technical support. You are never left alone to trade without help, if indeed you need it. Moreover, your personal Account Service Manager will guide you live, on your first trading steps, to help you get acquainted with the Easy-Forex™ system, and will answer your technical questions. Easy-Forex™ expert team members are available for you, at all times, anytime. Moreover, you have your own Account Service Manager working closely with you, and the dealing room services are offered to you by expert Forex dealers. You may speak with us over the phone, over e-mail, or over the advanced online CHAT system that Easy-Forex run, as well as visit your regional office and meet in person.
Unlike other Forex Online FX trading platforms, Easy-Forex's™ full range of Forex tools enables importers, exporters and others with Forex exposures, to easily hedge their funds.
Easy-Forex™ develops and supports its own Online FX trading platform; Easy-Forex enjoy a unique ability to continually develop the trading platform to meet the changing needs of Easy-Forex users.
Easy-Forex™ is an international network with offices in Europe, USA, Asia and Australia.
Easy-Forex™ Trading Platform is a foreign exchange dealing room, offering its services over the internet and by phone. The main part of its income is generated from the spreads (the difference between BUY and SELL).
Please note: it is recommended that you check with Easy-Forex web site Quick Guide to Forex Trading plus other site articles which provides further guidance in forex trading plus explanations to many of the forex terms used throughout the industry.
Availability of Easy-Forex CFD accounts, derivatives trading facilities, futures, traded options should be checked at site together with current status of stock broking and share dealing services, private banking or wealth management, check at the Easy-Forex website or contact Easy-Forex by phone.
These details could be out of date and Easy-Forex services may change. Information about Easy-Forex should be verified at the Easy-Forex website. Visit the Easy-Forex website at Easy-Forex
Friday, September 18, 2009
What is Currency trading?
The currency exchange rate is the rate at which one currency can be exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.
Example of a Forex Trade:
The EUR/USD rate represents the number of US Dollars one Euro can purchase. If you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit. Please keep in mind that forex trading involves a high risk of loss.
Forex is the world's largest market. With about 3.2 trillion US dollars in daily volume and 24-hour market action, we believe it is a true "step above" the equities market for the serious trader. Some key differences are:
- Many firms don't charge commissions – you pay only the bid/ask spreads.
- There's 24 hour trading – you dictate when to trade and how to trade.
- You can trade on leverage, but this can magnify potential gains and losses.
- You can focus on picking from a few currencies rather then from 5000 stocks.
- Forex is accessible – you don’t need a lot of money to get started.
You can start trading forex with as little as US $25 with FXCM - XE's prefered broker. Learn more
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it is advisable to seek advice from an independent financial advisor.
Source: xe.com
G20 to coordinate exit strategy rhetoric-sources
(This story contains no dateline to protect the sources of the information)
Sept 18 (Reuters) - Leaders of the Group of 20 nations are expected to agree at their summit in Pittsburgh next week to coordinate their public statements on exit strategies, G20 sources preparing for the meeting said on Friday.
'Leaders will agree to coordinate on any talk of exit strategies going forward. They will agree to use the words 'exit strategy' more and more,' one source told Reuters on condition of anonymity.
The term 'exit strategy' refers to the eventual unwinding of fiscal and monetary stimulus steps worth hundreds of billions fo dollars that were introduced during the global economic crisis.
Financial markets are sensitive to any talk of exit strategies by G20 nations. If stimulus steps are removed too fast, the global economic recovery could falter, but if they are left in place to long the global economy could face a surge of inflation.
The source added that the timing of exit strategies and their nature would not be discussed in Pittsburgh but would 'be left, most likely for detailed discussion at the next G20 summit in around six month's time'.
The sources said leaders would not discuss currencies, notably the role of the U.S. dollar as the global reserve currency, in Pittsburgh.
'It is something for a later date and certainly not on U.S. soil,' a second G20 source said.
'G20 leaders will not discuss interest rates or any other monetary policy at the summit. It's a political discussion without any central bankers present.'
Future governance of the International Monetary Fund will be discussed in Pittsburgh, but detailed talks will not be held on issues such as voting rights and quotas, the sources said.
(Editing by Ron Askew)
(ron.askew@thomsonreuters.com; +44 207 542 7724)
Keywords: G20/SUMMIT
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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Polish Zloty Declines on Central Bank Concerns
The Polish zloty, one of the best performers among the Eastern EU members currencies this year had its rally halted today as the national bank indicated that a strong currency may jeopardize the economic recovery in one of the biggest European nations.
Today, the zloty was influenced by a national central bank policy maker, Jan Czekaj, who affirmed that if the Polish currency climbs further, the economic growth of Poland will be affected, creating a certain degree of tension regarding central bank future measures, naturally decreasing attractiveness for the zloty. The Polish economic recovery is likely to be driven by exports, mainly to the Eurozone, and being the zloty the best performing currency so far in this quarter, further appreciation is highly unwelcome by police markers in the National Bank of Poland. Within the European Union members, Poland is showing itself one of most resilient nations, posting a growth of 1.1 percent for the past quarter.
Jan Czekaj’s statements affected the zloty’s performance towards the end of this week, and most likely, it was meant to be so. Speculations that the central bank could take measures to slow down or halt the zloty’s rally are still not very significant, but if the Polish currency continues to climb, mainly versus the euro, measures may be considered for the mid-term future.
EUR/PLN traded at 4.1220 as of 13:34 GMT after being traded at 4.1075 yesterday.
If you want to comment on the Polish zloty’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
FOREX-Dollar edges higher as risk appetite wanes again
NEW YORK, Sept 18 (Reuters) - The dollar climbed against most major currencies on Friday, coming off a one-year low against the euro as waning risk appetite cut demand for higher-yielding currencies and other assets.
The dollar has retreated broadly since March as investors shifted into riskier assets due to increasing signs the global economy is recovering, and it extended its losses this week as equities and commodities rallied.
But the U.S. currency gained a respite on Friday as investors trimmed their positions ahead of holidays in Japan and Singapore next week, although the trend for broad dollar weakness was seen as likely to persist.
"The risk aversion, risk appetite trade has been going on for four or five months," said Joseph Trevisani, senior market analyst at FX Solutions in Saddle River, New Jersey. "Are we growing, are we not."
With no major U.S. data scheduled for release on Friday, foreign exchange investors are taking their cues from flows into equity and commodity markets.
Midway through the New York session, the euro EUR= dipped to $1.4722, down 0.1 percent from U.S. trading late on Thursday. It hit a one-year high on Thursday and has risen more than 2.7 percent so far this month.
The dollar index .DXY, which measures the dollar's value against a basket of six major currencies, rose 0.3 percent to 76.387, having bounced off Thursday's one-year low of 76.010.
"We've obviously had a fairly big move. There's not much in terms of news or catalyst to drive the market further ... It's just time for a period of consolidation after some big moves," said Derek Halpenny, European head of currency research at Bank of Tokyo Mitsubishi UFJ in London.
Comments by Russian Prime Minister Vladimir Putin that there was no threat to the United States from multiple reserve currencies had little
immediate effect on the market. [ID:nLI168886]
YEN PULLS BACK, STERLING SLUMPS
Against the yen, the dollar rose as high as 91.63 yen JPY= according to Reuters data, after Japanese Finance Minister Hirohisa Fujii said he did not want to be perceived as backing a strong yen. [ID:nTKU105559]
It was last up 0.2 percent at 91.24 yen, having rebounded from a seven-month low hit on Wednesday.
For the week, the euro rose 0.8 percent against the dollar. The dollar gained percent against the yen, the first week of gains in six trading weeks. The dollar index was 0.3 percent lower on the week.
Sterling hit a four-month low against the euro EURGBP= on news the UK had set tougher-than-expected conditions to the potential exit of Lloyd's Bank from a state-run scheme to protect its assets.
Britain's Lloyds Banking Group (LLOY.L) said on Friday it was weighing alternatives to the scheme to insure it against credit losses. [ID:nLI109343]
Sterling also slumped 1 percent to $1.6277 GBP=. The Australian dollar AUD= fell 0.5 percent to $0.8672, down from a 13-month high hit on Thursday. The New Zealand dollar fell 0.3 percent to $0.7086 NZD=, off a 13-month high hit on Thursday.
Source: reuters.com
Wednesday, September 16, 2009
Pakistan, WB sign $350 million loan package
Source: finance.kalpoint.com
Pak Rupee is Strong against US Dollar at 11 Sept.
OPEN MARKET RATES: The rupee for the third day held its overnight level in relation to dollar for buying and selling at 82.65 and 82.75.
This effect is also the on the desk of Rupee due to the increment of remittances as per the current month and last month’s figures , It has been recorded during August the remittance figure was $780.53 Million, In last fiscal year August 2008 the remittance was $592.30 Million, So as compare to the last year remittances increased up to $188.23 Million, this increment in percentage is 31.78%, As per experts that Rupee is getting good health inflows due to the increased level of remittances during last and current Month of Sept, 2009.
Source: forexkp.com
Foreign investment down 36pc in 2 months
Source: finance.kalpoint.com
$2b investment likely through rental power projects
ISLAMABAD (APP) - Managing Director Pakistan Electric Power Company (PEPCO) Tahir Basharat Cheema on Tuesday said that an investment of around US$ 2 billion is expected in power sector through Rental Power Projects (RPPs). In a briefing given to media persons here, he said besides investment in power sector additional electricity of 1675 MW will be added in the system by December 2009 when nine rental power projects will start generation. He added an overall 2250 MW electricity will be generated through RPPs in current fiscal year. He said two rental projects have already started generation included Atlas Power (213MW) and Attock Generation (156MW) while remaining seven will start functioning by December 2009 included Nishat (196 MW), Engro (203MW), Saif Power (213MW), Fauji Foundation (176MW), Sapphire Electric Company (213MW) and Orient Power Company (213MW). He said all proposals of RPPs were accepted only with bid bonds, performance guarantee by sponsors, monthly rental payments are to be made only after commissioning of the plant while penalty will be recovered on delay in commissioning. He said there is no pressure from the government on any bank in the public or private sector to fund any rental project, adding, lenders to rental power companies undertake their own due diligence and take decisions based on their own financial position. He clarified that the rental tariff for the projects is different being dependent on factors including projects are located at different sites as per system requirements and projects have different fuel consumption and different fuels. He added others factors are variation in project cost due to difference in technology and age of machinery and variations in financing and sources and costs. Basharat Cheema said for the first time the idea of starting rental power projects was presented in 2005 when the country was facing acute power shortfall. He added since 2005, every government remained committed to work on RPPs to overcome energy deficit problem. He said it was the only option to have RPPs in the country as shortest possible time is required to generate electricity from RPPs. He said there are several other aspects that favors the idea of RPPs like such projects could be installed at any place as there is no need of large area for its installation unlike IPPs.
Source: finance.kalpoint.com
Tuesday, September 15, 2009
Foreign Exchange
Forex is the abbreviation for foreign exchange, refers to the foreign currency or the foreign country currency expresses which can be use in the international settlement payment means and the property, mainly it includes the credit instrument, disbursement voucher, the negotiable securities and the foreign exchange cash and so on.
The International Monetary Fund defined Forex as the international creditor's rights which a country has, no matter this kind of creditor's rights are express by the foreign currency or expressed by the standard currency.
Exchange Rate
Exchange rate, also known as the exchange price, it refers by a country currency being express by another country currency, or it is also the price ratio between both countries currency, generally it is being expressed by using the price proportion of both countries. For instance: USD/JPY=105.40, is being expressed a US dollar equal to 105.40 Japanese Yen, US dollar is also known as the unit currency, the Japanese Yen is known as the price currency.
In the foreign exchange market, the exchange rate is demonstrated by five numerals, for example:
Euro/US dollar: EUR/USD 1.3325
US dollar/Japanese Yen: USD/JPY 104.95
Pound/US dollar: GBP/USD 1.9337
US dollar/Swiss Franc: USD/CHF 1.2303
The exchange rate smallest change unit is, namely a final one-figure number digital change, is called an exchange rate basic point (Pip), abbreviation exchange rate spot, for example:
Euro EUR 0.0001
Japanese Yen JPY 0.01
Pound GBP 0.0001
Swiss Franc CHF 0.0001
Source: forex.pk
Forex Trading
Forex trading isn’t strange words for those who looking forward to make quick profit in the financial market. Most investors will have at least hear or read about Forex trading. If Forex is a new term to you, please do read the Introduction to the Forex market before proceed reading this Forex trading article.
Forex trading is said to be the highest risk with highest return investment (or speculation game to be more accurate) in the financial market. The amount traded in the Forex market is much larger than any stock market or even combining few stock markets. Forex trading is simply a world wide trading market running 24 hours from Monday to Friday.
Everyday, there are new Forex traders entering into trading Forex. Some of them don’t even fully understand how Forex is traded but have already trading Forex. They are not idiot who want to burn their hard earned money, it’s just because Forex market is simply too lucrative market to enter with extreme high return. Any Forex traders can easily make a double return just in few minutes time trading Forex.
Forex trading is the trading of buying or selling certain currency. For example, buying US Dollar, then selling it later at a higher price to gain profit. Forex traders may also first sell US Dollar and later on buy it back at a lower price with the same gaining profit. It’s simple strategy of selling price minus buying price to make profit. In Forex trading, we just treat currency as a good, buy it and sell it.
You might now think how can Forex trading make huge profit just by selling and buying currency? Forex is traded using margin, Forex traders don’t need to full amount to buy any currency. For example, Forex traders just need 1000 Dollar to buy up 100,000 Dollar. This allows any Forex traders to make huge profit with little money.
Another important factor that any Forex traders can make huge profit is the high fluctuation for currency. Every day every seconds, the currency exchange rate is moving up and down, the Forex exchange rate fluctuate more heavily whenever there is any important economic data being released.
Forex trading is simply sounds too easy for anyone to make profit in very short time. But before you committed into Forex trading, it is strongly advised to have full understanding in Forex trading. Do read up other Forex trading articles in this website and share Forex trading knowledge in the Forex forums.
Source: forex.pk
Forex V/S Stock
| What is the Difference Between Forex and Stock? |
| The Forex market has a lot of advantages compare to stock market: |
|
Tuesday, September 8, 2009
Dollar opens at fresh 1-year high on commodity boost
The Australian dollar opened at a fresh one-year high today after a bullish night of gold and oil trading boosted the commodity sensitive currency.
At 7am, the Australian dollar was trading at 86.17 US cents, up from yesterday's close of 85.91 US cents. It was also buying 79.55 yen, 59.52 euro cents and 52.27 pence.
It was the Australian dollar's highest open to the local session since August 26, 2008, when it started at 86.28 US cents.
During offshore trade, the local unit moved between 85.44 and 86.58 US cents.
"I don't think it was any one thing. The US dollar was weak across the board," said Tim Kelleher, vice president of institutional banking and markets at Commonwealth Bank.
"The Aussie has had such a big move its brought the US dollar index lower.
"Gold was up overnight which added to Aussie bullishness and oil did very well as well."
As a commodity or risk sensitive currency, the Australian dollar rises and falls with the price of resources like gold and oil.
The price of gold rose above $US1000 an ounce here yesterday, reaching the highest level for 18 months, as a weaker US dollar fuelled demand for the metal, dealers said.
Gold hit $US1007.70 an ounce on the London Bullion Market, the highest level since March 2008 when the metal had hit a record high of $US1032.70.
Gold last broke through $1000 in February before falling back.
Meanwhile, Crude prices settled above $US71 a barrel at the end of Tuesday's offshore trade.
Benchmark crude for October delivery gained $US3.08 to settle at $US71.10 a barrel on the New York Mercantile Exchange.
Mr Kelleher said investors were also spooked following calls for a new global currency by the UN Conference on Trade and Development (UNCTAD).
The report, carried in Monday's on-line edition Britain's Telegraph newspaper, centred on changing the currency and capital rules that bind the world economy.
The article said the report called for the current system, under which the US dollar acts as the world's reserve currency, to be subject to wholesale reconsideration.
In economic news today, the Australian Bureau of Statistics housing finance data for July and ABS retail trade data for July is due out.
The Westpac/Melbourne Institute Survey of Consumer Sentiment is also due to be released.
During the domestic session, Mr Kelleher said the unit would range trade around 86.3 US cents.
Source: watoday.com
Forex Auto Trading
Forex Auto Trading is a fantastic way to trade for people who have too many emotions or can not be in front of their computer all the time. Autotrading will give you the freedom to test as many robots or EA’s as you wish without risking a dime.
We will go over some Auto trading robot’s and find the ones that work.
Trying to figure out which autotrade method will work for you may take some time, so you will need to be very patient and not get discouraged. The creation of demo trading allows us to test as many autotrading methods that are available to us, which is a fantastic thing.
Six Auto trading Methods that come to mind
- Scalping auto trading
- Breakout Auto trading
- Pivot Point trading
- Fibonacci auto trading
- News Straddle System
- Moving average crossover
Which automated Forex trading strategy is the best? We will work as hard as we can to find out. If at any point you have any questions or feedback please let us know so we can find an answer for you. Trading is an art and as traders we want to share our projects with you, whether they are worthless or profitable. You always need to keep in mind that past performance does not mean you will have the same future results.
Source: forexnewstrader.com
Trading Currencies
Now that we are in September I think it is time to really start looking at some news events. This Friday we will have a very important NonFarm Payroll event that could move the market significantly. Based on last months move, this one could be bigger if the numbers are in the right spot. This event is still our favorite event of the month and most likely it will stay this way for a long time. Trading currencies versus trading stocks at the release of the news event is always in the Currency favor due to the fact that the stock market isn’t even open for trading at 8:30am. When the news comes out all the pairs will be ready for the traders move.
Some brokers are better than others when it comes to the actual data feed, so you may need to change brokers to get the best fill. If you trade soon after the news comes out, more on the secondary move, then it shouldn’t matter which broker you are looking for. Forex Signal providers still offer you their fast action trading software to make a move on the market right at news time. This method has been used for years and still does well.
Over time trading becomes a place where you pick your spots and you try to make money. Don’t force the issue and trading will come a lot easier. In the up coming trading days as volume picks up pay attention to the movements around news time and see if they are more fluid then in the past couple of months.
World Economic Rebound Forces Dollar Down
The dollar is losing this week versus important major currencies like the euro and the pound as renewed optimism towards an economic recovery damped demand for the safety profile of the United States currency, as investors moved their bets to riskier assets.
A combination of bullish stock markets and speculations regarding an upcoming credit report in the United States affected the dollar negatively, as at the same time that investors seek higher yielding options as stocks grow, the U.S. credit report to be released today is likely to show a sharp fall, which is decreasing attractiveness for the greenback. The Japanese yen was one the biggest winners versus the greenback today as the government is likely to extend its measures to stimulate the economy, bringing renewed confidence towards the Japanese economy, which posted today a report indicating a fall in the numbers of bankruptcies for the first time in three monhts.
The bullish sentiment in equities markets is weighing negatively for the dollar, as being the main global reserve currency in the world, its safety profile attractiveness is decreasing thanks to a higher level of risk aversion among traders. Currencies like the yen and the pound still have room to climb versus the U.S. dollar, but its unlikely that the greenback will lose sharply, at least in the short-term.
USD/JPY traded at 92.31 as of 9:06 GMT from a previous rate of 93.17 in the intraday comparison. EUR/USD traded at 1.4418 from 1.4344.
If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
Pound Climbs on U.K. Manufacturing
The pound climbed today versus most of the 6 main traded currencies as the situation starts to become more positive for the British economy, pushing stocks up in London and consequently attracting international inflows of capitals to the United Kingdom.
After U.K. manufacturing output had the highest climb in 18 months today in a report published by the Office for National Statistics, the pound rose sharply, gaining virtually against all 16 main traded currencies worldwide, rebounding from a rather weak performance last week, when a wave of pessimism still affected pound-priced assets attractiveness. Stocks in the U.K. rose to the highest level since October last year, when the credit crunch plunged the British Isles into a intense sequence of losses in multiple bearish market weeks. U.K. manufacturing went much beyond forecasts, which suggested a 0.3 percent increase for the past month, but the actual report indicated an amazing 0.9 jump, being this surprising figures the main vector to push the pound up today in foreign-exchange markets.
According to many analysts, the pound remains undervalued, still suffering the consequences of the credit crunch that caused the biggest crisis in the country since the Second World War, but if favorable news still follow, the pound may find support for a big uptrend in the following months.
GBP/USD traded at 1.6554 as of 12:41 GMT from a previous rate of 1.6382 yesterday. EUR/GBP traded at 0.8744 after being traded at 0.8777 before the report was published.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
Saturday, September 5, 2009
About Forex market
Forex market- is an international foreign exchange market. It gets its name from English shortening FOReign Exchange- foreign exchange operations. Forex market is one of the youngest financial markets (Forex has existed since the 70th of the last century). However, it is the largest in volume and fastest-growing market. The daily trading turnover at Forex constitutes to 4 trillions dollars, which in 30 times exceeds the combined volume of all stock markets in the USA.
Like any other market, Forex trades certain goods. In case of foreign exchange market these goods are national currencies of different countries.
The key factor of currency rate movement is the need of state bodies as well as commercial companies to convert profits from the sale of goods and services abroad into its national currency. It accounts for 5% of the foreign exchange market turnover. The remaining 95% provides currency traders speculative capital aiming at extracting profit from currencies rate movement.
Distinctive feature of the foreign exchange market is its stability. It is a well-known fact that the main threat for any financial market is its meltdown, the fall of the stock index. However, unlike other markets (stock and commodity markets) Forex is defended owing to the specific of its commodity - currency. If shares devalue it is a financial collapse. If the dollar falls, this means that another currency has become stronger, market movement becomes more active. This is a good chance to generate additional profit for a trader. Unique stability of the Forex market lies in this Forex peculiarity: currency is one of the most liquid and reliable trading instrument among all existing.
The greatest interest for speculators is the most common (most liquid) currencies that are "basic". At the moment more than 85% of all deals constitute to deals with basic currencies, which include: US dollar (USD), Japanese yen (JPY), Euro (EUR), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD) and the Australian dollar (AUD).
Forex is available everywhere. Due to the Internet, you may conclude deals with the clients who are in the other part of the world. As it was mentioned above, exchange market always gives you an opportunity to make profit, i.e. rates fluctuations of this or that size take place several times a day. Fluctuations of the currency rates, your intellectual potential, and new technologies allow to build high profitable business right now.
One more indisputable plus of the Forex market - is easiness of market entrance. It is not difficult to find a reliable Broker - there is a great supply at this market. The rest depends only on the person who decides to enter Forex.
Source: instaforex.com
Canadian Dollar Extend Gains on U.S. Optimism
The Canadian currency climbed even further before the end of this week’s session after optimism was renewed among traders with stocks and commodities climbing, After both Canada and the U.S. posted favorable reports regarding employment conditions.
After a report published in Ottawa indicating a rise of 27,100 jobs for the month of August in Canada, reverting July’s negative figures, the loonie was benefited as stocks in Toronto also rose considerably. This Friday, a U.S. report showing less than expected jobs cuts moved markets worldwide, creating bullish patterns in stocks around the world and influencing the crude oil rates, commodity which prices affect the Canadian currency directly, since the North American nation is one of the world top oil producers. The Canadian dollar had suffered since Bank of Canada officials stated that measures could be taken to weaken the currency, creating a bad sentiment for the currency, but the optimism is currently very strong, making an unstoppable bullish pattern for the loonie.
Analysts forecast that the Canadian dollar may rise to the levels previous to the national bank statements, when the greenback was trading at 1.0630, as long as optimism remains significant in equities and commodities markets, but it is hard to determine whether loonie’s bullish pattern will find support to extend its gains since the Bank of Canada already stated its position against a strong national currency.
USD/CAD closed the week at 1.0860 from 1.1039 on Thursday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
Euro Gains Before ECB Meeting
The euro rebounded today after a negative performance during the beginning of the week as speculations regarding the future of the Eurozone economy improved, indicating growth beyond previous forecasts, spurring the attractiveness for the euro today.
The European central bank will decide its current benchmark interest rates which are expected to be maintained at the same level, but optimism among traders indicate that ECB officials are likely to upgrade growth predictions for the Eurozone as the economy starts to improve slowly as seen in report during the past month. The euro also benefited from optimism in equities and commodities markets today, stopping a seven day decline versus the Japanese yen as investors returned to purchase riskier assets abandoning options in Japan. The euro also gained against some high-yielding currencies, on speculations that some countries like Germany, may rebound quicker from the recession.
The ECB metting today is going to provide support for the euro to gain, according to specialists. Previous reports published in July mainly regarding Germany and France are likely to be mentioned by the ECB as signs of recovery in the region, which will attract more investors to purchase euro-price assets. If the Eurozone continues to perform well, interest rates are likely to be hiked in the medium term future.
EUR/USD traded at 1.4325 as of 10:27 GMT from a previous rate of 1.4217 in the intraday. EUR/JPY traded at 132.34 from 131.66.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
Mexican Peso Climbs on U.S. Employment Data
Today, after U.S. employment data indicating that jobs were suffered less losses than forecasts, risk appetite returned to markets worldwide, favoring emergent market currencies like the Mexican peso.
The Mexican peso gained for the third day in a row escaping from the second weekly losses as favorable reports improved the Mexican currency outlook, as appeal for high-yielding riskier assets returned today after favorable employment data was published in the United States. The Canadian dollar also benefited from this movements and gained versus its U.S. counterpart.
USD/MXN traded at 13.3755 as of 19:47 GMT from an opening rate of 13.5356 today.
If you want to comment on the Mexican peso’s recent action or have any questions regarding this currency, please, feel free to reply below.
Source: topforexnews.com
Forex trading in India
India has a rather strict foreign currency exchange policy - even though many liberalization measures have been taken recently, it's still an economically isolated, or highly protected country. Indian currency - rupee, is highly regulated by the national banking authority - Reserve Bank of India, and so Indian citizens still cannot freely exchange rupee to other currencies, they have to prove their need and there are annual limits for different needs (more). Even popular money transfer systems such as Western Union - which is spread worldwide and available to everyone, are forbidden in India - residents can only receive money, but not send.
However, because of the globalization there is a definite need to open the economy, so Reserve Bank of India has been softening rules and regulations in recent years.
One of the important changes in regards to Forex trading is that in year 2008 Reserve Bank of India has finally allowed currency futures trading. Speculative trading became a permissible operation too - since it became impossible to ask for a proof of a hedging need.
We at Forex4you are happy that one of the biggest and the most perspective country in the world is finally joining the world of opportunities of Forex trading market!
More details are available on the official website of RBI - here.
Note that Indian brokers are only allowed to provide USD/INR pair at the moment. Since we're located outside India, in British Virgin Islands, we do provide customers with many more pairs, many of which are much more interesting for traders because of their nature. Rupee, being a highly regulated currency, is not as volatile as other currencies and doesn't allow as much analysis since movements depend on RBI decisions and not on market events.
Our another advantage over brokers registered inside India is that we don't have any fees or minimum transactions/deposits. Services are much more affordable at our company!
Even though we're registered outside India, we do have an office in Mumbai where an Indian company that has a contract with us, provides our Indian stakeholders with support and consultations.