Trading Currencies in Volatile Economies-understanding how market economics affects currency prices. It is already a well known fact that the foreign exchange market moves very fast. The truth is that there are many other financial markets which are risky to predict. Maybe you would like to know that there are several factors which affect [...]
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Trading Currencies in Volatile Economies
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April 6 2012, 10:23am | Comments »
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FOREX: Ringgit Closes Slightly Lower Against US Dollar
KUALA LUMPUR, Nov 18 (Bernama) -- The ringgit closed slightly lower against the US dollar today, dealers said.
They said the market was nervous on talks that Indonesia's central bank may restrict foreign ownership of short-term debts.
However, one of the dealers said the rupiah later regained its strength as fear of immediate capital curbs eased.
On the local front, the ringgit was traded within a range of between 3.3620 and 3.3770 to the US dollar throughout the day.
The scheduled listing of Maxis' initial public offering tomorrow provided support for the local currency, according to the dealers.
At 5.02pm, the ringgit was traded lower at 3.3650/3700 against the US dollar compared with yesterday's close of 3.3630/3680.
The local unit ended the day mixed against other major currencies.
November 18 2009, 12:02pm | Comments »
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FOREX-Dollar slips; mkt eyes US CPI, BoE for direction
LONDON, Nov 18 (Reuters) - The dollar eased back on Wednesday from its biggest rise in three weeks the previous session, as traders awaited U.S. inflation data and minutes from the Bank of England's November meeting for further direction.
The dollar had rallied on Tuesday on the back of rare comments on the currency by U.S. Federal Reserve Chairman Ben Bernanke [ID:nLH705993], comments later echoed by other Fed officials and European Central Bank President Jean-Claude Trichet.
That pushed the euro well below $1.50, but most dealers say the dollar's gradual, longer-term decline is still intact.
Although the Fed may be in the very early stages of withdrawing its huge stimulus measures -- it said on Tuesday it will pare back its the discount window borrowing facility -- it is still nowhere near raising interest rates.
U.S. inflation data for October and BoE minutes of its November policy meeting, which will shed light on how unanimous or otherwise policymakers' vote to extend quantitative easing was, could give an otherwise quiet market direction.
"The Fed's relatively sanguine view on the dollar (although acknowledgement that it is an input into their monetary policy decision makings), coupled with the belief that asset prices are not forming another bubble, should provide a green light for recent trends to continue," said Lauren Rosborough, senior currency strategist at Westpac in London.
November 18 2009, 11:00am | Comments »
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USD/JPY Daily Outlook - Forex Trading, Currency Forecast, FX ...
With 4 hours MACD crossed above signal line, intraday bias in USD/JPY is turned neutral for the moment and some sideway trading might be seen. Nevertheless, break of 90.06 resistance is still needed to indicate that choppy fall from 92.31 has completed. Otherwise, outlook remains bearish and another fall should still be seen. Below 88.73 will target a test on 88.00 low first. Break will target a test on key support of 87.12 low.
In the bigger picture, the bearish outlook remains unchanged. Fall from 101.43 is treated as resumption of the whole down trend from 124.13. Break of 87.12 low will confirm resumption of this down trend and should target next key level of 1995 low at 79.75. However, note that break of 92.31 resistance will firstly suggest that fall from 97.77 has completed. Additionally, this will raise the possibility that whole decline from 101.43 has finished with three waves down to 88.00 after meeting 100% projection of 101.43 to 91.73 from 97.77 at 88.07. The three wave structure will in turn indicate that rise from 87.12 is going to resume. Further break of 97.77 will target a retest of 101.43 instead.
November 18 2009, 9:10am | Comments »
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US, China debate final APEC wording on forex, trade
SINGAPORE, Nov 15 (Reuters) - The United States and China are debating the final wording on market-oriented currency exchange rates and combating trade ...
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November 15 2009, 5:44am | Comments »
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How to Trade the Forex Market Using Binary Options
By Alex Cadens – It is no secret that the Forex market can be a very profitable place to be if you ...
November 15 2009, 5:16am | Comments »
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WORLD FOREX: Dollar Rises As Gloomy Outlook Prevails
LONDON (Dow Jones)--Gloomy global sentiment prevailed, helping the dollar to make gains against most other majors in Europe Thursday.
Stronger than expected employment data from Australia did boost risk appetite at one stage earlier in the day but the move was brief and investors soon lost interest in high-yielders again, with even the Australian dollar turning back down.
The absence of any major economic data later in the day could well leave the currency market at the mercy of charts. Currency strategists at UniCredit suggested that this could help the dollar a little more for now, especially given the difficulty ...
November 12 2009, 12:50pm | Comments »
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FOREX-Dlr near lows, Aussie hits 15-mth high after data
TOKYO, Nov 12 (Reuters) - The dollar was on slippery ground on Thursday after the Australian dollar jumped to a 15-month high on strong jobs data that boosted expectations of an interest rate hike next month.
The Aussie was also buoyed by firm commodity prices like gold, which hit a record high for the second straight day. [GOL/]
The dollar was under pressure on expectations that Asia-Pacific finance ministers gathered in Singapore ahead of a summit of their national leaders this weekend were set to call for flexible exchange rates.
The latest draft communique to be issued following their meeting on Thursday calls for "market-oriented" exchange rates and interest rates. [ID:nSP423373]
"The dollar is likely to keep facing selling pressure during the APEC finance ministers meeting," said a trader for a Japanese trust bank.
The 21-member Pacific Rim group includes China, which is under pressure, particularly from the United States, to allow its currency to rise.
Dealers said they were watching further developments after China said it would consider using a basket of currencies, not just the dollar, in guiding the exchange rate of the Chinese yuan CNY=, its clearest signal yet that it was close to letting the yuan appreciate after an 18-month hiatus. [ID:nSP466424]
The dollar index .DXY, a gauge of the greenback's performance against six major currencies, was at 75.032, down 0.2 percent on the day. The index on Wednesday hit a fresh 15-month low of 74.774.
AUSSIE JUMPS ON RATE OUTLOOK
The euro and yen crosses trimmed earlier gains made in tandem with the Aussie's rise after regional stock markets turned negative. But they held firm as traders waited to see if European and U.S. players push the dollar down further when they join the market later in the day.
November 12 2009, 8:39am | Comments »
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FOREX-Dollar near 15-mth lows, pound down on Fitch warning
TOKYO, Nov 10 (Reuters) - The dollar hovered just above a 15-month low against a basket of currencies on Tuesday as investors looked to return to leveraged carry trades, while sterling tumbled after a warning on Britain's credit rating.
Fitch Ratings said that of the four major economies with AAA status, the UK was the most at risk, sending the pound down sharply to shed as much as 1 percent on the day against the dollar before it recovered half a cent from the lows. [ID:nT286946]
David Riley, co-head of global sovereign ratings at Fitch, said if there was another significant fiscal stimulus package in Britain its rating would be at risk.
The pound slipped as far as $1.6600 GBP=D4 from above $1.6750 before edging back to $1.6650 and fell more than 0.5 percent on the day to beyond 90.00 pence per euro EURGBP=D4, before paring lossees to 89.93 pence.
"It reminded the market about the UK's fiscal issues and prompted investors to take profits in a recent sharp rise in the pound, which had risen towards the year's high," said Ayako Sera, a market strategist at Sumitomo Trust & Banking.
An index of the dollar's performance against six major currencies edged up 0.1 percent to 75.130 .DXY, having dropped about 1 percent the previous day to as low as 74.93, its weakest since August 2008. It was the biggest one-day fall since late July.
Expectations that U.S. interest rates are likely to stay near zero for a while are encouraging investors to use the dollar to fund carry trades in higher-yielding assets.
"With relatively solid stocks and higher commodity prices, and major events out of the way, market sentiment has shown a sense of relief," said Mitsuru Sahara, chief manager of currency derivatives trading at Bank of Tokyo-Mitsubishi UFJ.
November 10 2009, 9:33am | Comments »
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Points To Consider In Choosing The Right Forex Education
There are tons of companies offering different types of forex education, from the most basic down to the most advanced, and choosing the one or the ones that would really work, not to mention would be worth the money that you would be shelling out, can be a very daunting task if you are really bent on being a good and successful forex trader.
One of the most feared factor of the forex market and trading in it is that there is a very small percentage of traders who succeed in their trading endeavors. Having the right type of forex education, from the most basic up to the most comprehensive, is a very important factor in order to avoid losses and to secure the forex trading success that all forex traders are craving. But since there are different types of forex education out there, to make the task of choosing the right ones not too daunting anymore, a budding forex trader should abide by the following tips:
You should not really rely on day trading systems. Most day trade systems sell with the theory of making money on a daily basis and, at the same time, having a very low risk of loss. However, this is simply not the reality. The opposite is.
A forex education should give you the leeway to have real time data of any of your forex trading activity to ensure that you are on the right track at all times by being able to make the right calls at the right time. This will greatly reduce losses and can make forex trading one of the most, if not the most, rewarding ventures that you will ever encounter.
You should do a research first on the backgrounds of your forex education provider options in order to ensure that you would be in good hands. There are lots of forex brokers who are not successful who are offering forex education that they claim really works. If it did, then they would just really be venturing into forex trading and not on selling what they claim are forex education that works, right?
Once you have chosen the forex education that you feel would really work for you, you should understand it as a whole. Not having a clear understanding of it defeats the purpose of choosing to have it in the first place.
Keep in mind that the best forex education that you can find is free. Use different types of resources, like your fellow traders, online blogs, etc.
Being forex savvy is very important in order to be successful in any forex trading activity there is. Make your forex education always work to your advantage. Author Resource:- Forex trade starts with a desire to learn and a drive to become a great trader. Learning to trade forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
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November 8 2009, 11:51am | Comments »
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To Use or Not To Use Forex Signals | The Place With Resources And ...
In my opinion, trading in the forex market is one of the most exciting things in all of trading. Due to the constant changes in such a huge market the possibilities are endless. A lot of money could be made at any instant. After all you are trading money! Forex signals can be the key to helping you achieve your forex goals and get you trading today.
Do you really need to use forex signals? Imagine yourself at your computer analyzing and trying to find the right time to trade. All of a sudden, you get an email that says a trade is approaching. You get prepared, the moment comes, and you make a trade. A little later, you get a second email that says to close the trade out. You were able to score a profit and knowing the market was not necessary. This is what forex signals are and they are very easy to use.
Forex signals lets you take your time back. You no longer have to sit and analyze the markets. You can do whatever you want. Even take a walk. When the time comes you will be notified when to make the trade. Best of all you still have the choice of whether or not you want to. It is not automatically trading for you.
Think of the freedom that this represents. You can have the forex signals sent to your phone and as long as you’re nearby your trading platform, you can go anywhere you want. You can even place the trades from your cell phone if you desire.
November 7 2009, 2:53pm | Comments »
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Forex Trading Strategy
Learn how to trade EUR/USD, USD/CAD, GBP/USD or any other major currency pair by mastering a system that combines top level mathematics with the fundamental principles of human behavior - simplified in such a way that even a high school ...
Docstoc feed for: Guides - http://www.docstoc.com/documents/guides/most-recent/
November 7 2009, 9:03am | Comments »
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Forex: EUR/USD: Euro post weekly gains
Despite a decline on Friday, the Euro ended the week 0.79% higher against the Dollar. EUR/USD finished Friday trading in a range between 1.4830 and 1.4850. The Dollar failed to confirm a break below 1.4700 and on Wednesday the Euro rallied after the FED decided to leaves rates unchanged but on Friday was unable to hold above 1.4900.
The rally of the Euro against the Dollar eased in the last two weeks as EUR/USD failed to reach levels above 1.5060. Current environment is not very optimistic about the economic recovery, helping the Dollar that works as a refuge for investors.
November 7 2009, 2:38am | Comments »
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Why dollar carry trade faces hidden dangers
Most investors agree that it is out there. What is less clear is how big it is, or how worried investors should be about it.
The “it” in question is the dollar carry trade. This is an investment strategy that has recently been extremely profitable and as a result has become increasingly popular.
November 6 2009, 9:49pm | Comments »
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Forex: Euro Weakens Versus Major Rivals After US Jobs Report
(RTTNews) - The euro saw some weakness versus other majors as traders turned to safer currency investments after data showed the U.S. unemployment rate surged to a new 26-year high above 10 percent.
The euro moved slightly lower amid choppy trading against the dollar, trading near 1.4840. The European currency hit a 10-day high above $1.49 yesterday and moved toward a 14-month high.
The U.S. Labor Department report showed that non-farm payroll employment fell by 190,000 jobs in October following a revised decrease of 219,000 jobs in September. Economists had expected a decrease of about 175,000 jobs compared to the loss of 263,000 jobs originally reported for the previous month.
With the continued drop in jobs, the unemployment rate jumped to 10.2 percent in October from an unrevised 9.8 percent in September. The unemployment rate had been expected to show a more modest increase to 9.9 percent.
The euro slipped near 0.8930 against the euro, slipping to a lower end of a recent trading range. The pair has been range-bound for 1 1/2 weeks.
UK input prices for materials and fuels purchased by manufacturers unexpectedly edged up 0.1% from the previous year, reversing a revised 6.2% fall in September, the Office for National Statistics reported on Friday. Input price inflation turned positive for the first time since February. The decline for September was revised from a 6.5% fall.
The euro fell to a two-day low against the yen near 133.20. The drop took the European currency below a short-term range.
In the Eurozone, German factory orders rose for a seventh month in September due to an increase in foreign orders, data released by the Federal Ministry of Economics and Technology showed Friday.
German industrial orders rose 0.9% month-on-month in September, the Federal Ministry of Economics and Technology said Friday. Economists had expected 1% rise.
November 6 2009, 9:21pm | Comments »
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USD/CHF Mid-Day Outlook - Forex Trading, Currency Forecast, FX ...
USD/CHF recovers in early US session but after all it's still limited below 1.0224 minor resistance. Intraday bias remains mildly on the downside for the moment and fall from 1.0337 might extend further. But still, downside should be contained above 1.0032 support and bring rise resumption. Above 1.0224 will flip intraday bias back to the upside first. Further break of 1.0337 will target a test on 1.0452 structural resistance first.
In the bigger picture, whole set of price actions from 1.2296 are treated as correction to the medium term rally from 2008 low of 0.9634. Fall from 1.1963 is the third wave of such correction and has possibly completed it's own five wave sequence already (1.1158, 1.1740, 1.0590, 1.0883, 1.0032). Break of 1.0452 resistance will affirm this case and turn focus to 1.0883 resistance for confirmation. Also, note that break of 1.0883 will be an important signal that whole consolidation from 1.2296 has completed too and stronger medium term rise should then be seen to retest 1.1963/2296 resistance zone next. On the downside, however, below 1.0032 low will indicate that the medium term down trend is still in progress and will pave the way to retest 2008 low of 0.9634.
November 6 2009, 7:15pm | Comments »
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Forex news: the euro advances against majors
The euro increased against the dollar and the Swiss franc as the European stocks jumped today ahead of a key U.S. employment report. Meanwhile, the euro recovered its Asian session's loss against the pound and the yen.
The euro strengthened against the dollar in early deals on Friday. Currently, the euro-dollar pair is worth 1.4906, up from Thursday's close of 1.4871. If the pair climbs further, it may target the 1.4919 level.
During early deals on Friday, the euro climbed to a 3-day high of 1.5129 against the Swiss franc. The next upside target level for the euro-franc pair is seen at 1.5175. At yesterday's close, the pair was quoted at 1.5115.
The euro that fell to 134.50 against the yen at 2:10 am ET Friday reversed direction thereafter. As of now, the euro-yen pair is worth 134.86, compared to 135.01 hit late New York Thursday. On the upside, 135.75 is seen as the next target level for the European currency.
The euro advanced against the pound after touching a low of 0.8949 at 2:30 am ET Friday. At present, the euro-pound pair is trading near yesterday's close of 0.8970. The near term resistance for the pair is seen around the 0.905 level.
November 6 2009, 5:43pm | Comments »
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Forex Day Trading Systems
Normally, we associate trading with purchasing a product, bringing it home or to our office premises, and then advertising it. Likewise, we buy stocks and shares in the stocks and shares market, keep them until their price increases and then sell them off.
Times have changed, and now trading can be done on a daily or even hourly basis in the stocks and shares market, and also in the foreign currency markets with a lot of traders. This has turned out to be possible due to the forex day trading services, also known as intraday trading. Because of intraday trading or day trading, individuals can earn funds on the trading day itself. Intraday trading, despite differences in times zones all over the the world, is also recognized because the forex market stays on 24 hours everyday.
One more reason that draws individuals to intraday trading is the fact that the forex market is the most liquid market throughout the world. The instant your deal is executed, your profits are added to your bank account. This has turned out to be possible due to the decentralized clearing system, which permits the market to stay liquid day and night.
One more advantage of day trading is that you don't need to put out a lot of money to earn profits, keep that in mind! You don't have to incur huge losses either. This is, certainly, if you pay attention to the help provided by your brokering company about the entry and exit times. There are a lot of forex-trading companies that can train you for intraday trading so that your transactions are not reduced to gambling. These businesses provide you with trading methods and information charts that guide you when to buy or sell.
They also train you to understand forex quotes, and also how and when to buy and sell the currencies by understanding various technical and analytical studies.
November 6 2009, 12:15pm | Comments »
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Daily Forex Outlook - FED remains Dovish, USD Weak
U.S. Dollar Trading (USD) was on the back foot as stocks rallied around the world and the Federal Reserve left rates at 0.25% and stating that rates would remain low for an extended period of time. ADP October Employment Report was -203k vs. -188k previously. Also released, ISM Services forecast at 50.6 vs. 51.6 forecast. In US Stocks, DJIA +30 points closing at 9802, S&P +1 points closing at 1046 and NASDAQ -2 points closing at 2055. Looking ahead, Weekly Jobless Claims are forecast at 523k vs. 530k previously.
The Euro (EUR) rallied for most of the day on continued strength in commodities and a rebound in stocks. September PPI was as forecast at -0.4%. EUR/JPY enjoyed solid gains although a late sell off in stocks induced profit taking. Overall the EUR/USD traded with a low of 1.4701 and a high of 1.4911 before closing at 1.4880. Looking ahead, ECB rate announcement forecast to remain at 1.0%.
The Japanese Yen (JPY) was very weak as the crosses began to rally and technical's turned against the Yen. USD/JPY struggled to hold above 91 Yen on a mixed response to the FOMC but remains supported on dips. EUR/JPY returned to the 135 figure. Overall the USDJPY traded with a low of 90.03 and a high of 91.34 before closing the day around 90.80 in the New York session.
The Sterling (GBP) rallied above 1.6500 on improved risk appetite and strong GBP/JPY buying. October PMI Services was 56.9 vs. 55.4 previously. 1.6600 capped the topside but the market is well supported ahead of today's BoE meeting. Overall the GBP/USD traded with a low of 1.6600 and a high of 1.6399 before closing the day at 1.6550 in the New York session. Looking ahead, BoE Rate meeting. Also released, September Industrial Production forecast at 1% vs. -2.5% previously.
The Australian Dollar (AUD) was dented in Asia from poor September Retail Sales of -0.2% vs. +0.4% forecast. The dip below 0.9000 proved short lived and when the market continued to push higher the Aussie rebounded. AUD/JPY enjoyed the Yen weakness combined with the ongoing rally in gold. Overall the AUD/USD traded with a low of 0.8970 and a high of 0.9146 before closing the US session at 0.9105. Looking ahead, September Trade Balance forecast at -2100mln vs. -1524mln previously.
Oil & Gold (XAU) continued to push higher on yesterdays momentum nearing the $1100 level. Overall trading with a low of USD$1079 and high of USD$1098 before ending the New York session at USD$1092 an ounce. Broke above $80 a barrel as the rally accelerated. Crude Oil was up $0.80 ending the New York session at $80.40.
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November 5 2009, 10:01am | Comments »
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WORLD FOREX:Euro Down On Selling In Europe; Weak Asia Stocks
TOKYO (MarketWatch) -- The euro fell against the dollar and the yen in Asia on Thursday, as European market participants unloaded their euro-holdings to adjust positions before a series of the euro-zone central bank policy-setting meetings.
The euro's decline was also the result of lackluster Asian share markets that prompted short-term traders to sell the risk-sensitive euro, dealers said. The pound also lost against the dollar and the yen for the same reasons.
But they said the euro's direction is unclear because it is so dependent on these meetings.
Early in the Asian morning, European market participants continued to cut their high-yielding euro holdings, traders said.
"Before risk events, investors trimmed their positions that they had accumulated excessively overnight," said Yuzo Sakai, a foreign-exchange manager at Tokyo Forex & Ueda Harlow.
Traders also said declines in Asian share markets--with the Benchmark Nikkei 225 Stock Average index down 1.0% in early Tokyo afternoon--chilled risk appetite, causing selling of the euro.
At 0450 GMT, the European single unit slipped almost a yen to Y134.07, from its level in New York on Wednesday. Against the dollar, the currency declined two-thirds of a cent to $1.4837. The pound exchanged hands at Y149.20 and at $1.6513 as of 0450 GMT, down from Y150.68 and $1.6592 overnight.
Attention has now turned to the policy-rate setting meetings of the Bank of England, scheduled for 1200 GMT, and the European Central Bank at 1245 GMT. While the two central banks are expected to keep their policy rates unchanged, traders are focused on whether the BOE will announce an extension of its asset-purchase program.
November 5 2009, 8:50am | Comments »
