Forex Nice

News about the European University of Madrid

2008-08-09T04:21:00.000-07:00

This is the dissemination of news related to FDI unpublished Business School, the business school of the European University of Madrid, which launched a programme to train professionals to optimise resources in all areas of decision by the company.

University, is something very serious because it is vai that define our future, then we must make sure in time to choose the best and most capable university. So I leave a tip to visit this website I am sure that you will not regret is because this university is very suited to meet their main requirements. Visit now even this legal site and have fun with so much culture and information on this wonderful university.

FDI Business School introduced the Master in operation, a program designed to train professionals to optimise resources in all areas of decision by the company Aimed at executives with experience from three to seven years, this Masters looks in form models of efficiency Integral to coordinate operations of all business fields Madrid, July 18, 2008 .- FDI Business School, the School of Business at the European University of Madrid, will launch next October the first edition of the Master in operations. This program aims to offer its students-executives with professional experience of between three and seven years-a vision of all areas of decision by the company, and also enable them to develop a managerial role in the area of operations where leadership teams and mastery of process optimization and new tools, so that the efficiency becomes growth are the key success factors to enhance career in senior management.

Sé analizado en este blog a través de Zync

Get your loan fast

2008-07-17T15:55:00.000-07:00

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Oil Extends Retreat, Buoys USD and Equities

2008-07-17T15:53:00.000-07:00

The dollar rallied across the board in afternoon trading, jumping past the 107-level against the yen and pushing the sterling to 1.9950. Propping the currency higher today was a combination of a better-than-forecasted earnings report from JP Morgan, further pullback in the price of oil to beneath $130 per barrel and a sharply better than expected housing starts report. Given the heightened uncertainty over the stability of the US financial market, earnings reports from JP Morgan and Wells Fargo quelled immediate fears of further rapid deterioration particularly in light of the recent failure by regional bank IndyMac and the turmoil stemming from Freddie Mac and Fannie Mae. Meanwhile, crude oil continued its steep decline, falling by nearly 11% in 3-days to its lowest level since early June at $129.45 per barrel. The major equity bourses lauded the news, with the Dow Jones and Nasdaq both rallying by over 1% by the New York afternoon.The US economic calendar consisted of weekly jobless claims, June housing starts, building permits and the July Philadelphia Fed manufacturing survey. Weekly jobless increased by less than expected to 366k, from 346k a week earlier. Housing starts in June surged by 9.1% to 1.066 million units from 975k units a month earlier in May. Building permits also jumped higher, rising by 11.6% to 1.091 million units, up from 978k units in the previous month. However, the Philadelphia Fed manufacturing survey missed estimates for an improvement to minus 15, instead improving slightly to minus 16.3 from minus 17.1 a month earlier. The employment index deteriorated to -7.3 from -6.9, while the prices paid index spiked to its highest level since March 1980 at 75.6 from 69.3.

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2008-07-17T15:32:00.000-07:00

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2008-07-16T23:38:00.000-07:00

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Greenback Recovers from Record Lows

2008-07-16T23:36:00.000-07:00

The major currencies whipsawed around in the Tuesday session, with the dollar sharply recovering from all-time lows against the euro to bounce back toward the 1.59-level. Heightened risk aversion benefited the yen pairs as the Japanese currency rallied considerably against the euro and sterling amid growing fears of accelerated deterioration in the US economic outlook.In contrast to the Fed's June monetary policy statement, which downplayed the threat of further sharp economic deterioration, Chairman Bernanke said there are "significant downside risks to the outlook for growth", raising fears that the worst for the economy may not have passed. However, he also added that upside risks to the inflation outlook have also intensified. His comments tempered expectations for rate hikes in the near term, as Fed funds futures shifted to pricing an 82% probability for a December rate hike. US economic reports released today included NY Fed manufacturing, PPI, retail sales and business inventories. The NY Fed manufacturing survey improved to -4.92 in July, better than the expected -8.0 from -8.68 a month earlier. The June PPI readings reflected lingering inflationary pressure in the economy, with the headline monthly figure jumping to 1.8% from 1.4%, while core prices held steady at 0.2%. Retail sales were softer than forecast, pointing towards continued consumer retrenchment amid deteriorating sentiment. The headline June retail sales report fell to 0.1%, dropping from 1.0% in May, while the excluding automobiles retail sales figure declined to 0.8%, falling short of calls for a drop to 1.0% from 1.2% in the previous month.

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2008-07-16T23:24:00.000-07:00

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Dollar Rallies amid Further Retreat in Oil

2008-07-16T23:22:00.000-07:00

The dollar extended gains today against the euro and sterling, recovering from previous session's losses to rise toward the 1.58-level versus the euro and beneath 2 against the sterling. The greenback benefited from further declines in crude oil, which lost over $4 to $134.58 per barrel amid softening demand and increased supply as reflected by today's unexpectedly higher EIA oil inventories data. US equities also rallied on a combination falling crude prices and upbeat earnings from Wells Fargo, with the Dow Jones recovering close 2% and the Nasdaq up by nearly 2.75% by the New York afternoon.

CPI Surges, Data Mixed A barrage of US economic reports were released earlier in the session, including CPI, May net long-term TIC flows, industrial production, NAHB housing market index, and the minutes of the Fed's June meeting. Headline consumer prices jumped higher than expected, rising by 1.1%, sharply outpacing calls for a slight increase to 0.7% from 0.6% a month earlier in May, while the annualized figure posted its largest increase in 17 years, to 5.0% from 4.2% a year earlier.

Finish with their debts

2008-07-16T23:08:00.000-07:00

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Dollar Edges Higher on Jawboning

2008-07-16T12:56:00.000-07:00

The dollar edged up higher on Tuesday, rising to 1.5637 versus the euro and 107.51 against the yen as comments from Fed officials added support for the greenback. Economic data released today included pending home sales and wholesale inventories. May pending home sales plunged sharply, down by 4.7% and reversing the 6.3% increase a month earlier. Meanwhile, wholesale inventories was marginally better than forecast at 0.8%, down from 1.3% from April.Traders focused on Fed speak amid a quiet session for US economic reports. Fed Chairman Ben Bernanke propped up the dollar in the morning pledging to extend the duration of facilities for primary dealers beyond year-end, should current unusual and exigent circumstances continue to prevail in dealer funding markets. Bernanke tempered heightened fears stemming from concerns over the solvency of Fannie Mae and Freddie Mac. Hawkish comments from Richmond Fed President Jeffrey Lacker also benefited the dollar, saying the Fed must be prepared to raise rates even if unemployment remains high and growth is still weak. He also added that the Fed must act forcefully if inflation expectations erode and be vigilant of risks associated with persistent high inflation. Lacker said that downside risks to growth have diminished significantly since the start of the year while expectations for future inflation have become untethered. Interestingly, Lacker voted to leave policy unchanged at the Fed's June meeting with Fisher being the sole dissenter, voting for a rate hike in stead. Nonetheless, we expect the FOMC to leave rates unchanged until Q4 given the current economic outlook.

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2008-07-16T12:45:00.000-07:00

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Greenback Recovers from Record Lows

2008-07-16T12:43:00.000-07:00

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2008-07-16T12:20:00.000-07:00

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Greenback Weakens amid Lingering Fears

2008-07-15T20:33:00.001-07:00

The dollar was softer on Thursday, drifting lower to 1.5800 against the euro and 106.69 versus the yen. Fears of °ongoing financial turmoil, as described by Fed Chairman Bernanke in his Congressional testimony, continue to plague the currency. Nonetheless, Treasury Secretary Paulson tried to alleviate fears over the solvency of Fannie Mae and Freddie Mac, reaffirming that both are "adequately capitalized".

The US calendar was light today, with just the release of weekly jobless claims, which unexpectedly improved to 346k, down from 404k a week earlier. Traders will look ahead to tomorrow's May trade deficit and the July University of Michigan consumer sentiment survey, which remains mired near multi-decade lows. The July preliminary survey is seen declining to 55.5 from 56.4, while the expectations component is estimated to fall to 48.0 from 49.2.

Traders will also turn to reports from Canada on Friday, consisting of May trade balance, and the June labor report. The unemployment rate is expected to remain unchanged at 6.1% while the employment change is seen increasing to 10.0k from 8.4k. The trade surplus for May is estimated to decline to C$5.3 billion, from C$5.11 billion a month prior.

ZenniOptical.com A good option for those who want to buy glasses online.

2008-07-15T20:30:00.000-07:00

zennioptical.com is a site that sells stylish sunglasses online. The site has many options for elegant tables, the secret of ZenniOptical.com, the site has the best prices because they sell the glasses directly manufactured by them, then has no intermediary, you buy directly from the manufacturer and a good save money.
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Dollar Recovers on Bailout Plan

2008-07-15T20:28:00.000-07:00

The greenback recovered slightly against the majors, pushing the euro back toward the 1.59-level after dropping to 1.5970 earlier in the session. Amid a dearth of US economic reports, markets digested the government’s plan to rescue Fannie Mae and Freddie Mac, which consists of opening the Fed’s discount window as well as a proposal to purchase their equity. The moves are intended to quell bourgeoning fears over the stability of the financial sector, especially following the failure over the weekend of regional bank IndyMac.

The US economic calendar picks up this week with the releases of several key reports including June retail sales, PPI, business inventories, CPI, TICS, industrial production, housing starts, building permits, and the Philadelphia Fed survey. The data this week are likely to bode poorly for the US economic outlook, with housing continuing to remain weak, inflation creeping higher, and the manufacturing sector softer. The minutes for the Fed’s June meeting, due out on Wednesday, will provide further insight into the deliberations that kept rates unchanged but offered a shift toward a more neutral stance.

Buy now your glasses

2008-07-15T20:27:00.000-07:00

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Greenback Recovers from Record Lows

2008-07-15T20:26:00.000-07:00

The major currencies whipsawed around in the Tuesday session, with the dollar sharply recovering from all-time lows against the euro to bounce back toward the 1.59-level. Heightened risk aversion benefited the yen pairs as the Japanese currency rallied considerably against the euro and sterling amid growing fears of accelerated deterioration in the US economic outlook.

In contrast to the Fed's June monetary policy statement, which downplayed the threat of further sharp economic deterioration, Chairman Bernanke said there are "significant downside risks to the outlook for growth", raising fears that the worst for the economy may not have passed. However, he also added that upside risks to the inflation outlook have also intensified. His comments tempered expectations for rate hikes in the near term, as Fed funds futures shifted to pricing an 82% probability for a December rate hike.

US economic reports released today included NY Fed manufacturing, PPI, retail sales and business inventories. The NY Fed manufacturing survey improved to -4.92 in July, better than the expected -8.0 from -8.68 a month earlier. The June PPI readings reflected lingering inflationary pressure in the economy, with the headline monthly figure jumping to 1.8% from 1.4%, while core prices held steady at 0.2%. Retail sales were softer than forecast, pointing towards continued consumer retrenchment amid deteriorating sentiment. The headline June retail sales report fell to 0.1%, dropping from 1.0% in May, while the excluding automobiles retail sales figure declined to 0.8%, falling short of calls for a drop to 1.0% from 1.2% in the previous month.

Learn about insurance rates for cars

2008-07-14T12:25:00.000-07:00

Learn about insurance rates for cars in a way very quickly and practicing, if you need information on the insurance of your car or any car you need to buy, you just see the car insurance company and you will have all necessary information on and car insurance rates. Today it is necessary under all necessary information on cars because the rates in some cases can be very high and then buying is not in any way to rectify that.
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Learn all about credit card

2008-07-14T12:06:00.000-07:00

Yourcreditnetwork.com is a great site where you can learn all about credit cards, you learn vai its main benefits of having a credit card. With very carefully and you know vai vai be warned about the dangers and about the advantages of having one or more credit card.

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The site addresses and talks about all kinds of credit cards, so much detail, all very well explained and certinho. See also the blog you vai daily Tuesday the latest news on the fantastico world of credit cards.

So if you already have or intend to have a credit card, visit the site before and start to operate with credit cards very tranquilade and security. And then you vai have the latest news and tips on leading credit card in Yourcreditnetwork.com.

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Get a loan now

2008-07-14T11:18:00.000-07:00

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Buy now even your glasses for great prices

2008-07-09T22:04:00.000-07:00

Visit zennioptical.com and even buy one for you glasses with prices starting at $ 8, the site has low prices because all the tables are manufactured by themselves, then it makes the prices very low, even now visit the ZenniOptical. and to choose your model, and among the fashion with nice glasses. Here's another type of glasses.

A great blog for those who like poker

2008-06-22T09:34:00.000-07:00

Today I speak in particular to those who like, wants to play or already played poker.

I speak of a blog about poker which covers such topics:
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2008-06-20T21:05:00.000-07:00

Earfl site is a very practical and useful that you can record your voice online without further complications, just as you connect a number of voice mail and e record in the act. Very easy and anyone can do without difficulties.

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Then it was given the tip, visit the Earfl and have fun with this very wonderful tool.
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SnapBomb a good opportunity for bloggers and advertisers

2008-06-20T20:40:00.000-07:00

Hi personnel so good? I hope so, because today I am talking about a site with two great opportunities: Make money by posting on topics of interest from advertisers or gain publicity and visits by mass advertising your site.

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After register in SnapBomb, just you add their blogs and install a widget, you just wait in e maximum 24 hours and if your blog meet the demands it will be accepted. Once you accept you're looking for advertisers site and handle the opportunities evaluated for you, so do e is the post on the subject and called the expected approval of the advertiser.

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Great Design Exhibition Stands

2008-06-19T23:50:00.000-07:00

Hi personnel so good? I hope so because today I am talking about a site with much to show. Vai Now you know why it is good, the reasons that make the site good is the beautiful designs of exhibitions stands. Bespoke custom built exhibition stands and a site is very interesting because it shows beautiful models of degind stand, worth a lot to give penalty. I particularly liked of all models, and here I speak a little of some interest to me more. Let me begin by the Royal Fleet model that is simply beautiful, because it has an optimal model, beautiful colors and all amenities, this is a model of two floors that looks like a mini castle on its surprising beauty and refinement primeo by her, and besides, everything is very comfortable to organizations and many other things, that model is perfect because it is simply a union of the practitioner with the luxurious.
First Commercial is very beautiful too, mainly by their colors green and white with some black details that I find very beautiful. But clear that the colors are the less, what more important is its small size but does not leave anything to wish for the Royal Fleet, because it knows nothing to be desired? Simply because it is also beautiful and its main feature is the comfort combined with convenience. The name says it all''ja''Commercial Fleet, great event for trade and other issues related to gender.

Then the tip is given, visit today and the Bespoke and custom built exhibition stands is delighted with the beautiful and better models of Design exhibition booths. Vale penalty much to give because they are works of art divine, made with all consumer affection for you and you entrepreneur. Then visit the site and marvel itself with this show of fine Design Exhibition booths.

Thanks for the personal attention and marvel up with beautiful pictures. Johnson a hug.

Dollar Slid after Jump in Unemployment Rate

2008-06-19T16:52:00.002-07:00

The dollar slid across the board after a report showed US unemployment jumped to the highest since 2004. US non-farm payrolls fell 49k in May, in line with the estimate of a 50k loss. However, unemployment rate shot up from 5.1% to 5.5%, the largest month increase since 1986. The report showed the nation’s job market is still very weak and there is no sign that the market will turn in short term. After the report, the euro rose immediately from 1.5580 to 1.57 and extended its gains later. The dollar dropped 1 cent to close to 105.

The euro remained firm on higher expectations for a July rate hike after ECB President Trichet’s ultra hawkish comments yesterday. However, one thing should be aware of is that recent data all pointed to a slowing economy in euro zone. A report released this morning showed Germany industrial output dropped unexpectedly.

Canada job report for May was also released today. Unemployment rate was unchanged at 6.1% and jobs change lowered from 19.2k to 8.4k.

USD Rallies on Jawboning, Housing Data

2008-06-19T16:52:00.001-07:00

The dollar rallied sharply against the majors at the start of the week as traders focused on US economic reports released in the morning, breaking through the 106-level versus the yen. Propping the greenback higher today was an unexpectedly stronger report on pending home sales, prompting speculation that the struggling US housing market may be bottoming. Pending home sales for April surged to 6.3%, far exceeding estimates for an improvement to -0.5% from -1.0% a month earlier.

Key highlights from the US economic calendar include the April trade balance, June consumer sentiment, the Fed’s Beige Book, retail sales, business inventories, and May CPI. Markets will focus closely on the US trade deficit and gauge the impact of soaring energy prices in recent months. Consensus estimates anticipate the deficit to expand to $60.0 billion, up from $58.21 billion from March. Retail sales are seen reversing the 0.2% decline in April, rising by 0.4%. Meanwhile, core retail sales are expected to remain unchanged at 0.5%.

The greenback also found support from US Treasury Secretary Paulson and NY Fed President Geithner, who both left open the option for central bank intervention. Nonetheless, we interpret the risk for government intervention in the currency market to prop up the dollar to be minimal, particularly given its staunch criticism of China’s currency regime.

Dollar Rallies on Bernanke

2008-06-19T16:51:00.000-07:00

Jawboning in recent sessions has propped the greenback sharply higher across the board, with the currency hovering near 107.40 against the yen and 1.5450 versus the euro. The verbal intervention of late consisted of commentary from Fed officials and US Treasury Secretary Paulson, which strongly benefited the dollar in tempering expectations for a continued policy of benign neglect in the currency’s steep declines.

With the G8 Finance Ministers meeting looming, traders will focus closely on any comments hinting at the possibility of concerted intervention by the global central banks. Although intervention remains highly improbable, US Treasury Secretary Paulson yesterday kept that option open if necessary. Paulson addressed the issue of China’s currency today, saying although he believes China needs to allow its currency to strengthen more rapidly, it was not ready for a market determined currency. He also said the dollar should not be the scapegoat for record level oil prices. Meanwhile, US Under Secretary of International Affairs McCormick said no formal discussion of currencies is expected at the G8 meeting this upcoming weekend, but it will likely be mentioned at the meeting. He said that currencies have played a “minor role” in the recent spike in oil prices. McCormick expects it to take some time to work through housing market and capital markets issues, but sees growth to accelerate in the US before year-end.

Fed Chairman Bernanke, in a speech given late Monday evening, all but confirmed that the FOMC will leave policy unchanged barring any unexpected shocks to the financial system with the dangers to a “substantial downturn” in the economy having subsided somewhat and burgeoning upside risks to inflation. Bernanke said “the FOMC will strongly resist an erosion of longer-term inflation expectations, as an unanchoring of those expectations would be destabilizing for growth as well as inflation”. Dallas Fed President Fisher echoed a similar tone today, saying the downside risks facing the US are not as severe as initially feared but will need time to recover. Fisher said the Fed is cognizant of the negative currency feedback loop and that a weaker dollar can lead to further inflationary pressures, which weaken the dollar further. He said that recent survey signals on inflation expectations have not been positive and will not tolerate fuelling inflationary expectations.

Greenback Relinquishes Gains

2008-06-19T16:50:00.002-07:00

The greenback relinquished some of yesterday’s gains versus the euro and yen in the Wednesday session amid a dearth of US economic data. The calendar picks up on Thursday with several key reports including CPI, retail sales, weekly jobless claims and business inventories. The markets remain focused on sentiment over central bank rate decisions as comments from ECB officials continue to point toward at least one more rate hike.

GBP Recovers from Data Triggered Losses

The sterling has clawed back above the 1.96-handle against the dollar and back toward the 0.79-level versus the euro in early New York trading. The pound whipsawed lower overnight following lackluster economic data from the UK, which included the May claimant count, April ILO unemployment rate, and April trade balance. The unemployment claimant count rose to 9.0k in May, exceeding forecasts for 8.0k from 7.2k in April – marking its fourth monthly consecutive rise. The quarterly average earnings report fell to 3.8%, down from 4.0% from the previous year. Meanwhile, the trade deficit in April expanded to 7.594 billion pounds compared with forecasts for the deficit to shrink to 7.35 billion from 7.44 billion pounds in March.

Retail Sales Prop the Dollar

2008-06-19T16:50:00.001-07:00

The greenback extended its gains versus the majors, rallying above the 108-level against the yen and 1.5380 versus the euro. The main catalyst for today’s move was a larger than expected improvement in May retail sales, with the headline reading improving by 1.0%, exceeding calls for a 0.5% increase from a 0.2% decline in April. The excluding autos retail sales jumped to 1.2%, versus estimates for an improvement to 0.7% from 0.5%. Weekly jobless claims crept higher to 384k, versus 357k in the previous week while April business inventories improved to 0.5% from 0.1% a month earlier.

With market sentiment anticipating the FOMC to shift to a tightening bias near the end of the year, traders will continue to closely scrutinize incoming US economic data. Philadelphia Fed President Charles Plosser echoed a similar tone to recent Fed comments, saying the FOMC needs to take preventive measures to ensure that “inflation does not get out of control”. Plosser said the current risk to inflation is serious and the Fed needs to act preemptively to contain it.

Economic data due out on Friday will provide additional clues on how quickly the Fed may need to move to contain inflationary pressures. The May CPI reading is expected to edge up to 0.5% from 0.2% a month earlier, and hold steady at 3.9% from the previous year. Core CPI is forecasted to rise to 0.2% from 0.1% in April and remain unchanged at 2.3% from a year earlier. Traders will also focus on the June University of Michigan consumer sentiment survey, which is expected to slip further to 59.5, versus 59.8 in May – which would be a fresh 18-year low.

USD Supported by Rate Hike Expectations

2008-06-19T16:49:00.001-07:00

The greenback maintained its buoyant tone against the majors at the start of the week, rallying to a fresh 3 ½-month high versus the yen at 108.56 and 1.5348 against the euro. Despite US Treasury Secretary Hank Paulson continuing to talk up the dollar at the meeting, there was no official mention of currencies in the communiqué from the G8 Finance Ministers meeting. Further, there was also no discussion of possible coordinated intervention to prop up the dollar. The primary issue of concern at the meeting was tackling sharp rises in global inflation, particularly rapid increases in the prices for commodities and oil. Nonetheless, the dollar managed to shrug off the lack of mention at the meeting and continues to hold onto its gains.

Economic data released earlier in the session saw the June NY Fed manufacturing survey contract by more than anticipated at minus 8.68, versus expectations for an improvement to minus 2 from minus 3.23 in May. Meanwhile, the April TICS data revealed net capital inflows increasing to $60.6 billion, a sharp reversal from net sales of $48.2 billion in the previous month. The NAHB housing market index fell to 18 in June, down slightly from a reading of 19 in May.

The coming week will see several key economic reports from the US including May PPI, Q1 current account balance, May housing starts, industrial production, capacity utilization, June Philadelphia Fed manufacturing survey, and May leading economic indicators. Inflation is seen creeping higher with PPI expected to edge up to 0.8% in May from .2% a month earlier, while the excluding food and energy PPI is expected to ease to 0.2% from 0.4%. Housing starts are expected to remain weak, at 980k in May and down from 1.03million units from April.

Sterling Slumps on CPI

2008-06-19T16:48:00.000-07:00

The greenback was mixed in Tuesday trading, higher against the yen around the 108-level but giving back some of its gains versus the euro to relinquish the 1.55-level. The economic reports released included May PPI, housing starts, building permits, capacity utilization, and industrial output. May housing starts fell by more than expected to 969k units, versus 1.032 million units a month earlier. Meanwhile, producer prices rose by 1.4% versus 0.2% a month earlier and up to 7.2% compared with 6.5% in the previous year. Industrial output missed calls for an improvement to 0.1% falling by 0.2%, while capacity utilization fell to 79.4% from 79.7% a month earlier.

GBP Lower on Inflation

The sterling fell sharply overnight following the release of May CPI, which prompted a sell-off in the currency to 1.9467 against the dollar and 0.7954 versus the euro. The May CPI figures were slightly higher than forecast at 3.3%, compared with estimates for an increase to 3.2% from 3.0 in the previous year. The monthly figure was also higher than expected at 0.6% versus calls for a larger decline to 0.5% from 0.8% in April. The RPI readings also ticked higher, with the headline May RPI increasing to 4.3% versus 4.2% a year earlier, while easing off to 0.5% from 0.9% a month earlier. The May RPI-x fell to 0.7% from 0.9% in the previous month and climbing to 4.4% compared with 4.0% a year earlier.

GBP Rallies, Oil Retreats

2008-06-19T16:45:00.000-07:00

The greenback edged higher against the euro in the Thursday session rising to 1.5468 on the heels of a pullback in oil prices. Prompting the retreat in oil were reports that China would raise retail prices for gasoline by 17% -- sending contracts for WTI crude to $132.50 per barrel. Nonetheless, the major currency pairs have remained confined within ranges as traders continue to gauge the direction of global interest rate differentials.

With markets largely expecting the ECB to hike rates by 25-basis points in July to 4.25%, the focus will be on the timing of the FOMC’s next move. Fed fund futures are currently pricing in a 50% probability for a 25-basis point rate hike by the August meeting. Meanwhile, the SNB left its monetary policy unchanged when it announced its decision overnight with Bank President Roth saying “there is enough reason to suggest the current inflationary trend is of a transitory nature”.

US economic reports released in the Thursday session included weekly jobless claims, the June Philadelphia Fed survey and May leading indicators. The weekly jobless claims number fell to 381k versus 384k from the previous week while the May leading economic indicators held steady from a month prior at 0.1%. However, the Philadelphia Fed survey reflected continued weakness in manufacturing with the report deteriorating to minus 17.1 and missing estimates for an improvement to minus 12.0 from minus 15.6.

Costa Rica directory. A great option

2008-06-16T14:09:00.000-07:00

Hi, I come today to talk about a great option for budding, traveling or have relatives on the Costa Rica. Ticosland is a great site, because it has several, such as these: SMS Text Messages free for Costa Rica, or better yet, send a fax completely free to you send to Costa Rica.

As we all know that Costa Rica is a beautiful country, worth a lot to learn penalty, I particularly do not know yet but I saw a very beautiful pictures and found one day and want to travel to it.

Costa Rica's Landing Directory is very good for the services of good quality free, and the opportunities for business. It also has a great option of Money Exchange

So is the tip, make the already optimal site TicosLand and you gostara much, mainly porcausa services of great quality and free. You can send sms vai for Costa Rica completely free, it is worth giving.

USD Rallies on Jawboning, Housing Data

2008-06-13T11:03:00.002-07:00

Dollar Rallies on Bernanke

2008-06-13T11:03:00.001-07:00

Greenback Relinquishes Gains

2008-06-13T11:02:00.000-07:00

Retail Sales Prop the Dollar

2008-06-13T10:28:00.000-07:00

Shopping Feedback a great option for saving money

2008-05-29T18:34:00.000-07:00

Hello, I came today to talk about an optimal site about buying, to be more exact a Shopping online. Great for anyone who wants to buy the Internet safely, it'll find great prices, great bid, many products of great quality.
The Main Shopping Feedback is that you can save a lot of money and German, all with many advantages, because you do not have to leave the house, you can buy anything directly from the computer with great quality and very good prices. Among ja at Shopping feedback and start to hold their purchases and want a good save money.
This site really has many advantages because you can buy at any time and any day and the best of everything without leaving home.
the site was optimal and very friendly, was tailored for consumers to feel the will, because the consumer can plan their purchases so easy and totally secure.
Another very good thing of Shopping Feedback is the notices by mail, this means that you need not be seeing any time you have new offerings, you get everything by mail very easily. You will receive the latest news and offers always very practical.
So if you look a Shopping online visit the Mall Feedback with certainty that you like very much and will save money.

Hotéis Chiclana de la Frontera a great option

2008-05-24T18:13:00.000-07:00

Today I will speak of Hotels Chiclana de la Frontera, good Hotels Chiclana de la Frontera is a great option for those who live or for whom this going to Chiclana de la Frontera, is a great option because it is a beautiful city with a wonderful hotel.
Well now I will talk a bit about the town of Chiclana de la Frontera:
It is this region that are the best beaches of the province of Cadiz and the whole of Spain. The city of Chiclana, itself, is about 25 km from the historic city of Cadiz.
Currently, Chiclana has around 75000 inhabitants. The East is the Caño river, which separates San Fernando de Cadiz. The island of Sancti Petri is situated on the Atlantic coast of Chiclana.
The landscape around have abundant vegetation and wildlife indigenous, natural and virgin, formed mostly by pine forests of pine gentle. Note that, without any doubt, the best Spanish beaches are located on the coast of Cadiz, more specifically in Chiclana, Conil, El Palmar, Los Caños, Bolonia and price.
Well then you are the demand of hotels with certainty the hotels chclana de la Frontera are the best with an optimal comfort and optimal price.
To learn more see a little promotional video here.

Sé analizado en este blog a través de Zync

Material Study

2008-05-24T18:08:00.000-07:00

Due to the request of many newcomers who seek me I decided to do this post for help in the search for material of learning.

Where to find ebooks?
A good site is the http://www.4shared.com/

Just look for key words such as "Forex", "Elliot", "Fractal", "Money Management (control of risk)", "psycho cybernetic (subconscious programming)" finally the subject that you best interest to their learning, as I have define an order because their individual needs. Most of the material is in English, but if they make a search may find some courses in Portuguese.

Forex Simple - Practical Guide on Cooling

2008-05-24T18:06:00.000-07:00

Step 1 - Creating a Meta Realizavel

>> It is important to have a clear objective in mind so you can look for means of antigi it. They need to be realizaveis in a defined period of time.
Former Home: Do 50 pips in one week

Remember always: Keep your goal in mind.

Step 2 - Enable Creativity / Imagination (subconscious belief to put data)

This step is important in achieving the goals, that is a fact already proven by science, the subconscious does not know the difference between imagination and reality. So we are a reflection of the way in which we live (both physical and imaginary).

>> ex: If you see the end of the week celebrating his goal made (mental visualization), see the greatest amount of detail possible: what this feeling? what this wearing?
such as the sky? What is this smell in the air? Enjoy the feeling and rejoice now!

Some curiosities about behaviors:

* Too many care generates inhibition and anxiety (this term is known in medical terms as "tremor of purpose." Anyone who tries to anticipate the mistakes and becomes extremely focused on not committing them has resulted inhibition and deteriorating performance. This is a result of excessive negative stimuli in the subconscious. As examples I can cite the fact that some people study for years and the time of proof is a white ... or go for months and the time of the test driver or simply fail to turn the car right ...

* Conditioning - A famous example is the dog of Pavlov, this did an experiment where apertava a bell every time he gave meat to a dog, the dog salivava as a result. After many stimuli has been that whenever Pavlov apertava the bell even without the dog meat salivava.Em our lives we have thousands of bells all the time in making emoçoes try and implementation of actions based on our prior conditioning, even if that makes sense or not. We always obey the bell! (Eg a person with strong stimuli when small-type "care with strangers, do not accept anything from strangers" despite being a form of security for a child is sometimes keeps at later ages creating or inhibited people with difficulty in relationships). One way to break the conditioning is simply ignore the stimulus. Do the test, does not meet the phone when it rings invez to remain in tranquility if that is not possible to delay the response.

* All need to escape from time to time, the nervous system needs freedom and to protect the daily bombardment of stimuli. Images are more expressive than words to the subconscious, then try to have an imaginary place where you can go descançar and get rid of all the issues of life during a time each day (finally meditate a little). Clear your mind of other problems. It's like using a computer must correct the errors before installing a new plug in or there will be remnants of defect in the coming tasks.

Step 3 of - use logical reasoning (to analyse your input and risk)

Look for possible opportunities with good recovery and minimal risk. Put your anxiety and distress before placing the order! After you have placed, relax and enjoy, wait until the next condition of its rules for what to do - Follow your plan! Do not want to invent a new rationale for the movement after having made his move.

Keep in mind that a good system of traders 3 takes into account basic aspects:
-- A good entry;
-- A good exit (not advance so enter must have a rule also to exit);
-- Control of risk (that is knowing when to change lots).

Create a plan based on the strategy that uses that allows you earned for his analysis that the greatest risk, and see if accepting and following its own rules with satisfaction.
The mistake of many is unable to follow own rules.

Step 4 - Create a new achievable goal and make the steps above again.

Why have given so much emphasis on the case of psychological FOREX?

2008-05-24T18:05:00.000-07:00

A brief description of the RAS (Reticular Activation System), it is a formation of nerve cells responsavél the cortical activation and consequent state of wakefulness. According to some theories contemporãneas such as the brain triuno, we have 3 distinct cerébros trained during the development, and a brain reptile (core), a brain mammal (subconscious) and the neo-cortex (primate). The SAR would then located as part of the reptilian brain responsible for survival.

Finally I believe that their function is more important than the theories about their formation. Throughout the day we are bombarded by eddies of stimuli, the function of the SAR is exactly define what incentives will affect us or not.

Here's how it works, for example when you chose to buy a cell of last generation at that time you created a new category in its RAS. Then, suddenly, starts to realize that all people have an equal to his cell or the same ring. Indeed these stimuli always existed, you just do not care because they provided were not part of any category. RAS is like google or Yahoo, search for key words and ignores other results which are not in the category sought.

There are several times that may noticiar its RAS running, as when heard a new song and loved and suddenly it seems that playing in different places from where vai, and different people speak of this music ... The stimulus (music) has always been present, now you understand these incentives more closely after they created a category in its RAS.

The big secret is: you can plan your RAS deliberately choosing clearly that will send messages to their conscious mind. For this there are several methods such as visualization, affirmações, create goals ... Interested in mental strategies will be releasing in the next few posts, just register your email alongside.

Some people have asked me what the usefulness of that information on Forex .... and if that is the case should think about the amount of stimuli that exists in a simple chart ...
"I can not teach anything to anyone, I can only make them think" Socrates

''Who does question can not avoid the answers''

2008-05-24T18:04:00.000-07:00

It is important to highlight the power of questions to obtain good results. Yesterday I had an interesting experience when a friend who participates in the group asked me: "I close the operation now? Is it back?"

I ask: What are the possible answers get these questions?
and these responses are not clearly guiding their results?

The answers to our mind gives us is a function proportional to question.

Many people see with clarity what I'm saying perceive themselves when their questions ... Get well, my friend does not change the results if the same opportunity had been asked for example: How can I take this opportunity in the best possible way? How can I place my stop loss to ensure positive gains to continue in the largest settlement?

The simple question that expose here is that powerful questions generate answers powerful as well as the reverse. If you want to keep better results, ask questions, which manages best answers and will start as soon feel the difference ...

Explanation of strategy martingale

2008-05-24T17:54:00.000-07:00

In the markets, Martingale refers to a type of strategy in which the speculator increases your exposure when the market vai against him. The logic is that the market or an asset will never ever in the same direction for a long time, so increase exposure ensures that the speculator does not need a movement in their favour as large as what was against him. The problem is that the exponential growth of investment, along with the limited resources of those who practice the strategy, ensure a more or less long term that the strategy should take the speculator to ruin. However, it is the kind of strategy that tends to produce many gains before producing a catastrophic loss. Although it is a dangerous strategy can be used to improve its results in forex, if you have a system with a good degree of hits.
português » inglês Traduzir

Bolsa e Inversiones

2008-05-18T15:53:00.000-07:00

Be discussed in this blog through Zync
Hello personnel so good? Today I have come here to talk about the site General Index. Good for this or that wants to enter the branch of bold, investimenos. This blog is very good because Esin you from the beginning to invest in security, or even whether to invest, that helps you win more.
The General Index blog is very good for you to invest in the stock market because it focuses on everything that is necessary to invest in German and all the site has a great visualisação and is very beautiful.
Bags: Many have never heard, but heard some people think it is irrelevant, while others are beginning to invest and some already are good investors. But now I give you the main tip you want to invest in security, Simply visit the blog General Index vai learn everything that is necessary to invest safely and profitably be very safe principal.
Therefore, given this advice to a site and begin General Index in the category that is growing ever more.
After the blog to know with certainty vai learn everything you need to be well sucidió this kind of stock exchanges.
Thank you

DAILY TECHNICAL STRATEGIST

2008-05-13T03:41:00.000-07:00

EURUSD: A third-day of upside recovery was registered on Monday pushing the pair to as high as 1.5559.This is coming on the back of a corrective bounce off the 1.5285 low following its failure to hold below its strong support at the 1.5360/41 area, its May 0208/Mar 2408 lows/.382 Ret (1.4438-1.6018 rally) the past week. The pairs May 0608 high standing at 1.5593 will be targeted on any further strength from its present price levels with a break and hold above there setting the stage for higher prices towards the 1.5710 level, its April 1808 low where a decisive penetration will be required to put the present downside threat on hold and bring more upside gains towards the 1.5895 /me 5912 area, its Mar 3108 /April 1008 highs and then its psycho level/YTD high at 1.6000/18.This view remains in line with its medium and longer term outlooks.However,continued trading at the present levels or even below the 1.5710 level should put pressure on the downside towards the 1.5360/41 zone followed by the 1.5164 level, its .50 Ret (1.4309-1.6018 high) or even lower aiming at its .618 Ret at 1.5048.Daily studies are positive and trending higher supporting this view. On the whole, EUR remains on a recovery path from its recent low at 1.5285 but its short term trend remains to the downside.

Market Moving News: EUR/USD

2008-05-13T03:40:00.000-07:00

Eur/usd - 1.5555...Despite early retreat fm 1.5571 to 1.5507 on selling fm various accounts (incl. Eastern European n Russian names), euro has risen in part due to cross buying vs yen (carry trade demand) n offers at 1.5570/80 (some orders are for profit taking purposes) are in focus. On the downside, a mixture of bids n stops is reported at 1.5490/00 with buying interest also lined up further out around 1.5450...

Inflationary Troubles for Britons

2008-05-13T03:39:00.000-07:00

The consumer price index confirmed yesterday's PPI as the CPI rose 0.8 percent in April the biggest gain in seven years after rising 0.4% the prior month, while compared with a year earlier prices rose 3.0% after rising 2.5% previously according to the National Statistics Office today.

Moreover core CPI rose 1.4% after rising 1.2 percent previously and above the expected 1.3%, another report showed that retail price index rose 0.9% in April after rising 0.3% back in March, while compared with a year earlier prices rose 4.2% after a reported gain of 3.8%.

Another report today showed that home prices in London started to decline to follow the lead of the rest of U.K; this could draw more concerns for the BOE, as the worst housing trouble in U.K since nearly three decades remains a threat to economic growth.

Yet the problem doesn't end here for the BOE, as the U.K credit markets started freezing in an aftermath to the worst financial crisis to hit the U.S economy since the Great Depression back in 1930s, which has spread into U.K money markets, providing a similar situation to that seen in the United States, where banks are reluctant into lending each other and Britons as well

Officials promote dollar recovery

2008-05-13T03:33:00.000-07:00

If the sales data is close to expectations, then official comments on the dollar will be very important for near-term trends

The dollar was unable to break Euro support levels below 1.54 on Monday and weakened steadily back to lows around 1.5570 in New York

There will be further speculation over official efforts to push the US dollar stronger, especially as this will be important in helping trigger a downward correction in oil prices. The comments from US and European officials will remain under close scrutiny in the short term with the EuroGroup finance ministers due to meet on Tuesday.

Any sign of more decisive and aggressive rhetoric in support of the US currency would provide significant dollar support. ECB Chairman Trichet retained a firm tone on interest rates in comments on Monday, although there are some tentative signs that the bank is edging towards a more relaxed stance and the speculation over a policy shift will increase if the Euro-zone economic data deteriorates

The dollar was little changed initially on Tuesday, but with a slightly firmer tone and a test of levels below 1.5480 ahead of the US retail sales data and scheduled comments from Fed officials.

British Pound Grows on April PPI Report

2008-05-13T03:32:00.002-07:00

The Great Britain pound rose today against the U.S. dollar and the euro, partially recovering its losses from the last week, as the record high PPI growth added confidence that the Bank of England will not lower interest rates next time.

The prices for the British long-term securities declined today, while their yields increased, showing a higher inflation pressure for the economy of the United Kingdom.

The country’s producer price index increased 7.5 percent in a year-to-year comparison in April — the highest annual growth in a 24-year period, since the PPI record began. April to March gain in PPI was at 1.4 percent — also a record monthly growth rate.

EUR/GBP had a first significant drop this day since May the 1st as the currency pair declined from Friday’s close level 0.7923 to 0.7889 as of 11:51 GMT. GBP/USD had a first large growth since 30th of April today, it went up from 1.9506 to 1.9578 as of 11:51 GMT.

Dollar Will Lose 11% to Yuan in 2008

2008-05-13T03:32:00.001-07:00

According to the research paper, released by United Overseas Bank Ltd., the yuan has a strong chance to appreciate further this year to the total of 11 percent gain against the U.S. dollar in 2008.

The Chinese currency has rose 4.3 percent up this year already, as the government used yuan to fight the accelerating inflation. Suan Teck Kin of United Overseas Bank confirmed in an interview today the statement from the research paper — PBoC will strengthen the yuan by about 7 percent before the year’s end:

The yuan is the now the most effective tool that the PBOC has to tackle inflation and trade imbalances.

Yuan may start to rise soon again, even before the Strategic Economic Dialogue between the U. S. Treasury and Chinese officials in June. Then there will probably be a pause during the Beijing Olympics, after which the currency may continue its gaining curve.

The renminbi (another name for the Chinese yuan) stopped appreciating in April and is still trading below its maximum levels — USD/CNY rate closed at 6.9940 today. UOB is expecting this rate to reach 6.6 by the end of the year.

This entry was posted on Tuesday, May 13th, 2008 at 10:47 am and is filed under Chinese Yuan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Forex: The Conclusion

2008-05-12T10:44:00.001-07:00

While this tutorial only represents a fraction of all there is to know about forex, we hope that you've gained some insight into this topic. We also encourage those of you who are interested in potentially trading in the forex market to learn more about the complexities and intricacies that make this market unique.

Let's recap:

* The forex market represents the electronic over-the-counter markets where currencies are traded worldwide 24 hours a day, five and a half days a week. The typical means of trading forex are on the spot, futures and forwards markets.
* Currencies are "priced" in currency pairs and are quoted either directly or indirectly.
* Currencies typically have two prices: bid (the amount that the market will buy the quote currency for in relation to the base currency); and ask (the amount the market will sell one unit of the base currency for in relation to the quote currency). The bid price is always smaller than the ask price.
* Unlike conventional equity and debt markets, forex investors have access to large amounts of leverage, which allows substantial positions to be taken without making a large initial investment.
* The adoption and elimination of several global currency systems over time led to the formation of the present currency exchange system, in which most countries use some measure of floating exchange rates.
* Governments, central banks, banks and other financial institutions, hedgers, and speculators are the main players in the forex market.
* The main economic theories found in the foreign exchange deal with parity conditions such as those involving interest rates and inflation. Overall, a country's qualitative and quantitative factors are seen as large influences on its currency in the forex market.
* Fundamental analysis forex traders view currencies and their countries like companies, thereby using economic data to gain an idea of the currency's true value.
* Technical analysis forex traders look at currencies no differently than any other asset and, therefore, use technical tools such as trends, charts and indicators in their trading strategies.
* Unlike stock trades, forex trades have minimal commissions and related fees. But new traders should take a conservative approach and use orders, such as the take-profit or stop-loss, to minimize losses.

Forex: Ready To Trade?

2008-05-12T10:43:00.002-07:00

So, you think you are ready to trade? Make sure you read this section to learn how you can go about setting up an account to trade in the forex along with what factors you should be aware of before you take this step. We will then discuss how to trade and the different types of orders that can be placed.

Opening A Forex Brokerage Account
Trading the forex is similar to the equity market because individuals interested in trading need to open up an account. Like the equity market, each forex account and the services it provides differ, so it is important that you find the right one. Below we will talk about some of the factors that should be considered when selecting a forex account.

Leverage
Leverage is basically the ability to control large amounts of capital, using very little of your own capital; the higher the leverage, the higher the level of risk. The amount of leverage on an account differs depending on the account itself, but most use a factor of at least 50:1, with some being as high as 250:1. A leverage factor of 50:1 means that for every dollar you have in your account you control up to $50. For example, if a trader has $1,000 in his or her account, the broker will lend that person $50,000 to trade in the market. This leverage also makes your margin, or the amount you have to have in the account to trade a certain amount, very low. In equities, margin is usually at least 50%, while the leverage of 50:1 is equivalent to 2%.

Leverage is seen as a major benefit of the forex, as it allows you to make large gains with a small investment. However, leverage can also be an extreme negative if a trade moves against you because your losses also are amplified by the leverage. With this kind of leverage, there is the real possibility that you can lose more than you invested - although most firms have protective stops preventing an account from going negative. For this reason, it is vital that you remember this when opening an account and that when you determine your desired leverage you understand the risks involved.

Commissions and Fees
Another major benefit of forex accounts is that trading within them is done on a commission-free basis. This is unlike equity accounts, in which you pay the broker a fee for each trade. The reason for this is that you are dealing directly with market makers and do not have to go through other parties like brokers.

This may sound too good to be true, but rest assured that market makers are still making money each time you trade. Remember the bid and ask from the previous section? Each time a trade is made, it is the market makers that capture the spread between these two. Therefore, if the bid/ask for a currency is 1.5200/50, the market maker captures the difference (50 basis points).

If you are planning on opening a forex account, it is important to know that each firm has different spreads on currency pairs traded through them. While they will often differ by only a few pips (0.0001), this can be meaningful if you trade a lot over time. So when opening an account make sure to find out the pip spread that it has on currency pairs you are looking to trade.

Other Factors
There are a lot of differences between each forex firm and the accounts they offer, so it is important to review each before making a commitment. Each company will offer different levels of services and programs along with fees above and beyond actual trading costs. Also, due to the less regulated nature of the forex market, it is important to go with a reputable company. (For more information on what to look for when opening an account, read Wading Into The Currency Market. If you are not ready to open a "real money" account but want to try your hand at forex trading, read Demo Before You Dive In.)

How to Trade
Now that you know some important factors to be aware of when opening a forex account, we will take a look at what exactly you can trade within that account. The two main ways to trade the currency market is the simple buying and selling of currency pairs, where you go long one currency and short another. The second way is through the purchasing of derivatives that track the movements of a specific currency pair. Both of these techniques are highly similar to techniques in the equities market.The most common way is to simply buy and sell currency pairs, much in the same way most individuals buy and sell stocks. In this case, you are hoping the value of the pair itself changes in a favorable manner. If you go long a currency pair, you are hoping that the value of the pair increases. For example, let's say that you took a long position in the USD/CAD pair - you will make money if the value of this pair goes up, and lose money if it falls. This pair rises when the U.S. dollar increases in value against the Canadian dollar, so it is a bet on the U.S. dollar.

The other option is to use derivative products, such as options and futures, to profit from changes in the value of currencies. If you buy an option on a currency pair, you are gaining the right to purchase a currency pair at a set rate before a set point in time. A futures contract, on the other hand, creates the obligation to buy the currency at a set point in time. Both of these trading techniques are usually only used by more advanced traders, but it is important to at least be familiar with them. (For more on this, try Getting Started in Forex Options and our tutorials, Option Spread Strategies and Options Basics Tutorial.)

Types of Orders
A trader looking to open a new position will likely use either a market order or a limit order. The incorporation of these order types remains the same as when they are used in the equity markets. A market order gives a trader the ability to obtain the asset at whatever price it is currently trading at in the market, while a limit order allows the trader to specify a certain entry price. (For a brief refresher of these orders, see The Basics of Order Entry.)

For traders that already hold an open position, a take-profit order can be used to lock in profit. Say, for example, that a trader is confident that the GBP/USD rate will reach 1.7800, but is not as sure that the rate could climb any higher. A trader could use a take-profit order, which would automatically close his or her position when the rate reaches 1.7800, locking in their profits.

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Another tool that can be used when traders hold open positions is the stop-loss order. This order allows traders to determine how much the rate can decline before the position is closed and further losses are accumulated. Therefore, if the GBP/USD rate begins to drop, an investor can place a stop-loss that will close the position (for example at 1.7787), in order to prevent any further losses.

As you can see, the type of orders that you can enter in your forex account are similar to those found in equity accounts. Having a good understanding of these orders is critical before placing your first trade.

If you want to read more, see these frequently asked questions How does the forex market trade 24 hours a day?, Why is currency always quoted in pairs? and What is the value of one pip and why are they different between currency pairs?

Forex: Technical Analysis

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One of the underlying tenets of technical analysis is that historical price action predicts future price action. Since the forex is a 24-hour market, there tends to be a large amount of data that can be used to gauge future price activity, thereby increasing the statistical significance of the forecast. This makes it the perfect market for traders that use technical tools, such as trends, charts and indicators. (To learn more, see Introduction to Technical Analysis and Charting Your Way To Better Returns.)

It is important to note that, in general, the interpretation of technical analysis remains the same regardless of the asset being monitored. There are literally hundreds of books dedicated to this field of study, but in this tutorial we will only touch on the basics of why technical analysis is such a popular tool in the forex market.

As the specific techniques of technical analysis are discussed in other tutorials, we will focus on the more forex-specific aspects of technical analysis.

Technical Analysis Discounts Everything; Especially in Forex
Minimal Rate Inconsistency
There are many large players in the forex market, such as hedge funds and large banks, that all have advanced computer systems to constantly monitor any inconsistencies between the different currency pairs. Given these programs, it is rare to see any major inconsistency last longer than a matter of seconds. Many traders turn to technical analysis because it presumes that all the factors that influence a price - economic, political, social and psychological - have already been factored into the current exchange rate by the market. With so many investors and so much money exchanging hands each day, the trend and flow of capital is what becomes important, rather than attempting to identify a mispriced rate.

Trend or Range
One of the greatest goals of technical traders in the FX market is to determine whether a given pair will trend in a certain direction, or if it will travel sideways and remain range-bound. The most common method to determine these characteristics is to draw trend lines that connect historical levels that have prevented a rate from heading higher or lower. These levels of support and resistance are used by technical traders to determine whether or not the given trend, or lack of trend, will continue.

Generally, the major pairs - such as the EUR/USD, USD/JPY, USD/CHF and GBP/USD - have shown the greatest characteristics of trend, while the currency pairs that have historically shown a higher probability of becoming range-bound have been the currency crosses (pairs not involving the U.S. dollar). The two charts below show the strong trending nature of USD/JPY in contrast to the range-bound nature of EUR/CHF. It is important for every trader to be aware of the characteristics of trend and range, because they will not only affect what pairs are traded, but also what type of strategy should be used. (To learn more about this subject, see Trading Trend Or Range?)

Graph created by E-Signal.
Figure 1

Graph created by E-Signal.
Figure 2

Common Indicators
Technical traders use many different indicators in combination with support and resistance to aid them in predicting the future direction of exchange rates. Again, learning how to interpret various technical indicators is a study unto itself and goes beyond the scope of this tutorial. If you wish to learn more about this subject, we suggest you read our technical analysis tutorial.

A few indicators that we feel we should mention, due to their popularity, are: Bollinger bands, Fibonacci retracement, moving averages, moving average convergence divergence (MACD) and stochastics. These technical tools are rarely used by themselves to generate signals, but rather in conjunction with other indicators and chart patterns.

For more on technical analysis and the forex, take a look at the following articles: Using Bollinger Band "Bands" To Gauge Trends, Trading Double Tops And Double Bottoms, Introducing The Bearish Diamond Formation, Keep An Eye On Momentum and Consolidation - Trade The Calm, Profit From The Storm.

Forex: Fundamental Trading Strategies

2008-05-12T10:42:00.002-07:00

In the equities market, fundamental analysis looks to measure a company's true value and to base investments upon this type of calculation. To some extent, the same is done in the forex, where fundamental traders evaluate currencies, and their countries, like companies and use economic data to gain an idea of the currency’s true value.

All of the news reports, economic data and political events that come out about a country are similar to news that comes out about a stock in that it is used by investors to gain an idea of value. This value changes over time due to many factors, including economic growth and financial strength. Fundamental traders look at all of this information to evaluate a country's currency.

Given that there are practically unlimited fundamental trading strategies based on fundamental data, one could write a book on this subject. To give you a better idea of a tangible trading opportunity, let’s go over one of the most well-known situations, the carry trade. (To read some frequently asked questions about currency trading, see Common Questions About Currency Trading.)

A Breakdown of the Carry Trade
The carry trade is a strategy in which a trader sells a currency that is offering lower interest rates and purchases a currency that offers a higher interest rate. In other words, you borrow at a low rate, and then lend at a higher rate. The trader using the strategy captures the difference between the two rates. When highly leveraging the trade, even a small difference between two rates can make the trade highly profitable. Along with capturing the rate difference, investors also will often see the value of the higher currency rise as money flows into the higher-yielding currency, which bids up its value.

Real-life examples of a carry trade can be found starting in 1999, when Japan decreased its interest rates to almost zero. Investors would capitalize upon these lower interest rates and borrow a large sum of Japanese yen. The borrowed yen is then converted into U.S. dollars, which are used to buy U.S. Treasury bonds with yields and coupons at around 4.5-5%. Since the Japanese interest rate was essentially zero, the investor would be paying next to nothing to borrow the Japanese yen and earn almost all the yield on his or her U.S. Treasury bonds. But with leverage, you can greatly increase the return.

For example, 10 times leverage would create a return of 30% on a 3% yield. If you have $1,000 in your account and have access to 10 times leverage, you will control $10,000. If you implement the carry trade from the example above, you will earn 3% per year. At the end of the year, your $10,000 investment would equal $10,300, or a $300 gain. Because you only invested $1,000 of your own money, your real return would be 30% ($300/$1,000). However this strategy only works if the currency pair’s value remains unchanged or appreciates. Therefore, most carry traders look not only to earn the interest rate differential, but also capital appreciation. While we’ve greatly simplified this transaction, the key thing to remember here is that a small difference in interest rates can result in huge gains when leverage is applied. Most currency brokers require a minimum margin to earn interest for carry trades.

However, this transaction is complicated by changes to the exchange rate between the two countries. If the lower-yielding currency appreciates against the higher-yielding currency, the gain earned between the two yields could be eliminated. The major reason that this can happen is that the risks of the higher-yielding currency are too much for investors, so they choose to invest in the lower-yielding, safer currency. Because carry trades are longer term in nature, they are susceptible to a variety of changes over time, such as rising rates in the lower-yielding currency, which attracts more investors and can lead to currency appreciation, diminishing the returns of the carry trade. This makes the future direction of the currency pair just as important as the interest rate differential itself. (To read more about currency pairs, see Using Currency Correlations To Your Advantage, Making Sense Of The Euro/Swiss Franc Relationship and Forces Behind Exchange Rates.)

Forex: Economic Theories and Data

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There is a great deal of academic theory revolving around currencies. While often not applicable directly to day-to-day trading, it is helpful to understand the overarching ideas behind the academic research.

The main economic theories found in the foreign exchange deal with parity conditions. A parity condition is an economic explanation of the price at which two currencies should be exchanged, based on factors such as inflation and interest rates. The economic theories suggest that when the parity condition does not hold, an arbitrage opportunity exists for market participants. However, arbitrage opportunities, as in many other markets, are quickly discovered and eliminated before even giving the individual investor an opportunity to capitalize on them. Other theories are based on economic factors such as trade, capital flows and the way a country runs its operations. We review each of them briefly below.

Major Theories: Purchasing Power Parity
Purchasing Power Parity (PPP) is the economic theory that price levels between two countries should be equivalent to one another after exchange-rate adjustment. The basis of this theory is the law of one price, where the cost of an identical good should be the same around the world. Based on the theory, if there is a large difference in price between two countries for the same product after exchange rate adjustment, an arbitrage opportunity is created, because the product can be obtained from the country that sells it for the lowest price.

The relative version of PPP is as follows:

Where 'e' represents the rate of change in the exchange rate and 'π1' and 'π2'represent the rates of inflation for country 1 and country 2, respectively.

For example, if the inflation rate for country XYZ is 10% and the inflation for country ABC is 5%, then ABC's currency should appreciate 4.76% against that of XYZ.

Interest Rate Parity
The concept of Interest Rate Parity (IRP) is similar to PPP, in that it suggests that for there to be no arbitrage opportunities, two assets in two different countries should have similar interest rates, as long as the risk for each is the same. The basis for this parity is also the law of one price, in that the purchase of one investment asset in one country should yield the same return as the exact same asset in another country; otherwise exchange rates would have to adjust to make up for the difference.

The formula for determining IRP can be found by:

Where 'F' represents the forward exchange rate; 'S' represents the spot exchange rate; 'i1' represents the interest rate in country 1; and 'i2' represents the interest rate in country 2.

International Fisher Effect
The International Fisher Effect (IFE) theory suggests that the exchange rate between two countries should change by an amount similar to the difference between their nominal interest rates. If the nominal rate in one country is lower than another, the currency of the country with the lower nominal rate should appreciate against the higher rate country by the same amount.

The formula for IFE is as follows:

Where 'e' represents the rate of change in the exchange rate and 'i1' and 'i2'represent the rates of inflation for country 1 and country 2, respectively.

Balance of Payments Theory
A country's balance of payments is comprised of two segments - the current account and the capital account - which measure the inflows and outflows of goods and capital for a country. The balance of payments theory looks at the current account, which is the account dealing with trade of tangible goods, to get an idea of exchange-rate directions.

If a country is running a large current account surplus or deficit, it is a sign that a country's exchange rate is out of equilibrium. To bring the current account back into equilibrium, the exchange rate will need to adjust over time. If a country is running a large deficit (more imports than exports), the domestic currency will depreciate. On the other hand, a surplus would lead to currency appreciation.

The balance of payments identity is found by:

Where BCA represents the current account balance; BKA represents the capital account balance; and BRA represents the reserves account balance.

Real Interest Rate Differentiation Model
The Real Interest Rate Differential Model simply suggests that countries with higher real interest rates will see their currencies appreciate against countries with lower interest rates. The reason for this is that investors around the world will move their money to countries with higher real rates to earn higher returns, which bids up the price of the higher real rate currency.

Asset Market Model
The Asset Market Model looks at the inflow of money into a country by foreign investors for the purpose of purchasing assets such as stocks, bonds and other financial instruments. If a country is seeing large inflows by foreign investors, the price of its currency is expected to increase, as the domestic currency needs to be purchased by these foreign investors. This theory considers the capital account of the balance of trade compared to the current account in the prior theory. This model has gained more acceptance as the capital accounts of countries are starting to greatly outpace the current account as international money flow increases.

Monetary Model
The Monetary Model focuses on a country's monetary policy to help determine the exchange rate. A country's monetary policy deals with the money supply of that country, which is determined by both the interest rate set by central banks and the amount of money printed by the treasury. Countries that adopt a monetary policy that rapidly grows its monetary supply will see inflationary pressure due to the increased amount of money in circulation. This leads to a devaluation of the currency.

These economic theories, which are based on assumptions and perfect situations, help to illustrate the basic fundamentals of currencies and how they are impacted by economic factors. However, the fact that there are so many conflicting theories indicates the difficulty in any one of them being 100% accurate in predicting currency fluctuations. Their importance will likely vary by the different market environment, but it is still important to know the fundamental basis behind each of the theories.

Economic Data
Economic theories may move currencies in the long term, but on a shorter-term, day-to-day or week-to-week basis, economic data has a more significant impact. It is often said the biggest companies in the world are actually countries and that their currency is essentially shares in that country. Economic data, such as the latest gross domestic product (GDP) numbers, are often considered to be like a company's latest earnings data. In the same way that financial news and current events can affect a company's stock price, news and information about a country can have a major impact on the direction of that country's currency. Changes in interest rates, inflation, unemployment, consumer confidence, GDP, political stability etc. can all lead to extremely large gains/losses depending on the nature of the announcement and the current state of the country.

The number of economic announcements made each day from around the world can be intimidating, but as one spends more time learning about the forex market it becomes clear which announcements have the greatest influence. Listed below are a number of economic indicators that are generally considered to have the greatest influence - regardless of which country the announcement comes from.

Employment Data
Most countries release data about the number of people that currently are employed within that economy. In the U.S., this data is known as non-farm payrolls and is released the first Friday of the month by the Bureau of Labor Statistics. In most cases, strong increases in employment signal that a country enjoys a prosperous economy, while decreases are a sign of potential contraction. If a country has gone recently through economic troubles, strong employment data could send the currency higher because it is a sign of economic health and recovery. On the other hand, high employment can also lead to inflation, so this data could send the currency downward. In other words, economic data and the movement of currency will often depend on the circumstances that exist when the data is released.

Interest Rates
As was seen with some of the economic theories, interest rates are a major focus in the forex market. The most focus by market participants, in terms of interest rates, is placed on the country's central bank changes of its bank rate, which is used to adjust monetary supply and institute the country's monetary policy. In the U.S., the Federal Open Market Committee (FOMC) determines the bank rate, or the rate at which commercial banks can borrow and lend to the U.S. Treasury. The FOMC meets eight times a year to make decisions on whether to raise, lower or leave the bank rate the same; and each meeting, along with the minutes, is a point of focus. (For more on central banks read Get to Know the Major Central Banks.)

Inflation
Inflation data measures the increases and decreases of price levels over a period of time. Due to the sheer amount of goods and services within an economy, a basket of goods and services is used to measure changes in prices. Price increases are a sign of inflation, which suggests that the country will see its currency depreciate. In the U.S., inflation data is shown in the Consumer Price Index, which is released on a monthly basis by the Bureau of Labor Statistics.

Gross Domestic Product
The gross domestic product of a country is a measure of all of the finished goods and services that a country generated during a given period. The GDP calculation is split into four categories: private consumption, government spending, business spending and total net exports. GDP is considered the best overall measure of the health of a country's economy, with GDP increases signaling economic growth. The healthier a country's economy is, the more attractive it is to foreign investors, which in turn can often lead to increases in the value of its currency, as money moves into the country. In the U.S., this data is released by the Bureau of Economic Analysis once a month in the third or fourth quarter of the month.

Retail Sales
Retail sales data measures the amount of sales that retailers make during the period, reflecting consumer spending. The measure itself doesn't look at all stores, but, similar to GDP, uses a group of stores of varying types to get an idea of consumer spending. This measure also gives market participants an idea of the strength of the economy, where increased spending signals a strong economy. In the U.S., the Department of Commerce releases data on retail sales around the middle of the month.

Forex: History and Market Participants

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Given the global nature of the forex market, it is important to first examine and learn some of the important historical events relating to currencies and currency exchange before entering any trades. In this section we’ll review the international monetary system and how it has evolved to its current state. We will then take a look at the major players that occupy the forex market - something that is important for all potential forex traders to understand.

The History of the Forex
Gold Standard System
The creation of the gold standard monetary system in 1875 marks one of the most important events in the history of the forex market. Before the gold standard was implemented, countries would commonly use gold and silver as means of international payment. The main issue with using gold and silver for payment is that their value is affected by external supply and demand. For example, the discovery of a new gold mine would drive gold prices down.

The underlying idea behind the gold standard was that governments guaranteed the conversion of currency into a specific amount of gold, and vice versa. In other words, a currency would be backed by gold. Obviously, governments needed a fairly substantial gold reserve in order to meet the demand for exchanges. During the late nineteenth century, all of the major economic countries had defined an amount of currency to an ounce of gold. Over time, the difference in price of an ounce of gold between two currencies became the exchange rate for those two currencies. This represented the first standardized means of currency exchange in history.

The gold standard eventually broke down during the beginning of World War I. Due to the political tension with Germany, the major European powers felt a need to complete large military projects. The financial burden of these projects was so substantial that there was not enough gold at the time to exchange for all the excess currency that the governments were printing off.

Although the gold standard would make a small comeback during the inter-war years, most countries had dropped it again by the onset of World War II. However, gold never ceased being the ultimate form of monetary value. (For more on this, read The Gold Standard Revisited, What Is Wrong With Gold? and Using Technical Analysis In The Gold Markets.)

Bretton Woods System
Before the end of World War II, the Allied nations believed that there would be a need to set up a monetary system in order to fill the void that was left behind when the gold standard system was abandoned. In July 1944, more than 700 representatives from the Allies convened at Bretton Woods, New Hampshire, to deliberate over what would be called the Bretton Woods system of international monetary management.

To simplify, Bretton Woods led to the formation of the following:

1. A method of fixed exchange rates;
2. The U.S. dollar replacing the gold standard to become a primary reserve currency; and
3. The creation of three international agencies to oversee economic activity: the International Monetary Fund (IMF), International Bank for Reconstruction and Development, and the General Agreement on Tariffs and Trade (GATT).

One of the main features of Bretton Woods is that the U.S. dollar replaced gold as the main standard of convertibility for the world’s currencies; and furthermore, the U.S. dollar became the only currency that would be backed by gold. (This turned out to be the primary reason that Bretton Woods eventually failed.)

Over the next 25 or so years, the U.S. had to run a series of balance of payment deficits in order to be the world’s reserved currency. By the early 1970s, U.S. gold reserves were so depleted that the U.S. treasury did not have enough gold to cover all the U.S. dollars that foreign central banks had in reserve.

Finally, on August 15, 1971, U.S. President Richard Nixon closed the gold window, and the U.S. announced to the world that it would no longer exchange gold for the U.S. dollars that were held in foreign reserves. This event marked the end of Bretton Woods.

Even though Bretton Woods didn’t last, it left an important legacy that still has a significant effect on today’s international economic climate. This legacy exists in the form of the three international agencies created in the 1940s: the IMF, the International Bank for Reconstruction and Development (now part of the World Bank) and GATT, the precursor to the World Trade Organization. (To learn more about Bretton Wood, read What Is The International Monetary Fund? and Floating And Fixed Exchange Rates.)

Current Exchange System
After the Bretton Woods system broke down, the world finally accepted the use of floating foreign exchange rates during the Jamaica agreement of 1976. This meant that the use of the gold standard would be permanently abolished. However, this is not to say that governments adopted a pure free-floating exchange rate system. Most governments employ one of the following three exchange rate systems that are still used today:

1. Dollarization;
2. Pegged rate; and
3. Managed floating rate.

Dollarization
This event occurs when a country decides not to issue its own currency and adopts a foreign currency as its national currency. Although dollarization usually enables a country to be seen as a more stable place for investment, the drawback is that the country’s central bank can no longer print money or make any sort of monetary policy. An example of dollarization is El Salvador's use of the U.S. dollar. (To read more, see Dollarization Explained.)

Pegged Rates
Pegging occurs when one country directly fixes its exchange rate to a foreign currency so that the country will have somewhat more stability than a normal float. More specifically, pegging allows a country’s currency to be exchanged at a fixed rate with a single or a specific basket of foreign currencies. The currency will only fluctuate when the pegged currencies change.

For example, China pegged its yuan to the U.S. dollar at a rate of 8.28 yuan to US$1, between 1997 and July 21, 2005. The downside to pegging would be that a currency’s value is at the mercy of the pegged currency’s economic situation. For example, if the U.S. dollar appreciates substantially against all other currencies, the yuan would also appreciate, which may not be what the Chinese central bank wants.

Managed Floating Rates
This type of system is created when a currency’s exchange rate is allowed to freely change in value subject to the market forces of supply and demand. However, the government or central bank may intervene to stabilize extreme fluctuations in exchange rates. For example, if a country’s currency is depreciating far beyond an acceptable level, the government can raise short-term interest rates. Raising rates should cause the currency to appreciate slightly; but understand that this is a very simplified example. Central banks typically employ a number of tools to manage currency.

Market Participants
Unlike the equity market - where investors often only trade with institutional investors (such as mutual funds) or other individual investors - there are additional participants that trade on the forex market for entirely different reasons than those on the equity market. Therefore, it is important to identify and understand the functions and motivations of the main players of the forex market.

Governments and Central Banks
Arguably, some of the most influential participants involved with currency exchange are the central banks and federal governments. In most countries, the central bank is an extension of the government and conducts its policy in tandem with the government. However, some governments feel that a more independent central bank would be more effective in balancing the goals of curbing inflation and keeping interest rates low, which tends to increase economic growth. Regardless of the degree of independence that a central bank possesses, government representatives typically have regular consultations with central bank representatives to discuss monetary policy. Thus, central banks and governments are usually on the same page when it comes to monetary policy.

Central banks are often involved in manipulating reserve volumes in order to meet certain economic goals. For example, ever since pegging its currency (the yuan) to the U.S. dollar, China has been buying up millions of dollars worth of U.S. treasury bills in order to keep the yuan at its target exchange rate. Central banks use the foreign exchange market to adjust their reserve volumes. With extremely deep pockets, they yield significant influence on the currency markets.

Banks and Other Financial Institutions
In addition to central banks and governments, some of the largest participants involved with forex transactions are banks. Most individuals who need foreign currency for small-scale transactions deal with neighborhood banks. However, individual transactions pale in comparison to the volumes that are traded in the interbank market.

The interbank market is the market through which large banks transact with each other and determine the currency price that individual traders see on their trading platforms. These banks transact with each other on electronic brokering systems that are based upon credit. Only banks that have credit relationships with each other can engage in transactions. The larger the bank, the more credit relationships it has and the better the pricing it can access for its customers. The smaller the bank, the less credit relationships it has and the lower the priority it has on the pricing scale.

Banks, in general, act as dealers in the sense that they are willing to buy/sell a currency at the bid/ask price. One way that banks make money on the forex market is by exchanging currency at a premium to the price they paid to obtain it. Since the forex market is a decentralized market, it is common to see different banks with slightly different exchange rates for the same currency.

Hedgers
Some of the biggest clients of these banks are businesses that deal with international transactions. Whether a business is selling to an international client or buying from an international supplier, it will need to deal with the volatility of fluctuating currencies.

If there is one thing that management (and shareholders) detest, it is uncertainty. Having to deal with foreign-exchange risk is a big problem for many multinationals. For example, suppose that a German company orders some equipment from a Japanese manufacturer to be paid in yen one year from now. Since the exchange rate can fluctuate wildly over an entire year, the German company has no way of knowing whether it will end up paying more euros at the time of delivery.

One choice that a business can make to reduce the uncertainty of foreign-exchange risk is to go into the spot market and make an immediate transaction for the foreign currency that they need.

Unfortunately, businesses may not have enough cash on hand to make spot transactions or may not want to hold massive amounts of foreign currency for long periods of time. Therefore, businesses quite frequently employ hedging strategies in order to lock in a specific exchange rate for the future or to remove all sources of exchange-rate risk for that transaction.

For example, if a European company wants to import steel from the U.S., it would have to pay in U.S. dollars. If the price of the euro falls against the dollar before payment is made, the European company will realize a financial loss. As such, it could enter into a contract that locked in the current exchange rate to eliminate the risk of dealing in U.S. dollars. These contracts could be either forwards or futures contracts.

Forex: Benefits and Risks

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In this section, we'll take a look at some of the benefits and risks associated with the forex market. We'll also discuss how it differs from the equity market in order to get a greater understanding of how the forex market works.

The Good and the Bad
We already have mentioned that factors such as the size, volatility and global structure of the forex market have all contributed to its rapid success. Given the highly liquid nature of this market, investors are able to place extremely large trades without affecting any given exchange rate. These large positions are made available to traders because of the low margin requirements used by the majority of the industry's brokers. For example, it is possible for an investor to control a position of US$100,000 by putting down as little as US$1,000 up front and borrowing the remainder from his or her broker. This amount of leverage acts as a double-edged sword because investors can realize large gains when rates make a small favorable change, but they also run the risk of a massive loss when the rates move against them. Despite the risks, the amount of leverage available in the forex market is what makes it attractive for many speculators.

The currency market is also the only market that is truly open 24 hours a day with decent liquidity throughout the day. For traders who may have a day job or just a busy schedule, it is an optimal market to trade in. As you can see from the chart below, the major trading hubs are spread throughout many different time zones, eliminating the need to wait for an opening or closing bell. As the U.S. trading closes, other markets in the East are opening, making it possible to trade at any time during the day.

Time Zone Time (ET)
Tokyo Open 7:00 pm
Tokyo Close 4:00 am
London Open 3:00 am
London Close 12:00 pm
New York Open 8:00 am
New York Close 5:00 pm

While the forex market may offer more excitement to the investor, the risks are also higher in comparison to trading equities. The ultra-high leverage of the forex market means that huge gains can quickly turn to damaging losses and can wipe out the majority of your account in a matter of minutes. This is important for all new traders to understand, because in the forex market - due to the large amount of money involved and the number of players - traders will react quickly to information released into the market, leading to sharp moves in the price of the currency pair.

Though currencies don't tend to move as sharply as equities on a percentage basis (where a company's stock can lose a large portion of its value in a matter of minutes after a bad announcement), it is the leverage in the spot market that creates the volatility. For example, if you are using 100:1 leverage on $1,000 invested, you control $100,000 in capital. If you put $100,000 into a currency and the currency's price moves 1% against you, the value of the capital will have decreased to $99,000 - a loss of $1,000, or all of your invested capital, representing a 100% loss. In the equities market, most traders do not use leverage, therefore a 1% loss in the stock's value on a $1,000 investment, would only mean a loss of $10. Therefore, it is important to take into account the risks involved in the forex market before diving in.

Differences Between Forex and Equities
A major difference between the forex and equities markets is the number of traded instruments: the forex market has very few compared to the thousands found in the equities market. The majority of forex traders focus their efforts on seven different currency pairs: the four majors, which include (EUR/USD, USD/JPY, GBP/USD, USD/CHF); and the three commodity pairs (USD/CAD, AUD/USD, NZD/USD). All other pairs are just different combinations of the same currencies, otherwise known as cross currencies. This makes currency trading easier to follow because rather than having to cherry-pick between 10,000 stocks to find the best value, all that FX traders need to do is “keep up” on the economic and political news of eight countries.

The equity markets often can hit a lull, resulting in shrinking volumes and activity. As a result, it may be hard to open and close positions when desired. Furthermore, in a declining market, it is only with extreme ingenuity that an equities investor can make a profit. It is difficult to short-sell in the U.S. equities market because of strict rules and regulations regarding the process. On the other hand, forex offers the opportunity to profit in both rising and declining markets because with each trade, you are buying and selling simultaneously, and short-selling is, therefore, inherent in every transaction. In addition, since the forex market is so liquid, traders are not required to wait for an uptick before they are allowed to enter into a short position - as they are in the equities market.

Due to the extreme liquidity of the forex market, margins are low and leverage is high. It just is not possible to find such low margin rates in the equities markets; most margin traders in the equities markets need at least 50% of the value of the investment available as margin, whereas forex traders need as little as 1%. Furthermore, commissions in the equities market are much higher than in the forex market. Traditional brokers ask for commission fees on top of the spread, plus the fees that have to be paid to the exchange. Spot forex brokers take only the spread as their fee for the transaction. (For a more in-depth introduction to currency trading, see Getting Started in Forex and A Primer On The Forex Market.)

By now you should have a basic understanding of what the forex market is and how it works. In the next section, we'll examine the evolution of the current foreign exchange system.

Forex: Reading a Quote and Understanding the Jargon

2008-05-12T10:40:00.002-07:00

One of the biggest sources of confusion for those new to the currency market is the standard for quoting currencies. In this section, we'll go over currency quotations and how they work in currency pair trades.

Reading a Quote
When a currency is quoted, it is done in relation to another currency, so that the value of one is reflected through the value of another. Therefore, if you are trying to determine the exchange rate between the U.S. dollar (USD) and the Japanese yen (JPY), the quote would look like this:

USD/JPY = 119.50

This is referred to as a currency pair. The currency to the left of the slash is the base currency, while the currency on the right is called the quote or counter currency. The base currency (in this case, the U.S. dollar) is always equal to one unit (in this case, US$1), and the quoted currency (in this case, the Japanese yen) is what that one base unit is equivalent to in the other currency. The quote means that US$1 = 119.50 Japanese yen. In other words, US$1 can buy 119.50 Japanese yen.

Direct Quote vs. Indirect Quote
There are two ways to quote a currency pair, either directly or indirectly. A direct quote is simply a currency pair in which the domestic currency is the base currency; while an indirect quote, is a currency pair where the domestic currency is the quoted currency. So if you were looking at the Canadian dollar as the domestic currency and U.S. dollar as the foreign currency, a direct quote would be CAD/USD, while an indirect quote would be USD/CAD. The direct quote varies the foreign currency, and the quoted, or domestic currency, remains fixed at one unit. In the indirect quote, on the other hand, the domestic currency is variable and the foreign currency is fixed at one unit.

For example, if Canada is the domestic currency, a direct quote would be 0.85 CAD/USD, which means with C$1, you can purchase US$0.85. The indirect quote for this would be the inverse (1/0.85), which is 1.18 USD/CAD and means that USD$1 will purchase C$1.18.

In the forex spot market, most currencies are traded against the U.S. dollar, and the U.S. dollar is frequently the base currency in the currency pair. In these cases, it is called a direct quote. This would apply to the above USD/JPY currency pair, which indicates that US$1 is equal to 119.50 Japanese yen.

However, not all currencies have the U.S. dollar as the base. The Queen's currencies - those currencies that historically have had a tie with Britain, such as the British pound, Australian Dollar and New Zealand dollar - are all quoted as the base currency against the U.S. dollar. The euro, which is relatively new, is quoted the same way as well. In these cases, the U.S. dollar is the counter currency, and the exchange rate is referred to as an indirect quote. This is why the EUR/USD quote is given as 1.25, for example, because it means that one euro is the equivalent of 1.25 U.S. dollars.

Most currency exchange rates are quoted out to four digits after the decimal place, with the exception of the Japanese yen (JPY), which is quoted out to two decimal places.

Cross Currency
When a currency quote is given without the U.S. dollar as one of its components, this is called a cross currency. The most common cross currency pairs are the EUR/GBP, EUR/CHF and EUR/JPY. These currency pairs expand the trading possibilities in the forex market, but it is important to note that they do not have as much of a following (for example, not as actively traded) as pairs that include the U.S. dollar, which also are called the majors. (For more on cross currency, see Make The Currency Cross Your Boss.)

Bid and Ask
As with most trading in the financial markets, when you are trading a currency pair there is a bid price (buy) and an ask price (sell). Again, these are in relation to the base currency. When buying a currency pair (going long), the ask price refers to the amount of quoted currency that has to be paid in order to buy one unit of the base currency, or how much the market will sell one unit of the base currency for in relation to the quoted currency.

The bid price is used when selling a currency pair (going short) and reflects how much of the quoted currency will be obtained when selling one unit of the base currency, or how much the market will pay for the quoted currency in relation to the base currency.

The quote before the slash is the bid price, and the two digits after the slash represent the ask price (only the last two digits of the full price are typically quoted). Note that the bid price is always smaller than the ask price. Let's look at an example:

USD/CAD = 1.2000/05
Bid = 1.2000
Ask= 1.2005

If you want to buy this currency pair, this means that you intend to buy the base currency and are therefore looking at the ask price to see how much (in Canadian dollars) the market will charge for U.S. dollars. According to the ask price, you can buy one U.S. dollar with 1.2005 Canadian dollars.

However, in order to sell this currency pair, or sell the base currency in exchange for the quoted currency, you would look at the bid price. It tells you that the market will buy US$1 base currency (you will be selling the market the base currency) for a price equivalent to 1.2000 Canadian dollars, which is the quoted currency.

Whichever currency is quoted first (the base currency) is always the one in which the transaction is being conducted. You either buy or sell the base currency. Depending on what currency you want to use to buy or sell the base with, you refer to the corresponding currency pair spot exchange rate to determine the price.

Spreads and Pips
The difference between the bid price and the ask price is called a spread. If we were to look at the following quote: EUR/USD = 1.2500/03, the spread would be 0.0003 or 3 pips, also known as points. Although these movements may seem insignificant, even the smallest point change can result in thousands of dollars being made or lost due to leverage. Again, this is one of the reasons that speculators are so attracted to the forex market; even the tiniest price movement can result in huge profit.

The pip is the smallest amount a price can move in any currency quote. In the case of the U.S. dollar, euro, British pound or Swiss franc, one pip would be 0.0001. With the Japanese yen, one pip would be 0.01, because this currency is quoted to two decimal places. So, in a forex quote of USD/CHF, the pip would be 0.0001 Swiss francs. Most currencies trade within a range of 100 to 150 pips a day.

Currency Quote Overview
USD/CAD = 1.2232/37
Base Currency Currency to the left (USD)
Quote/Counter Currency Currency to the right (CAD)
Bid Price 1.2232 Price for which the market maker will buy the base currency. Bid is always smaller than ask.
Ask Price 1.2237 Price for which the market maker will sell the base currency.
Pip One point move, in USD/CAD it is .0001 and 1 point change would be from 1.2231 to 1.2232 The pip/point is the smallest movement a price can make.
Spread Spread in this case is 5 pips/points; difference between bid and ask price (1.2237-1.2232).

Currency Pairs in the Forwards and Futures Markets
One of the key technical differences between the forex markets is the way currencies are quoted. In the forwards or futures markets, foreign exchange always is quoted against the U.S. dollar. This means that pricing is done in terms of how many U.S. dollars are needed to buy one unit of the other currency. Remember that in the spot market some currencies are quoted against the U.S. dollar, while for others, the U.S. dollar is being quoted against them. As such, the forwards/futures market and the spot market quotes will not always be parallel one another.

For example, in the spot market, the British pound is quoted against the U.S. dollar as GBP/USD. This is the same way it would be quoted in the forwards and futures markets. Thus, when the British pound strengthens against the U.S. dollar in the spot market, it will also rise in the forwards and futures markets.

On the other hand, when looking at the exchange rate for the U.S. dollar and the Japanese yen, the former is quoted against the latter. In the spot market, the quote would be 115 for example, which means that one U.S. dollar would buy 115 Japanese yen. In the futures market, it would be quoted as (1/115) or .0087, which means that 1 Japanese yen would buy .0087 U.S. dollars. As such, a rise in the USD/JPY spot rate would equate to a decline in the JPY futures rate because the U.S. dollar would have strengthened against the Japanese yen and therefore one Japanese yen would buy less U.S. dollars.

Now that you know a little bit about how currencies are quoted, let's move on to the benefits and risks involved with trading forex.

Forex: What Is It?

2008-05-12T10:40:00.001-07:00

The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.

The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. (The total volume changes all the time, but as of April 2004, the Bank for International Settlements (BIS) reported that the forex market traded U.S. $1,900 billion per day.)

One unique aspect of this international market is that there is no central marketplace for currency exchange. Rather, trade is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.

Spot Market and the Forwards and Futures Markets
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market and the futures market. The spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.

Spot Market
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal". It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.

Forwards and Futures Markets
Unlike the spot market, the forwards and futures markets do not trade actual currencies. Instead they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement.

In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves.

In the futures market, futures contracts are bought and sold based upon a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange. In the U.S., the National Futures Association regulates the futures market. Futures contracts have specific details, including the number of units being traded, delivery and settlement dates, and minimum price increments that cannot be customized. The exchange acts as a counterpart to the trader, providing clearance and settlement.

Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well. (For a more in-depth introduction to futures, see Futures Fundamentals.)

Note that you'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market.

Forex: Introduction

2008-05-12T10:31:00.000-07:00

Foreign exchange (forex or FX for short) is one of the most exciting, fast-paced markets around. Until recently, trading in the forex market had been the domain of large financial institutions, corporations, central banks, hedge funds and extremely wealthy individuals. The emergence of the internet has changed all of this, and now it is possible for average investors to buy and sell currencies easily with the click of a mouse.

Daily currency fluctuations are usually very small. Most currency pairs move less than one cent per day, representing a less than 1% change in the value of the currency. This makes foreign exchange one of the least volatile financial markets around. Therefore, many speculators rely on the availability of enormous leverage to increase the value of potential movements. In the forex market, leverage can be as much as 250:1. Higher leverage can be extremely risky, but because of round-the-clock trading and deep liquidity, foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for FX traders.

Extreme liquidity and the availability of high leverage have helped to spur the market's rapid growth and made it the ideal place for many traders. Positions can be opened and closed within minutes or can be held for months. Currency prices are based on objective considerations of supply and demand and cannot be manipulated easily because the size of the market does not allow even the largest players, such as central banks, to move prices at will.

The forex market provides plenty of opportunity for investors. However, in order to be successful, a currency trader has to understand the basics behind currency movements.

The goal of this tutorial is to provide a foundation for investors or traders who are new to the currency markets. We'll cover the basics of foreign exchange, its history and the key concepts you need to understand in order to be able to participate in this market. We'll also venture into how to start trading currencies and the different types of strategies that can be employed.

Beginning Forex Tradin

2008-05-11T08:54:00.001-07:00

In the mid '90's many beginners like us stepped into the brave new world of online Foreign Currency Exchange trading, a frontier that had recently become open to the self-trader. Today, now that it is becoming more well known, beginners and experience investors alike are flocking to Forex Trading -- the largest, most profitable, most liquid and fastest growing trading market in the world.

Take all the time you need to learn this trading new skill well -- practice everything you learn with a demo account (i.e. with demo play-money in it) before you consider going 'live' with your own money. Whether you are here to develop a skill for generating money or just developing a new interest, we think you will enjoy, as we did, discovering the exciting frontier of forex.

Our only insistent word of advice is never trade with money that you can not afford to lose.

Forex-Trader Main Menu Beginner Trader Pagetop

Market makers

2008-05-11T08:52:00.004-07:00

What is a Market Maker?
(Lexical)A Market Maker is the counterparty to the client. The Market Maker does not operate as an intermediate or trustee. A Market Maker performs the hedging of its clients' positions according to its policy, which includes offsetting various clients' positions, hedging via liquidity providers (banks) and its equity capital, at its discretion.

Who are the Market Makers in the Forex industry?
Banks, for example, or trading platforms (such as Easy-Forex™), who buy and sell financial instruments at the market. That is contrary to intermediates, which represent clients, basing their income on commission.

Do Market Makers go against a client's position?
By definition, a Market Maker is the counterparty to all its clients' positions, and he always offers a two-sided quote (two rates: BUY and SELL). Therefore, there is nothing personal with the trading conduct between the Market Maker and the customer. Market Makers regard the total positions of their clients as a whole, same goes for banks and other market makers in the Forex market. They offset between clients' opposite positions, and hedge their net exposure according to authorities' guidelines and their risk management policies.

Do market makers and clients have a conflict of interest?
Market makers are not intermediates, neither portfolio managers, nor advisors who represent customers (while earning commission), but rather they buy and sell goods to the customer. By definition, the Market Maker always provides a two-sided quote (the sell and the buy price), hence maintains neutrality as for the client. Banks do that, same with merchants in the markets, who buy goods and sell it to customers. The relationship between the trader (the customer) and the Market Maker (the bank; the trading platform; Easy-Forex™; etc.) is simply based on fundamental market forces: supply and demand.

Can a Market Maker influence market prices against clients' position?
Definitely not, because the Forex market is the nearest to being a "perfect market" (as defined by economics theory). This is the biggest market today, reaching a daily volume of 3 trillion dollars throughout the globe. That means that there is no single participant in the market, banks and governments included, who can consistently push the price in a certain direction.

What is the main source of earnings to Easy-Forex™?
Being a Market Maker, the major source to earnings is the spread between the bid and the ask prices. Accordingly, Easy-Forex™ maintains neutrality (as for the direction of any or all deals made by its traders), since the leading source for its income is the spread it earns.

How do Market Makers manage their exposure?
The way most Market Makers hedge their exposure is to hedge on bulk. They aggregate all clients' positions and pass some, or all, of their net risk to their liquidity providers. Easy-Forex™ hedges its exposure in a similar fashion, in accordance to authorities' instructions and its risk management policy.
As for liquidity providers, Easy-Forex™ works in cooperation with world's leading banks which provide liquidity to the Forex industry: UBS (Switzerland) and RBS (Royal Bank of Scotland).

Follow up on the Dow and Yen pairs

2008-05-11T08:52:00.003-07:00

I have mentioned before in this blog about watching the dow chart in order to trade the GBPJPY and the EURJPY currency pairs. This method works great, it really shows how the market, US stock market and the forex market, is feeling about risk aversion at any given time. As soon as I turn on my computer at 5am NYT, I am checking the dow futures chart. This gives me an idea of where the yens pairs are going: up or down. If dow futures up, then yen pairs most likely will go up. Now, today was the interest rate decision, the Fed again cut the rate by .25%. All morning long the dow was heading up and I continued to buy GBPJPY for about +110 pips. I closed my trades prior to the news coming out, too risky. After the news, the dow came back to close below 0 for the day. I am thinking that this was partly due to profit taking as this was the end of the month, and amazingly the US stock market has made a nice retrace back up for the past month and a half. So now I am wondering: will the Dow continue up, marking its low in March as THE LOW, or will the market consolidate or possibly head back down? Of course, I do not care that much which way it goes, as a forex trader, but it helps to have an overview to put some direction to the yen pairs. Lately I have been trading the yen pairs exclusively, partly due to being able to use the dow futures as an added indicator. Let’s see how May pans out. Good trading.

Entries and exits

2008-05-11T08:52:00.001-07:00

Trade entry and exit is really important for successful trading. Because my strategy is maximum profit in minimum time, my trade entries and exits are much different from a trader who swing trades and is looking for hundreds of pips profit in several days time. Today I traded the EURUSD pair, at 5am when I turned my computer on, this pair was moving down below the daily pivot point and also the weekly pivot point. So further downside was very likely for the rest of the day. I prefer to enter a trade when I see a break of support and then a pullback to the 15minute 5ema. So I waited about 20minutes and sure enough price pulled back, so I entered the sell trade at 1.5473. With EURUSD I like to use about a 25 pip stop loss, which put my stop for this trade ABOVE the weekly pivot at 1.5492. GOOD! It took my sell trade about an hour to reach the daily M1 pivot at 1.5419. I watched as price hesitated there for about 5mins, so I decided to take profit there. +54 pips, not bad! Five minutes after I took the profit, price continued down, pretty much for the rest of the day. But I did not get upset over missed pips, I am perfectly happy with 50 pips in one trade in one hour. Consistency is the name of the game. Good trading!�

Genetically modified crops get mixed response in Asia

2008-05-11T08:51:00.001-07:00

MANILA (Thomson Financial) - With food prices hitting record highs the jury is still out in Asia as to whether genetically modified crops hold the key to future food security.

The Philippine government has openly embraced the commercial growing of genetically modified (GM) corn, but neighbouring countries appear less than enthusiastic.

"There has been a lot of talk about developing high-yielding crops and crops that can cope with climate change using GM seeds," said Daniel Ocampo, a genetic engineering campaigner with the environmental group Greenpeace.

But, he said, the technology was still a long way from "addressing these needs."

Even so this has not stopped the Philippines from subsidising the production of GM corn.

"This is despite the fact that GM corn and some conventional varieties have the same yield potentials," Ocampo said.

While Japan does not grow GM crops due to safety concerns among consumers it does import GM grains for use in making products such as cooking oil, animal feed and manufactured goods.

Japanese companies have been reluctant to test the market for consumer-ready GM food because of labelling requirements and public safety worries.

While Japan does not ban GM farming, strict regulation has discouraged corporate investment in the area.

But with rising food prices causing increasing concern in a country that imports more than half of what it eats, the government has said that GM crops may be a way to ease food security and environmental problems.

"Because of strong public concern about consuming genetically modified food, it does not make business sense for Japanese firms to farm genetically modified plants commercially," a Japanese farm ministry official said.

"However, given the expansion in the cultivation of GM products abroad and rising demand for food, we are reviewing ways to have the option of commercial farming in the future," he said.

In South Korea a law which came into effect on January 1 this year imposed strict rules on the import of GM seeds.

While there are domestic GM seed programmes for experimental purposes none are for commercial use, an agriculture ministry official said on condition of anonymity.

"So far all imported GM seeds have been processed immediately after being cleared through customs," the official said.

"There have been no cases of imported or home-grown GM seeds being used for commercial cultivation here and we are not considering easing our rules despite price hikes," he added.

In Bangkok the regional headquarters for the United Nation's Food and Agricultural Organisation (FAO) said it had not seen any signs that governments in Asia were pushing for genetically-modified seeds.

"With modern agricultural technology countries should be able to produce enough food without genetically-modified seeds," said He Changchui, the FAO's regional representative for Asia.

"You don't need them. Just try to supply good fertiliser and good water," he said.

In China the State Council, or cabinet, issued detailed rules in 2001 covering safety, labelling, licensing for production and sales, and import safety policies of all GM products.

Xie Yang of the Development Research Centre, a major think tank under the State Council, said: "No genetically modified grain, including seeds, is allowed for edible consumption in China.

"Genetically modified products are allowed for indirect uses, such as making edible oil, but it must be labelled clearly."

There is successful research in China, but no commercial application yet, he said, adding: "It is said that there are breakthroughs in the research of (genetically modified) rice and corn. But none is allowed on to the market."

According to Greenpeace's Ocampo the Philippines is the first country in Southeast Asia, and possibly all Asia, to have a commercial GM food crop.

"The government would say it is because the Philippines should not be late in embracing a technology that promises to help increase the income of farmers and provide higher yields.

"But the fact is the Philippines is so close to the U.S. that whatever policies the U.S. have regarding GM crops we (Philippines) usually follow suit."

Surging food prices bite across Asia

2008-05-11T08:48:00.000-07:00

SYDNEY (Thomson Financial) - From the rice paddies of Asia to the wheat fields of Australia, the soaring price of food is breaking the budgets of the poor and raising the spectres of hunger and unrest, experts warn.

A billion people in Asia are seriously affected by the surging costs of daily staples such as rice and bread, the director general of the Asian Development Bank, Rajat Nag, has said.

"This includes roughly about 600 million people who live on just under a dollar a day, which is the definition of poverty, and another 400 million who are just above that borderline," he said.

Globally, the World Bank last month estimated that 33 countries were threatened with political and social unrest because of the skyrocketing costs of food and energy.

Across Asia, workers made a campaign against high food prices their May Day battle cry last Thursday in marches through cities including the capitals of Indonesia, the Philippines and Thailand.

While the demonstrations were mainly peaceful, concern is growing over the potential for political instability and unrest if high prices persist.

"Once people get hungry they start also getting quite desperate and take desperate measures," Damien Kingsbury of Australia's Deakin University told Agence France-Presse.

India's top farm scientist and architect of the 1960s "Green Revolution," Monkombu Sambasivan Swaminathan, has said India needs a second agricultural revolution to boost food supplies or face huge social turmoil.

Experts blame the high food prices on a confluence of factors, including increased demand from a changing diet in Asia, droughts, the rising use of crops for biofuels, and growing energy and fertiliser costs.

In Australia, which usually ranks second after the United States as a global wheat exporter, several years of drought cut harvests to just 13 million tonnes last year from an average of 22 million tonnes.

So while consumers are struggling, Australian farmers are not getting rich on the backs of the poor, said National Farmers Federation chief executive Ben Fargher.

"It's been the worst drought in our history and many, many farming families are under significant financial and emotional stress and it will take our communities a long time to recover," he said.

And even in a relatively prosperous country like Australia, people are feeling the squeeze in the supermarkets, prompting the government to launch an inquiry into how to stem rising grocery prices.

Around the rest of the region, the impact varies from traumatic to minimal:

-- AFGHANISTAN: Millions of Afghans are finding it "problematic" to meet their basic food needs with prices of the staple, wheat, doubling in some areas over recent months, the World Food Programme has said.

About 400 people demonstrated in eastern Afghanistan last month, blocking a key road linking the eastern town of Jalalabad to the capital Kabul and demanding the government step in to control prices at food markets.

-- BANGLADESH: One of the world's poorest nations, Bangladesh has been hit by a doubling in the price of the main staple, rice, in the past year and many low paid workers say they have been forced to make do on only one meal a day.

Last month about 20,000 garment workers rioted near the capital Dhaka for higher wages to cover food prices.

-- CAMBODIA: Soaring rice prices have forced the World Food Programme to indefinitely suspend a programme supplying free breakfasts to 450,000 poor Cambodian schoolchildren.

-- CHINA: Chinese Premier Wen Jiabao told a meeting of the State Council last month that high prices were the biggest problem in the domestic economy.

"The inflation is led by food price rises, which especially hurt the poor," said Ma Qing, a Beijing-based analyst with the CEB monitor group. "So the pressure (on maintaining social stability) is certainly quite large."

The finance ministry announced a special 100 percent duty on exports of fertilisers and the raw materials used to make them in order to ensure domestic supply over the ploughing season and "guarantee this year's grain harvest".

-- INDIA: A general strike against spiralling food prices paralysed Kolkata on April 21 as thousands of police were deployed across West Bengal state to stop protests turning violent.

New Delhi has already slashed food duties and banned exports of lentils and other staples, and will not hesitate to further "sacrifice revenues to control prices," Finance Minister Palaniappan Chidambaram said.

-- INDONESIA: Anger over rising food prices was a focus for some 10,000 Indonesians who took to the streets of the capital Jakarta for Labour Day rallies.

High prices for rice, cooking oil and soybeans helped drive Indonesia's annual inflation rate to 8.17 percent in March.

-- JAPAN: In resource-poor Japan, which relies on imports for 60 percent of its food, companies have hiked prices on everything from beer to beef, mayonnaise and "miso" paste made from fermented soy beans in recent months.

Although Asia's largest economy has been struggling for years to end deflation, rising food and commodity prices have not been welcomed because of the pain they inflict on small businesses and low-income households in particular.

-- MALAYSIA: Anger over rising prices was a major factor in March elections which saw the ruling coalition lose a third of parliamentary seats and five states in its worst results in half a century.

-- NEPAL: Nepal last week banned the export of grains as prices soared.

"There is a high possibility of food crisis in a poor country like ours where domestic production is not enough," said Hari Dahal, a spokesman at the ministry of agriculture.

-- NORTH KOREA: North Korea's food crisis has already seen some people starve to death in remote rural towns, according to an aid group which works in the impoverished communist nation, South Korea's Good Friends organisation.

Prices of staple foods have almost tripled over the past year.

-- PAKISTAN: Analysts say public anger over food shortages, particularly wheat flour for the staple roti bread, was a factor in the defeat of President Pervez Musharraf's allies in elections in February.

-- SOUTH KOREA: Rising rice prices abroad have almost no impact on South Korea, which imports less than five percent of its annual consumption and heavily subsidises its rice farmers.

-- SINGAPORE: Singapore is the wealthiest economy in Southeast Asia but charities say inflation is driving more people to join queues for free meals. Consumer price inflation reached 6.6 percent in January-February, officials said.

-- TAIWAN: Taiwan is self-sufficient in rice so international prices have no impact. However, domestic rice prices hit a 26-year high earlier this year due to typhoons affecting the harvest.

-- THAILAND: In Thailand, export and domestic rice prices have risen about 50 percent in a month. Some farmers have taken to arming themselves and staking out their fields at night to protect their precious crop from rice thieves.

In a phrase particularly chilling for Asia, the World Food Programme has described rising food prices as a "silent tsunami".

Forex Signals

2008-05-10T09:16:00.001-07:00

Whether you are a beginner or a seasoned trader, we have a service to fit your needs. Do you have a hard time understanding when to get in the market, or is your exit points that need help? There are hundreds of forex signals services on the market, but most are not worth a dime. We only work with the best. We screen them with the strictest parameters - ensuring their performance is real.

These signal providers may send signals by e-mail, voice, cell phone, or a live trading room. We will provide you with a list of the best Forex services available to best suit your trading needs.

Some traders prefer an auto trade type of system which does the trading for you, like FX-System Center, an excellent way to go. We work with a number of providers of auto-trade services which include state of the art software that will execute trades in the Forex market for you. You can learn to trade many different styles throughout the trading day. You can join live chat sessions with live calls in voice chat rooms with professional traders and learn how to trade the Forex market yourself. The options are all available, and now you know where to look.

Forex News Trader

2008-05-10T09:14:00.000-07:00

How do the majority of profitable Forex traders truly profit in the FX market? One way… they trade the news!

Forex News Trader was developed to give traders the edge they need to learn how to trade based on economic news events from around the world. The same edge the institutions use to make hundreds of millions and even billions of dollars in profit each year.

Forex News Trading will provide you with the information you need to give you a true insider’s understanding of the Forex markets. You will feel confident in your trading, and never doubt your trades again.

Does this mean you will win every trade? No, of course not, but armed with the knowledge Forex News Trader will provide you, you will never be afraid to take that next trade - as the odds will now be tipped in your favor.

Each and every month there are a tremendous number of news releases for the Off Exchange Retail Foreign Currency Market (FOREX). Many of these events and announcements move the markets considerably. But how do you properly capitalize on these moves? Get it wrong and you could be wiped out. Get it right and you can be in a small group of trading elite, consistently pulling pips out of the market each and every week.

Our Forex Trading goal is to provide our visitors with the best trading strategies available. We work exclusively with Forex brokers who specialize in news trading, and also include extensive reviews on the best in the business. Any relevant and helpful information related to Forex news trading can be found on this site.

There are many trading methods that exist to help you succeed as a trader, but there also many factors you need to consider before you execute your trades. Each news event moves differently. What we do is provide you with techniques and systems on how to trade these major news events. How can you maximize your gains and limit your loses? Not easily done, unless you truly know what you are doing.
Forex News Trader will teach you the moves you need to make. In volatile or fast moving markets, such as news trading events, it is imperative to be completely focused and on top of your game. You need to constantly learn new styles and techniques if you want to stay ahead.

Whether you profit, or end up like the other 95% of traders, depends on your ability, knowledge, patience, and how the market moves that day. With such a large world market there are numerous opportunities to pull profits on a consistent basis.

If you’ve spent thousands of dollars to learn strategies that do not work - you are not alone. In fact, in a recent poll of over 5,000 active traders, the majority have spent over $3,500 on education. Some people drop more money into Forex courses then into their own trading account. We offer insider strategies that will give you a huge edge to succeed in the Forex market.

Dollar Rose on Hoenig’s Hawkish Comments

2008-05-10T09:13:00.001-07:00

The U.S. dollar rose today during the late Asian Forex trading session, as the traders reacted on the hawkish commentary by the Federal Reserve Bank of Kansas City President Thomas Hoenig.

Hoenig said that if the inflation pressures strengthen in U.S., Federal Reserve will probably increase the interest rates. According to him, the U.S. economy will recover from the current crisis later this year and the Fed will be forced to switch to the price growth.

Apart from the hawkish tone of the Hoening’s comments, dollar growth was also enhanced by the worsening situation in U.K., where consumer confidence fell to the lowest level since early 2004.

EUR/USD fell today after two days of growth seen this week and declined from 1.5532 to 1.5500 as of 7:38 GMT. GBP/USD fell today after two days of volatile bidirectional movement — it went down from 1.9732 to 1.9628.

Korean Won at Lowest since 2005

2008-05-10T09:10:00.000-07:00

The South Korean won declined to its lowest level since November 2005, as the country’s central bank said that the weaker currency will be helping against the economic stagnation.

The Bank of Korea decided to leave the interest rate unchanged at 5 percent points today as the inflation prevented using monetary policy easing to decrease the money cost and bust spending. This decision helped the Korean won to drop from 1033.3 to 1044.9 on Forex today.

Won is the worst performing world major currency this year. Like the other Asian free-traded currencies it’s being pulled down by high oil prices and the current account deficit spurred by the lack of financial liquidity.

USD/KRW reached its maximum value since November 2005 today — 1049.1 and is trading near 1044.6 as of 8:51 GMT.

Forex currency trading strategy

2008-05-09T12:13:00.000-07:00

Components of a Good Plan

When entering the world of Forex currency trading, it is important to have a well-defined strategy to minimize loss and maximize your assets. Trading currencies with a strategy helps you map out your financial goals and focus on success, rather than dwelling on losses, which are inevitable. There are plenty of variables that affect how a trader performs in the currency trading marketplace, but there are also some very important guidelines you should build into your strategy.

* Limit your losses.
Any investment strategy should have a plan for limiting losses. Forex traders should have a step-by-step plan to limit losses on each trade. There should never be a reason to deviate from this plan. It takes discipline to “let go” of a trade you believed was worthwhile, but it is much better to let it go than watch your cash plummet. Placing stop orders is the best method to limit the losses in a trading portfolio.
* Get trained in Forex.
You wouldn’t start a new business without a sense of the industry or a plan, would you? Trading and investing are businesses as well. A new trader should take the time to learn important trading principles. You should become familiar with the software and tools your broker provides and learn to use them effectively. Practice on trading demos before you begin trading currency. Take online classes. Read books. Join discussion forums. Don’t allow your entry in the market to be a failure simply because you were unprepared and didn’t understand the marketplace basics.
* Understand foreign currency trading trends.
Before trading, you should try to identify the existing trend of the market. This should be done well before generating an entry signal. When you trade in the direction of current trends, the probability of success increases. When you are familiar with the predominant trend in the time frame you are trading, you will also be more prepared to understand, and take advantage of, trend reversals.
* Execute your trading plan religiously.
Sticking to your trading strategy is crucial to building the discipline that's necessary to succeed in the global Forex trading market. Focus on the strategy that you have studied and practiced – don’t make the same mistake many other traders make - overanalyzing every detail and looking for the next "magical" trading indicator will only slow you down. Stick with a tried and true method.

Becoming a trader in the Forex global market can be exciting and financially rewarding, once you’ve received an education and tried out your techniques. Just remember that there is a lot to learn about Forex currency trading – take your time to research before your begin plotting your strategy. Once you’ve set a strategy, stick with it, and incorporate the elements above. You’ll be well on your way to maximizing your profit and minimizing your losses.

Forex Market

2008-05-09T12:11:00.000-07:00

Trading information for beginners

If you’re a new to the forex (foreign exchange) market, you probably have a lot of questions. Making money in a global currency market is an exciting prospect; you’re probably wondering how, and what you need to get started. A lot of information on the internet is geared toward the knowledgeable trader who has at least experienced the stock market. Not everyone has the benefit of Wall Street experience. We are here to help you out if you’re not all that stock savvy and don’t have a financial background.
So, what is foreign currency exchange?

The basic term, foreign currency exchange, is used to explain the exchange of one country’s currency for another’s. If you’ve every traveled out of the country, you probably cashed in your American dollars to find that the trade was nowhere near equal. Forex is the same thing on a much larger scale – it’s similar to the market except it deals in liquid assets at all times. It’s the process of buying and selling cash from nations around the world.
How can foreign currencies be traded?

Currency exchanges can be handled on three different levels. You will need to use a broker or a brokerage firm that allows trades through one of the following:

• The Commodity Futures Trading Commission (CFTC)
• Securities and Exchange Commission (SEC)

There is also what is called the off-exchange (over-the-counter) market. An example of this would be that you return from your vacation from Canada and trade your cash in for American dollars. This is only on a retail level or corporate level. Off-exchange trading is subject to very limited regulatory oversight.
How much money do I need to trade Forex?

It depends on the Forex dealer. Brokers concentrated in the Forex market can set their own minimum accounts and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.

Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a broker, make sure that you look over the fees and schedules carefully before you deposit any money. It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm.

These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

Forex currencies

2008-05-08T08:52:00.002-07:00

Most Forex exchanges invariably involve the U.S. dollar against a different currency, as the American economy remains the biggest. Other currencies serve as the base for trade as well, such as the Japanese Yen, the British Sterling, the Swiss Franc, and the German mark. Each country's market has its own particular properties.

Euro came up to take the place of the German mark. The latter was the foundation. The European central bank has replaced the Bundesbank that has lost its past significance after the former East Germany came to reconsolidation.

The feature of the Japanese yen is its instability in some previous years. The greatest rise of this currency has happened in October 1998 when the dollar has suffered 15% reduction against the Japanese yen within a number of days.

The Swiss franc is sometimes called "a safe heaven" fulfilling the same function as the dollar does. It is called like this because of the neutrality and independent policy pursued by Switzerland, its economy isolation and banking system privacy.

The British pound has always had significance for the international exchange markets but it mostly hasn't been stronger than other currencies. This trend has changed vice-versa lately and the British pound has become one of the most important and attractive currencies in Europe. It was the first currency that Forex market dealt with through cables crossing the Atlantic, that's why the term "cable" has appeared.

European currencies had a number of crises because of the attempts to adjust their rates towards one another artificially. French frank and German mark used to create the basis for the Continental European currencies and formed the European currency stem. The stability was useful for the Benelux countries. Considerable fluctuations around this stem were seen in the currencies of rest of the Europe, Mediterranean and Scandinavian countries in particular. Great alterations have come to foreign exchange trading after the European common currency has appeared in 2001. A number of European banks were forced to make their trading assets reconsideration after the currencies of the countries taking part in the unification were fixed relative one another at the beginning of 1998. Still the Euro appearance is not thought to be harmful for the foreign exchange markets health. The Euro being weak has turned into mark and made non-participating European currencies less stable and more affective to speculative forces. It gives prospects for sterling along with the Swiss franc to turn into the most important European currency market.

Exotic currencies have a severe risk together with an ability to gain very high possible profits. The weak but fixed currencies can be sought much in order to carry out speculative attacks on them that may lead the countries involved to wide depreciation and economical difficulties. A number of developing currencies try to peg their currencies to the US dollar exchange rates to bring the monetary officials to order and force currency holders not to resort to devaluations. In most of the cases it's impossible to fix the exchange rates due to indiscipline and it mostly leads to considerable depreciation. These devaluations often cause high possible profit but within the stable periods investors mostly hold the currencies due to high interest rates.

Forex market shouldn't have solid technical aspects grasp while dealing with foreign exchange market especially at emerging markets due to their riskiness. Inability to gain a protection against the risks of these markets can be very harmful at the outlook of the commercial companies. South East Asian and South American markets seem to be the most interesting but it doesn't exclude African Continent and Eastern Europe possibility to become important markets in future.

Forex carries out its trading through Lots which is the equivalent of the dollar. The "margin" means that while the value of one lot is $1,000 you can accordingly have a control of $100,000 within the currency.

Currency trading in the Forex market is usually carried out in pairs. The notation of each pair shows the rates at which its currencies are being traded. The ABC/XYZ format is always used to show the notation. Here ABC/XYZ doesn't correspond any currency pair but it shows the possible notation. ABC symbolizes the currency of one country whether XYZ shows the currency of another one.

It's impossible for the currency to be traded by itself. For instance to make sense of the trade with JPY it must be compared to any other currency but never traded by itself. This process forms the core of the Forex market.

Here are some of the creal and common symbols used in the Forex market:

* USD - The US Dollar
* EUR - The currency of the European Union "EURO"
* GBP - The British Pound
* JPN - The Japanese Yen
* CHF - The Swiss Franc
* AUD - The Australian Dollar
* CAD - The Canadian Dollar
* NZD - The New Zealand Dollar

The most commonly traded currencies are referred to as the 'Majors':

* US Dollar (USD)
* Japanese Yen (JPY)
* Euro (EUR)
* British Pound (GBP)
* Canadian Dollar (CAD)
* Australian Dollar (AUD)
* Swiss Franc (CHF)

Most commonly traded currency pairs are:

* EUR/USD which stands for Euro / US Dollar
* USD/JPY which stand for US Dollar / Japanese Yen
* GBP/USD which stands for British Pound / US Dollar
* USD/CAD which stands for US Dollar / Canadian Dollar
* AUD/USD which stands for Australian Dollar/US Dollar
* USD/CHF which stands for US Dollar / Swiss Franc
* EUR/JPY which stands for Euro / Japanese Yen

Numerator and Denominator

The higher fraction is supposed to be the Numerator while the Denominator corresponds its lower part. For example, in the EUR/USD pair EUR would act as a Numerator being the first or the top, whether USD being after or below is known as Denominator.

The basic currency is usually the Numerator whether Denominator is a counter currency.

Thus, when you would like to buy a currency and you'll place the corresponding "BUY" order dealing with the EUR/USD on the Forex platform you are considered to be selling the USD and buying EUR. "LONG" is the name for buying process.

On the contrary, if you would like to sell the pair you mean that you are buying the USD and selling the EUR. This is called "SHORT" along with the same stock market process when you first sell any stock, currency or commodity trying to buy it later at a lower brice, that means you use short-selling.

In case you would like to sell or buy a currency pair you're going to sell or buy its Numerator (base currency or the top one), so that the base currency should be dealt vise-versa when you're selling a currency pair.

While trading, the base currently is always bought and the counter one is sold. Selling any pair you just specify the currency for sale and the one to buy. Finally the transaction is equal. The absence of any restrictions while short selling is an advantage of the Forex market. Another plus is that both market rise and fall bring profit. You can earn in Forex at any trends directions whether the stock marked should rise in order to give profit.

Why Forex?: A world of Opportunities

2008-05-08T08:52:00.001-07:00

The foreign exchange market is the world’s largest financial market, but it wasn’t always accessible to any interested trader. Remember, forex trading is not conducted on a regulated exchange and as a result, there are additional risks associated with forex trading. In the past, access to foreign exchange of currencies was limited to banks, hedge funds, major currency dealers and the occasional high net-worth individual. But smaller financial institutions wanted to take advantage of the many benefits forex offered over other markets, including its tremendous liquidity, 24-hour access 5.5 days of the week and the strong trending nature of currency exchange rates.

It was this entrepreneurial vision of the smaller financial institutions and the evolution of the Internet that made forex accessible at a retail level. These institutions, including GFT, combined the accessibility of the Internet and fast and efficient proprietary software with accurate pricing, charting abilities, technical indicators and news feeds, which allowed any interested speculator open access to trade currencies. From 2002 to 2005 the practice of trading forex has grown threefold and this growth curve continues still. So read more about the benefits of using GFT and our access the world’s largest, fastest, most exhilarating market.
What is Forex?

You may already be aware of some of the benefits offered by the currency market. It is the fastest, largest and most liquid market in the world, but that is only the beginning of its advantages. As a very basic explanation, forex is the simultaneous buying of one currency and selling of another in order to seek gaining a profit (or accruing a loss).

Today, almost anyone with the appropriate appetite for risk and an understanding of market trends and analysis can trade currencies online with GFT. There are many benefits of trading forex versus other types of financial markets, many benefits to choosing GFT as your forex dealer and much to learn if you’re new to currency trading. Just click a link below to start improving your knowledge, and you’ll be well on your way to reaching your full potential in the foreign exchange market.

Learn Forex Market

2008-05-08T08:50:00.000-07:00

Forex market - the interbank international exchange market. Banks of the different countries are trading among themselves in currencies of the different countries. But the total volume of these operations is huge, in day he exceeds 3 billion US dollars! It also is Forex market! Forex market reminds the Internet - he belongs to nobody, nobody can operate it.

Exchange-traded Forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, but only accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

The foreign exchange (currency, or Forex, or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. Retail traders (small speculators) are a small part of this market. They may only participate indirectly through brokers or banks and may be targets of Forex scams.

Market size and liquidity

The foreign exchange market is unique because of the following featuries:

- trading volume,

- the extreme liquidity,

- the large number of, and variety of, traders,

- geographical dispersion,

- long trading hours - 24 hours a day (except on weekends).

- the variety of factors that affect exchange rates,

Average daily international foreign exchange trading volume was $1.9 trillion in April 2004 according to the BIS study Triennial Central Bank Survey 2004

- $600 billion spot

- $1,300 billion in derivatives, ie

- $200 billion in outright forwards

- $1,000 billion in Forex swaps

- $100 billion in FX options.

There is little or no 'inside information' in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time.

On the spot market, according to the BIS study, the most heavily traded products were:

- EUR/USD - 28 %

- USD/JPY - 17 %

- GBP/USD (also called cable) - 14 %

and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%). (Note that volume percentages should add up to 200% - 100% for all the sellers, and 100% for all the buyers). Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus still largely dollar-centered. For instance, trading the euro versus a non-European currency ZZZ will usually involve two trades: EUR/USD and USD/ZZZ. The only exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market.

The main trading centers are in London, New York, and Tokyo, but banks throughout the world participate. As the Asian trading session ends, the European session begins, then the US session, and then the Asian begin in their turns. Traders can react to news when it breaks, rather than waiting for the market to open.

Spot Forex versus Currency Futures

2008-05-08T08:49:00.000-07:00

Many traders have made the switch from currency futures to spot foreign exchange ("forex") trading. Spot foreign exchange offers better liquidity and generally a lower cost of trading than currency futures. Banks and brokers in spot foreign exchange can quote markets 24 hours a day. Furthermore, the spot foreign exchange market is not burdened by exchange and NFA ("National Futures Association") fees, which are generally passed on to the customer in the form of higher commissions. For these reasons, virtually all professional traders and institutions conduct most of their foreign exchange dealing in the spot forex market, not in currency futures.

The mechanics of trading spot forex are similar to those of currency futures. The most important initial difference is the way in which currency pairs are quoted. Currency futures are always quoted as the currency versus the US dollar. In Spot forex, some currencies are quoted this way, while others are quoted as the US dollar versus the currency. For example, in spot forex, EURUSD is quoted the same way as Euro futures. In other words, if the Euro is strengthening, EURUSD will rise just as Euro futures will rise. On the other hand, USDCHF is quoted as US dollars with respect to Swiss Francs, the opposite of Swiss Franc futures. So if the Swiss Franc strengthens with respect to the US dollar, USDCHF will fall, while Swiss Franc futures will rise. The rule in spot forex is that the first currency shown is the currency that is being quoted in terms of direction. For example, "EUR" in EURUSD and "USD" in USDCHF is the currency that is being quoted.

The table below illustrates which spot currencies move parallel to the futures contract and which move inversely (opposite):

Forex Symbol	Currency Pair	Futures Symbol	Directional Relationship
GBPUSD	British Pound / US Dollar	BP	Parallel
EURUSD	Euro / US Dollar	EU	Parallel
USDJPY	US Dollar / Japanese Yen	JY	Inverse
USDCHF	US Dollar / Swiss Franc	SF	Inverse
USDCAD	US Dollar / Canadian Dollar	CD	Inverse
AUDUSD	Australian Dollar / US Dollar	AD	Parallel
NZDUSD	New Zealand Dollar / US Dollar	ND	Paralle

Forex Market Background

2008-05-08T08:48:00.000-07:00

Forex Market Background
Presented in cooperation with Forex-Training.com

The global marketplace has changed dramatically over the past several years. New investment strategies are becoming more important in order to minimize risk, as well as to maintain high portfolio returns. Among the most rewarding of the markets opening up to traders is the Foreign Exchange market. Identifiable trading patterns, as well as comparatively low margin requirements, have rewarding trading opportunities for many.

In contrast to the world’s stock markets, foreign exchange is traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online. With this transaction structure as its foundation, the Foreign Exchange Market has become by far the largest marketplace in the world. Average volume in foreign exchange exceeds $1.5 trillion per day versus only $25 billion per day traded on the New York Stock Exchange. This high volume is advantageous from a trading standpoint because transactions can be executed quickly and with low transaction costs (i.e., a small bid/ask spread).

As a result, foreign exchange trading has long been recognized as a superior investment opportunity by major banks, multinational corporations and other institutions. Today, this market is more widely available to the individual trader than ever before.

Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EURUSD. That is, sell Euros and buy US dollars. Forex-Training.com has compiled the following guide for quoting conventions:

Symbol	Currency Pair	Trading Terminology
GBPUSD	British Pound / US Dollar	"Cable"
EURUSD	Euro / US Dollar	"Euro"
USDJPY	US Dollar / Japanese Yen	"Dollar Yen"
USDCHF	US Dollar / Swiss Franc	"Dollar Swiss", or "Swissy"
USDCAD	US Dollar / Canadian Dollar	"Dollar Canada"
AUDUSD	Australian Dollar / US Dollar	"Aussie Dollar"
EURGBP	Euro / British Pound	"Euro Sterling"
EURJPY	Euro / Japanese Yen	"Euro Yen"
EURCHF	Euro / Swiss Franc	"Euro Swiss"
GBPCHF	British Pound / Swiss Franc	"Sterling Swiss"
GBPJPY	British Pound / Japanese Yen	"Sterling Yen"
CHFJPY	Swiss Franc / Japanese Yen	"Swiss Yen"
NZDUSD	New Zealand Dollar / US Dollar	"New Zealand Dollar" or "Kiwi"
USDZAR	US Dollar / South African Rand	"Dollar Zar" or "South African Rand"
GLDUSD	Spot Gold	"Gold"
SLVUSD	Spot Silver	"Silver"

Forex Market

2008-05-08T08:11:00.000-07:00

Trading information for beginners

If you’re a new to the forex (foreign exchange) market, you probably have a lot of questions. Making money in a global currency market is an exciting prospect; you’re probably wondering how, and what you need to get started. A lot of information on the internet is geared toward the knowledgeable trader who has at least experienced the stock market. Not everyone has the benefit of Wall Street experience. We are here to help you out if you’re not all that stock savvy and don’t have a financial background.

So, what is foreign currency exchange?

The basic term, foreign currency exchange, is used to explain the exchange of one country’s currency for another’s. If you’ve every traveled out of the country, you probably cashed in your American dollars to find that the trade was nowhere near equal. Forex is the same thing on a much larger scale – it’s similar to the market except it deals in liquid assets at all times. It’s the process of buying and selling cash from nations around the world.

How can foreign currencies be traded?

Currency exchanges can be handled on three different levels. You will need to use a broker or a brokerage firm that allows trades through one of the following:

• The Commodity Futures Trading Commission (CFTC)
• Securities and Exchange Commission (SEC)

There is also what is called the off-exchange (over-the-counter) market. An example of this would be that you return from your vacation from Canada and trade your cash in for American dollars. This is only on a retail level or corporate level. Off-exchange trading is subject to very limited regulatory oversight.

How much money do I need to trade Forex?

It depends on the Forex dealer. Brokers concentrated in the Forex market can set their own minimum accounts and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.

Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a broker, make sure that you look over the fees and schedules carefully before you deposit any money. It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm.

These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

Example 3

2008-05-07T20:52:00.002-07:00

The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:

He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.

Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.

After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.

Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.

Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.

The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.

Example 2:

2008-05-07T20:52:00.001-07:00

he investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).

The dealer quotes 112.05-10. The investor sells EUR at 112.05.

Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.

He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.

Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.

The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.

Forex trading examples- Example 1

2008-05-07T20:51:00.000-07:00

An investor has a margin deposit with Saxo Bank of USD 100,000.

The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.

The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.

Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.

Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.

Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.

Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.

As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.

This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.

Stop-loss discipline

2008-05-07T20:50:00.002-07:00

As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are moving against you.

Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out. Of course, the market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.

But the main risk is really an event over the weekend, where all markets are closed. This happens from time to time as many important political events, such as G7 meetings, are normally scheduled for weekends.

For speculative trading, we always recommend the placement of protective stop-lossorders. With Saxo Bank Internet Trading you can easily place and change such orders while watching market development graphically on your computer screen.

Spot and forward trading

2008-05-07T20:50:00.001-07:00

When you trade foreign exchange you are normally quoted a spot price. This means that if you take no further steps, your trade will be settled after two business days. This ensures that your trades are undertaken subject to supervision by regulatory authorities for your own protection and security. If you are a commercial customer, you may need to convert the currencies for international payments. If you are an investor, you will normally want to swap your trade forward to a later date. This can be undertaken on a daily basis or for a longer period at a time. Often investors will swap their trades forward anywhere from a week or two up to several months depending on the time frame of the investment.

Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.

Interest Rate Differentials

Different currencies pay different interest rates. This is one of the main driving forces behind foreign exchange trends. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate.

Although such interest rate differentials may not appear very large, they are of great significance in a highly leveraged position. For example, the interest rate differential between the US dollar and the Japanese yen has been approximately 5% for several years. In a position that can be supported by a 5% margin deposit, this results in a 100% profit on capital per annum when you buy the US dollar. Of course, an even more important factor normally is the relative value of the currencies, which changed 15% from low to high during 2005 – disregarding the interest rate differential. From a pure interest rate differential viewpoint, you have an advantage of 100% per annum in your favour by being long US dollar and an initial disadvantage of the same size by being short.
Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions!

Such a situation clearly benefits the high interest rate currency and as result, the US dollar was in a strong bull market all through 2005. But it is by no means a certainty that the currency with the higher interest rate will be strongest. If the reason for the high interest rate is runaway inflation, this may undermine confidence in the currency even more than the benefits perceived from the high interest rate.

Margin Trading

2008-05-07T20:49:00.001-07:00

Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market. For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security.

In other words, you will have obtained a gearing of up to 100 times. This means that a change of, say 2%, in the underlying value of your trade will result in a 200% profit or loss on your deposit. See below for specific examples. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed. Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions.

Base Currency and Variable Currency

When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.

The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.

Dealing Spread, but No Commissions

When trading foreign exchange, you are quoted a dealing spread offering you a buying and a selling level for your trade. Once you accept the offered price and receive confirmation from our dealers, the trade is done. There is no need to call an exchange floor. There are no other time-consuming delays. This is possible due to live streaming prices, which are also a great advantage in times of fast-moving markets: You can see where the market is trading and you know whether your orders are filled or not.

The dealing spread is typically 3-5 points in normal market conditions. This means that you can sell US dollars against the euro at 1.7780 and buy at 1.7785. There are no further costs, commissions or exchange fees.

This ensures that you can get in and out of your trades at very low slippage and many traders are therefore active intra-day traders, given that a typical day in USDEUR presents price swings of 150-200 points.

Forex Trading Basics

2008-05-07T20:41:00.000-07:00

The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets.

There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.

Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.

In the following article, we would like to introduce you to some of the basic concepts of foreign exchange trading. If you would like any further information, we suggest that you sign up for a FREE Membership on this website, where you will be able to exchange views with other Forex traders and get answers to any questions you might have.

Learn Forex Trading Online

2008-05-07T13:12:00.002-07:00

Where do you start if you want to learn Forex trading online?

Well a good starting point is to look at just what Forex trading is and who the players in this market are. We should also think about just why you should be learning Forex trading and thinking about starting you own online Forex trading business.

The Forex market (which is sometimes referred to as the FX market and for which the full title is The Foreign Exchange Market) was established as we know it today in 1971 following the demise of fixed currency exchanges. Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place.

A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.

There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.

The exchange of currencies is a central element in supporting global trade and, as the major currencies such as the US dollar (USD), the British pound (GBP), the Euro (EUR), the Japanes yen (JPY) and others move against each other and the foreign currency exchange rate for any given pair of currencies changes, there is the opportunity to make money from currency exchanges.

The major players in the market take advantage of this by buying and selling in deals which often run into many millions of dollars, but the smaller players are also extremely active and often trade in deals of as low as one hundred thousand dollars. And, by trading on the back on the smaller players, individuals can get into the market with a lot less than that!

The fact that even small players can join this market means that, as long as you are prepared to take the time to understand the currency markets and to learn the skills of Forex trading, then, with a little bit of capital to invest, it is possible to enjoy an excellent income from online currency trading.

Despite the fact that you cannot trade on your own and will have to use the services of a Forex broker, you certainly don't need a fortune and many Forex brokers will now allow you to open an online Forex mini account with as little as $250.

The Forex market is a technical market and it does takes a while to come to grips with the basic principles underlying the currency markets, to develop the necessary skills in the use of some of the 'tools of the trade' (like technical and fundamental analysis tools) and to learn Forex currency trading online.

Despite this, you do not have to be an expert in the currency markets to profit from them. As long as you take the time to learn foreign exchange currency trading and put in a bit of effort it is quite easy to gain enough of an understanding to begin making money through Foreign trading online.

Foreign currency trading provides an excellent opportunity for the small investor to make money but learning to trade Forex is essential before heading out into the market.

Through a large and growing collection of articles covering everything from the history of foreign currency trading to fundamental and technical analysis, psychology and strategies, tools and software we aim to help you learn to day trade Forex quickly and easily.

Korean Won is Worst in Asia

2008-05-07T13:12:00.001-07:00

2007 was a banner year for the Turkish Lira, which appreciated 21% against the US Dollar. However, in the year-to-date, the currency has returned nearly 10% of this gain, making it the third worst performing currency in the world. Turkey generally, and the Lira specifically, are considered by investors as proxies for emerging markets. The global trend towards risk aversion, as well as skyrocketing inflation, are hurting many such currencies. In Turkey, inflation is so problematic (9.4% at last count) that the Central Bank has raised its benchmark interest rate to 15.25%. Ironically, the more the Lira depreciates, the harder it becomes for the Central Bank to control inflation, causing the Lira to slide further as part of a self-perpetuating free-fall. In addition, the country is beset by political uncertainty, as the courts determine whether the nation's current government can stay in office. Bloomberg News reports:

"The recent political developments are likely to complicate policy-making and the investment climate. The deteriorating political backdrop will in turn undermine the prospects for restoring fiscal discipline and reviving the reform agenda."

Using Currency Correlations in Forex Trading

2008-05-07T13:08:00.000-07:00

Very often currency pairs are closely related to one another - and this is something that can be used to the Forex Traders advantage.

Correlation analysis helps you understand these relationships. Positive and negative correlations between currency pairs are measured in decimal form - and they serve to reflect the extent to which the pairs 'trade in line' or diverge with each other.

The closer the number is to 1, the stronger the positive correlation. Conversely - the closer the number is to -1 the stronger the negative correlation. Currency correlations are measured over a specific time periods, and it is important to bear in mind that these relationships reflected in the numbers will change over time.

Correlations can help a forex trader manage their risk exposure - by using a pair with a negative correlation as a hedge. A positive correlation between two currency pairs can be used as a leading indicator.

SocialSpark great for bloggers and to announce

2008-05-06T19:01:00.000-07:00

SocialSpark this alive, and is a great site for bloggers and advertisers. Because the bloggers have a great chance to do what they like and still win a money. Do not understand? Still calm me explain, SocialSpark is a site that pays you to post to your blog on pre-defined issues that advertisers choose, you only have the task of drawing up the post on the subject set by the advertiser.
For advertisers the SocialSpark is very good because advertisers have this great chance to disseminate their products to the world and also will have a great return on their products. Advertisers in SocialSpark will give a bonus for bloggers to post them on your product. The new site this great, this vision with a very beautiful and attractive, perfect for both bloggers and advertisers.
What I most like about Socialspark is the opportunity to do what I like most is that blogging can advertise their products and I want with a certainty of a great return. I think that to improve further the SocialSpark only need to get more advertisers who has a new blog, done that the site will be perfect.
So do not waste time and become a member in Socialspark and has great profits or blogging has a great return and announcing the return of course you will have much to cover bonus given to bloggers
Thank you.

Learn Forex Trading and Multiply Your Wealth

2008-05-06T05:33:00.001-07:00

To many people that sounds amazing, and perhaps it is. It can be very profitable for investors and fortunes have been made by many. The incentive to learn forex trading is the oldest incentive by far, the incentive to make profit. If you learn forex trading you are learning how to make your money make more money for you, the goal of all investors.

If you choose to learn forex trading online you are not alone since thousands of people choose this method every year. If you learn forex trading online you have the benefit of choosing an instructor from almost anywhere in the world, or to choose multiple instructors.

When you learn forex trading in this fashion your virtual classmates could be from England, Hong Kong, Singapore, Paris, or any other exotic locale that you may have only read about in the past.

Obviously this diversity of culture and knowledge will be beneficial. During online chats and student discussions questions will be raised that you may not have thought of yourself, and you’ll be able to benefit by hearing the answers.

The ultimate goal of forex trading is to trade currency in a consistent manner that will result in profit. For instance, buying Euros with US dollars and then selling the Euros for more than you gave for them when the market changes.

This is the oldest rule of business, buy low and sell high. If you learn forex trading you’ll be able to do this on a scale you never would have thought possible, limited only by the amount of investment funds you have and by market conditions.

Forex (FX) Currency Trading Forecast

2008-05-06T05:31:00.000-07:00

Basic Forex forecast methods: Technical analysis and fundamental analysis.
This article provides insight into the two major methods of analysis used to forecast the behavior of the Forex market. Technical analysis and fundamental analysis differ greatly, but both can be useful forecast tools for the Forex trader. They have the same goal - to predict a price or movement. The technician studies the effect while the fundamentalist studies the cause of market movement. Many successful traders combine a mixture of both approaches for superior results.

Technical analysis
Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action. Technical analysis is concerned with what has actually happened in the market, rather than what should happen and takes into account the price of instruments and the volume of trading, and creates charts from that data to use as the primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously.

Technical analysis is built on three essential principles:

1. Market action discounts everything! This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. However, the pure technical analyst is only concerned with price movements, not with the reasons for any changes.

2. Prices move in trends Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. Also, there are recognized patterns that repeat themselves on a consistent basis.

3. History repeats itself Forex chart patterns have been recognized and categorized for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.

Forex charts are based on market action involving price. There are five categories in Forex technical analysis theory:
* Indicators (oscillators, e.g.: Relative Strength Index (RSI)
* Number theory (Fibonacci numbers, Gann numbers)
* Waves (Elliott wave theory)
* Gaps (high-low, open-closing)
* Trends (following moving average).

Some major technical analysis tools are described below:
Relative Strength Index (RSI):
The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations).

Stochastic oscillator:
This is used to indicate overbought/oversold conditions on a scale of 0-100%. The indicator is based on the observation that in a strong up trend, period closing prices tend to concentrate in the higher part of the period's range. Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range. Stochastic calculations produce two lines, %K and %D that are used to indicate overbought/oversold areas of a chart. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal.

Moving Average Convergence Divergence (MACD):
This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.

Number theory:
Fibonacci numbers: The Fibonacci number sequence (1,1,2,3,5,8,13,21,34...) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number.

Gann numbers:
W.D. Gann was a stock and a commodity trader working in the '50s who reputedly made over $50 million in the markets. He made his fortune using methods that he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann's methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.

Waves
Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five-wave advance followed by a three-wave decline.

Gaps
Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap that forms on the completion of an important price pattern. It usually signals the beginning of an important price move. A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.

Trends
A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.

Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a market with a strong up or down trend.

The most common technical tools:
Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.

DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not a currency pair is trending.

Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger picture" factors affecting the market, but concentrates on the activity of that instrument's market.

Fundamental analysis
Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments, whereas the fundamental analyst needs to know a particular market intimately. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.

The fundamentalist studies the cause of market movement, while the technician studies the effect. Fundamental analysis is a macro or strategic assessment of where a currency should be trading based on any criteria but the movement of the currency's price itself. These criteria often include the economic condition of the country that the currency represents, monetary policy, and other "fundamental" elements.

Many profitable trades are made moments prior to or shortly after major economic announcements.

WHAT IS FOREX CURRENCY TRADING?

2008-05-06T05:30:00.001-07:00

WHAT IS FOREX CURRENCY TRADING?

If you read about investing, you've seen the word forex trading. But because forex doesn't get much publicity in the major publications and websites, many investors don't know that forex is just short for "foreign exchange". So trading the forex market is simply trading foreign currencies.

As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had access to the tools and systems required to play in the forex trading game. Recently, however, technology has developed to the point that any individual investor can hop right in and trade with one of the many online platforms.

When buying and selling in the forex currency trading system market, you'll see that there are four "currency pairs" that dominate the percentage of trades. Those four are the Euro vs U.S. Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Pound.

The goal when investing in currency is to be holding a currency that appreciates in value in relation to the other currencies. To use an overly simplistic example, if you bought 50 British Pounds for 100 US Dollars, held the Pounds for 1 week, and in that period the value of Pounds increased in relation to US Dollars, you could then convert those Pounds back into dollars for, say, $120.

Unlike the domestic stock markets, the forex currency trading is open for trades 24 hours a day. Much like the phrase "it's always noon somewhere," it's always business hours at some region of the globe. Since every country trades on the FX market, and it's open all day, the daily volume is roughly $1.2 trillion, which dwarfs that of the NYSE. Another comparison to make in order to truly realize the magnitude of the forex market is with the currency futures market (which has around 1% of the daily volume).

One other important distinction to make is that forex currency trading is not centered on an exchange like the NYSE or NASDAQ. There is no central body or organization required to act as middleman. Trading circulates between major banking centers around the world.

Until recently, there were strict financial requirements and massive minimum transaction sizes which prevented individual investors from trading. But with the advent of the internet came the FX brokers. A forex currency broker is similar to an online stock trading account such as etrade.

Anybody can open an account and buy and sell in any quantity. Because the brokers have thousands of investors placing orders through them, they are able to meet the large minimum transaction size by purchasing in large blocks and distributing currency amongst the purchasing investors.

Although it is now easy to start trading forex, it is a complicated and complex market. While it offers fantastic opportunity for wealth, it is also very easy to lose your shirt in a hurry. Before trading forex, do your homework and read as much as you can find before investing your hard earned money.

Korean securities sector profit margins seen below 2007 highs - Moody's

2008-05-06T05:28:00.000-07:00

MUMBAI (Thomson Financial) - Moody's Investors Service says the earnings and profit margins of the Korean securities sector will likely trend below the historical highs evident in 2007, given global economic weakness and capital market volatility.

Moreover, the adverse environment is likely to intensify competition in brokerage with some firms cutting retail commission rates after a few years of stability, Moody's added.

"This outcome will be negative for the industry as brokerage is a bread-and-butter business accounting for 59 percent of net revenue, although the impact will be uneven and biggest on those most reliant on commission income," said May Yan, a Moody's vice president and senior credit officer.

"At the same time, the financials of the companies are generally healthy with decent asset quality, low leverage, adequate liquidity and ample capital," Yan added. "They have minimal exposures to cross-border structured products."

These factors, coupled with limited exposures to and funding needs from global markets, are likely to position them to withstand the deterioration in the external environment, assuming events of the magnitude of the Asian financial crisis of 1996-98 or the Korean consumer credit crisis of 2002-04 do not occur, the agency said.

"Securities companies are trying to diversify into wealth management and investment banking," Yan said about prevailing trends. "Recent regulatory changes -- which allow them to engage in cash management and pensions & trusts and access the payment system, previously only open to the banks -- have provided them with these opportunities."

Moody's noted that the sector is poised for transformation, due to competition, deregulation and capital market development.

Forex - Dollar firm against euro as markets reassess U.S./euro zone prospects

2008-05-06T05:26:00.000-07:00

ONDON (Thomson Financial) - The dollar remained firm against the euro, trading in narrow ranges, with investors turning more positive on the United States's economic prospects compared with the outlook for the euro zone.

Data out of Europe on Tuesday added to markets' belief that growth in the euro zone economy could slow sharply in the coming months.

Though the April purchasing managers' index (PMI) for the euro zone's service sector was revised up to 52.0 from 51.8, the figures revealed a major divergence in growth, with Germany performing well but Spain, France and Italy showing major signs of weakness.

Ben May, European economist at Capital Economics, said the signals of a flagging economy should ultimately push the European Central Bank to drop its hawkish tone and lower borrowing costs.

"Softening activity should ultimately prompt the bank to cut interest rates twice by the end of the year," he said.

Nonetheless, the ECB's concerns about inflation were underscored by data that showed pipeline price pressures are still acute, with the annual rate of producer price inflation hitting 5.7 percent in March, above expectations for a rate of 5.5 percent and the firmest since August 2006.

With euro zone rates thought to be heading lower, albeit with some months' delay due to inflation worries, investors seem to re-evaluating the euro/dollar rate. This reflects the fact that a a lot of bad news in the United States has been priced into the greenback.

"While nobody would deny the severity of the U.S. downturn, it is now, to a reasonable degree, a known factor that investors can factor into their thinking," said Simon Derrick, currency strategist at the Bank of New York Mellon.

This means the dollar is now competitively priced, the euro is looking expensive, he said.

"There has been a notable deterioration in the economic data of late out of the euro zone and ... the euro is looking increasingly uncompetitively priced," Derrick said.

"There appears to be a growing risk of a break back towards $1.50 developing from here," he added.

Adding support to the dollar was Monday's ISM non-manufacturing index, which jumped almost 4 points to 52.0, easily beating expectations.

The market's focus will now likely turn to interest rate decisions in the euro zone and the United Kingdom.

Both the ECB and the Bank of England (BoE) are expected to hold borrowing costs this month, although the chances of a cut in UK rates will grow if data continues to be weak.

Figures on Tuesday showed the UK's services sector, which accounts for around two-thirds of the economy, nearly slipped into recession in April. The services PMI reading for the month dipped to 50.4 from 52.1 in March, just barely above the 50 threshold that separates expansion from contraction.

London 1140 GMT London 0842 GMT

U.S. dollar

yen 104.60 down from 104.84

Swiss franc 1.0478 down from 1.0518

Euro

U.S. dollar 1.5525 up from 1.5483

yen 162.41 up from 162.28

Swiss franc 1.6270 down from 1.6288

pound 0.7881 up from 0.7874

Pound

U.S. dollar 1.9700 up from 1.9657

yen 206.05 up from 205.98

Swiss franc 2.0643 down from 2.0666

Australian dollar

U.S. dollar 0.9441 down from 0.9454

pound 0.4789 down from 0.4812

yen 98.80 down from 99.08

alex.brittain@thomsonreuters.com

abr/wj

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

Forex Market Information Easily Accessible

2008-05-05T06:44:00.000-07:00

Forex Market Comparison
Forex vs. Stocks

Advantage Forex Market Stock Market
Trade Around the Clock Yes Limited
Pay No Commissions* Yes Limited
Unlimited Short-selling Yes No
Market Information Easily Available Yes Yes

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.

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, and sometimes subject to fraud, deception and insider trading. 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.

The knowledge you've gained in analyzing stocks is easily transferable 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.

Open: Dollar overcomes some lost ground even as greenback firms

2008-05-05T06:43:00.000-07:00

By 8am today the kiwi was buying US78.13c, up from US77.77c at 5pm on Friday, although still below levels of most of the past three months.

At the same time the US dollar scaled two-month highs against the yen and a basket of currencies after an unexpectedly small drop in US nonfarm payrolls left investors hoping any US recession would prove a shallow one.

News that the struggling US economy shed only 20,000 jobs in April also supported views that the Federal Reserve would refrain from cutting US interest rates again, provided economic data and financial markets did not deteriorate further.

Bank of New Zealand currency strategist Danica Hampton said the US jobs data bolstered US equity markets, risk appetite and demand for high-yielding currencies such as the NZ dollar, particularly against safe-haven currencies such as the yen.

At today's local open the kiwi was buying 82.17 yen from 81.37 at 5pm on Friday.

The NZ dollar was also up against its Australian counterpart, opening at A83.51c, from A83.37c at Friday's local close but still below levels of much of the past six months.

Against the euro, the kiwi was buying 0.5062 at 8am from 0.5028, while the trade weighted index was up to 70.14 from 69.75.

Reuters currency rates (8am today - 5pm Friday):

NZ dlr/US dlr US78.13 - US77.77c

NZ dlr/Aust dlr A83.51c - A83.37c

NZ dlr/euro 0.5062 - 0.5028

NZ dlr/yen 82.17 - 81.37

NZ dlr/stg 39.61p - 39.38p

NZ TWI 70.14 - 69.75

Australian dollar US93.55c - US93.26c

Euro/US dollar 1.5432 - 1.5466

US dollar/yen 105.18 - 104.63

Online Currency Trading News & Analysis

2008-05-05T06:42:00.000-07:00

FXCM's No Dealing Desk execution gives users access to streaming prices provided to FXCM from multiple banks, with spreads as low as 1 pip. The No Dealing Desk agency execution offers trading directly with the bank's prices, and will never have a dealer interrupting your trades. Trade during market news with no requotes and earn positive rolls regardless of margin level. FXCM is regulated by the NFA and CFTC in the US, FSA in the UK and SFC in Hong Kong. FXCM offers virtually unparalleled customer support in more than a dozen different languages, most languages are available 24 hours a day. Register now for a free $50,000 practice account!
Forex Trading Still Going Strong

Even with the American economy on the fritz, Forex trading has been increasing over the last fifteen years. Some analysts feel that the Internet has played a major part in the industry’s support system which has helped trading increase over a variety of asset classes. Orion Brokers, a Dubai based company that develops and provides Forex software that is also offered to banks and financial institutions has seen how well the Internet has helped the Forex trade.

According to Orion’s senior vice-president Ali Hamoud, “The current liquidity in the regional markets suggests we will have growth for five years if not 10. One of the strengths of this market is that we have a young and growing population of whom 75 per cent are under 25 years of age. We see massive infrastructure investment that is certainly likely to continue for the next five years.” He also feels that GCC is the next market to come of age and agricultural products and oil will see a massive Forex boom over the next seven years.