Stocks ending lower in US trading session on Friday as oil and gold sold off heavily leaving oil back under $70 per barrel and gold coming off the highs of $1012.30 (now at $997.50) due to better than expected consumer confidence level as produced from the University of Michigan. The Yen, as stated in previous reports, is certainly the currency of choice acting as a 'safe haven'. Stocks in asia fell heavily overnight as the fears that the rally in equities over the last 6 months have outpaced the prospects for earnings growth. The likelihood of an Autumn sell off from global equities now becoming far more likely given that the MSCI world stock index fell. European stocks falling in line with the US and Asia, selling across the board during this mornings session as UK financials report further losses to the tume of 130bn pounds in addition to the 110 bn lost since the beginning of the 'credit crisis' in 2007.
Cable trading for late european and US session looks to continue its sell off at US equity futures are looking to open lower at time of writing. Coming off the highs of 1.6690/95, now trading at 1.6530/35 (50% fib ret level for the last weeks trading), which is acting as a support barrier for this morning. Should commodities along with stocks continue to gain momentum, expect a move towards 1.65 ahead of the 61.8% ret level at 1.6480. Resistance back up at the 38.2% level at 1.6580 ahead of 1.66 figure. The pound is also continuing to be battered against the euro as the EU stated that the economy has returned to growth in the current quarter.
Euro trading for today coming off the highs of 1.4605/10, now at 1.4550 at time of writing. As the euro is still remaining strong, certainly against the pound and level against the dollar, a move back towards 1.4560/70 as the yen retraces back of its highs overnight to 132.40/45. The key resistance for euro yen is 132.50 (38.2% fib level for the weeks trading) which if breaks and holds will see a return to 132.90. Should the stocks and commodities continue to fall, expect a retracement from the 38.2% level for euroyen cross over to 1.4515 for eurodollar, which if breaks there will see a return towards 1.4520 ahead of 1.4480.
Yen trading lower against the euro through the asian session and europe as chinese stocks fall overnight. Should US equities continue to fall after the open, expect the Yen to gain once again to head towards the the highs against the dollar at 90.70 ahead of 90.50. Resistance at 91.05 ahead of 91.50 (38.2% fib level for the weeks trading).
USD/JPY seems ready to extend the upside
Wed, Sep 30 2009, 03:27 GMT
http://www.fxstreet.com
FXstreet.com (Buenos Aires) – USD/JPY Current Price: 90.34. Quoting around past Tuesday highs, pair seems ready to extend the upside during next hours, as price downside remains capped by the 20 SMA that has been guiding the movement for the past 28 hours. 4 hours are also slightly bullish, yet pair needs to break 90.70/80 area to confirm a continuation.
“Under 89.80, pair could fall to 89.50, yet seems unlikely a movement further down for the next 24 hours,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 90.10 89.80 89.50. Resistance levels: 90.35 90.70 91.10.
http://www.fxstreet.com
FXstreet.com (Buenos Aires) – USD/JPY Current Price: 90.34. Quoting around past Tuesday highs, pair seems ready to extend the upside during next hours, as price downside remains capped by the 20 SMA that has been guiding the movement for the past 28 hours. 4 hours are also slightly bullish, yet pair needs to break 90.70/80 area to confirm a continuation.
“Under 89.80, pair could fall to 89.50, yet seems unlikely a movement further down for the next 24 hours,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 90.10 89.80 89.50. Resistance levels: 90.35 90.70 91.10.
Tips For Being a Successful Forex Trader
Monday, September 28, 2009
Bob Williams
If there were really a list of fail-safe tips to investing in the Forex market, we'd all be investors. We'd all be rich. The Forex market is definitely an exciting way to invest, but it doesn't come without risks. Knowing what rules of thumb to follow can help you in your Forex experience and with time you can start making a valid profit. When you're just starting out as a Forex trader, of course you're looking for the best advice on how to be a successful Forex trader. Here are some tips on how to be more successful in your trading:
Educate yourself on Forex: If you go into Forex trading without fully understanding the market, you will lose your money. If you try to get the fastest profit possible by making high-risk decisions, you will lose money. If you jump on board with a shady broker that promises you something that's too good to be true, it probably is, and you'll lose your money. One of the most important protections you can do for yourself is to become knowledgeable before even considering entering the Forex trading market. That time invested in the beginning will pay off in the long run.
Practice- as much as possible: One of the nicest parts of the Forex trading market is the wide variety of trading platforms to choose from- and the free demos you can use to practice with faux money. Most trading platforms offer free demo accounts, with tutorials, forums and advice- before you 'officially' sign up for trading. They're free- the only thing it will cost you is the time you're willing to put in to learn the platforms. You also build your know-how and confidence, before investing your hard-earned money
Patience is a virtue called Forex: If you think you can make a killing on the Forex market overnight, and walk away rich in a month or so, don't even bother. You'll waste your time, your money, and will wind up disappointed. The Forex trade market is a game of patience and perseverance- the more slowly you go, the more time you put in becoming familiar with Forex- the more successful you'll be as a Forex trader. You can't earn without working for it.
Talk with the experts: There are so many reputable Forex traders with tons of experience that you can learn from. From free online ebooks about Forex, to inexpensive courses that can guide you step-by-step- the experts have made money and they know what they're talking about. Go to forums, and pick brains of those who've been Forex trading for awhile. Make contacts and follow Forex newsletters and updates to see what the latest-breaking news is for the market.
Forex trading can be a terrific way to earn either extra money as a supplement, or to even go into Forex trading as a full-time occupation. But to be a successful Forex trader, you'll need to put in just as much effort as you expect in returns. The most successful Forex traders are those who go slowly but steadily- and it's paid off.
If there were really a list of fail-safe tips to investing in the Forex market, we'd all be investors. We'd all be rich. The Forex market is definitely an exciting way to invest, but it doesn't come without risks. Knowing what rules of thumb to follow can help you in your Forex experience and with time you can start making a valid profit. When you're just starting out as a Forex trader, of course you're looking for the best advice on how to be a successful Forex trader. Here are some tips on how to be more successful in your trading:
Educate yourself on Forex: If you go into Forex trading without fully understanding the market, you will lose your money. If you try to get the fastest profit possible by making high-risk decisions, you will lose money. If you jump on board with a shady broker that promises you something that's too good to be true, it probably is, and you'll lose your money. One of the most important protections you can do for yourself is to become knowledgeable before even considering entering the Forex trading market. That time invested in the beginning will pay off in the long run.
Practice- as much as possible: One of the nicest parts of the Forex trading market is the wide variety of trading platforms to choose from- and the free demos you can use to practice with faux money. Most trading platforms offer free demo accounts, with tutorials, forums and advice- before you 'officially' sign up for trading. They're free- the only thing it will cost you is the time you're willing to put in to learn the platforms. You also build your know-how and confidence, before investing your hard-earned money
Patience is a virtue called Forex: If you think you can make a killing on the Forex market overnight, and walk away rich in a month or so, don't even bother. You'll waste your time, your money, and will wind up disappointed. The Forex trade market is a game of patience and perseverance- the more slowly you go, the more time you put in becoming familiar with Forex- the more successful you'll be as a Forex trader. You can't earn without working for it.
Talk with the experts: There are so many reputable Forex traders with tons of experience that you can learn from. From free online ebooks about Forex, to inexpensive courses that can guide you step-by-step- the experts have made money and they know what they're talking about. Go to forums, and pick brains of those who've been Forex trading for awhile. Make contacts and follow Forex newsletters and updates to see what the latest-breaking news is for the market.
Forex trading can be a terrific way to earn either extra money as a supplement, or to even go into Forex trading as a full-time occupation. But to be a successful Forex trader, you'll need to put in just as much effort as you expect in returns. The most successful Forex traders are those who go slowly but steadily- and it's paid off.
The Best Forex Trading Strategies for 2009
By Bob Williams
The Forex market has certainly come a long way from its beginnings as a specialized investment strategy only open to the wealthiest and largest financial institutes. It's become an everyman market, and it's grown thanks to technology and interest. In fact, it's one of the fastest-growing markets world-wide- and everyone wants a piece of the action. So when you're looking for the latest strategies for investing in Forex in 2009, what should you take into account? What sort of tools are popular, which work the best? As with any investment strategy, it's got to be personal for your investing style. Here are a few considerations:
The latest is the best. The Forex market is changeable by the minute, by the hour and by the day. If your equipment isn't up-to-date, neither are you- so look at traders ebooks from 2009, the newest updates or upgrades of systems that have one-click accessibility, and the fastest on-entry/exit set ups. This might seem obvious to most Forex traders in 2009, but you'd be surprised how many stubbornly stick to the 'old system that's always worked for them.'
Reliable platforms are key. In 2009, the Forex market is huge. Which means all of the scam companies and half-wit brokers are doubling their efforts to get noticed. By using the latest technology on their end, the schemes they 'sell' look reliable until your money is gone. With the economic crisis, it's really important to research the Forex trade platforms thoroughly- wary is the catchword for 2009 investing.
Know your market. The currency pairs available now in the Forex market almost seem countless. However, after deciding on a pair or pairs, put in the time. Follow the economic news closely, keep your account updated and get to know the countries' histories that you're trading in. There are a lot of patterns that repeat in the pairs, which can help you guess at the trend. If you aren't trading in the Big 5, you'll need to bone-up on all of the information about your pair you can.
Keep it simple. Simplicity is bliss in the 2009 Forex market. The latest Forex gadgets that offer so much (but in reality only over-complicate your account, and sap time) aren't worth it. Having 4 or 5 pairs that you don't know well in comparison with one or two you know extremely well will lose your profit. Using Forex trading platforms that are easy to set up, with clear indicators and charts help you trade faster, without unnecessary fuss. The faster you can trade, the faster you can react to the 2009 Forex market and make a profit.
2009 is the year of caution and minimalism in the Forex trading market. The great thing about it is that it's even easier to follow your account(s), it takes a lot less time and it's a consistently growing marketplace. Being smart in 2009 could also mean being richer by the end of 2009.
The Forex market has certainly come a long way from its beginnings as a specialized investment strategy only open to the wealthiest and largest financial institutes. It's become an everyman market, and it's grown thanks to technology and interest. In fact, it's one of the fastest-growing markets world-wide- and everyone wants a piece of the action. So when you're looking for the latest strategies for investing in Forex in 2009, what should you take into account? What sort of tools are popular, which work the best? As with any investment strategy, it's got to be personal for your investing style. Here are a few considerations:
The latest is the best. The Forex market is changeable by the minute, by the hour and by the day. If your equipment isn't up-to-date, neither are you- so look at traders ebooks from 2009, the newest updates or upgrades of systems that have one-click accessibility, and the fastest on-entry/exit set ups. This might seem obvious to most Forex traders in 2009, but you'd be surprised how many stubbornly stick to the 'old system that's always worked for them.'
Reliable platforms are key. In 2009, the Forex market is huge. Which means all of the scam companies and half-wit brokers are doubling their efforts to get noticed. By using the latest technology on their end, the schemes they 'sell' look reliable until your money is gone. With the economic crisis, it's really important to research the Forex trade platforms thoroughly- wary is the catchword for 2009 investing.
Know your market. The currency pairs available now in the Forex market almost seem countless. However, after deciding on a pair or pairs, put in the time. Follow the economic news closely, keep your account updated and get to know the countries' histories that you're trading in. There are a lot of patterns that repeat in the pairs, which can help you guess at the trend. If you aren't trading in the Big 5, you'll need to bone-up on all of the information about your pair you can.
Keep it simple. Simplicity is bliss in the 2009 Forex market. The latest Forex gadgets that offer so much (but in reality only over-complicate your account, and sap time) aren't worth it. Having 4 or 5 pairs that you don't know well in comparison with one or two you know extremely well will lose your profit. Using Forex trading platforms that are easy to set up, with clear indicators and charts help you trade faster, without unnecessary fuss. The faster you can trade, the faster you can react to the 2009 Forex market and make a profit.
2009 is the year of caution and minimalism in the Forex trading market. The great thing about it is that it's even easier to follow your account(s), it takes a lot less time and it's a consistently growing marketplace. Being smart in 2009 could also mean being richer by the end of 2009.
Essential Elements of a Successful Trader
Sunday, September 27, 2009
Courage Under Stressful Conditions When the Outcome is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
Trading Forex With A Strategy
Trading successfully is by no means a simple matter. It requires time, market knowledge and market understanding and a large amount of self restraint.
Anyone who says you can consistently make money in foreign exchange markets is being untruthful. Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. We are therefore talking about a very 'fast market' which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders' timing will be off. Don't loose heart if you loose on some trades. Experienced and seasoned traders do not expect to generate returns on every trade.
Let's enumerate what a trader needs to do in order to put the best chances for profitable trades on his side:
Trade with money you can afford to lose:
Trading forex markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are 'involved with your money' the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.
If in doubt, stay out:
If you're unsure about a trade and find you're hesitating, stay on the sidelines.
Trade logical transaction sizes:
Margin trading allows the forex trader a very large amount of leverage, trading at full margin capacity can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don't trade amounts that can potentially wipe you out and don't put all your eggs in one basket.
Identify the state of the market:
What is the market doing? Is it trending upwards, downwards, is it in a trading range. Is the trend strong or weak, did it begin long ago or does it look like a new trend that's forming. Getting a clear picture of the market situation is laying the groundwork for a successful trade.
Determine what time frame you're trading on:
Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind's eye the movement that one expects to happen. Within this extrapolation, resides a price evolution during a certain period of time. Attached to this is the idea of exit price. The importance of this is to mentally put your trade in perspective and although it is clearly impossible to know exactly when you will exit the market, it is important to define from the outset if you'll be 'scalping' (trying to get a few points off the market) trading intra-day, or going longer term. This will also determine what chart period you're looking at. If you trade many times a day, there's no point basing your technical analysis on a daily graph, you'll probably want to analyse 30 minute or hour graphs. Additionally it is important to know the different time periods when various financial centers enter and exit the market as this creates more or less volatility and liquidity and can influence market movements.
Time your trade:
You can be right about a potential market movement but be too early or too late when you enter the trade. Timing considerations are twofold, an expected market figure like CPI, retail sales or a federal reserve decision can consolidate a movement that's already underway. Timing your move means knowing what's expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur.
Gauge market sentiment:
Market sentiment is what most of the market is perceived to be feeling about the market and therefore what it is doing or will do. This is basically about trend. You may have heard the term 'the trend is your friend', this basically means that if you're in the right direction with a strong trend you will make successful trades. This of course is very simplistic, a trend is capable of reversal at any time. Technical and fundamental data can indicate however if the trend has begun long ago and if it is strong or weak.
Market expectation:
Market expection relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been 'discounted' by the market, alternatively if the adverse happens, markets will usually react violently.
Use what other traders use:
In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.
Anyone who says you can consistently make money in foreign exchange markets is being untruthful. Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. We are therefore talking about a very 'fast market' which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders' timing will be off. Don't loose heart if you loose on some trades. Experienced and seasoned traders do not expect to generate returns on every trade.
Let's enumerate what a trader needs to do in order to put the best chances for profitable trades on his side:
Trade with money you can afford to lose:
Trading forex markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are 'involved with your money' the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.
If in doubt, stay out:
If you're unsure about a trade and find you're hesitating, stay on the sidelines.
Trade logical transaction sizes:
Margin trading allows the forex trader a very large amount of leverage, trading at full margin capacity can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don't trade amounts that can potentially wipe you out and don't put all your eggs in one basket.
Identify the state of the market:
What is the market doing? Is it trending upwards, downwards, is it in a trading range. Is the trend strong or weak, did it begin long ago or does it look like a new trend that's forming. Getting a clear picture of the market situation is laying the groundwork for a successful trade.
Determine what time frame you're trading on:
Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind's eye the movement that one expects to happen. Within this extrapolation, resides a price evolution during a certain period of time. Attached to this is the idea of exit price. The importance of this is to mentally put your trade in perspective and although it is clearly impossible to know exactly when you will exit the market, it is important to define from the outset if you'll be 'scalping' (trying to get a few points off the market) trading intra-day, or going longer term. This will also determine what chart period you're looking at. If you trade many times a day, there's no point basing your technical analysis on a daily graph, you'll probably want to analyse 30 minute or hour graphs. Additionally it is important to know the different time periods when various financial centers enter and exit the market as this creates more or less volatility and liquidity and can influence market movements.
Time your trade:
You can be right about a potential market movement but be too early or too late when you enter the trade. Timing considerations are twofold, an expected market figure like CPI, retail sales or a federal reserve decision can consolidate a movement that's already underway. Timing your move means knowing what's expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur.
Gauge market sentiment:
Market sentiment is what most of the market is perceived to be feeling about the market and therefore what it is doing or will do. This is basically about trend. You may have heard the term 'the trend is your friend', this basically means that if you're in the right direction with a strong trend you will make successful trades. This of course is very simplistic, a trend is capable of reversal at any time. Technical and fundamental data can indicate however if the trend has begun long ago and if it is strong or weak.
Market expectation:
Market expection relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been 'discounted' by the market, alternatively if the adverse happens, markets will usually react violently.
Use what other traders use:
In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.
Colombia Stk Index Ends Above 11,000 Points, Highest In 2 Yrs
Fri, Sep 25 2009, 22:47 GMT
http://www.djnewswires.com/eu
Colombia Stk Index Ends Above 11,000 Points, Highest In 2 Yrs
BOGOTA (Dow Jones)--The Colombian benchmark stock index Friday ended above 11,000 points for the first time in almost two years as there is an increasing appetite for local stocks.
The IGBC rose 1.1% to 11,078.43 points. The index hadn't closed that high since Nov. 30, 2007.
"There is an excess of liquidity in the local market and the returns on fixed income is so low that people prefer to buy stocks," Felipe Campos, a market analyst with local brokerage Alianza Valores, said.
He added there is optimism about the crisis that wasn't as severe as originally feared and the recovery seems under way, he said.
On Thursday the Colombian statistics department said the country's gross domestic product contracted 0.5% in the second quarter compared with the same period in 2008, but expanded 0.7% compared with the previous quarter. Analysts and government officials have said the data show a recovery is slowly starting.
Campos said the index will likely surpass its all-time record of 11,433.26 points hit in January 2005 and will end the year between 12,500 points and 13,000 points.
Shares of state-controlled telephone company Empresa de Telecomuniaciones de Bogota SA (ETB.BO) rose 2.3% to 1,105 Colombian pesos ($0.57), while shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) gained 0.9% to COP2,695.
On the currency market, the peso strengthened to COP1,924 to the dollar from COP1,928.1 on Thursday and on the debt market, the yield on the peso-denominated government bond maturing in 2020 ended at 9.132% from 9.14% on Thursday.
By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; colombia@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=GlH6AMTSSOGIVuxVW%2BwH7g%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 25, 2009 18:47 ET (22:47 GMT)
http://www.djnewswires.com/eu
Colombia Stk Index Ends Above 11,000 Points, Highest In 2 Yrs
BOGOTA (Dow Jones)--The Colombian benchmark stock index Friday ended above 11,000 points for the first time in almost two years as there is an increasing appetite for local stocks.
The IGBC rose 1.1% to 11,078.43 points. The index hadn't closed that high since Nov. 30, 2007.
"There is an excess of liquidity in the local market and the returns on fixed income is so low that people prefer to buy stocks," Felipe Campos, a market analyst with local brokerage Alianza Valores, said.
He added there is optimism about the crisis that wasn't as severe as originally feared and the recovery seems under way, he said.
On Thursday the Colombian statistics department said the country's gross domestic product contracted 0.5% in the second quarter compared with the same period in 2008, but expanded 0.7% compared with the previous quarter. Analysts and government officials have said the data show a recovery is slowly starting.
Campos said the index will likely surpass its all-time record of 11,433.26 points hit in January 2005 and will end the year between 12,500 points and 13,000 points.
Shares of state-controlled telephone company Empresa de Telecomuniaciones de Bogota SA (ETB.BO) rose 2.3% to 1,105 Colombian pesos ($0.57), while shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) gained 0.9% to COP2,695.
On the currency market, the peso strengthened to COP1,924 to the dollar from COP1,928.1 on Thursday and on the debt market, the yield on the peso-denominated government bond maturing in 2020 ended at 9.132% from 9.14% on Thursday.
By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; colombia@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=GlH6AMTSSOGIVuxVW%2BwH7g%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 25, 2009 18:47 ET (22:47 GMT)
How to Invest in Forex Mutual Funds
Friday, September 25, 2009
Step 1
Learn how to read a forex quote. This is a ratio of one currency to another. USD/EUR is the price of a US dollar as expressed in Euros. The currency listed first is the base currency (usually the stronger currency at the time of the quote) and is given a value of 1. The second currency is the counter currency and derives its value in relation to the base. If the USD/EUR quote is 1.21, that means 1 US Dollar has the same value as 1.21 Euros.
Step 2
Understand the definitions of pip and spread. Prices in foreign exchange are expressed in pips--percentage in points. The pip is the number in the fourth place from the decimal point, or 1/100th of 1 percent. If USD/EUR is 1.1300/1.1304, there is a 4-pip spread between the two currencies.
Step 3
Learn about bid and ask. The "bid" is the selling price for the base currency and the "ask" is the price to buy the base currency. Both transactions are done simultaneously.
Step 4
Learn about leverage and margin. Leverage is the ability to trade without having to put up the entire amount of the transaction. Margin is the minimum amount required in order to participate in a trade, usually 1 to 2 percent. The forex market allows higher leverage because major currencies are less volatile than stocks; higher leverage also allows amplification of both profit and loss. Because of this, the forex market is more volatile than the stock market.
Step 5
Select a mutual fund. Unlike the stock market, the forex market has tiers of access. An individual investor would find it difficult to gain significant access. Furthermore, in a 24-hour market, it is difficult for individuals to keep track of investments with any degree of vigilance. Most retail investors work through specialized mutual funds. Search online for managed funds to choose from. Your choice will depend on your desired level of risk, the fund's past performance, the fee structure, and restrictions on deposits and withdrawals.
Learn how to read a forex quote. This is a ratio of one currency to another. USD/EUR is the price of a US dollar as expressed in Euros. The currency listed first is the base currency (usually the stronger currency at the time of the quote) and is given a value of 1. The second currency is the counter currency and derives its value in relation to the base. If the USD/EUR quote is 1.21, that means 1 US Dollar has the same value as 1.21 Euros.
Step 2
Understand the definitions of pip and spread. Prices in foreign exchange are expressed in pips--percentage in points. The pip is the number in the fourth place from the decimal point, or 1/100th of 1 percent. If USD/EUR is 1.1300/1.1304, there is a 4-pip spread between the two currencies.
Step 3
Learn about bid and ask. The "bid" is the selling price for the base currency and the "ask" is the price to buy the base currency. Both transactions are done simultaneously.
Step 4
Learn about leverage and margin. Leverage is the ability to trade without having to put up the entire amount of the transaction. Margin is the minimum amount required in order to participate in a trade, usually 1 to 2 percent. The forex market allows higher leverage because major currencies are less volatile than stocks; higher leverage also allows amplification of both profit and loss. Because of this, the forex market is more volatile than the stock market.
Step 5
Select a mutual fund. Unlike the stock market, the forex market has tiers of access. An individual investor would find it difficult to gain significant access. Furthermore, in a 24-hour market, it is difficult for individuals to keep track of investments with any degree of vigilance. Most retail investors work through specialized mutual funds. Search online for managed funds to choose from. Your choice will depend on your desired level of risk, the fund's past performance, the fee structure, and restrictions on deposits and withdrawals.
Forex Glossary
American-style option An option contract that may be exercised at any time before it expires.
Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.
Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.
Bid/Ask Spread The point difference between the bid and ask (offer) price.
Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.
Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.
Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.
Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.
Dealer A firm in the business of acting as a counterparty to foreign currency transactions.
Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.
European-style option An option contract that can be exercised only on or near its expiration date.
Expiration This is the last day on which an option may either be exercised or offset.
Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.
Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.
Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.
Margin See Security Deposit.
Offer See ask.
Open position Any transaction that has not been closed out by a corresponding opposite transaction.
Pip The smallest unit of trading in a foreign currency price.
Premium The price an option buyer pays for the option, not including commissions.
Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.
Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.
Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.
Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.
Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.
Settlement The actual delivery of currencies made on the maturity date of a trade.
Spot market A market of immediate delivery of and payment for the product, in this case, currency.
Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.
Spread The point or pip difference between the ask and bid price of a currency pair.
Sterling Another term for British currency, the pound.
Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.
Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.
Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.
Bid/Ask Spread The point difference between the bid and ask (offer) price.
Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.
Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.
Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.
Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.
Dealer A firm in the business of acting as a counterparty to foreign currency transactions.
Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.
European-style option An option contract that can be exercised only on or near its expiration date.
Expiration This is the last day on which an option may either be exercised or offset.
Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.
Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.
Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.
Margin See Security Deposit.
Offer See ask.
Open position Any transaction that has not been closed out by a corresponding opposite transaction.
Pip The smallest unit of trading in a foreign currency price.
Premium The price an option buyer pays for the option, not including commissions.
Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.
Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.
Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.
Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.
Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.
Settlement The actual delivery of currencies made on the maturity date of a trade.
Spot market A market of immediate delivery of and payment for the product, in this case, currency.
Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.
Spread The point or pip difference between the ask and bid price of a currency pair.
Sterling Another term for British currency, the pound.
Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.
Forex Made Easy: 6 Ways to Trade the Dollar
Wednesday, September 23, 2009
Forex Made Easy is the first no-nonsense, step-by-step introduction to making the FOREX an integral part of your overall trading program.
The first plain-English introduction to foreign currency exchange trading – one of today's hottest profit opportunities
The foreign currency market is the largest financial market in the world, and foreign exchange trading is quickly becoming one of today's most high-profile, potentially lucrative markets. One problem is that books on the topic are complex, technically dense, and difficult for Forex novices to grasp.
FOREX Made Easy is the first book to approach the topic in a detailed yet accessible style, gradually and deliberately moving from simple to complex in easy and natural language. Author James Dicks – founder of the popular trading software 4X Made Easy – draws upon his trading knowledge to give readers only the information they need, from setting up a workstation to trading electronically.
This Forex guidebook provides traders with:
Methods for gaining an advantage using technical analysis
An easy-to-follow, six-step process for FOREX trading
Dozens of examples to illustrate key points
From the Back Cover
How Investors of Every Size Can Profit From Today's Largest Trading Market
Newly-developed online trading tools and tactics have helped individual investors smash the barriers between Main Street and Wall Street. Nowhere is this more evident than in the foreign currency market, or FOREX. Recent rule changes have opened this phenomenally lucrative market – formerly reserved for banks, corporations, and high net worth individuals – to independent investors, many of whom start with as little as $300! FOREX Made Easy is the first no-nonsense, step-by-step introduction to making the FOREX an integral part of your overall trading program. Pulling back the curtain to reveal how simple and straightforward FOREX trading actually can be, this results-based manual takes you through an easy-to-follow, six-step process to:
Trade the FOREX market online, 24 hours a day, six days a week.
Practice market-proven techniques guaranteed to minimize your risk exposure.
Use unheard-of 100:1 leverage to make the most of your limited trading capital.
FOREX trading has quickly become one of the investing world's hottest opportunities, for all traders and investors, regardless of their size or strategy. Discover how to make it work for you, in renowned FOREX trading pioneer James Dicks commonsense yet revolutionary FOREX Made Easy.
I have put together what I feel to be a very investor-friendly understanding of the FOREX market and how to trade it. This is for the everyday investor, looking for an alternative to the stock market for better portfolio diversification.”
From the Introduction
The foreign currency market is the largest and most liquid trading market in the world, with $1.5 trillion or more traded every day. And in our increasingly barrier-free global financial markets, online traders and investors armed with inexpensive point-and-click trading systems, along with a new attitude that markets should be open to all traders, all the time, have made it among the most accessible!
Problem is, the majority of books written on FOREX trading have been needlessly complex and technically dense, written for institutional investors making billion dollar-plus trades. FOREX Made Easy changes all that, telling you everything you need to know minus the unnecessary detail and tactics. The first book to provide you with only the information you need, to allow you to get a feel for the market and determine how to fit FOREX trading into your long-term investing program, this straight-talking guidebook reveals:
Clear instructions for setting up a trading station, opening an account, and placing your first order.
Business and tax strategies for squeezing every financial advantage from your FOREX trading practices.
6 Steps to FOREX Success – Concise, effective rules for successful trading.
Fundamental analysis and the FOREX – Economic indicators, inflationary indicators, and more.
FOREX Made Easy gives you much more than just facts and numbers. This first-of-its-kind book provides you with the tools and techniques you need to stand toe-to-toe with the world's most powerful traders and institutions, using FOREX trading like they have for years to both offset your market risks and augment your profits. Simple, uncomplicated, and filled with examples of individual traders using their smaller size to tremendous advantage in the institution-dominated FOREX, it will open your eyes to an opportunity that is unique, unprecedented, and bound to become a staple for traders looking for new sources of profits, and innovative techniques to protect those profits.
The first plain-English introduction to foreign currency exchange trading – one of today's hottest profit opportunities
The foreign currency market is the largest financial market in the world, and foreign exchange trading is quickly becoming one of today's most high-profile, potentially lucrative markets. One problem is that books on the topic are complex, technically dense, and difficult for Forex novices to grasp.
FOREX Made Easy is the first book to approach the topic in a detailed yet accessible style, gradually and deliberately moving from simple to complex in easy and natural language. Author James Dicks – founder of the popular trading software 4X Made Easy – draws upon his trading knowledge to give readers only the information they need, from setting up a workstation to trading electronically.
This Forex guidebook provides traders with:
Methods for gaining an advantage using technical analysis
An easy-to-follow, six-step process for FOREX trading
Dozens of examples to illustrate key points
From the Back Cover
How Investors of Every Size Can Profit From Today's Largest Trading Market
Newly-developed online trading tools and tactics have helped individual investors smash the barriers between Main Street and Wall Street. Nowhere is this more evident than in the foreign currency market, or FOREX. Recent rule changes have opened this phenomenally lucrative market – formerly reserved for banks, corporations, and high net worth individuals – to independent investors, many of whom start with as little as $300! FOREX Made Easy is the first no-nonsense, step-by-step introduction to making the FOREX an integral part of your overall trading program. Pulling back the curtain to reveal how simple and straightforward FOREX trading actually can be, this results-based manual takes you through an easy-to-follow, six-step process to:
Trade the FOREX market online, 24 hours a day, six days a week.
Practice market-proven techniques guaranteed to minimize your risk exposure.
Use unheard-of 100:1 leverage to make the most of your limited trading capital.
FOREX trading has quickly become one of the investing world's hottest opportunities, for all traders and investors, regardless of their size or strategy. Discover how to make it work for you, in renowned FOREX trading pioneer James Dicks commonsense yet revolutionary FOREX Made Easy.
I have put together what I feel to be a very investor-friendly understanding of the FOREX market and how to trade it. This is for the everyday investor, looking for an alternative to the stock market for better portfolio diversification.”
From the Introduction
The foreign currency market is the largest and most liquid trading market in the world, with $1.5 trillion or more traded every day. And in our increasingly barrier-free global financial markets, online traders and investors armed with inexpensive point-and-click trading systems, along with a new attitude that markets should be open to all traders, all the time, have made it among the most accessible!
Problem is, the majority of books written on FOREX trading have been needlessly complex and technically dense, written for institutional investors making billion dollar-plus trades. FOREX Made Easy changes all that, telling you everything you need to know minus the unnecessary detail and tactics. The first book to provide you with only the information you need, to allow you to get a feel for the market and determine how to fit FOREX trading into your long-term investing program, this straight-talking guidebook reveals:
Clear instructions for setting up a trading station, opening an account, and placing your first order.
Business and tax strategies for squeezing every financial advantage from your FOREX trading practices.
6 Steps to FOREX Success – Concise, effective rules for successful trading.
Fundamental analysis and the FOREX – Economic indicators, inflationary indicators, and more.
FOREX Made Easy gives you much more than just facts and numbers. This first-of-its-kind book provides you with the tools and techniques you need to stand toe-to-toe with the world's most powerful traders and institutions, using FOREX trading like they have for years to both offset your market risks and augment your profits. Simple, uncomplicated, and filled with examples of individual traders using their smaller size to tremendous advantage in the institution-dominated FOREX, it will open your eyes to an opportunity that is unique, unprecedented, and bound to become a staple for traders looking for new sources of profits, and innovative techniques to protect those profits.
Asian markets retreat from year highs; Pound drps, Euro in range
Thursday, September 17, 2009
Fri, Sep 18 2009, 06:04 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - Asian markets have through declines in Friday, retreating from fresh year highs hit on Thursday, with Japanese benchmark Index down as one of its biggest consumer lending firms revealed unable to pay its debts; The Pound has declined further, while Euro and Yen consolidate right below Thursday's highs.
Japanese Nikkei Index has dropped 0.8% weigheer by lending firm Aiful Corp, which has problems to repay its debts with the creditors.
Hong Kong Hang Seng Index declined 0.3%, while Chinese Shangai Composite Index shed 1.1%. In Australia, the S&P Index declined 1% and South Korean Kospi Index went 0.8% up.
Euro holds gains; Pound plunges
EUR/USD has remained trading in a range from 1.4700 to 1.4750 after retreating on Thursday from a fresh 11-month high at 1.4770. At the moment of writing, the Euro trades at 1.4725 after having tested 1.4695 support.
GBP/USD decline from September 10 high at 1.6475 has extended during Asian session, as the Sterling gave away about 100 pips, dropping from U.S. session high at 1.6565, to hit a fresh intra-week low at 1.6355.
USD/JPY remains trading in range above 91.00 after recovery on Thursday from 90.50 low, reached resistance area at 91.65. On a larger perspective, te Dollar has remained trading in a range roughly from 90.30 to 91.65 since last week's decline from Sept 7 high at 93.30.
http://www.fxstreet.com
FXstreet.com (Barcelona) - Asian markets have through declines in Friday, retreating from fresh year highs hit on Thursday, with Japanese benchmark Index down as one of its biggest consumer lending firms revealed unable to pay its debts; The Pound has declined further, while Euro and Yen consolidate right below Thursday's highs.
Japanese Nikkei Index has dropped 0.8% weigheer by lending firm Aiful Corp, which has problems to repay its debts with the creditors.
Hong Kong Hang Seng Index declined 0.3%, while Chinese Shangai Composite Index shed 1.1%. In Australia, the S&P Index declined 1% and South Korean Kospi Index went 0.8% up.
Euro holds gains; Pound plunges
EUR/USD has remained trading in a range from 1.4700 to 1.4750 after retreating on Thursday from a fresh 11-month high at 1.4770. At the moment of writing, the Euro trades at 1.4725 after having tested 1.4695 support.
GBP/USD decline from September 10 high at 1.6475 has extended during Asian session, as the Sterling gave away about 100 pips, dropping from U.S. session high at 1.6565, to hit a fresh intra-week low at 1.6355.
USD/JPY remains trading in range above 91.00 after recovery on Thursday from 90.50 low, reached resistance area at 91.65. On a larger perspective, te Dollar has remained trading in a range roughly from 90.30 to 91.65 since last week's decline from Sept 7 high at 93.30.
Forex Trading Strategies For Success - A Simple One the Pro's Use For Huge Gains
Of you are looking for Forex trading strategies for success, then the one enclosed is one that most traders ignore, despite the fact it works and many of the world's top traders use it - let's look at it in detail and see how it can lead you to Forex trading success.
The strategy is based upon simple facts about Forex price movement which are...
Currency markets trend and move in a sustained direction for long periods and these big trends can make you a lot of money, if you trade them with leverage on your side. So how do you get in on these trends? The answer is simple and a close look at any currency pair, will show you how a bullish currency trend starts and continues...
They break new chart highs so, if you focus on getting into the big trends, via breakouts and holding them, you can make a lot of money. While this sounds a simple, the losing majority of traders, simply cannot trade these breaks.
In their mind, they feel they have missed the start of the move and want to wait for a dip back to the breakout point this logic is wrong!
If you look at the best breakouts they don't come back, they carry and the trader who waits for the dip back misses a great trading opportunity.
Of course, not every break to new chart highs continues, so you have to look to trade levels which have been tested a few times before the breakout occurs, by a few, I mean at least six or more.
These levels will be considered important by the market and when they break, the supply and demand situation will have changed and the odds of a continuation of the break are good.
You will get a few good breakouts each month and there enough to make you a lot of money if you get into them and hold them.
Breakout trading works and many of the top traders use this method and while it appears you have missed the start of the trend ( which of course you have) you can't predict that anyway, so simply, focus on how much profit will be ahead of you as the trend develops!
Breakout trading, is ignored by most traders but its a proven way to make huge profits, so try it and you will have one of the best Forex trading strategies for success and be in the company of some of the world's best traders who use this method to enjoy Forex success.
The strategy is based upon simple facts about Forex price movement which are...
Currency markets trend and move in a sustained direction for long periods and these big trends can make you a lot of money, if you trade them with leverage on your side. So how do you get in on these trends? The answer is simple and a close look at any currency pair, will show you how a bullish currency trend starts and continues...
They break new chart highs so, if you focus on getting into the big trends, via breakouts and holding them, you can make a lot of money. While this sounds a simple, the losing majority of traders, simply cannot trade these breaks.
In their mind, they feel they have missed the start of the move and want to wait for a dip back to the breakout point this logic is wrong!
If you look at the best breakouts they don't come back, they carry and the trader who waits for the dip back misses a great trading opportunity.
Of course, not every break to new chart highs continues, so you have to look to trade levels which have been tested a few times before the breakout occurs, by a few, I mean at least six or more.
These levels will be considered important by the market and when they break, the supply and demand situation will have changed and the odds of a continuation of the break are good.
You will get a few good breakouts each month and there enough to make you a lot of money if you get into them and hold them.
Breakout trading works and many of the top traders use this method and while it appears you have missed the start of the trend ( which of course you have) you can't predict that anyway, so simply, focus on how much profit will be ahead of you as the trend develops!
Breakout trading, is ignored by most traders but its a proven way to make huge profits, so try it and you will have one of the best Forex trading strategies for success and be in the company of some of the world's best traders who use this method to enjoy Forex success.
3 Money-Making Tips For The Best Forex Picks
Tuesday, September 15, 2009
There is no need for advertisements when it comes to the Forex market. Just by worth of the market itself, comprising of a turnover of more than 5 trillion dollars a day should give you a pretty good picture just how big the potential pie is and how much opportunity there is out there for you to make some really good money. But is essential for potential trader to understand fully the market if they are really serious about making money in the paper trade.
More than 90% of the new investor movements into the market are not able to sustain their presence and soon lose their initial margins – and often do not come back. You need to be part of that 10% that manage to fight through the volatile market, make the right money making decisions and get the best Forex picks.
The best tip for Forex investors is to pick a currency pair that they are most comfortable with and do not choose exotic currencies from countries where they barely have any idea about the market conditions or financial trading rules that rule them.You might just be blind-sided by some archaic banking rules that circle some of these exotic currencies, so choose the popular currencies that are being traded and choose a pair that you know you can get comfortable with and you can study over time. Also, the next thing you need to know about is how to combine technical and fundamental analysis together to be effective in your trading.
Technical analysis is very technical, there is a whole host of charts, bars, diagrams, candlesticks diagrams and jargon you need to be familiar with; but this is important.Fundamental analysis shows you where the market might be going based on external information like political situations and economic weather in the global market, so you need to combine three things. Study where the market has been, use technical analysis to see what is going on in the market and fundamental analysis to ascertain where it might be headed in the near future.
One you have secured these 3 things, you are ready to proceed on the right track and make the right decisions, just in time to reap your profitable pips.Last but not least, you need to have a grasp of technical terms and jargon like pivot points, pips (as mentioned), price feeds and have a good Forex system that can crunch these numbers in real time and present you with enough information to make wise decisions.There are many more money making secrets from Forex market out there but these are just some of the best tips that you can use to make the best Forex picks for yourself. Having the right combination of information can definitely lead you places and will see your investment portfolio grow like you have never seen it grow before this article. Adhere to these tips and you can be guaranteed of a money making success in the Forex market in time to come
More than 90% of the new investor movements into the market are not able to sustain their presence and soon lose their initial margins – and often do not come back. You need to be part of that 10% that manage to fight through the volatile market, make the right money making decisions and get the best Forex picks.
The best tip for Forex investors is to pick a currency pair that they are most comfortable with and do not choose exotic currencies from countries where they barely have any idea about the market conditions or financial trading rules that rule them.You might just be blind-sided by some archaic banking rules that circle some of these exotic currencies, so choose the popular currencies that are being traded and choose a pair that you know you can get comfortable with and you can study over time. Also, the next thing you need to know about is how to combine technical and fundamental analysis together to be effective in your trading.
Technical analysis is very technical, there is a whole host of charts, bars, diagrams, candlesticks diagrams and jargon you need to be familiar with; but this is important.Fundamental analysis shows you where the market might be going based on external information like political situations and economic weather in the global market, so you need to combine three things. Study where the market has been, use technical analysis to see what is going on in the market and fundamental analysis to ascertain where it might be headed in the near future.
One you have secured these 3 things, you are ready to proceed on the right track and make the right decisions, just in time to reap your profitable pips.Last but not least, you need to have a grasp of technical terms and jargon like pivot points, pips (as mentioned), price feeds and have a good Forex system that can crunch these numbers in real time and present you with enough information to make wise decisions.There are many more money making secrets from Forex market out there but these are just some of the best tips that you can use to make the best Forex picks for yourself. Having the right combination of information can definitely lead you places and will see your investment portfolio grow like you have never seen it grow before this article. Adhere to these tips and you can be guaranteed of a money making success in the Forex market in time to come
Simple trading with Daily range
Sunday, September 13, 2009
Submitted by Stuart (BE)
This method is basically to do with what a pair moved like the previous 24 hour period.
In this, I will use the GBPJPY, but one could use it on any pair.
Method/Strategy:
You choose your own 24 hour period move - here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).
Mark the High, Low and Close for selected 24 hours
For example, the GBPJPY for the last 24 hours was: H138.67 L136.00 and C138.13
Now total movement was (high-low) 267 pips.
You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close - 67 pips)
Set your TP also only to 25% of the previous days move - in this case also 67 pips. In theory, if the chosen pair then move only 50% of the previous days total move, you profit ...
Set your SL levels 10 pips away from the opposite order.
I have attached a Spread Sheet with all the formulas. All you need do is put in the High, low and close, and it will give you all the figures ... your buy, sell, take profit and stop loss.
25__MOVE.xls
Depending on what time zone you are in, I would suggest setting your orders before "your" market opens ... in my case it would be the London Market at 08:00 GMT.
Thanks a million, and any feed back from the pro's would be appreciated.
This method is basically to do with what a pair moved like the previous 24 hour period.
In this, I will use the GBPJPY, but one could use it on any pair.
Method/Strategy:
You choose your own 24 hour period move - here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).
Mark the High, Low and Close for selected 24 hours
For example, the GBPJPY for the last 24 hours was: H138.67 L136.00 and C138.13
Now total movement was (high-low) 267 pips.
You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close - 67 pips)
Set your TP also only to 25% of the previous days move - in this case also 67 pips. In theory, if the chosen pair then move only 50% of the previous days total move, you profit ...
Set your SL levels 10 pips away from the opposite order.
I have attached a Spread Sheet with all the formulas. All you need do is put in the High, low and close, and it will give you all the figures ... your buy, sell, take profit and stop loss.
25__MOVE.xls
Depending on what time zone you are in, I would suggest setting your orders before "your" market opens ... in my case it would be the London Market at 08:00 GMT.
Thanks a million, and any feed back from the pro's would be appreciated.
JPY cuts a swath through the market on sustained bond market strength
Saturday, September 12, 2009
Fri, Sep 11 2009, 14:06 GMT
by John Hardy
AUDUSD and AUDJPY at odds - which one is "right"? University of Michigan Confidence on tap.
MAJOR HEADLINES – PREVIOUS SESSION
Japan Q2 GDP adjusted down to 0.6% QoQ from 0.9% QoQ
China Aug. Producer Price Index fell -7.9% YoY vs. -8.2% in Jul.
China Aug. Purchasing Price Index fell -11.4% YoY vs. -11.7% in Jul.
China Aug. Consumer Price Index fell -1.2% YoY in Aug. vs. -1.3% expected and -1.8 % in Jul.
China Aug. Industrial Production rose 12.3% YoY vs. 11.8% expected and 10.8% in Jul.
China Aug. Retail Sales rose 15.4% YoY vs. 15.3% expected and 15.2% in Jul.
China Aug. New Yuan Loans rose to 410B vs. 320B expected and 456B in Jul.
China Aug Trade Balance rose to $15.7B vs. $13.6B expected and $10.6B in Jul.
Japan Aug. Consumer Confidence rose to 40.4 vs. 40.2 expected and 39.7 in Jul.
Sweden Q2 GDP out at +0.2% QoQ vs. 0.0% expected and 0.0% in Q1
UK Aug. PPI Input/Output out at 2.2%/0.2% vs. 1.0%/0.3% expected
Canada Jul. New Housing Price Index rose 0.3% MoM vs. -0.1% expected
US Aug. Import Price Index rose 2.0% MoM vs. 1.0% expected and fell -15.0% YoY vs. -15.9% expected
THEMES TO WATCH – UPCOMING SESSION
(All times GMT)
Upcoming Economic Calendar Highlights
US Sep. Preliminary University of Michigan Confidence (1400)
New Zealand Jul. Retail Sales (Sun 2245)
New Zealand Aug. REINZ House Sales (Mon 0000)
Market Comments:
China still looking strong
China's fresh data overnight looks very impressive, though it doesn't seem the market takes much impetus from these data releases, though the strength in Chinese equities contributed to sustained strength in other world equity markets. The New Yuan Loans figure for August was up from the July figure, but is still a small fraction of the enormous stimulus unleashed on the Chinese economy in previous months, so the pessimists will be out looking at whether the sharp reduction in credit stimulus shows up in months to come. It's tough to draw a bead on the Chinese economy due to the nature of the calculations of its statistics and wildly diverging reports on its prospects. Whether the housing market is a bubble is a vital question: an article from Reuters today notes that affordability is a significant problem in key markets like Shanghai and Berlin, where mortgage cost about 75% of income (though the article questions the calculation of average income and indicates that ).
So far, China seems to be navigating the demand drop from abroad with aplomb - and must continue to do so for the rosy scenario already priced into markets to continue to play out. Auto sales have surge recently and GM says that the country's auto sales could surpass those in the US this year as China becomes the world's largest auto market. Despite the clear evidence of a credit clampdown by banks over the last couple of months, premier Wen Jiabao promised to keep stimulus measures in place, saying "we cannot and will not change the direction of our policies when the conditions aren't appropriate (since the rebound is "unstable, unbalanced and not yet solid"). Our expectations are for weak external demand in China's export markets over at least the coming year (and the one very weak spot in the Chinese data overnight was the export drop of -23.4% YoY for Aug. vs. -19% expected) - so the question is whether China can continue to weather the external demand shock with internal solutions aimed at infrastructure buildout and consumption growth.
JPY strength
JPY certainly wasn't looking for direction from the revision to Japan's GDP overnight (down) nor the strong Chinese data, as it rallied sharply overnight and into the European session. The JPY still seems to get more pull from moves in other markets. This time around it is likely interest rate spreads that are giving the JPY a push, as it finally responded to the very strong signals at the short end of the curve where interest rates spreads have tightened sharply in favor of the JPY in recent days. If we are to pay attention to rate spreads any longer, in fact, then the likes of especially EURJPY (on the last cycle of dovish ECB comments) and other JPY crosses to a lesser extent have further to sell off in the near term to price in the latest tightening. By the 2-yr. interest rate spread measure, USDJPY looks fairly priced. USDJPY is now nearing critical territory at the 90 level - much below here and the pain begins to become ratchet up for the Japanese economy. Let's see how the new administration responds beyond 90, if that comes to pass.
AUDJPY and AUDUSD - out of synch
Just as yesterday we noted the confusing combination of a weak US dollar and very strong US bond auction results - if the market theme is one of "sell the USD due to fiscal profligacy", then why is demand till robust at the longest end of the curve. Another sign of the divergence in the last leg of the market action is the divergence in the behaviour of the USD and the JPY. The JPY has found intermittent support from the still relatively strong fixed income market, while it has been held back at times by the very strong risk appetite in asset markets and traditional carry trade boost that this gives. Meanwhile, the USD has broken strongly to the downside recently. This divergence is very evident in the comparison of the AUDUSD and AUDJPY pairs shown in today's chart - which tracks AUDUSD and AUDJPY on an indexed basis since mid-2007 and shows the two pairs' rolling 40-day correlation. AUDUSD has touched new highs for the cycle recently, while AUDJPY remains well off its highs for the cycle and has been in a back and forth pattern over the last few weeks. There is no consistent pattern as to which pair is the leading indicator, but we have a hard time imagining that this kind of divergence can continue for long. Either JPY must join the USD in the ranks of the weaklings among the G-10, or the USD needs to find strength. (There is a third scenario of course: AUD volatility spikes very strongly relative to USD and JPY volatility and gets the pairs moving in synch again.) We assume in our setup here that the fourth scenario of continued and sustained divergence in the pairs' moves continuing for more than a few more sessions will not happen.
Looking ahead
As long as the Chinese growth story bulls ahead and asset markets remain robust, it is hard to see what is going to stop this USD sell-off in the near term, even if we fear the market is pricing in far too robust a recovery further out. Is 1.5000 in EURUSD the next big psychological target? Looking to play on further USD weakness, we might ought to turn our eyes on USDCAD after yesterday's fairly compelling bearish reversal, though it did take place within the range... The 1.0800 area in USDCAD has not really held here after yesterday's bearish inverted hammer reversal. If the pair can work its way below the 1.0750 level (0.618 Fibo of the recent rally), it could push lower below the lows for the cycle and perhaps to 1.0450 (target calculated with Fibo extension)
U.S. markets turn to gains; Dollar at year lows
Wednesday, September 9, 2009
Wed, Sep 9 2009, 14:13 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - U.S stock markets are going trough gains on early Wednesday's session after an slightly weak opening, with the investor's focus on gold prices, which have stalled right at 1,000 level. The Dollar remains losing ground against Euro and Pound.
Dow Jones Industrials Index trades 0.29% above its opening level, while the Nasdaq Index trades 0.43% up, and the S&P Index rises 0.38% in the first hour of trading.
in absence of macroeconomic events on early trade, investors focus is set on the Fed's Beige Book, which will be released later on the day, for hints about the strength of U.S. economic recovery
Dollar, at year lows
EUR/USD has broken above the sideways range around 1.4500 seen during European morning, and the pair has reached another 2009 high at 1.4589, and remains trading at short distance below 1.4600
GBP/USD bounced on 1.6455 on European session and the pair has taken back previous losses to reach session low at 1.6573 on early U.S. session, few pips short of Tuesday's high at 1.6585.
USD/JPY has declined from 92.60 day high, and the pair has breached below early July low at 94.95 to reach a fresh 7-month low at 91.60.
EUR/USD (Sep 09 at 14:17 GMT)
1.4580/82 (0.60%) H 1.4595 L 1.4463
http://www.fxstreet.com
FXstreet.com (Barcelona) - U.S stock markets are going trough gains on early Wednesday's session after an slightly weak opening, with the investor's focus on gold prices, which have stalled right at 1,000 level. The Dollar remains losing ground against Euro and Pound.
Dow Jones Industrials Index trades 0.29% above its opening level, while the Nasdaq Index trades 0.43% up, and the S&P Index rises 0.38% in the first hour of trading.
in absence of macroeconomic events on early trade, investors focus is set on the Fed's Beige Book, which will be released later on the day, for hints about the strength of U.S. economic recovery
Dollar, at year lows
EUR/USD has broken above the sideways range around 1.4500 seen during European morning, and the pair has reached another 2009 high at 1.4589, and remains trading at short distance below 1.4600
GBP/USD bounced on 1.6455 on European session and the pair has taken back previous losses to reach session low at 1.6573 on early U.S. session, few pips short of Tuesday's high at 1.6585.
USD/JPY has declined from 92.60 day high, and the pair has breached below early July low at 94.95 to reach a fresh 7-month low at 91.60.
EUR/USD (Sep 09 at 14:17 GMT)
1.4580/82 (0.60%) H 1.4595 L 1.4463
Forex: EUR/USD: Euro hovering around 1.4500, over-bought in 4hr charts
Wed, Sep 9 2009, 10:43 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - The Euro soared yesterday to hit a fresh 2009 high at 1.4535, and the pair edged down to consolidate in a range from 1.4475 to 1.4520 where it has been moving fro mos of European and Asian sessions. At the moment of writing, the Euro moves at 1.4495.
On the 4 hour chart, the Euro remains flowing in overbought territory, and, according to Greg Holden, technical analyst at ForexYard, the pair could be about to correct to the downside: "The price of this pair appears to be floating in the over-bought territory on the 4-hour chart's RSI indicating a downward correction may be imminent. The downward direction on the daily chart's Slow Stochastic also supports this notion. Going short might be a wise choice."
Resistance levels lie at 1.4515, and above here 1.4535 (Sept 8 high) and 1.4550/70 projection. On the downside, initial support level lies at 1.4460/75, and below here, 1.4405 (Aug 27 high) and 1.4365/75 (Aug 21,25 and 31 highs).
http://www.fxstreet.com
FXstreet.com (Barcelona) - The Euro soared yesterday to hit a fresh 2009 high at 1.4535, and the pair edged down to consolidate in a range from 1.4475 to 1.4520 where it has been moving fro mos of European and Asian sessions. At the moment of writing, the Euro moves at 1.4495.
On the 4 hour chart, the Euro remains flowing in overbought territory, and, according to Greg Holden, technical analyst at ForexYard, the pair could be about to correct to the downside: "The price of this pair appears to be floating in the over-bought territory on the 4-hour chart's RSI indicating a downward correction may be imminent. The downward direction on the daily chart's Slow Stochastic also supports this notion. Going short might be a wise choice."
Resistance levels lie at 1.4515, and above here 1.4535 (Sept 8 high) and 1.4550/70 projection. On the downside, initial support level lies at 1.4460/75, and below here, 1.4405 (Aug 27 high) and 1.4365/75 (Aug 21,25 and 31 highs).
Forex: USD/JPY: Dollar rebound at 92.00 reaches 92.60
Wed, Sep 9 2009, 10:24 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - Support at 92.00 has proven strong enough to hold Dollar decline from 93.30 on Tuesday, and the pair bounced up during Asian and European session Wednesday to reach levels at 92.60 at the moment of writing, 0.30% above its day opening level.
Today's pick up, according to Stoyan Mihaylov, technical analyst at Deltastock.com, is corrective in nature, and the Dollar looks likely to break below 92.25: "As expected, the pair reversed above 92.+, but the rise is corrective in nature, so we will expect a break below 92.25 to target next support area around 90.35. Intraday bias is still positive, supported at 92.38, with a maximum target below 93.82 resistance."
Resistance levels lie at 92.70/80 (Sept 7 low) and above here, 93.10 and 93.30 (Sept 7 high). On the downside, initial support lies at 92.00 (Sept 8 low) and below there, 91.95 (Sept 3 low) and 91.75/80 (13/8 Jul lows).
http://www.fxstreet.com
FXstreet.com (Barcelona) - Support at 92.00 has proven strong enough to hold Dollar decline from 93.30 on Tuesday, and the pair bounced up during Asian and European session Wednesday to reach levels at 92.60 at the moment of writing, 0.30% above its day opening level.
Today's pick up, according to Stoyan Mihaylov, technical analyst at Deltastock.com, is corrective in nature, and the Dollar looks likely to break below 92.25: "As expected, the pair reversed above 92.+, but the rise is corrective in nature, so we will expect a break below 92.25 to target next support area around 90.35. Intraday bias is still positive, supported at 92.38, with a maximum target below 93.82 resistance."
Resistance levels lie at 92.70/80 (Sept 7 low) and above here, 93.10 and 93.30 (Sept 7 high). On the downside, initial support lies at 92.00 (Sept 8 low) and below there, 91.95 (Sept 3 low) and 91.75/80 (13/8 Jul lows).
Euro edges up ahead of ECB; yen falters
Thursday, September 3, 2009
* Euro up 0.2 pct at $1.4290 EUR=; up 0.4 pct vs yen
* Yen retreats from 7-wk high vs dollar
* ECB seen standing pat on rates; focus on Trichet
LONDON, Sept 3 (Reuters) - The euro edged higher against the dollar and yen on Thursday ahead of a European Central Bank policy meeting where policymakers are seen leaving interest rates unchanged while upgrading their economic forecasts.
The yen retreated from a seven-week high against the dollar as European shares edged up, taking a cue from a rally in Chinese shares, which prompted investors to trim holdings of the low-risk Japanese currency.
The ECB is expected to announce it will keep rates at a record low 1.0 percent at 1145 GMT. ECB President Jean-Claude Trichet will to speak to reporters at 1230 GMT, and is expected to acknowledge improvements in the economy but still retain a cautious stance.
Analysts said expectations the central bank may offer a rosier view about the economy were helping support the euro.
"There's no doubt that the forecast is going to be revised higher, it's just a matter of how much," said Stephen Koukoulas, global strategist at TD Securities in London.
"A confirmation of this will be something that the market will take with a degree of optimism, which could result in a mildly bullish tone for the euro."
The euro brushed off a strong reading of the euro zone services Purchasing Managers' Index, which showed a final reading of 49.9 in August from a flash estimate of 49.5. [ID:nLAG003715]
At 0947 GMT, the euro was up 0.2 percent at $1.4290 EUR=. Against the yen it was up 0.4 percent at 132.11 yen EURJPY=R.
The euro was supported by a 0.2 percent rise in European shares . They tracked a near 5 percent climb in Shanghai shares .SSEC earlier on Thursday, stoking some risk demand.
The dollar fell as low as 91.94 yen JPY= on trading platform EBS on Thursday, its lowest since July 13, as investors continued to cut dollar holdings after a weaker-than-expected U.S. private-sector jobs report on Wednesday.
The U.S. currency later edged up, last trading at 92.41 yen, up 0.2 percent from late U.S. trade on Wednesday.
Traders offered limited reaction to comments from Hirohisa Fujii, a top adviser to Japan's newly elected ruling party who told Reuters a strong yen was good for Japan, and that officials must not intervene in currency markets unless they are moving abnormally. [ID:nTKF106577]
The high-yielding Australian dollar AUD=D4 rose 0.6 percent to $0.8380, supported by gains in gold prices XAU=.
Sterling gained broadly, hitting a one-week high against the euro of 87.35 pence on the back of a strong reading of UK services PMI. [ID:nL3426737]
RIKS HOLDS RATES
Dealers took their cue from stocks but markets were becoming somewhat wary of taking on too much risk as policymakers have indicated a cautious stance on the economic outlook.
Big positions were also being avoided ahead of key U.S. jobs report on Friday.
"The market is becoming more cautious toward risk assets, positioning for a potential downward correction," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ, noting September was generally an unfavourable month for stocks.
Sweden's central bank left its key interest rate at a record low of 0.25 percent as widely expected, and said it is expected to remain low over the coming year. [nL3361145]
The euro rose to a session high of 10.3480 crowns EURSEK=D4 in the aftermath of the decision and statement, climbing from around 10.29 crowns beforehand. (Additional reporting by Tamawa Kadoya, editing by Chris Pizzey)
* Yen retreats from 7-wk high vs dollar
* ECB seen standing pat on rates; focus on Trichet
LONDON, Sept 3 (Reuters) - The euro edged higher against the dollar and yen on Thursday ahead of a European Central Bank policy meeting where policymakers are seen leaving interest rates unchanged while upgrading their economic forecasts.
The yen retreated from a seven-week high against the dollar as European shares edged up, taking a cue from a rally in Chinese shares, which prompted investors to trim holdings of the low-risk Japanese currency.
The ECB is expected to announce it will keep rates at a record low 1.0 percent at 1145 GMT. ECB President Jean-Claude Trichet will to speak to reporters at 1230 GMT, and is expected to acknowledge improvements in the economy but still retain a cautious stance.
Analysts said expectations the central bank may offer a rosier view about the economy were helping support the euro.
"There's no doubt that the forecast is going to be revised higher, it's just a matter of how much," said Stephen Koukoulas, global strategist at TD Securities in London.
"A confirmation of this will be something that the market will take with a degree of optimism, which could result in a mildly bullish tone for the euro."
The euro brushed off a strong reading of the euro zone services Purchasing Managers' Index, which showed a final reading of 49.9 in August from a flash estimate of 49.5. [ID:nLAG003715]
At 0947 GMT, the euro was up 0.2 percent at $1.4290 EUR=. Against the yen it was up 0.4 percent at 132.11 yen EURJPY=R.
The euro was supported by a 0.2 percent rise in European shares . They tracked a near 5 percent climb in Shanghai shares .SSEC earlier on Thursday, stoking some risk demand.
The dollar fell as low as 91.94 yen JPY= on trading platform EBS on Thursday, its lowest since July 13, as investors continued to cut dollar holdings after a weaker-than-expected U.S. private-sector jobs report on Wednesday.
The U.S. currency later edged up, last trading at 92.41 yen, up 0.2 percent from late U.S. trade on Wednesday.
Traders offered limited reaction to comments from Hirohisa Fujii, a top adviser to Japan's newly elected ruling party who told Reuters a strong yen was good for Japan, and that officials must not intervene in currency markets unless they are moving abnormally. [ID:nTKF106577]
The high-yielding Australian dollar AUD=D4 rose 0.6 percent to $0.8380, supported by gains in gold prices XAU=.
Sterling gained broadly, hitting a one-week high against the euro of 87.35 pence on the back of a strong reading of UK services PMI. [ID:nL3426737]
RIKS HOLDS RATES
Dealers took their cue from stocks but markets were becoming somewhat wary of taking on too much risk as policymakers have indicated a cautious stance on the economic outlook.
Big positions were also being avoided ahead of key U.S. jobs report on Friday.
"The market is becoming more cautious toward risk assets, positioning for a potential downward correction," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ, noting September was generally an unfavourable month for stocks.
Sweden's central bank left its key interest rate at a record low of 0.25 percent as widely expected, and said it is expected to remain low over the coming year. [nL3361145]
The euro rose to a session high of 10.3480 crowns EURSEK=D4 in the aftermath of the decision and statement, climbing from around 10.29 crowns beforehand. (Additional reporting by Tamawa Kadoya, editing by Chris Pizzey)
Forex: EURUSD breaks 1.4315 and tests 1.4330 ahead ECB rate decision
Thu, Sep 3 2009, 11:34 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) – After several attempting to break 1.4315 resistance level during the European session, EUR/USd has finally broken this level and it has risen around 45 pips from 1.4285 support to post 1.4330 as fresh intra-day high ahead of the ECB rate decision.
Currently the pair is trading around 1.4320/30, 0.50% above today's opening price action.
Stoyan Mihaylov, analyst at Deltastock, expects a Euro higher: “EUR/USD is in a broad consolidation, after bottoming at 1.2331 (Oct.28,2008). Technical indicators are neutral, and trading is situated above the 50- and 200-Day SMA, currently projected at 1.4134 and 1.3523.”
Mihaylov concluded: “We favor the idea, that an uptrend is already on the run, aiming at 1.4344 and 1.4444, en route to 1.4653. Crucial for the intraday positive trend is 1.4253 support area.”
http://www.fxstreet.com
FXstreet.com (Barcelona) – After several attempting to break 1.4315 resistance level during the European session, EUR/USd has finally broken this level and it has risen around 45 pips from 1.4285 support to post 1.4330 as fresh intra-day high ahead of the ECB rate decision.
Currently the pair is trading around 1.4320/30, 0.50% above today's opening price action.
Stoyan Mihaylov, analyst at Deltastock, expects a Euro higher: “EUR/USD is in a broad consolidation, after bottoming at 1.2331 (Oct.28,2008). Technical indicators are neutral, and trading is situated above the 50- and 200-Day SMA, currently projected at 1.4134 and 1.3523.”
Mihaylov concluded: “We favor the idea, that an uptrend is already on the run, aiming at 1.4344 and 1.4444, en route to 1.4653. Crucial for the intraday positive trend is 1.4253 support area.”
Crude Oil Prices Increased by $70 to $72.79 on Friday
Wednesday, September 2, 2009
Crude Oil got in position on Friday 29, Aug. This increase may be a mark of strength due to rebounding of economies, Crude Oil Price seen $ 72.74 a barrel, London Brent Advanced on $72.79 a barrel after 28 Cent increment.Oil prices have moved dramatically this past week between $70 and $75 a barrel without clear long-term direction. "Crude futures are banging back and forth between support and resistance here. We saw a 10-month high at $75 earlier this past week, but actually the supply situation is still unchanged," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Pakistani Currency lost V/S US Dollar at the end of last week
As Dollar demand is getting stronger and Dollar buying graph against Pak Rupee is marking upward this is why Rupee bore losses against Us Dollar at the end of last week on 29, Aug. We saw Pakistani Rupee lost 5 Paisa in Interbank Market against Dollar and settled at buying and selling at 83.10 and 83.15. In the Open market Pakistani Rupee lost 15 Paisa against US Dollar shown at 83.00 buying and 83.15 selling .This is a regular weakness of Pakistani Currency against the US Currency.The Pakistani rupee also weakening again Euro upto 5 paisa for buying and selling at Rs 117.80 and Rs 118.30.
INTER-BANK RATES:
August 25, the Pak Rupee gained 27 paisa against US dollar for buying and selling at 82.78 and 82.83.
August 26, the Pak Rupee gained 3 paisa against US dollar for buying and selling at 82.75 and 82.80.
August 27, the Pak Rupee fell by 13 paisa against US dollar for buying and selling at 82.88 and 82.93.
August 28, the Pak Rupee lost by 17 paisa against US dollar for buying and selling at 83.05 and 83.10.
August 29, the Pak Rupee lost by 5 paisa versus US dollar for buying and selling at 83.10 and 83.15.
OPEN MARKET RATES:
August 24, the Pak Rupee lost 5 paisa against US dollar for buying and selling at 82.90 and 83.00. The rupee, however, gained 5 paisa in relation to euro for buying and selling at Rs 117.70 and Rs 118.20.
25 August, the Pak Rupee gained 10 paisa against US currency for buying and selling at 82.80 and 82.90. The rupee also picked up 15 paisa against euro for buying and selling at Rs 117.55 and Rs 118.05.
26 August, the Pak Rupee gained by 10 paisa against US dollar for buying and selling at 82.70 and 82.80. The rupee, however, lost 10 paisa against euro for buying at Rs 117.65 and lost 20 paisa for selling at Rs 118.25.
27 August, the Pak Rupee was stable against US dollar for buying and selling at 82.70 and 82.80. The rupee, however, Pak Rupee gained 55 paisa for buying at Rs 117.10 and 65 paisa for selling at Rs 117.60 against euro.
28 August, the Pak Rupee lost 15 paisa against US dollar for buying and selling at 82.85 and 82.95. The rupee also lost 1.20 against euro for buying and selling at Rs 118.30 and Rs 118.80.
29 August, the Pak Rupee lost 15 paisa against US dollar for buying and selling at 83.00 and 83.10. It lost 50 paisa against euro for buying and selling at Rs 117.80 and Rs 118.30.
Pak Rupee faced up against US Currency by Monday
(September 1st 2009 Forexkp): Pak rupee recovery is going on slightly against dollar today in the currency market, As per the figures of market Pak rupee on the interbank market the gained 8 paisa versus US Dollar for buying and selling at 83.02 and 83.07.Asian market shown at its opening that yen rose to its highest in seven weeks against US dollar, This boost is seems due to fulfilling the expectations of Japanese with at the end of election uncertainty, wining of the opposition Democratic Party of Japan (DPJ) in association of dollar sell orders. The yen edged up and gathered pace as automatic dollar sell orders were triggered close to 93.00 yen per dollar.
Interbank market rates on Monday: Interbank rates on closing of the day on Monday observed after a gain of 8 paisa as Buying Rs. 83.02 and selling Rs. 83.07, On Tuesday Pak rupee is again in up trend against US Dollar by buying at 82.90 and selling at 83.10.
OPEN MARKET RATES: The rupee rose up to five paisa in parallel to dollar for buying and selling at 82.95 and 83.05, dealers said. Pak rupee also gained by 50 paisa against euro for buying and selling at Rs 117.30 and Rs 117.80. On Tuesday Pak Rupee is on rise into the Open Market buying 82.85 and selling 83.20.
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