Forex Trading

Tuesday 22 November 2011

Aussie Retreats as Risk Aversion Sets In

Aussie is retreating once showing some signs of gains earlier. Now, though, Aussie is heading lower as risk aversion sets in. issues regarding sovereign debt in Europe, and therefore the budget issues plaguing the US, are weighing on riskier currencies nowadays.

Earlier, as US stocks pared gains and headed higher, the Australian dollar showed signs of gains, supported, in part, by recovering gold prices. Now, although gold prices have reached $1,700 an oz. once more, the Aussie is in retreat as sentiment turns negative. US GDP growth for quarter three wasn’t nearly as good as hoped, being lowered to 2 % from 2.5%.

Additionally, the debt woes facing countries in Europe, and facing the US, are no closer to being solved. European politicians seem to move at a glacial pace, unable to agree, and therefore the US is in much a similar position. A recent supercommittee designed to seek out a solution to the budget problems in the US has failed.

So, for now, sentiment is turning, once again, toward the chance averse. Aussie has given up its gains and is now lower against the US dollar — although it is higher against some currencies. till some solid progress is made in terms of budgets around the world, the Australian dollar is likely to founder.

At 15:08 GMT AUD/USD is lower, down to 0.9857 from the open at 0.9864. EUR/AUD is higher, up to 1.3712 from the open at 1.3675. GBP/AUD is lower at 1.5849, down from the open at 1.5858.

Euro Higher for Now, But Debt Remains a Problem

Euro is higher straight away, gaining as some Forex traders engage in brief covering. However, the 17-nation currency continues to be at risk of debt issues — in the eurozone and in the US.

For now, euro is obtaining to a small degree of a lift when some choppy trading yesterday, and a flight to safety for markets. Middle East demand has helped support the euro up till now in today’s Forex trading, but that might easily fade. Indeed, several expect that because the US session approaches, the euro can realize it more durable and more durable to hold on to gains.

The biggest issue, jointly may expect, is sovereign debt. Eurozone debt remains out of control, and there is no sensible attempt to solve the debt crisis. On prime of that, budget issues in the US have several worried about what’s next for the world’s largest economy. All of this uncertainty means that the short covering that's helping the euro is unlikely to last as Forex traders explore for shelter soon. With politicians in Europe and the US refusing to induce serious about debt issues, it'll be awhile before Forex traders feel extremely safe.

At 14:07 local time, EUR/USD is up slightly from the open at 1.3490, moving to 1.3503. EUR/GBP is higher, up to 0.8653, up from the open at 0.8624. EUR/JPY is also higher, moving up to 104.0900, from the open at 103.7095.

SA Rand Rebounds on Outlook for Interest Rates

The South African rand rebounded these days after yesterday’s decline on the speculation the central bank will keep its interest rates unchanged, continuing to draw foreign investors.

South Africa’s interest rates are important for the rand as the differential between the South African rates and also the borrowing prices within the developed markets attract investors interested in carry trades. the most interest rate of South Africa is at 5.5 percent, compared to zero.25 p.c within the USA, 1.25 p.c within the European Union and zero.1 p.c in Japan. The South African Reserve Bank left the benchmark repo rate unchanged on November 10 for the sixth consecutive month. Analysts consider chance on an interest rate cut as low.

Economists expect that the govt report will show tomorrow that the buyer value inflation rose to 5.9 p.c in October from 5.7 p.c in September. The weakening rand contributed to the price growth. As long as the upward pressure on inflation remains, the central bank isn’t likely to reduce its lending rates and South Africa will continue to be engaging to hold traders.

USD/ZAR fell from 8.3150 to 8.2430 today before trading at 8.3030 as of 11:24 GMT. Yesterday, the currency pair rose from 8.1740 to 8.3140.

Global Economy Unfavorable for Riskier Currencies, Brazilian Real Drops

The Brazilian real ticked down because the developments within the international economy created investors favor safer assets over riskier ones.

The US politician weren’t been ready to agree on budget cuts. Germany’s Finance Ministry admitted that the nation’s economic growth was “noticeably slower”. All in all, it remains terribly arduous to convince investors to shop for riskier currencies, even with guarantees of upper yield.

Unfortunately for Brazil and its currency, the foreign issues have impact on the country’s economy. Analysts slash their forecasts for the Brazilian economic growth. There’s the speculation that Brazil’s government could cut its estimate for growth to three.5 % when it reduced the outlook to three.8 % on November eighteen.

USD/BRL was up today from 1.8077 to 1.8084 as of 8:30 GMT after falling to the intraday low of 1.8035.

Monday 21 November 2011

Yen Profits from Debt Problems of Europe & USA

The Japanese yen rose against the euro and fluctuated versus the dollar as considerations about the US debt added to uncertainty caused by the ecu crisis.

Rumors say the US Congress may announce that its members failed to reach agreement about spending cuts required to reduce the budget deficit. Spain was one more European country to lose government as the ruling Socialist Party lost election on the weekend. the quality & Poor’s five hundred Index fell one.5 percent, whereas the Stoxx Europe 600 Index dropped two.1 percent, declining for the third day.

USD/JPY traded near its opening rate of 76.85 as of 12:31 GMT today after rising to the high of 76.94 and falling to the low of 76.75. EUR/JPY was down from 103.84 to 103.38.

Pound Slumps as House Prices Decline

The Great Britain pound dropped nowadays and dropped heavily as the house prices in Britain tumbled, reinforcing the negative outlook for the united kingdom economy.

Rightmove reported that the House worth Index was down by three.1 % in November from October, following the increase by a pair of.8 % in October from the preceding month. That was the largest drop since November 2010. The drop of the prices was attributed to the negative impact of the european crisis on the arrogance of shoppers and businessmen.

GBP/USD sank from 1.5794 to 1.5642 and GBP/JPY slid from 121.36 to 120.18 as of 13:49 GMT today.

Monday 19 September 2011

Online Forex Trading is Booming Business

Forex online is more fashionable now to a large extent all have access to a computer and the Internet. Unlike thestock market, the Forex does not have a special place for trade to take place. While trade takes place around the world, online Forex trading makes this process more convenient than ever.
Transactions on the Forex are traded very rapidly. The Forex is open twenty four hours a day on each working day of the year. Startseach morning trade in Sydney, Australia, and when the business day begins in each country, the online Forex trading begins worldwide. In online forex trading allows banks, monetary institutions, brokers and speculators on the currency exchange quickly and easily. Online Forex is also a trendy way to change foreign currency, as happens in real time without delay.
As the online Forex trading makes exchanging foreign currency without any problems and live to millions of people, many are asking for trained pros and cons of currency. Brokers and financial institutions can offer advice on investing in the Forex. The brokers also real negotiations will be resolved to the consumer. However, many are willing to teach in the Forex trade for themselves.
While learning about online Forex trading, it is imperative to understand all there is to know about the currency. Many online sites offer tutorials and demonstrations of the potential operators on how to get started in online Forex trading. The practice of speculators demos helps understand the basics of Forex trading online. Moreover, an additional tip to the negotiation of Forex online learning is the study of the news, international news and have news regarding politics, economics and finance. Inflation, changes in government and taxes just to identify a few, influence the Forex every day. It is crucial to understand how these changes affect trade and the value of the currency.
A forex trader must be organized and needs the necessary tools in their
set of tools to succeed. These tools are:
1) A reliable internet connection - do not want to be blocked for a crucial operation because an Internet connection fails
2) A reliable computer - the machine has to perform and not "frozen". You need the right hardware to run any Forex charting software or signal
you may way to run.
3) A treatment station - this software serves as an interface between you and your agent and allows you to perform with a few clicks of your
mouse.
4) real-time exchange rates - rates update thousands of times a day, you should have the appointment minutes
5) Executable Quotations - The comments that you can click and then execute the trade immediately
While some people see the Forex market as a place to see what their exchange rate will be when traveling abroad, others view it as an opportunity to make big profits in their financial planning and the future.
By learning how to make money with Forex, you can gain great benefit by itself in terms of time and money. It is my hope that you take the time to learn more about Forex, and begin this fascinating adventure of capitalism today. You will not be disappointed, and even you will realize that there are many robots and technical programs to help them thrive.

Monday 12 September 2011

Worst Week for Sterling in Nine Months

Great Britain book published this week the biggest weekly fall against the U.S. dollar nine months of speculation that the fragile UK economy will force the central bank to keep interest rates at historic low.

Virtually all the key data this week was negative for the pound. Whether house prices, industrial production or the producer price index, all the signal indicators on the worsening state of the British economy. Not surprisingly, the Bank of England kept its policy very stimulating, but also reinforces the pessimistic view on the future of the UK economy and currency.

The pound was in decline against the dollar and the yen for almost a week and will publish the third consecutive weekly decline. The currency also weakened against the euro in the first half of the week, but strongly advanced in the second half as concern for the problems of the European Union intensified.

GBP/USD dropped from 1.6150 to 1.5878 over the week. GBP/JPY slipped from 124.20 to close at 123.20. EUR/GBP fell from 0.8765 to 0.8598, the lowest level since March, after it rose to 0.8842 earlier this week.

Franc Considered Overvalued Even Pegged to Euro

The Swiss franc fell against other major currencies today as the Finance Minister Johann Schneider-Ammann said the currency is "vastly overrated" even after the central bank set the franc to the euro. The franc rose against the euro today.

The minister explained that he believes that the fair rate for the franc is the following:

There is a general understanding that the purchasing power parity is around 1.35 to 1.40 francs per euro. That's more or less accepted.

According to the index of the Organization for Economic Cooperation and Development, the Swiss currency is still 35 percent above the right price against the euro.

The euro fell today on concerns about the debt crisis in the region, but the parity of the franc to the euro has not allowed the Swiss franc to benefit from the resulting demand for shelter. However, the Swiss currency rose against the euro, reaching the limits set by the Swiss National Bank.

USD/CHF closed today at 0.8835 after opening at 0.8754 and falling to 0.8706. CHF/JPY fell from 88.49 to 87.75. EUR/CHF closed at 1.2065, declining from the opening rate of 1.2151.