Forex reserves rise $1.13 bOur BureauMumbai, Nov. 30 The forex reserves went up by $1.133 billion to $272.281 billion for the week ended November 23 following constant intervention by the Reserve Bank of India in the market, said a dealer with a private bank.The reserves had increased by $967 million to touch $271.148 billion for the week ended November 16, according to RBI’s Weekly Statistical Supplement.The Hindu Business Line : Forex reserves rise $1.13 b
The rupee has appreciated by almost 11 per cent since January this year backed by the strong FDI and portfolio flows into the domestic market. This has prompted the RBI to buy dollars through nationalised banks to curb the appreciation of rupee and has contributed to the huge accretion to reserves.“There has also been some revaluation of currency assets which has added to the reserves,” said the dealer.
The foreign currency assets increased by $1.130 billion at $264.031 billion. The reserves in gold and SDRs remained unchanged at $7.811 billion and $3 billion respectively. The reserve position in IMF went up by $3 million at $436 million.
Friday, November 30, 2007
Forex reserves rise $1.13 b
Forex E-Book Review: Forex Fast Track
Disclaimer: I'm just posting reviews on ebooks there isn't any guarantee you will make any money with this ebook.
Traders using The Forex Fast Track are creating multiple streams of income, not only trading Currencies, but also by doing other ForEx related activities that sometimes produce more wealth than their own trading. What’s even more appealing is that they do this from anywhere in the world—there is no “OFFICE.” You can set-up your office on a resort beach in the
Professional trader shares his techniques and experience LIVE in Weekly Webinars, putting his reputation on the line so that you can learn Forex.Get the interaction and experience you need with a Professional Trader and Mentor to show you the ropes and help you establish yourself as a very successful and profitable trader on the
Foreign Exchange (ForEx) in his LIVE Webinars and Trading Room. Make as much money as you would like any time of the day, 6 days per week trading currencies. There are always opportunities to make money, day and night!
Forget about all those other courses and e-books you see online that simply recycle the old and add a twist to make it NEW. If you are going to make money trading Forex, you need someone who will take the time to explain it to you; someone who will provide you with his/her years of experience and mistakes. Don’t attempt to take this market on alone! Avoid the same mistakes that I have made and keep your hard-earned cash. There’s no reason to throw your money at the markets to learn. I have already done it for you!
Why You Should Trade with Me!Initially we mentioned that we could show you have to make six figures in 12 short months. What I want to teach you to do is take 10 Points (PIPs) from the market each and every trading day of the month. You can fund your account with $1,000 and start trading with 2 Mini Lots. The objective is to be positive 10 PIPs at the end of each trading day, not necessarily setting a Take Profit order or Limit order for 10 PIPs and calling the trade good. Some trades will net you 15-20 or more PIPs per trade.
If you consider that fact that currencies trade on average 90-120 PIPs per day, then you should be able to capitalize on 10 points. What’s even more appealing about what I will teach you is how you can set the trades up to manage themselves. I have some COOL TOOLS that will allow you to “Set ‘Em and Forget ‘Em.” There’s no reason to sit there and watch a trade, only to talk yourself out of a good thing.
I have found that I do much better with a trade if I just walk away after I have set it up properly. If you continue to watch the trade, your emotions will affect your decision-making process and you could cut the trade short or even end up with a loss. Let me show you how to get rid of the emotions behind trading.
The nice thing about trading with technology is that we now have the ability to monitor, or ever manage our trades, using cellular phones or laptops. Just a moment ago I talked about setting up the trade and forgetting about it. Well, you don’t necessarily want to forget about it, but go do a round of golf while you monitor the trade on your cellular phone. You see, the good folks that created our charts have also created charts for handheld devices. I have a PALM Treo and I can manage the trade from anywhere…Cool concept, isn’t it!
Grab 10 Points Per Day Using Our System:
If looking for a forex fast track to making money this ebook could do the job. Though you not fore sure to make any money with ebooks.
Trading Forex Currency through online foerx brokers
Getting Access to foreign exchange or forex is one of the most extensive markets out there. In other to get connect you have to go through a forex online broker. Almost like a stock broker on wall street.
However, this online forex brokers also can provide forex trading strategies. The advice they give you mostly extends to technical analysis and intense research to improve client forex trading performance. Moreover; financial institutions are the most that mostly influential the forex markets prices through high volume and very large forex currency transactions. Back in the day on banks enjoyed trading forex, but now anyone if computer access can market forex via a forex online broker.
With secure web connections today it allows forex traders to from anywhere there is a Internet plug in. Which will allow you to get update forex news information and other technical advice so forex day traders can make sound decisions on what forex positions to make.
With your needs in the forex market it will influence your choice of a forex online broker. A online forex broker firm is a pit stop to provide all the latest news and detailed research, advice and simulators to learn more how to use the forex tools. When picking a online forex broker take your time.
Online Forex Trading Education
Now that forex trading is available to everyone there are so many people who are interested in doing forex trading. Before starting in forex trading you need to get as much online forex trading education as possible that's most important. With so many forex trading terms in this huge forex market its very important also taht you learn the fundamentals with online forex trading education. Now why online forex trading education? While most people really want to learn forex trading.
Often they are to busy with many other aspects of daily life. That makes it hard to attend a course in forex trading to learn forex. That's when an online forex trading education is comes in.
With Internet and being able to get online very easy now you can learn at your own pace. Being online you can pretty much learn all the basic terms about forex trading. There huge amounts of information on the web regarding forex trading from tutorials to online trading education. On the web you can find free forex trading seminars online and also advanced forex trading courses online. For instance; you can find forex mentors programs, though it may not be free but its there for you to learn forex trading.
A another important piece of an online forex trading education is pratice. No matter how well you understand forex trading online its noting like getting your real money involved. So you must learn your basic and some advanced forex trading. So once you have sufficient experience you may want to open a mini account to get started the move up to a regular account. But before starting a mini account I would advise you to open a demo account with one of the online forex brokers. Its really important not to just rush into forex trading or your online forex trading education.
Taking your time could save you hundreds or even thousands of dollars in forex trading.
good luck
CMS forex news
Recap: Dollar Gains on Euro and Pound; Housing Prices Fall in UK.
The Dollar gained back its losses vs the Pound as housing data in the UK came in below expectations. The Euro fell further off its record high. The Dollar tests parity versus the Loonie for third day.
Thursday, November 29, 2007
Searching for Forex Trading Chart Systems
Is there a easy way to find forex trading charts and Forex Signals nope! If your just starting in out in forex trading your going to need to find forex charts. When starting out in forex trading you are going to have to develop some forex trading systems. What I find easy is using demo accounts that some forex online brokers provide as a add bonus. Most would provide free forex charts as part of the foerx demo trading system.
If you search Google for forex or forex charts. You will be so overwhelmed by the results Google draw up. Once search results are in you will have to some research to get what your looking for. If you looking forex charts or forex systems you will have to probably mix and match you get what your looking for.
As you refine your skills, and use online forex charts you notice there are so many forex features for charts. Forex trading signals are pretty standard on many forex sites. Moreover, they integrate forex trading signals with most forex charts. If you search you will find forex trading signals that will fit right in with your requirements. As you go on with your forex training you will find that your more refined with practice on a demo account.
Learning forex charts and forex system trading of different online forex brokers can be a bit frustrating at first. Just work through it and it can be really worth the extra effort. I normally pick a forex trading system and forex trading charts is by only recommendations or a suggestions from a really good forex trading source. Good luck in finding your perfect forex trading system.
CMS Forex News
Recap: Investor Confidence and Carry Trade Gets A Boost as Fed Vice Chairman Kohn Comments Increase Chane of Hike.
The Dollar, Pound, and high yielders such as the Australian, Canadian and New Zealand Dollars gained on the Yen as carry trade got a boost from rallies in global stock markets.
Review: Easy Forex trading Platform
Easy Forex trading platform has many benefits when using them as your forex broker. I'm not trying to sell you on there service just doing a shore review on some of the benefits. Here are some of the benefits:
- Forex personal account management with easy-forex they have a expert of team members that are ready to help you at anytime. Also you will have a your own forex account service manager that will work closely with you. Also you have many options of getting in thru with you your forex service manager be via phone,email, and forex chat service.
- Live training, one-on-one help on first steps in online trading.With easy-forex platform they have some of the most professional assisting forex tools out there. Easy-Forex offer some background forex information for the forex market. Guided tour, seminars, one on one training, chat, telephone support, as well as other assistance tools, including technical support.
- Rates,Limits and stop-Loss Easy-Forex executes your set rates, including Stop-Loss and Take-Profit rates, by using the latest technologies. We are committed to the principle that you should not lose more than your Stop-Loss amount at risk, as defined by you.As well, per your pre-set TAKE-PROFIT rate (if you choose to set such rate) your deal will be automatically closed, exactly on your pre-defined Take-Profit rate.Needless to say that you can change those pre-defined rates, Stop-Loss as well as Take-Profit, at any time while your deal is open.
- Instant Deposit with Credit Card Easy-Forex™ is the only Forex platform which allows you to fund your account with your credit card, so you can start trading immediately, regardless of banking work days or hours! Easy-Forex™ cares about protecting your credit card security as well as protecting your privacy to the highest standards. To achieve that, we use the latest technologies and comply with all relevant regulations.
- Margin trading with as little as US$50 The Easy-Forex™ system enables you to trade with small amounts as well. You can start using Easy-Forex™ even with an amount as little as $50! No bank would ever offer you such an opportunity! When trading, you may deposit the sum that suits you, or fits the amount that you are willing to risk. Starting to trade with such small amounts is the best way to get acquainted with the Forex marketplace. Much better than operating "DEMO" accounts, where you are not really risking your own money. After getting familiar with the system, you may increase your level and scope of activity, as you find fit.
- Competitive Spreads The spreads in our site assume deals of small and up to medium volumes. If you are a frequent trader dealing in larger volumes, we offer you a tailor-made account to suit your exact needs (spreads and leverage).
Forex Singal providers
There are many of Forex Signals out on the market nowadays. Some new foerx traders may think of looking for a reliable Forex Signals. Though you maybe wondering are there may many even available?
Me personally, I wouldn't pay for foerx signals services. If you think about it if forex signal services can sell forex signals you can probably doubt their forex skills. Also if they are really that good making tons cash doing forex trading why would they even need to sell there forex signals? So then what would be the value of there forex signal service must likely nothing.
There are many forex day traders that only rely on these forex signals. They would say how these signals have help me to to make so much profit in forex trading. And they will show there forex charts, and worst they will even show there forex trading logs as there evidence. So word of wisdom if your going to use some of the forex signals providers out there just make a good judgement.
Wednesday, November 28, 2007
Forex Management
Be Patient and Persistent many forex traders have become sorely disappointed when they have not attained immediate success. Be consistent in allowing yourself sufficient time to achieve success. Persistence is one of the most important qualities a trader can possess.
Short-term trading requires the ability to continue on even when your trading results are not good. Some of forex traders greatest successes occur right after a string of losses. Those who quit too soon or apply their system haphazardly will not be trading in the market enough to allow their system to produce the wins they are looking for.
To develop persistence, you must force yourself initially to do everything according to the rules of your forex trading method or forex system. Forex management is to follow through on this commitment, and you will find that after you have taken every forex trade according to your tested system, your consistency will have paid off, and you will have forex profits to show for your efforts.
Forex News
Yen Pares Losses After HSBC Reveals Subprime Losses. No Important Releases.
There were no major fundamental releases to start this week. However in financial news, HSBC faces $12 billion in additional "writedowns" for subprime defaults boosting the Yen.
Tuesday, November 27, 2007
Forex - Dollar rises boosted by stronger US equities
LONDON, Nov. 27, 2007 (Thomson Financial delivered by Newstex) -- The dollar strengthened slightly as a strong opening on Wall Street supported demand for the US currency.
Wall Street opened higher following news overnight that Abu Dhabi Investment Authority will invest 7.5 bln usd in Citigroup (NYSE:C) -- a vote of confidence for the nation's largest bank -- which has suffered losses amid the ongoing crisis in the mortgage market.
The burgeoning risk appetite on US equity markets left weak consumer confidence data sidelined by markets, making no impact at all.
The Conference Board's Consumer Confidence Index fell to 87.3 in November from a revised 95.2 in October, the lowest level in two years, and below Thomson's IFR Markets' consensus estimate for a fall to 90.5.
'Consumer confidence was softer, but we don't really get sense that this is a market that is trading off economic numbers, it's trading more off the equity market,' said Daragh Maher, currency strategist at Calyon.
However, he added that though dollar has risen against the euro in the last couple of hours, 'it's pretty much back to where we started the day.'
The US currency is also still trading at a very historically weak level against the single currency, due to the deteriorating outlook for the US economy, which has led to diverging interest rate prospects for the areas.
'The divergence in policy outlook has been supporting the euro,' said Stephen Pearson, chief currency strategist at Bank of Scotland Treasury.
He added that while some doubts have emerged over the euro zone's economic prospects, 'US interest rates look as though they will be cut a lot'.
Later today, Philadelphia Federal Reserve Bank president Charles Plosser, and Federal Reserve Bank of Chicago president Charles Evans will be speaking later on the economic outlook.
Plosser 'will provide some anecdotal evidence in terms of pass through from the credit shock,' said analysts at BNP Paribas. (OOTC:BPRBF)
'But of more interest is whether Fed policymakers change their hawkish tone,' they added.
Attention will turn to the Federal Reserve's Beige Book tomorrow for hints on the outlook for interest rates.
'Focus remains centred on the Fed's Beige Book report for the Dec 11 FOMC meeting and what potential spin is put on the balance of growth and inflation fundamentals - as possible clues to Fed rate policy intentions ahead,' said David Brown, chief European economist at Bear Stearns. (NYSE:BSC)
'This could have an important bearing on European Central Bank and Bank of England policy ahead,' Brown added.
Also due tomorrow in the world's largest economy are durable goods orders, which are expected to rise slightly be 0.3 pct in October, and by 0.4 pct excluding transportation.
Friday, November 23, 2007
Forex Trading Systems
The foreign exchange currency market is the largest market in the world because it trades up to $1.9 trillion daily. There is an enormous scope of trade in Forex because it is global, and is open twenty-four hours a day, making the presence of buyers and sellers constant, and the fluidity of the market, grand. The market is ever present because it does not have a central venue like Wall Street or Tokyo. It is a series of internet and telephone communications between buyers and sellers and it is not overseen by any one main authority like the Securities and Exchange Commission. The Forex is made available to traders through platforms.
Traders of Forex commonly favor Forex trading systems. Forex trading systems are methods of trading currency based on ideas that have rules associated with them. Forex trading systems are a merging of theory and practice that have been tried and tested over and over, and the results of the tests have been documented.
Some Forex trading systems are based on the idea of going against trends. Other Forex trading systems are based on the idea of going with trends. Some Forex trading systems are based on the idea of tracking breakouts of a particular currency and these Forex trading systems rely heavily on the averages of a currency’s highs and lows, and utilize “Bollinger bands” that track the average highs, the average lows and the moving average of the two.
Traders utilize Forex trading systems in order to work against human characteristics that can hamper trading, like greed, addiction, impulsivity, compulsivity and fear.
Kevin Anderson is the owner and operator of http://www.forextradingcenter.info a site developed to give users the most updated information, articles, and news related to the Forex Market.
Article Source: http://EzineArticles.com/?expert=Kevin_Anderson
Wednesday, November 21, 2007
Forex Economic News
USD Dollar:
Yesterday the greenback weakened sharply all across the board on the back of the release of the FOMC Meeting Minutes. The greenback slipped to new all time low against the EUR touching the 1.4852 mark, as the minutes gave another strong indication to the market that the Fed will once again cut rates in order to prevent the U.S economy from slipping into recession. The Fed indicated that it expects U.S growth to slow to between 1.8 and 2.5%, which is much lower than previous forecasts. Therefore the Fed is now expected to cut rates by at least 0.25%, in order to stimulate growth by attempting to alleviate the housing and credit crisis.
However, the dollar selling began well before the FOMC Minutes with the release of weaker than expected Building Permits figure. This figure was forecasted to come in at 1.20M but it released at 1.18M, showing a sharp drop from last month's figure of 1.26M. This downside surprise increased the pressure on the greenback as it indicated that the earlier rate cut by the fund is struggling to provide the housing slump with some reprieve and it raised concerns of curbing future economic growth. There was some positive news for the greenback as the Housing Starts figure released better than expected, but this was greatly overshadowed by the negative Building Permits figure and by the FOMC Minutes. The weakness of the dollar yesterday also caused commodities to become more appealing to investors and this shoved Crude Oil passed the key $99 mark. The rising price of oil coupled with the continued subprime crisis will put immense pressure on the U.S economy. However the weak dollar may cause exports to boom as U.S exporters become more competitive on the global market.
Looking ahead to today, the most important news to be released from the U.S will be Unemployment Claims, which is expected to release slightly weaker than last month and Consumer Sentiment, which is forecasted to remain unchanged. If these figures do not cause any major surprises then the greenback should consolidate today after dropping to record lows yesterday. However the dollar sentiment is still very bearish and this is not likely to change in the near future, particularly since many analysts believe that it is in the Fed's interest to maintain a weak dollar.
EU:
The EUR continued its bullish rampage against the greenback hitting another record high. Although the EUR has been a very resilient currency since its inception, yesterday's new high was driven mainly by the negative sentiment surrounding the greenback as opposed to actual EUR robustness. The only news released from the Eurozone yesterday was the German PPI, which came in at a beating expectations figure of 0.4%. This was another positive sign for the EUR as Germany is one of the key players in the European economy. However the strong EUR may concern the ECB as Germany is heavily reliant on exports, but so far there have been no noticeable indications that the strong EUR is dampening growth. Today is also relatively light on Eurozone news as we are only expecting the Italian Retail Sales figure and it should not have any impact on the EUR. After yesterday's sharp spike against the greenback, the EUR may retreat slightly today but with the negative dollar sentiment being so strong, it will target new highs against the fledgling U.S currency in the near term.
JPY:
Carry trades continued to unwind yesterday as the volatility of the currency markets is steadily raising the cost of hedging. Therefore since the carry trade strategy mainly involves borrowing from Japan where interest rates are low, the unwind has caused the JPY to gain significantly in recent weeks. The JPY continued to rise yesterday against the greenback after disappointing news put more pressure on the U.S currency. Also the JPY managed to maintain its bullish trend against the high yielding currencies as U.S subprime mortgages widened.
Earlier today, during the Asian trading session, the Japanese trade balance released slightly lower than the expected figure of 1.08T, at 1.07T. Also the All Industries Activity Index, which measures the change in spending for goods and services, released in negative territory at -1.6%. However this could not stop the JPY's positive momentum which should continue in the near term on the back of increased risk aversion.
Why I Started a Forex Blog
I know there are so many forex websites and forex blog on the Internet. When you type in forex or forex blogs you get thousands of forex sites. The reason I'm starting this forex blog is that I'm very interested in learning how forex market works,how to make money in forex. Though I know its everyone goal in forex to make some type of income from forex.
to its fullest by any means. There With forex hope to achieve some type of success with forex. That's why I'm starting this blog So I track down everything I learn that could make me a successful forex trader. I know many of you may have seen A Pursuit To Happiness? That's kinda where I stand; I really want to pursue tremendous opportunity in forex trading and I don't want to miss out.
So starting this blog I'll bring you along on my forex journey which is going to be a long an wild ride. So your probably wondering why forex? I remember some time back I was traveling around south east Asia and using the currency exchange was a most. And me being from USA I would be money from the USA to exchange to other foreign Currencies. I always wonder why I was getting less and less value for my US dollars. I started to realize that with oil prices going up,war in IRAQ, and US economy in bad shape. The US dollar started to lose its value as the EURO became the next Currency of the world.
Now It's like going to school all over again learning something that's like a foreign language to me. I'm borrow more and more forex books so I can get it down to a science. Today I'll be going to my first forex workshop to get a better understanding of forex trading. This 3 hour workshop going to cover:
- Learn how to attack the FOREX Market form various angles, exploiting different profit opportunities
- Learn how to identify the best trading signal with high success results(80% winning trades)
- Discover how you can trade without intensive monitoring of the forex market and still earn consistent profits
- Learn how you can start trading in 2 days
- Master the psychology of successful forex trading
- Also learn how to net massive profits from forex trading *this strategy will even work as the market crashes!
Forex - US dollar weaker after more bad news about housing, lending markets
SYDNEY, Nov. 20, 2007 (Thomson Financial delivered by Newstex) -- The US dollar was weaker against major currencies in midmorning trade in Sydney on Wednesday, extending overnight losses as investors digest more bad news about the banking and housing markets in the US and interpret comments from the Federal Reserve as suggesting further interest rate cuts are on the way.
The greenback was friendless after mortgage lender Freddie Mac (NYSE:FRE) reported a record quarterly loss of 2 billion US dollars due to rising defaults and an analyst downgraded Countrywide Financial Corp (NYSE:CFC) , fuelling credit market concerns.
The Federal Reserve also lowered its forecast for economic growth next year to 1.8-2.5 percent from 2.5-2.7 percent and nudged up its unemployment forecast to 4.8-4.9 percent from about 4.75 percent.
The greenback is also under pressure from increasing speculation the Arab states of the Persian Gulf will revalue their currencies against the US dollar and replace the peg with a basket of currencies.
News Source
'The FOMC (Federal Open Market Committee) statement is probably the biggest driver,' said Cherelle Murphy, a senior market economist at ANZ Banking Group.
Suggestions that Arab states will unpeg their currencies from the US dollar has also 'certainly had an impact as well in the last 48 hours', Murphy said.
At 10.30 am (2330 GMT), one US dollar was buying 109.93 yen compared with 109.99 in late New York trade.
The euro was up at 1.4829 US dollars from 1.4822 US dollars overnight and the sterling was buying 2.0663 US dollars compared with 2.0661 US dollars in New York.
Elsewhere, the Australian dollar was at 89.25 US cents from 89.09 US cents overnight.
While the Aussie will continue to be buffeted by poor investor risk-appetite linked to credit market concerns and worries about the US economy, a significant decline is unlikely, said John Kyriakopoulos, head of currency strategy at National Australia Bank. (OOTC:NABZY)
'So long as the Reserve Bank of Australia is still expected to raise interest rates over the next year and Chinese economic growth remains brisk, we don't see a significant pullback in the Australian dollar,' Kyriakopoulos said.
Volatility is expected to remain a key theme in currency markets for the rest of the week, with US consumer confidence data out later today and US markets closed for the Thanksgiving holiday on Thursday.
Forex Latest News Video
Recap: Euro Sets New All Time Record Vs Dollar; Canadian CPI Turns Negative.
The dollar fell to a record low against the euro and Swiss franc on concern credit-market losses will slow economic growth, prompting the Federal Reserve to lower interest rates again this year.
Tuesday, November 20, 2007
Forex Candle Stick charting
Doji
A name for candlesticks that provide information on their own and feature in a number of important patterns. Dojis form when the body of the candle is minimal as market's open and close are virtually equal.
Hammer
A price pattern in candlestick charting that occurs when the market trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
Inverted hammer
A price pattern in candlestick charting that occurs when a security trades significantly higher after its opening, but gives up most of all of its intraday gain to close well off of its high. Gravestone - The market gaps open above the previous day's close in an uptrend. It rallies to a new high, then loses strength and closes near its low: a bearish change of momentum. Confirmation of the trend reversal would be an opening below the body of the Shooting Star on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than a Shooting Star.
Shooting star
A candlestick indicating a reversal. The previous day's candle has a very large body. On the day the shooting star occurs, the price (generally) opens higher than the previous day's close, then jumps well above the opening price during the day, but closes lower than the opening price.
Three white soldiers
Three white soldiers is a bullish reversal pattern that forms with three consecutive long white candlesticks. After a decline, the three white soldiers pattern signals a change in sentiment and reversal of trend from bearish to bullish. Further bullish confirmation is not required, but there is sometimes a test of support established by the reversal.
Three black crows
A bearish reversal pattern consisting of three consecutive black bodies where each day opens higher than the previous day's low, and closes near, but below, the previous low.
Forex Current News
Recap: Global Stocks Fall, as Credit Problems Hit Financial Institutions, such as Citigroup in the US.
The Yen started the week up against the Dollar, Euro and Pound as concerns over credit-market losses pushed investors to cut higher-yielding assets funded by loans in Japan.
Tracking Forex Trends
Now I'm going to introduce to you trading theories. In forex trading the trends is your best friend. If you can figure out the trend in forex online trading you can go along way in this trading game. The foreign exchange or better known as Forex Market is know as one of the most consisting trending markets of all the markets out there.
Basically if your trading USD/EUR what you want to look for is how well the US economy is doing. Say the headlines in the New York Times reads unemployment is at a all time high and Gas prices are surging upwards. What you want to do is start selling off your U.S. dollars and start buying euros, though this is just example. If you spot trends in the forex markets it can lead to wonderful opportunities.
Its just like in the real world theirs fashions trends which if you start selling a popular shoe as it starts soar then you can ride that to the fullest. There are trend following opportunities for every trading time horizon. Look at a weekly or daily chart of any major cross rate, and you will see trends that last several days, weeks or even months.
Here is a few trends to look for:
- Price trends- are market conditions in which movement is consistently rising or falling. The market condition opposite to trends is a sideways market in which highs and lows are pretty much the same.
- Trend-line- is a straight line joining a series of price tops or bottoms that represents an area of support or resistance. Generally speaking, a reversal in a trend or slowing down of a pace of a trend is indicated when the trend-line is viewed as major occurrence.
Monday, November 19, 2007
Forex Scalping
Learning to scalped the forex market involves opening and closing a position in seconds or minutes at most. Even though scalping involves the use of leverage and higher leverage means higher risk, the short period of time a forex scalper is in a trade decreases the exposure risk that's inherent in trading or investing due to the holding of a position. If done correctly, scalping provides this additional degree of "risk control" that is not even present in day trading.
Why don't most foerx brokerage firms like forex scalpers?
Many brokers are making money trading against their clients through their dealing desks. Yes; this is still legal in the forex market. While this might not affect as much regular traders (even day traders) that stay in a trade for hours or days, scalpers are another breed of trader. The profitability of scalping currencies can be drastically reduced if the correct trading firm is not used. The small percentage of successful scalpers are usually "kicked out" by one forex broker after another.
While it seems profitable method when scalping the price movements, however the spread you pay when you open a trade makes the risk-reward more risky than the long term trading (trend trading).
For example if your broker charges you 5 pips spread for opening EURUSD position and your target is 10 pips and 10 pips stop loss; the price have to move 15 pips (5 pips of spread + 10 pips your target) to take the profit while it have to move only 5 pips ( 10 pips your stop loss - 5 pips of spread) and stop loss level will be reached.
So, the risk-reward ratio in this case is 2-1 which means a very dangerous and risky method to scalp!
Another risk in the Scalp is that one large loss could eliminate the many small gains that the trader has worked to obtain. So it needs a very good exit strategy to decrease this risk!s
The technique uses simple tools and does not require any special software (ie..Tradestation, Ensign, Esignal, etc...)It will work on other markets including listed stocks,and commodities.
This is a simple and easy to follow scalping system using basicindicators and is based on a sound foundation. Following this system you will be on the right side of the trend and will quickly be able to
determine when to trade and when to sit tight. Most scalp trades last under five minutes -
many less than one, so you will be in and out with your profit. Just as important, you will be
out of losing trades real quick and ready for the next trade.
South Africa forex exchange market
South Africa: Buy USD/ZAR
by Stanislava Pravdova, Lars Christensen, Lars Rasmussen
We recommend buying USD/ZAR as a short-term speculative trade. We feel that the likelihood of a correction of the rand within the next days and weeks is significant due to the following:
- • Since the Fed delivered its aggressive rate cut of 50bp on September 18, the South African rand (ZAR) has rebounded very sharply against USD, driven by renewed risk appetite. We believe that it has now become too strong.
- • South Africa runs a substantial current account deficit and fairly large foreign debt and therefore has large funding needs. This makes the currency more vulnerable to changes in risk appetite.
- • Our technical analysts also see a heightened risk of an upside correction in USD/ZAR within the coming days with a target at 7.15 (some resistance at USD/ZAR 7.00).
Daily Forex Analysis
19.11.2007 13:59 Monday
Economic News
USD
We open the week of November 18th, with what has become a familiar trend; the dollar continues to fall. The greenback finished off trading on Friday down against most major currencies as credit and housing worries continue to haunt the US economy. Figures from the Department of Treasury regarding International Capital, Balance of Payments, and Industrial numbers hindered any hopes of the greenback gaining on its progress from early last week. Instead, investors start the week offering the greenback in bulk. Another hit to the dollar came this weekend as the Gulf Cooperation Council, made up of the lion's share of the Gulf States, discussed the possibility of revaluating their currencies away from the greenback. This has become a developing trend as China leaked several hints that they were doing the same, not too long ago.
The greenback this week will have to rely more heavily than usual on outside events, as the shortened Holiday week holds little relevant news in the US economic schedule. Tuesday will see the release of the FOMC meeting minutes which should highlight any suspicion about if and when the Fed will intervene once again to change the economic outlook of the dollar.
US Housing will look to be a notable subject this week with two statements set to be released. Today at 18:00GMT, we will see the release of the National Association of Home Builders Housing Market Index, ahead of Tuesday's Housing Starts numbers.
Other than that the Greenback is expected to remain under pressure, as more and more nations lose faith in the currency that once represented the symbol of economical robustness, and is now becoming less relevant on a global scale.
EUR
The Euro ended trading last week in a consistent fashion, rallying late against the greenback to stay above the 1.46 level. The Euro has become a mainstay in the global economic world, as some see it as the world's new dominant currency. It seems as if any gain from the greenback is not substantial enough to deter the overwhelming strength that the 13 Nation currency has had lately. A quick peek to the week ahead could see a slight dip in the Euro, most likely in the early parts of the week. This however will likely be a short lived trend as the Euro has consistently rallied from falling positions over the last several weeks. This trend has affected the relationship between the GBP and the EUR as well, as gaps between the two European currencies are slowly closing.
The G-20 Conference in South Africa this past weekend was surprisingly mum regarding any serious change in currency policies. Leaders mentioned that the state of the world's economic slowdown was "difficult to predict", helping not one bit in shoring up investor concerns.
The week ahead sees little relevant news from the EU economic calendar. This week will see a speech by ECB President Trichet at the Frankfurt European Banking Congress on Friday. As the President normally spurs market volatility when he speaks, this time should be a bit different as his words come late in the week on Friday. The Euro should continue to progress slowly barring any surprising news events as investors have come to see it as a strong and stable option when trading.
JPY
The JPY once again benefited from slumping housing prices as investors shied away from high-yielding assets funded by the JPY. The Japanese currency was up against 15 of the 16 major currencies to end Friday trading and looks to continue its forward progress. The presumption is that the upcoming housing numbers from the US this week, will continue to push the JPY forward. The focus on Japan at the G-20 Conference in South Africa was geared toward structural reform and fiscal consolidation. The Japanese would ultimately like to contribute more positivity to the JPY via local events as opposed to being reliant on outside factors. BoJ Governor Fukui touched upon his concern revolving the rapid appreciation in recent JPY numbers.
The Japanese economic calendar stays barren of any important news events, as the Holiday week also corresponds with celebrations in Japan. It will be intriguing to see how investor behavior develops in regards to carry trading; it is likely we will see a boost in the JPY as the week begins.
Technical News
EUR/USD
There is a very distinct triangle forming on the 4 hour chart which appears to be at a key level before a breach. If a move towards the 1.4620 will occur, it will probably validate a deeper bearish move into the 1.4570 zone.
GBP/USD
The cable has been trying to massively correct the intensive bullish move, and is now trading around 2.0530. The sharp bearish channel is in a high spot at the moment, and together with a strong bearish cross on the slow stochastic, represents a very good potential for a short position.
USD/JPY
The pair is showing a very strong bearish momentum that appears to be overlooking the normal price movement proportions, and is now trading at the impressive 110.50 level. The direction appears to be down, as both RSI and slow stochastic strengthen the bearish notion.
USD/CHF
After touching a base at 1.1155, the pair now consolidates a bit higher at 1.1170. all oscillators show that the bearish momentum will probably continue, and that a breach through the next key level of 1.1150 is quite imminent. If the key support level will hold, we might see a correction back to the 1.1220 levels.
The Wild Card
Crude Oil
Sunday, November 18, 2007
Forex money management
Trading with Sufficient Capital
When doing Forex trading you need to trade with sufficient capital. One of the worst blunders that a forex trader can make is attempting to trade without sufficient funds. This does not mean that you have to have thouands of dollars, but you have to have enough to handle the movement in the forex market or you can increase your chance of getting blown out of the forex market.
The forex trader with limited capital not only will be worried forex trader, always looking to minimize losses beyond the point of realistic trading, but he or she also frequently will be checking the charts to more often then he has to. Having the right amount of capital is the right move. If not you can be really stress wondering what's going on with the forex market when you away from your forex workstation.
I would say the minimum amount to start up a forex trading account would be around $2000, though If its a regular account i would say about $5000 to $10,000. For a mini account can be open around 300 to 500 dollars though I would recommend a least a 1000 dollars. If your just starting off I would go with a mini account since it was developed to accommodate forex investors looking for an alternative to the forex stock market for diversification purposes. The small dollar amount requirement of the mini forex account allows many forex investors to participate in forex who previously were unable to do so.
US Dollar Back on Track
FOREX-Dollar falls but on track for weekly gain
Fri Nov 16, 2007 9:23 PM GMT
NEW YORK, Nov 16 (Reuters) - The dollar slid on Friday, but was on track for its biggest weekly gain against a basket of major currencies in over a month despite uncertainty in the credit market.
The dollar fell against most major currencies on reports showing the biggest drop in U.S. industrial production since January and lower-than-expected foreign investment in U.S. assets in September, but it rose against the yen as Wall Street stock indexes posted modest gains on the day.
"The renewed bout of credit risk and associated increase in risk aversion is clearly dominating trading this week," said Jay Meisler, principal of Global-view.com, an online forum for traders and investors.
"The Forex market is currently equity dependent," he added.
The euro
The dollar was down 0.3 percent to 1.1188 Swiss francs
Against the yen, the dollar ticked up 0.5 percent to 110.91 yen
Overnight the yen had strengthened as jittery investors took cues from falling Asian and European stock markets to continue a move out of relatively risky carry trades funded by cheap borrowing in the Japanese currency.
DOLLAR DOWNTREND
The dollar has fallen about 5 percent against the euro since mid-September when the Federal Reserve slashed its benchmark interest rate by 50 basis points to stave off a possible recession.
Futures markets currently reflect a slightly lower chance of a December rate cut after comments from two Federal Reserve officials on Friday downplayed high expectations for a 25 basis point easing in monetary policy. For details, see [ID:nN16181066]
Despite the dollar's stabilization this week and the muted chances of another Fed rate cut, many economists said the dollar's long-term declining trend remains intact.
U.S. October "industrial production adds to the bearish dollar overall," said David Watt, senior currency strategist at RBC Capital Markets in Toronto.
"It is reinforced by the TIC long-term numbers, though that is a little bit dated," he added.
The Treasury International Capital report for September showed a lower-than-expected flow of long-term capital into the United States of $26.4 billion, below expectations of $70 billion. [ID:nN16561548].
Though foreigners flipped from being net sellers of U.S. government and corporate bonds and stocks to net buyers, the total flow, taking into account the amount of foreign securities that U.S. investors bought, was not enough to fund the $56 billion U.S. trade deficit in September.
"Slowing economic growth and credit concerns likely will undermine flows into U.S. corporate bonds and equities, undermining the U.S. dollar," said Gabriel de Kock, currency economist at Citi Markets and Banking, in a note to clients.
© Reuters 2007. All Rights Reserved.Learn to make money forex
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Make Money Forex
Today's Feature Article From Rich McIver a contributing writer for The Forex Blog:
Currency Trading News FOREX 101: Make Money with Currency Trading
For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.
FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.
How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.
Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.
EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)
When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
Investment Strategies: Technical Analysis and Fundamental Analysis
The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.
A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.
Make Money with Currency Trading on FOREX
FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.
Article Source: http://EzineArticles.com/?expert=Rich_McIver
Saturday, November 17, 2007
Forecasting the Forex Market
Fundamental Analysis the forces of supply and demand determine the value of currencies. Speculation in the forex market must based on sound analytical principles. There are two radically different methods of forecasting where the forces of supply and demand are heading. The first method as mentioned earlier is known as fundamental analysis. While i cannot list all the different variables that moves the forex market up and down. Some of them include the forces of the currency supply and demand in the worldwide markets. Those forex markets being fundamental economic data, and political developments. Unlike in the stock market, fundamental analysis in the FOREX is much more important. Although it is important to watch the forex fundamentals when trading in the stock market, it is much easier to manipulate the data.In the forex, fundamental analysis has a much bigger emphasis. The fundamental data taht i am talking about is the economic indicators. When these numbers are different then what was expected then that could me huge moves in the forex market. This can either make you ton of money or give huge loses.
However, don't worry if you don't know all these forecasts because there are numerous forex alert services out there. These forex alert services usually charge a monthly fee to keep you up to date with any breaking forex news. It's important to find a quality Forex Alert service, one that alerts you intelligently to your phone when a buy/sell decision is critical. You want reliability, but you also want to feel comfortable with the methodology that went into those picks and alerts in the first place.
So forex alert system is an excellent supplementary tool for today's highly mobile foreign exchange trader. This unique service will keep currency traders close to the rapidly changing forex market even when they are away from their screens by using the parameters of their trading strategy to set alerts on rates and technical indicators, as well as create personalized reminders for important dates or events.
Forex Currency Option
Currency options introduction
Options are used within many companies as a forex risk-management tool and are important in that process. Risk managers must have a good understanding of forex currency options as they apply to their unwise position in the forex marketplace. What is a forex option? Simply stated, and option is a choice. The buyer of an option acquires the right but not the obligation to buy or sell and undrlying asset under specific conditions in forex exchange for the payment of a premium. It is entirely up to the buyer whether or not the exercise that right: only the seller of the option is obligated to perform.
In every foreign exchange transaction, one currency is purchased and another currency is sold. Consequently, every currency option is both a call and a put option gives the buyer the right to sell.
An option to buy Australian dollars against U.S. dollars is both and Australian dollar call and a U.S. dollar put. Conversely, an option to sell Australian dollars against U.S. dollar. put and U.S. dollar call. Let's take example a Australian importer who has the obligation in 3 month's time to pay US $1million for a commodity such as soy milk. The importer has a number of alternatives they can do:
- Remain UN-hedged and purchase the U.S. dollars at the prevailing spot rate in 3 months time
- Hedge by buying U.S. dollars forward
- Hedge buy using an option strategy
Friday, November 16, 2007
Why China Should Not Dump the Dollar
In fact, China may have to increase its exposure to the dollar, according to the comments of Brad Setser of the Council of Foreign Relations: "In my mind, so long as China resists more rapid appreciation of the renminbi versus the dollar, it's rather difficult for China to diversify in any meaningful way against the dollar. If China really started to diversify away from the dollar, I think it's a big enough player that it would put downward additional pressure on the dollar."
And additional downard pressure on the USD should be what China is trying to avoid. China, being the largest exporter to the U.S. does not want to see appreciation of its currency against the USD, as that would make its goods more expensive (and therefore less competitive) in America.
In fact, Setser goes on to say that in order to prevent the USD from sliding even further downward against the RMB, China would have to not only retain its present stock of USD, but in fact buy even more.
Thursday, November 15, 2007
Daily Forex Market News
Recap:Euro Gains as GDP is Strong, Bank of England Signals Rate Cut in 2008.
The Pound recovered as data showed higher than expected consumer inflation. The Yen gave back some of its large gains from the last two session to the commodity block of currencies, as well.
Forex Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.
EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)
When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
Wednesday, November 14, 2007
Forex Economic News
As has been the case for the last several weeks, the US news cycle should have a great effect on how the greenback responds versus the most actively traded currencies. The greenback had seen some gains from late trading last week into early this week, only to see it weaken again yesterday. Investors continued their cautious behavior avoiding risk-laden trades while awaiting today's economic schedule.
Today, the dominant US news consists of Retail Sales and Core Retail Sales figures, as well as the PPI and Core PPI reports. Retail numbers are forecast to come in less than in previous months, however even if there is a rise in such numbers, it doesn't look like it will effect the already tenuous trader sentiment versus the dollar. As short term price action helps to slow down greenback losses, traders are gearing up for how the Fed will react to the deteriorating state of the dollar.
The release of the aforementioned events is to be followed by a speech at the 25th annual Monetary Conference in Washington D.C. by Fed Chairman Ben Bernanke. Bernanke is slated to discuss FOMC communications; however it is safe to assume that he will address questions regarding the day's consumer reports as well. As has become the norm, we should expect some volatility in and around the Fed Chairman's speech, as he is known for leaving hints of future US policies. As more important information is still to be seen before weeks end, we should see the greenback continue once again to fall in today's trading.
Yesterday saw the release of the German ZEW survey fall to its lowest point in fifteen years. Still, the EUR returned to its latest form against the greenback as it gained throughout the day. Euro-zone businesses continue to strengthen amidst much more negative views from analysts. The likelihood of the ECB hiking interest rates continues to grow as even the troubled German economy has staved off effects from the strengthened 13 nation currency and continues to bring promise to traders. The ECB will keep a close eye on Crude Oil prices as a significant rise toward $100 per barrel will only solidify the inevitability of an ECB interest rate hike. On the contrary, there are several treasury officials pressuring the ECB to wait with the rate hike since they think the EUR is overvalued, which severely hurts Euro zone exporters and has a negative impact on all of the Euro zone economy .
Today's economic calendar in Europe is highlighted by German GDP numbers, which are expected to be high, as well as words by ECB President Trichet. The president will speak in Paris at a conference held by Banque de France and Fédération Bancaire Française at 8:00 GMT. With the lion's share of news coming from the US and the UK, the euro-zone should look to see steady growth to continue with yesterday's trends.
The positive trends in carry trades continues after yesterday's interest rate decision which left the interest rate unchanged and once again pushed the JPY down today. Still being affected by remarks made by Bank of Japan Governor Fukui, the JPY slid against the 16 most-actively traded currencies, most versus the Aussie and New Zealand dollars. With equity growth being shown across the board, investors are more inclined to invest in risky positions thus driving down low yielding currencies such as the JPY.
The Japanese calendar is relatively barren for the rest of the week, with only two minor news events scheduled. Today's Tertiary Industry Activity Index along with Thursday's release of Monetary Policy meeting minutes, should do little to change the JPY. It has become more evident that the movement in the JPY is in the hands of the sub-prime mortgage crisis in the US coupled with growth in EUR dependability. Uncertainty, of which there is a lot these days, is what can hurt the Japanese currency the most. In Fukui's words, "As the global capital markets undergo a re-pricing of risks, financial markets continue to be unstable". It is imperative to keep an eye out on the coming day's news events from Europe an the US to properly gage the direction of the JPY, all signs now continue to point down.
Tuesday, November 13, 2007
Daily Forex Market News
Recap: Carry Trade Unwind Continues. Yen Surges versus High Yielder.
The theme of risk aversion continues from Friday's session as investors are pulling their money out of high yielder such as the Pound and the commodity block of currencies, and buying the Yen. This flight from carry trade is causing increased volatility in the forex markets.
Forex Basic Charting
In using charts to analyse currency movement, we tend to use either the bar chart or the candlestick chart. Both convey similar forex information but are displayed in different ways.
Forex Bar chart:
Forex bar charts are used to convey, in a graphic form, information of the open,high,low, and close. These are essential for analysing price information. Each bar represents the open,high,low and close of a forex price movement observed in a certain time period. This time period is set by the user and can range from one minute to one day,weekly, or monthly. A series of bars will provide a history of price movements, which the chartists uses to analyse and predict price movement.
Forex Candlestick charting:
Misunderstood. That can be the only explanation for Japanese Candlesticks, the most proven investment technique in history, to be so underutilized. This technique has been exposed to the U.S. investment community for approximately twenty-five years. Yet it is only recently that interest has picked up in this highly accurate investment technique. The investor who takes the minimal time and effort to master candlesticks will reap inordinate profits. This is not an empty promise. Basic analysis of Japanese Candlesticks produce a couple of irrefutable conclusions.
Forex Candlestick charting displays similar forex price information as the bar chart, such as the open, high,low, and closed. However, the graphical way in which this similar information is displayed differs. Depending on whether the closing price is higher or lower than the opening price, the color of the candle is different . When the closing price is lower than the opening price, the color of the body is dark. IF the closing price is higher than the opening price, then a light colour body is displayed. I personally like using the candlestick charting. One look at the color and I know if the forex market is up day or a down day. Using the bar chart, I will need to look at the bar's opening and closing more closely to find out that forex information.
Monday, November 12, 2007
Forex Currency Pairs
The Four Major Forex Currency Pairs
Forex currencies always trade in pairs. You buy one currency and sell the other currency in the pair. There are many pairs of currencies, but these pairs are the most highly traded. These four majors pairs online account for 70% of the USD 1.7 trillion daily volume.
The Four Major Forex Currency Pairs:
- Euro Currency/US Dollar
- Great Britain Pound/US Dollar
- US Dollar/Swiss Francs
- US Dollar/Japanese Yen
Besides the four majors, there are many other currency pairs. They are sometimes referred to as the minor forex currency pairs
Asian Forex currency pairs:
- Australian Dollar/US Dollar
- US Dollar/Singapore Dollar
- US Dollar/ Korean Won
- US Dollar/ China Yuan or RMB
- US Dollar/South African Rand
- US Dollar/Mexico Peso
- US Dollar/Swedish Krona
Forex Terms
Forex terms D:
Day Order: A buy or sell order that will expire automatically at the end of the trading day on which it is entered.
Day Trade: A trade opened and closed on the same trading day.
Day Trader: A trader who buys and sells on the basis of small short-term price movements.
Day Trading: Refers to a style or type of trading where trade positions are opened and closed during the same day.
Dealer: An individual or firm that buys and sells assets from their portfolio, acting as a principal or counterpart to a transaction.
Depreciation: A fall in the value of a currency due to market forces.
Desk: Term referring to a group dealing with a specific currency or currencies.
Devaluation: The act by a government to reduce the external value of its currency.
Direct quotation: Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
Discretionary Account: An account in which the customer permits a trading institution to act on the customer's behalf in buying and selling currency pairs. The institution has discretion as to the choice of currency pairs, prices, and timing-subject to any limitations specified in the agreement.
Forex Terms E:Euro: The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. This is the amalgamation of the following currencies, after Jan. 1, 2002 these currencies will be considered legacy currencies. Germany Deutsche Marks, Italy Lira, Austria Schillings, France Franc, Belgium Francs, Netherlands (Dutch) Guilders, Finland Markka, Portugal Escudo, Greece Drachmas, Ireland Punt, Luxembourg Francs, Spanish Pesetas.
European Central Bank (ECB): The Central Bank for the new European Monetary Union.
Execution: The Process of completing an order or deal.
Forex Terms F:
Fast Market Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
Federal Deposit Insurance Corporation (FDIC): The regulatory agency responsible for administering bank depository insurance in the United States.
Federal Reserve (Fed): The Central Bank of the United States.
Federal Reserve System The central banking system in the United States.
Fill: The process of completing a customer's order to buy or sell a currency pair.
Fill Price: The price at which a buy or sell order was executed.
Financial Risk: The risk that a firm will be unable to meet its financial obligations.
Flat: Term describing a trading book with no market exposure.
FOMC Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange: The purchase or sale of a currency against sale or purchase of another.
Forex: Term commonly used when referring to the foreign exchange market.
Forex Club:Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International.
Forward: A transaction that settles at a future date.
Forward Points: The points that are added to or subtracted from the spot rate to calculate the forward rates for a forward foreign exchange transaction. These points are based on the differential between the interest rates of the two currency pairs.
Forward Price: (See forward rates).
Forward Rates: The net price resulting from calculating the forward points and subtracting them from the existing spot rate. This is the rate at which a currency can be purchased or sold for delivery in the future.
Fundamental Analysis: Analysis of economic and political information with the objective of determining future movements in a financial market.
FX: Foreign Exchange.
Sunday, November 11, 2007
Forex Current News
Forex - Dollar off lows vs yen in Tokyo but downside risk remains
TOKYO, Nov. 11, 2007 (Thomson Financial delivered by Newstex) -- The dollar came off its worst levels against the yen in early afternoon trade as short-term traders locked in gains, but the dollar is expected to remain weak on growing concerns about the subprime mortgage crisis.
The dollar fell to as low as 110.22 yen in early Tokyo trade, a level not seen since May 17 2006, while the euro touched 161.76 yen, nearly 4 yen lower than last week.
At 12.00 am (300 GMT), the dollar was trading at 110.43 yen compared to 110.46 yen in early Sydney trade.
The euro stood at 1.4652 dollars, compared to 1.4649 dollars in early Sydney trade.
Bank of America Corp (NYSE:BAC) , JP Morgan Chase & Co and Wachovia Corp (NYSE:WB) on Friday said the credit crisis will cause another round of heavy losses in the fourth quarter, triggering sharp declines on Wall Street.
'As the market's anxiety about the credit crisis is getting stronger, it now seems to be a matter of time before the dollar falls to below the 110 yen level,' said Osamu Takashima, chief strategist at Bank of Tokyo Mitsubishi UFJ.
The dollar has so far seen relatively firm support against the Japanese currency, in comparison to such currencies as the Australian dollar, euro and the Canadian dollar, due to the yen-funded carry trade. But the unwinding of those positions speeded up its decline against the yen since late last week, according to Takashima.
In the yen-carry trade, investors raise funds in cheap currencies like the yen, and re-invest them into high-yielding currencies such as the Australian dollar for higher returns.
'By late 2008, the dollar may extend its decline towards the 105 yen level,' Takashima said.
The market is closely watching the Bank of Japan which kicked off a two-day policy meeting at noon. Investors are keen to see whether policymakers will show strong resolve in normalizing ultra-low interest rates, which have held at 0.5 percent since February.
But economists expect the BoJ to leave the short-term money market rate unchanged.
Some analysts see limited downside risk for the dollar.
The dollar selling by US hedge funds settling accounts is likely to peak by the end of next week, said Daisuke Uno, strategist at Sumitomo Mitsui Banking Corp.
Once that happens, and once the financial markets begin to realise there is downside risk for emerging markets and Japan in the weakness of the US economy, the pace of selling of the dollar may slow, he said.
'So I believe that the dollar's fall to below 110 yen, if it happens, will be short-lived,' he said.
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