Forex Information

U.S. payrolls likely fell again in July on census

2010-08-05T23:11:00.000-07:00

U.S. employment probably fell for a second straight month in July as more temporary census jobs ended and private hiring remained too weak to boost a fragile economic recovery, according to a Reuters survey.
The survey of 75 economists forecast nonfarm payrolls dropped 65,000 after declining 125,000 in June. Private-sector hiring, considered a better gauge of labor market health, is seen rising 90,000 after increasing 83,000 in June.
The U.S. Labor Department will release the employment report at 08:30 a.m. (1230 GMT)
The unwinding of hiring for the decennial census was also a drag on employment in June and analysts expect the distortion to continue through August. According to government data, temporary census jobs fell by 144,000 between the June and July survey periods for the employment report.
"It (the report) would be moving in the right direction, but this is still a much weaker jobs recovery than we thought would occur at this point," said Marisa Di Natale, a director at Moody's Economy.com in West Chester, Pennsylvania.
"There is a lot of weak economic news out there and we need a turnaround in a bunch of different indicators to really confirm that the economic recovery is on a firmer footing."
Job growth has taken a step back after fairly strong gains between February and April, putting in jeopardy the economy's recovery from its worst downturn since the 1930s.
Friday's employment report is also expected to show the unemployment rate rising to 9.6 percent from 9.5 percent in June.
Growing unease over the health of the economy is weighing on President Barack Obama's popularity and hurting the Democratic Party's prospects of keeping control of Congress in November's mid-term elections.
FED WATCHING LABOR MARKET
The state of the labor market is one of the factors that will determine the timing of the Federal Reserve's first interest rate rise since reducing overnight lending rates to near zero in December 2008.
Fed Chairman Ben Bernanke has said the U.S. central bank could take steps to further ease monetary policy if the recovery were to falter. The central bank holds its next policy-setting meeting on Tuesday.
Economic growth slowed to a 2.4 percent annual rate in the second quarter after expanding at a 3.7 percent pace in the first three months of this year.
Despite the tepid private sector jobs growth, the pace of layoffs has moderated significantly from the first quarter of last year, when employers were culling an average of 752,000 jobs a month.
Analysts said the pullback in hiring was a reflection of the end of some government stimulus programs, including a popular homebuyer tax credit, as well as the European sovereign debt crisis, which hurt both business and consumer confidence.
In the face of sluggish domestic demand, businesses were also opting to invest in equipment and technology to boost productivity rather than increase their workforces, they said.
"The demand picture hasn't strengthened enough for them to take on more workers, eventually that will change," said Jay Feldman, an economist at Credit Suisse in New York.
"As the recovery matures they will have to have more workers, we have not reached that point yet."
Last month, employment gains in the dominant service sector likely continued after June's increase of 91,000. Analysts will be watching temporary help services, which is seen as a harbinger of future permanent hiring, after job gains slowed somewhat in June.
Payrolls in the goods-producing sector probably fell for a second straight month in July, reflecting mining layoffs related to a moratorium on deep water oil drilling and home construction job losses.
However, manufacturing employment likely increased again in July. The sector is leading the economic recovery, which started in the second half of 2009. The Institute for Supply Management's gauge of manufacturing employment rose in July after pulling back the prior month.
State and local governments, struggling with huge budget deficits, likely purged more workers last month. Analysts reckon government payrolls could shrink by as much as 175,000 in July after dropping 208,000 in June.
They will also watch the average workweek for clues on the health of the labor market after weekly hours slipped in June. The workweek is expected to have remained unchanged at 34.1 hours in July.
Source:Reuter.com

Nikkei falls and dollar weak as U.S. job data looms

2010-08-05T23:02:00.000-07:00

A woman looks at an electronic board displaying falls in various market indices around the world outside a brokerage in Tokyo June 23, 2010.

Credit: Reuters/Issei Kato

By Vikram S.Subhedar

HONG KONG | Fri Aug 6, 2010 1:56am EDT

HONG KONG (Reuters) - The dollar was on the defensive and Japan stocks fell after weak U.S. jobless claims figures heightened worries that Friday's payroll data could paint a bleak picture of the U.S. economic recovery.
"Growing worries about employment conditions in the United State are keeping investors on the sidelines ahead of the jobs data, in addition to concerns about U.S. consumer spending," said Fumiyuki Nakanishi, manager at SMBC Friend Securities.
Data overnight showed new U.S. claims for unemployment benefits unexpectedly rose last week to the highest level since early April, pushing stocks on Wall Street lower.
Japan's Nikkei .N225 fell 0.3 percent as traders closed positions ahead of the weekend, but is poised to end the week slightly higher, supported by solid earnings from companies including Toyota Corp (7203.T).
Strong corporate earnings have supported equity markets in recent weeks despite a string of disappointing U.S. data, but the quarterly reporting period is now nearing an end.
So far this year the Nikkei is down nearly 9 percent, hurt by worries that the global recovery is running out of steam and by a stronger yen, which is inching toward a 15-year high against the dollar.
The MSCI index of Asian stocks outside of Japan slipped 0.2 percent, but looked set to gain 2 percent on the week and is barely in positive territory for the year.
According to a Reuters poll, the U.S. Labor Department is expected to report at 8:30 a.m. EDT that nonfarm payrolls fell 65,000 last month after declining 125,000 in June, as temporary workers hired to conduct the decennial census were let go. Private sector payrolls are seen rising a modest 90,000 and the unemployment rate is expected to climb to 9.6 percent from 9.5 percent in June.
DOLLAR, BONDS
The dollar index .DXY stood at 80.80, easing slightly from late U.S. trade and near its Tuesday low of 80.469, its lowest since mid-April.
Its 14-day relative strength index is below 30, indicating a heavily oversold position. With the mood already so bearish, some traders believe a result anywhere close to forecasts would likely be a relief and could see the dollar rally.
Against the Japanese currency, the dollar traded at 85.82 yen, one yen above its November low of 84.82 yen, a break of which would take it to a 15-year low.
Further yen gains could stir talk of yen-selling intervention by Japanese authorities, though many market players think Tokyo is unlikely to pull the trigger at this time.
"The market is focusing on the outlook for the U.S. economy. If the dollar breaks below the November low, it could enter a whole new world," said Minoru Shioiri, chief manager of forex trading at Mitsubishi UFJ Morgan Stanley Securities.
Japanese government bonds gave up early gains in jittery trade ahead of the U.S. data. The benchmark 10-year yield fell below 1 percent earlier in the week.
Gold edged up 30 cents to $1,193.40 an ounce and was on track for its biggest weekly gain since late June as the dollar remained mired near multi-week lows.
Crude oil futures were little changed near $82 a barrel.
U.S. wheat futures surged as much as 4.8 percent, after settling up at the permitted daily maximum for the first time in two years on Thursday, as Russia said it would temporarily halt grain shipments because of a drought cutting production.

US Postal Service loses $3.5 bln in third quarter

2010-08-05T22:59:00.001-07:00

The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.
The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.
Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.
"Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.
Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.
"It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.
A U.S. law requires annual payments through 2016 to prefund the health benefits, a requirement not placed on any other government agency. The Postal Service is pushing for legislation that would restructure this payment schedule.
Congress lowered the amount the Postal Service was obligated to pay to prefund benefits in 2009, but there has been no indication that will happen again this year.
To remain solvent, the Postal Service is also seeking Congressional approval to cut Saturday service, and has proposed price hikes for 2011 that require approval from the Postal Regulatory Commission. [ID:nN06102566]
The Affordable Mail Alliance, consisting of hundreds of small businesses, charities, and other customers of the Postal Service, contested the service's predictions of a cash shortfall.
The group said certain filings suggest the agency will have $1.3 billion in cash after making the benefits payment.
"Unfortunately, the Postal Service seems to be attempting to justify their proposed rate hikes of ten times the rate of inflation - a move that would drive away more consumers and worsen the financial situation they're highlighting in this report," said Tony Conway, a spokesman for the group and executive director of the Alliance of Nonprofit Mailers.
SHRINKING MAIL VOLUME
The Postal Service faces a continued downward spiral in mail volume, as more Americans communicate by email and electronically pay their bills.
Some 40.9 billion pieces of mail were delivered in the third quarter that ended June 30, down 1.7 percent from the same period a year ago.
While the global recession sparked unprecedented drops in mail volume, the increased popularity of email and competition from FedEx Corp (FDX.N), United Parcel Service Inc (UPS.N) and other delivery services have long cut into the agency's mail volume.
Postmaster General John Potter said the Postal Service is expected to achieve around $3 billion in cost reductions in 2010 through cuts in work hours to match declining volumes and other initiatives, but more is needed to secure the agency's fiscal stability.
"It also will require that the Postal Service gain flexibility within the law to move toward five-day delivery, to adjust our network as needed, to develop new products the market demands, and to work with our unions to meet the challenges ahead," he said.

Dollar steadies, commodity currencies firm

2010-08-05T22:58:00.000-07:00

The dollar steadied on Thursday after it enjoyed a rare rally the previous day when U.S. data beat expectations and sparked a bout of short-covering, although the overall mood remains bearish ahead of a key payrolls report.
Against the yen, the dollar was down 0.1 percent on the day at 86.19 yen JPY=, having bounced from an eight-month low of 85.32 yen hit on Wednesday.
Traders said the greenback's ability to hold above the psychologically and technically key 85 yen level lightened the risk of dollar/yen dropping to a 15-year low below the November trough at 84.82 yen, at least until the monthly U.S. jobs data, which is seen setting the dollar's near-term direction.
A decline beyond the November milestone could open the way for the greenback to slide to an all-time low below 80 yen, hit 15 years ago, traders said.
Dealers are wary that a tumble to a 15-year low would finally prompt the Ministry of Finance into taking action on the currency's strength, which is hurting Japanese exports, shares and the export-dependent economy.
"Players feel they have sold the dollar a bit too much before the U.S. jobs data, and are buying back the currency a little," said a senior trader at a Japanese trust bank.
But the trader said the dollar remained on a downward trend in the longer term, weighed by persistent speculation that the Federal Reserve may further relax its monetary policy to help the U.S. economic recovery which is feared to be losing steam.
Also, the dollar's growing role as a carry trade funding currency points to a further slide. [ID:nSGE6730DO]
Falling U.S. Treasury yields are also playing a part in the dollar's weakness.
The positive correlation between U.S. and Japanese two-year yield spreads, which have been narrowing, and the dollar/yen rate has strengthened to its highest since the period just after the collapse of Lehman Brothers in 2008.
Heavy Japanese buying has helped bring down Treasury yields, bond traders said.
Data from Japan's Ministry of Finance showed on Thursday that Japanese investors have been net buyers of overseas debt -- believed to be mostly U.S. Treasuries -- for 12 straight weeks. Their total net buying during the period reached 11.3 trillion yen ($131 billion) against a total net buying of 12.1 trillion yen in the whole of 2009.
Meanwhile, Japanese investors' Treasury purchases have had little visible impact on dollar/yen rates as big overseas debt buyers, such as Japanese insurers, are now hedging against volatility in exchange rates, said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.
The dollar index .DXY edged up 0.1 percent to 80.930, putting it back above its 200-day moving average at 80.768. However, it still needs to get past 81.650 to break the bear trend of the past seven weeks, and otherwise risks a fall to its April low of 80.031.
The euro was barely moved from late U.S. trade at $1.3159 EUR=, having slid from a three-month peak of $1.3262 struck on Tuesday. Traders reported good support in the $1.3140/50 area and more at $1.3107.
COMMODITY CURRENCIES FIRM
One standout was strength in currencies leveraged to world growth and commodity prices, such as the Australian and Canadian dollars, suggesting a lightening of the recent gloom over the global outlook.
The Canadian dollar extended gains against the greenback, while the Australian dollar dipped but hovered near a three-month high hit the previous day.
The catalyst was an unexpected improvement in the ISM index of the U.S. service sector which nudged up to 54.3 in July, pointing to a faster rate of expansion. [ID:nTOPMACRO]
"So not only is the services sector -- the vast bulk of most modern economies -- expanding, it is doing so at a faster pace," said Adam Carr, a senior economist at broker ICAP.
That helped to counter talk that the Fed might take further steps into quantitative easing at its policy meeting next week and pulled Treasury yields up from record lows [US/].
"Commodities are telling us that this global recovery has reasonable momentum," said Carr, noting iron ore prices had risen around 20 percent in the past month, while copper was up 16 percent and wheat up 40 percent.
That helped to lift the Australian dollar to a three-month high at $0.9184 AUD=D4 on Wednesday, while the U.S. dollar slid the previous day to its lowest against the Canadian currency in six weeks at C$1.0163 CAD=D4.
On Thursday, the Aussie dipped 0.1 percent to $0.9161. The U.S. dollar was down 0.1 percent at C$1.0165.
Bucking the trend was the New Zealand dollar, which took a spill early on Thursday after local jobless data proved far weaker than expected, prompting markets to scale back expectations for more interest rate rises this year. [ID:nSGE6720PV]
The currency fell 0.7 percent to $0.7300 NZD=D4.
The European Central Bank and the Bank of England hold meetings later on Thursday, although no policy changes are expected. [ID:nTOPNOW1] (Additional reporting by Wayne Cole in Sydney and Hideyuki Sano in Tokyo

Dollar stuck near 3-½ mth low as jobs data looms

2010-08-05T22:56:00.001-07:00

The dollar was on the defensive near a 3-½ month low against a basket of currencies after weak U.S. jobless claims figures heightened worries that Friday's payroll data could paint a bleak picture of the U.S. economic recovery.
A weak reading could fuel talk that the Federal Reserve may consider additional easing steps as early as next week, which could put pressure on the dollar particularly against the yen, given the pair's recent strong correlation with U.S. Treasury yields.
"Unless employment improves, housing demand won't improve and consumption won't grow. The U.S. economy could hit a lull," said Kakuya Kojoh, head of the securities department at Nissan Century Securities.
Against the Japanese currency, the dollar traded at 86.08 yen JPY=, up 0.3 percent on the day and more than one yen above its November low of 84.82 yen, a break of which would take it to a 15-year low.
Some covered short dollar positions against the yen before the U.S. employment data, traders said.
"The market is focusing on the outlook for the U.S. economy. If the dollar breaks below the November low, it could enter a whole new world," said Minoru Shioiri, chief manager of forex trading at Mitsubishi UFJ Morgan Stanley Securities.
Traders said there was a sizable volume of knockout option positions below 85 yen, which suggests that the dollar's fall could become more volatile if it does step into those price levels.
While further yen gains could stir talk of yen-selling intervention by Japanese authorities, many market players think Tokyo is unlikely to pull the trigger at this time. [ID:nTOE672023]
For now the dollar has some support at 85.32 yen, its low on Wednesday.
The euro fetched $1.3179 EUR=, keeping much of Thursday's gain of about 0.3 percent. Now not far off its three-month high of $1.3262 hit earlier in the week, the currency has immediate support around $1.3105-25, a previous resistance area.
U.S. JOBS IN FOCUS
The dollar index .DXY stood at 80.84, little changed from late U.S. trade and near its Tuesday low of 80.469, its lowest since mid-April.
The index, however, appears to have some support around 80.50, having managed to hold near its 200-day moving average, which stood at 80.792 on Friday.
Its 14-day relative strength index is below 30, indicating a heavily oversold position.
Some traders therefore see a chance of a rebound in the dollar if the payrolls data, due at 1230 GMT, provides a positive surprise or even comes close to market expectations.
"Everyone is short the dollar. That means the impetus for the dollar to rebound on better-than-expected jobs data would be much greater than that to extend losses on poor data," said Tsutomu Soma, senior manager of the foreign securities department at Okasan Securities.
Economists forecast a total job loss of 65,000 in July, following a fall of 125,000 in June.
On Thursday, the U.S. Labor Department reported that the number of Americans filing for initial jobless benefits rose 19,000 to 479,000 last week, the highest level since early April, despite economists' forecast for a fall.
The Australian dollar erased earlier losses, after the Reserve Bank of Australia stuck to its forecasts for domestic growth to accelerate to 4 percent over the next two years in its quarterly statement.
The Aussie AUD=D4 changed hands at $0.9148, nearly flat on the day, and 0.4 percent below its three-month peak of $0.9184 hit on Wednesday.
The Australian currency stayed near a 2-½ month high against the New Zealand dollar, which continued to suffer from Thursday's poor New Zealand job data.
The Aussie fetched NZ$1.2571 AUDNZD=R, after having risen to around NZ$1.2590 on Thursday.
The kiwi slipped 0.3 percent against the U.S. dollar to $0.7276 NZD=D4. (Addtional reporting by Rika Otsuka)
Source:Reuter

Fund forced to tap into indemnity pool to pay maternity, medical bills

2009-10-11T10:15:00.000-07:00

The director general of the National Social Security Fund (NSSF) Mohammad Karaki said Friday that the fund was compelled to draw money from the end-of-service benefit department to cover the mounting deficit of the maternity and sickness division. “It is true we had to withdraw LL600 billion ($400 million) from the end-of-service benefits and this figure will rise to LL700 billion at the end of 2009. We honestly say that sacrifices are needed to sustain the crucial services to more than 1.3 million Lebanese who are covered by the NSSF,” Karaki told The Daily Star in an interview at his office.

The NSSF has been suffering mounting deficits in the sickness and maternity departments since the government decided to slash the subscription in 2001.

This NSSF’s predicament has also led to an open showdown with hospital owners who claim that the fund is not paying their dues on time.

''Full story''

Does size matter?

2009-09-30T12:51:00.000-07:00

This article is taken from the Trader's Journal magazine (June 2009 issue)

The author, Don Dawson, is the Online Trading Academy Commodity Futures Instructor.

Futures trading attracts people thinking it will be easy to turn a small account into a large account. Reality is quite different – this is very difficult. Don Dawson discusses the traps of trading a small account and how to successfully trade a small account.

Read the whole article

What is a market cycle?

2009-09-30T12:50:00.000-07:00

This article is taken from the Forex Journal (April 2009 issue).

The author, Franco Shao, has rich experience in the industry. As a trader, he has been engaged in the financial markets for over 10 years. Recently, he has been paying more attention to managing his website in addition to Foreign Exchange trading. Franco has written some articles presenting his opinions about the trends, estimation and analysis of the financial markets and Foreign Exchange trading. He is keenly interested in Forex trading.

The underlying basis of forecasting is a series of repeated cycles on which we form our hypothesis. Franco Shao discusses how to predict where market highs and lows will occur by using cycle analysis.

Read the whole article

How to make money from money?

2009-09-30T12:48:00.000-07:00

1.Practice before you start trading with real money. Could you imagine an athlete going to the Olympic Games without preparation and training? Make sure you have practised your trading on a demo platform and get comfortable with it and your trading style before committing real money.

2.Know what moves currency markets. Like any asset class, there are a number of factors that drive currency performance. A country’s macroeconomic situation can have a major influence – economic data releases, policy decisions and political events can change an economist’s outlook on the country, and therefore the currency. There are also technical factors such as interest rates, equity markets and international trade which may have an impact. Spend time getting to know these.

3.Understand the strategies. Yes there is a method to the madness. As a trader you need to be aware of three crucial trading strategies which are often used by currency traders; the carry, momentum, and value trade. Momentum tracks the direction of currency markets; the carry strategy sees investors selling currencies with low interest rates and buying those with high rates; and the valuation strategy takes a position based on the investor’s view of a currency’s value. However, the strategies that you use are up to you.

4.Manage risk. As with any investment decision, you must decide what risk you’re willing to accept. Ask yourself, “how much am I prepared to lose on this position?” If you don’t have a convincing or comfortable answer then you should rethink the trade. Do not risk more than you can afford to lose. Think about how you can mitigate your downside risk by using of trading strategies such as stop losses or limit orders.

5.Stick to your knitting. There are literally hundreds of currency pairs that can be traded in the currency markets, each of which have their own characteristics and considerations to understand and analyse. If you’re participating in the market on a part time and non professional basis, it is probably better to concentrate on just a few pairs and commit to thorough and robust research on those, rather than superficial research on the many. Some key things to consider when analysing a currency pair are its liquidity, transaction costs (the spread) and its volatility. As a general rule, major currencies usually have better liquidity, tighter spreads and lower volatility, versus emerging market currencies which have poor liquidity, wide spreads and volatile movements.

6.Plan your trade, and trade your plan. It’s one thing to have a plan, it’s quite another to execute it. It is important in currency trading to not get caught up in the moment – the markets are fast moving and in the short term can be unpredictable. Rather than trying to make a quick profit, stick to your long term plan based on your research. Good currency traders make money in the long term by being disciplined, not necessarily by making short term bets.

7.Research, research, research. It’s important to stay up to date. All currencies move quickly and checking the price once a week is not going to help you make strong long term returns. It is helpful to use an online provider that gives you up to the minute data and statistics. Traders use this data to constantly assess their trading positions.

8.Keep your emotions in check. Like many important decisions, it is vital to keep emotion out of any trading decision you make. If you’re upset about missing out on an opportunity and want to trade yourself better, or want to go ‘off-piste’ to make up for a loss earlier in the day – reconsider, because you’ve got the warning signs of someone about to make a rash and irrational decision. If you do feel yourself getting emotionally involved in a particular trade, take a deep breath, review your strategy, and establish how such a decision will affect your overall approach before going anywhere near the ‘execute’ button.

9.Don’t expect to win on every trade. That may not sound like much of a sales pitch, but even the most successful of traders don’t win on every trade. What they do have is a robust plan and long-term strategy which carefully considers the risks. So don’t necessarily be disheartened if a trade doesn’t go your way; review why it went wrong and see if there is anything to learn from the experience. But don’t think that currency trading is an option for those seeking quick money, because like any investment, it only should be played by those with a long-term end-game in mind.

10.Don’t put all your (nest) eggs in the currency basket. Foreign exchange is only one of the many asset classes you should be considering as part of a balanced investment portfolio. FX trading is not suitable for every investor, so if you are committing all of your financial resources to FX trading be sure you are fully aware of the risks and rewards of doing so, because it’s not recommended. The same applies for currency trading itself; spread your risk by not placing all your faith in a single trade because diversification is key; no matter what asset class you’re investing with.

Currency Directory

2009-08-11T21:28:00.000-07:00

Country	Capital	Currency	Currency Symbol
Afghanistan	Kabul	Afghanistan Afghanis	AFN
Albania	Tirana	Albania Leke	ALL
Algeria	Algiers	Algeria Dinars	DZD
Argentina	Buenos Aires	Argentina Pesos	ARS
Australia	Canberra	Australian Dollar	AUD
Bahamas	Nassau	Bahamas Dollars	BSD
Bahrain	Manama	Bahrain Dinar	BHD
Bangladesh	Dhaka	Bangladesh Taka	BDT
Barbados	Bridgetown	Barbados Dollars	BBD
Bermuda	Hamilton	Bermuda Dollars	BMD
Brazil	Brasilia	Brazil Reais	BRL
Bulgaria	Sofia	Bulgaria Leva	BGN
Canada	Ottawa	Canadian Dollar	CAD
Chile	Santiago	Chile Pesos	CLP
China	Beijing	China Yuan	CNY
Colombia	Bogota	Colombia Pesos	COP
Costa Rica	San Jose	Costa Rica Colones	CRC
Czech Republic	Prague	Czech Republic Koruny	CZK
Denmark	Copenhagen	Danish Krone	DKK
Dominican Republic	Santo Domingo	Dominican Republic Pesos	DOP
Eastern Caribbean States	Castries	East Caribbean Dollars	XCD
Egypt	Cairo	Egypt Pounds	EGP
Estonia	Tallinn	Estonia Krooni	EEK
Fiji	Suva	Fiji Dollars	FJD
French Polynesia	Papeete	Comptoirs Francais du Pacifique Francs	XPF
Hong Kong	Hong Kong Central	Hong Kong Dollar	HKD
Hungary	Budapest	Hungary Forint	HUF
Iceland	Reykjavik	Iceland Kronur	ISK
India	New Delhi	Indian Rupee	INR
Indonesia	Jakarta	Indonesia Rupiahs	IDR
Iran	Tehran	Iran Rials	IRR
Iraq	Baghdad	Iraq Dinars	IQD
Israel	Jerusalem	Israel New Shekels	ILS
Jamaica	Kingston	Jamaica Dollars	JMD
Japan	Tokyo	Japanese Yen	JPY
Jordan	Amman	Jordan Dinars	JOD
Kenya	Nairobi	Kenya Shillings	KES
Kuwait	Kuwait	Kuwaiti Dinar	KWD
Lebanon	Beirut	Lebanon Pounds	LBP
Malaysia	Kuala Lumpur	Malaysian Ringgit	MYR
Mauritius	Port Louis	Mauritius Rupees	MUR
Mexico	Mexico City	Mexico Pesos	MXN
Morocco	Rabat	Morocco Dirhams	MAD
New Zealand	Wellington	NewZealand $	NZD
Norway	Oslo	Norwegians Krone	NOK
Oman	Muscat	Omani Riyal	OMR
Pakistan	Islamabad	Pakistan Rupee	PKR
Peru	Lima	Peru Nuevos Soles	PEN
Philippines	Manila	Philippines Pesos	PHP
Poland	Warsaw	Poland Zlotych	PLN
Qatar	Doha	Qatari Riyal	QAR
Romania	Bucharest	Romania New Lei	RON
Russian Federation	Moscow	Russia Rubles	RUB
Saudi Arabia	Riyadh	Saudi Riyal	SAR
Singapore	Singapore	Singapore Dollar	SGD
Slovakia	Bratislava	Slovakia Koruny	SKK
South Africa	Pretoria	South Africa Rand	ZAR
South Korea	Seoul	South Korea Won	KRW
Sri Lanka	Colombo	Sri Lanka Rupees	LKR
State of Croatia	Zagreb	Croatia Kuna	HRK
Sudan	Khartoum	Sudan Pounds	SDG
Sweden	Stockholm	Swedish Korona	SEK
Switzerland	Bern	Swiss Franc	CHF
Taiwan	Taipei	Taiwan New Dollars	TWD
Thailand	Bangkok	Thai Bhat	THB
Trinidad & Tobago	Port-of-Spain	Trinidad and Tobago Dollars	TTD
Tunisia	Tunis	Tunisia Dinars	TND
Turkey	Ankara	Turkey New Lira	TRY
United Arab Emirates	Abu Dhabi	U.A.E Dirham	AED
United Kingdom	London	UK Pound Sterling	GBP
United States of America	Washington, DC	US Dollar	USD
Venezuela	Caracas	Venezuela Bolivares Fuertes	VEF
Vietnam	Hanoi	Vietnam Dong	VND
Zambia	Lusaka	Zambia Kwacha	ZMK

Pakistan Open Market Rates(PKR)

2009-08-11T21:22:00.000-07:00

Currency	Symbol	Buying	Selling
Australian Dollar	AUD	68.4	69.4
Bahrain Dinar	BHD	218.25	221
Canadian Dollar	CAD	75.3	76.3
China Yuan	CNY	12	13.5
Danish Krone	DKK	15.5	15.8
Euro	EUR	116.3	118.3
Hong Kong Dollar	HKD	10.58	10.88
Indian Rupee	INR	1.7	1.8
Japanese Yen	JPY	0.85	0.86
Kuwaiti Dinar	KWD	284.35	287
Malaysian Ringgit	MYR	23	24.5
NewZealand $	NZD	55.2	56.2
Norwegians Krone	NOK	13.2	13.5
Omani Riyal	OMR	213.8	217
Qatari Riyal	QAR	22.6	22.85
Saudi Riyal	SAR	21.95	22.2
Singapore Dollar	SGD	56.65	57.65
Swedish Korona	SEK	11.25	11.6
Swiss Franc	CHF	75.7	76.7
Thai Bhat	THB	2.2	2.4
U.A.E Dirham	AED	22.45	22.7
UK Pound Sterling	GBP	136	137.5
US Dollar	USD	83.05	83.5

Latest Currency Rate 08/08/09

2009-08-08T00:05:00.000-07:00

Live rates at 2009.08.08 07:02:54 UTC
1.00 USD	=	0.597266 GBP
United States Dollars		United Kingdom Pounds
1 USD = 0.597266 GBP		1 GBP = 1.67429 USD

Currency News Today

2009-07-31T09:20:00.000-07:00

Australian Dollar	AUD	0.0144	69.254
Canadian Dollar	CAD	0.013	77.0325
Euro	EUR	0.0084	118.6549
Japanese Yen	JPY	1.1382	0.8786
Pakistan Rupee	PKR	1	1
U.A.E Dirham	AED	0.0442	22.6376
UK Pound Sterling	GBP	0.0072	138.8618
US Dollar	USD	0.012	83.15

Cheaper energy keeps inflation in check

2009-05-20T08:19:00.000-07:00

Ottawa — Inflation in Canada touched a 15-year low in April, and signs of falling prices poked through in several areas of the monthly consumer price report, but analysts say there is no danger of deflation grabbing hold of the Canadian psyche.
Consumer prices rose just 0.4 per cent in the 12 months leading up to April – the slowest pace of inflation since 1994. Excluding food, which rose 7.1 per cent on the year, the consumer price index fell 1.1 per cent.
Four provinces are now registering deflation: Alberta, where prices dropped 0.7 per cent from a year ago, as well as New Brunswick, Nova Scotia, and Prince Edward Island.
Falling prices were even more evident in the month-over-month measures of inflation. Consumer prices declined 0.1 per cent between March and April, not adjusted for seasonal factors.

Lloyds warns EU may insist on disposals

2009-05-20T08:16:00.000-07:00

Lloyds Banking Group believes it might have to sell assets in order to win European Commission approval for aid from the UK government.
Investors looking to take part in a £4bn placing and open offer of Lloyds shares were on Wednesday given an outline of the concessions that might be offered to Brussels in a state aid approval request being drawn up by the Treasury with input from the bank.
Published: May 20 2009 12:18 Last updated: May 20 2009 14:09

Acxiom Corporation gets IT backbone from CA

2009-05-20T08:12:00.000-07:00

The deal, valued at $35 million in products and services, includes more than 16 solutions based on CA’s enterprise IT management (EITM) vision, including application performance management, identity and access management, infrastructure management, mainframe management etc
Wednesday, May 20, 2009

What is MACD?

2009-05-20T08:09:00.000-07:00

MACD or the Moving Average Convergence Divergence is the indicator which let you know whether the currency price is in a high or a low trend. MACD Oscillator has two lines which are the MACD line and the signal line. The MACD line points out the difference between two Exponential Moving Averages (EMA) whereas the Signal line is an EMA of the MACD line itself. With the intention of displaying the buy or sell alarm, the Signal line is marked at the top of the MACD. Generally, a 26 days and 12 days EMA are used for the MACD indicator if based on the closing date, whereas a 9 day EMA will be used, for the Signal line.There are two ways which are usually employed to understand the MACD. The first one is crossovers - if the MACD falls lower than the Signal line, it is an indication of upcoming low trend and recommends that may be it is a good time to place a short position trade. And if the MACD go beyond the signal line, it gives you an idea about an indication of upcoming up trend and recommends that may be it is a good time to place a long position trade.The other way is divergence - if the currency price reverses from the MACD, it shows that the trend is going to end. If there is a negative divergence it means that the currency price produces a new high which is higher than the previous high, but the MACD failed to get to the new high, then you should be cautious that the current up ward trend in prices movement may go to the reverse direction. For positive divergence, it happens if the currency price beat a new low which is lower than the previous low, and the MACD failed to get to the new low, you should be cautious that the current currency price downfall will get over and up ward trend will occur once more.Read more...

Forex Indicator-Trends

2009-05-20T08:08:00.000-07:00

In Forex a trend means the movement of prices. Mounting peaks and troughs represent an uptrend; declining peaks and troughs represent a downtrend that determines the steepness of the current trend. The breaking of a trend line generally is a sign of a trend reversal. Horizontal peaks and troughs differentiate a trading range.When you use the Forex indicator trend, you will find it very simple and easy to work, made up of three trigger lines which tell you when to buy and when to sell. It alarms you the beginning of a trend, and will indicate when the trend is ending. It has proved to be extremely correct, particularly when linked to the best time frame, currency and time of day. Although it is accurate for just concerning any of these three variables, for most advantageous effectiveness it is best to follow the instructions of the trend provider closely. We can’t say that every trade is a winner, but traditionally losses have been much lesser than triumph. Past results are not routinely the signals of future results.
Edited By Janjua

Euro Weakens on Rate Cuts Speculations

2009-05-08T00:22:00.000-07:00

After consecutive days rallying against the dollar and the yen, the euro fell on speculations that the European Central Bank will cut its interest rates to stop the deepening recession to cause more damages in the bloc’s economy.

The European Commission declared yesterday that the Eurozone economy will contract around 4 percent this year, a more pessimistic forecast than previous ones, which caused the euro to slid against all major currencies. The U. S. dollar had a day of gains after positive financial speculations from the Wall Street Journal, increasing demand for the currency. The deepening recession in Europe has been a major concern for the ECB, which is facing the worst economic crisis since the Second World War, and rates are expected to hit more record lows, as the economy is not showing solid signs of recovery.

Analysts said that at every report, most of the European countries downgrade their growth expectations, and countries that were a model of economic success such as Ireland, are forecast to contract more than 10 percent in 2009, influencing heavily on ECB policy makers’ decisions, which have set the lowest interest rates since the creation of the euro. A part from the rate cuts, other measures are expected to be taken as the recession deepens, pushing investors away from the euro.

The EUR/USD rose in the intraday from 1.3290 to 1.3374 but is entering a downtrend. The EUR/AUD fell from 1.8022 to 1.7968.

If you want to comment on the euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Brazilian Real Hits Six-Month High as Commodity Prices Rise

2009-05-08T00:21:00.000-07:00

The Brazilian currency has been rallying against the dollar since risk appetite has increased last week on global markets, a rise in commodity prices and the domestic stock market helped the currency to strengthen.

Brazil’s real and the South African rand are the two best performing currencies since the optimism has returned to global financial markets, which made traders leave refuge currencies such as the yen, to put money in higher-yielding assets like the previously mentioned currencies. The Brazilian stock exchange has risen 6 percent this Monday, and investors are seeing their first days of gains since its valued dropped by half last year, in the worst moment of the global slump. Metallic commodities and the oil have surged with the mass optimism in global markets, which also contributed to spur demand for the Brazilian currency.

Opinions in Brazil are indirectly favorable for the national currency, as economists focus in the stock market recovery, they affirm that a natural consequence for the improvement in stock prices will bring more foreign investments to the country, pushing the real up. Against the dollar, Brazil’s real hit a 6-month high, but considering its pre-crisis price, it still has space for continuing this uptrend.

USD/BRL traded at 2.1146 from a previous price of 2.1818. EUR/BRL closed at 2.8304 from 2.8904 in the intraday.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Yen Strengthens as U.S. Banking Funds Concerns Arise

2009-05-08T00:20:00.000-07:00

The yen and the dollar rose against the euro after U.S. regulators affirmed that the Bank of America Corp. will need more than $30 billion in new capital, spurring demand for refuge currencies.

The Japanese currency climbed against all major currencies for the first day since last week, when improved economic conditions around the world boosted the attractiveness of riskier assets. After a report reviewing American banks, their need for new capital made the investors to take a conservative step back towards refuge currencies, which favored the yen. The euro had the biggest fall against the Japanese currency, on growing speculations that interest rates will be cut in the Eurozone, which may follow other non orthodox measures to be taken as an attempt to stop the deepening recession in the European economic bloc.

After a week of optimism and rallies in high-yielding assets, some negative data coming from both North America and Europe brought the markets down this Wednesday. According to experts, the current global economic conditions still require a moderate level of risk aversion, since there is no solid evidence that the main world economies are «back on track». Traders taking profit from recent gains with the euro have also favored the yen.

EUR/JPY traded at 130.99 falling from 132.03, following the same movement, USD/JPY dropped from 98.85 to 98.44.

If you want to comment on the Japanese yen’s recent action or have any questions regarding this currency, please, feel free to reply below.

Oil and Stocks Push Canadian Dollar Down

2009-05-08T00:19:00.001-07:00

The loonie weakened for the first time in six days as the crude oil price fell, making Canada’s currency to drop from a 6-month high.

The Canadian currency has been posting consecutive gains against its North American counterpart since November, and this week negative market prices associated with the loonie, combined with speculations that the government may take measures for stopping the Canadian dollar rally brought the national currency down from its recently reached 6-month highest level. The oil future contracts dropped by more than 1 percent following the day of losses for the stock markets, and being Canada one of the main suppliers of oil to the United States, its followed this movement.

Analysts stress on the direct relation between commodities, stocks and the loonie, being the latter one of the currencies with the highest level of correlation with equity markets. The rumors in Canada that the government may adopt quantitative easing, preserving the national exporters by stopping the loonie to strengthen, also are raising eyebrows and creating a bearish sentiment for the Canadian currency, which may already enter a downtrend in the short-term.

USD/CAD remained stable, while AUD/CAD rose from 0.8715 to 0.8742. In Asia, CAD/JPY dropped from 84.45 to 83.22.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Australian Dollar Hits 7-month High on Favorable Employment Data

2009-05-08T00:18:00.001-07:00

The Aussie rose against the yen after a regional jobs report in Australia showed an increase in employment conditions and data.

The yen had a day of losses against the main currencies in Oceania, after continuous evidences that the global financial situation may be improving, pushing investors towards high-yielding assets and decreasing the risk aversion sentiment on equity markets. In Australia, after a report showing gains on regional employment, doubts on whether the national interest rates shall have further cuts were lifted, making the Aussie to hit a 7-month high against the weakening yen. The kiwi followed the Australian dollar, and posted gains against the Japanese currency after better-than-expected unemployment numbers were released.

Risk appetite is growing in Asian markets, which will certainly bring investors to buy Australian assets, according to experts. Since last week, when concerns that the swine flu would deepen the recession ended, the global markets witnessed the sharpest rally since the global slump started last year, with investors leaving refuge currencies such as the yen and the Swiss franc to buy stocks and currencies like the Aussie. Analysts also indicate that a recovery in commodity prices may bring the Australian dollar to higher levels.

AUD/JPY rose sharply from 72.88 to 75.08, NZD/JPY followed, rising from 57.22 to 58.87. EUR/AUD fell from 1.7950 to 1.7604.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Euro Rises Slightly After ECB Interest Rate Cut

2009-05-08T00:13:00.000-07:00

The euro had a slight rise against the dollar after the European Central Bank cut its benchmark interest rate to 1 percent, a record low for the European economic bloc.

The speculations that the ECB would cut its rates were confirmed today after the European policy makers set the interest rate to 1 percent in the Eurozone, an effort to avoid the current severe recession to deepen. After the ECB statement, traders are focusing to watch Jean-Claude Trichet’s declarations on what kind of measures will be taken to ease the economic crisis in the region. The euro posted gains against the dollar and the yen, as risk appetite grows, but also against the pound, which was previously rallying against the European common currency.

Analysts are expecting the euro to strengthen if unconventional measures from the ECB will be taken in order to revive the bloc’s economy. It is highly possible that quantitative easing will be considered in the Eurozone, and as some ECB council members have stated, the central bank is likely to buy debt to increase the amount of money in the economy. Even if the euro is likely to strengthen, a certain amount of unpredictability surrounds the future of the euro currency pairs.

The EUR/USD currency pair traded at 1.3348 rising from 1.3305 in the intraday comparison. EUR/GBP remained stable fro yesterday’s price, as it reversed a downtrend after the ECB rate cuts.

If you want to comment on the euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

US Dollar Positioning Mixed Against Forex Majors

2009-05-08T00:09:00.000-07:00

US Dollar positioning is mixed against major counterparts after a humbling week that saw an index of the currency’s average value break below support at a key trend line. That said, the trend bias against the Euro and the British Pound looks to continue to favor the greenback, with the latter offering a clear selling opportunity.

EUR/USD

Strategy: Pending Short

Weekly Profit / Loss: +2108 pips

We first sold EURUSD at 1.5510. Earlier this week, we exited the position as US Dollar Index broke below trend line support, booking 2108 pips in profit. We now take a step back to reassess the overall trend: looking at weekly bars, we see that EURUSD is setting up a Descending Triangle, a bearish continuation pattern, broadly favoring a breakout below support marked by the double bottom near 1.2530. While near-term positioning does not yield a clear entry signal, we continue to see EURUSD losses ahead and will monitor prices for selling opportunities.

Short-Term Forex Technical Outlook: NZD/USD

2009-05-08T00:07:00.000-07:00

Currency Pair: NZD/USD

Chart: 60 Min Charts

Short-Term Bias: Flat

Analysis

The New Zealand dollar surged higher this week, and broke above the 200-Day SMA for the first time since May 2008, and we may see the NZD/USD continue to retrace the sell-off from October over the following week however, fundamental headwinds could drag on the exchange rate as the RBNZ continues to hold a dovish policy stance. After reaching a high of 0.6349 in October, the kiwi-dollar slipped to a low of 0.4894 in March due to a surge in risk aversion, and as the OECD calls for the RBNZ to lower the cash rate to 2.00%, expectations for further easing paired with a weakening outlook for growth and inflation is likely to weigh on the pair over the near-term. Over the next few hours of trading, we may see the NZD/USD make another attempt to push above 0.6030-40 (78.6% Fib) however, as the RSI approaches overbought territory, we may see the pair fall lower to fill-in the gap from the 120 SMA. Nevertheless, as U.S. non-farm payrolls are scheduled for release later today, a dismal labor report could weigh on the markets, and we may see the kiwi-dollar lose ground following the release as the reserve currency continues to benefit from safe haven flows. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.

forex reserves

2009-05-08T00:06:00.000-07:00

US dollar bills are collected at a local bank in Beijing. China's forex reserves, the largest in the world, fell to US$1.9121 trillion at the end of February, from 1.9135 trillion a month earlier, the country's central bank has announced.

(AFP/File)

Forex University service

2009-04-27T06:29:00.000-07:00

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Low inflation in the Euro Zone will allow ECB to cut interest rates:

2009-04-27T06:28:00.000-07:00

News:
EUR/USD (1.3087)
European & US sessions forecast levels: 1.2970/1.3230
Trend Sessions: European: Neutral/Downward
US: Neutral/Downward
Market Focus: 9:55 AM Michigan Sentiment-Prel, 5:00 AM EU Trade balance.
Daily Strategy: The inflation in the Euro Zone down to 0.6% that send positive signal to European Central Bank to act with the interest rates cut. The dollar breaks below the key support of 1.3090 during the Asian session. The recovery of the dollar will continue. The other key event today the Michigan Sentiment report may signal that the recession pressure low and the world’s largest economy will out of the recession faster than Europe. The trading strategy today is opening short positions as sell on high movement.
Forex Forecast by FS Team

Euro/dollar breaks below 1.30 due too ECB interest rates cut expectation:

2009-04-27T06:27:00.000-07:00

News:
EUR/USD (1.3010)
European & US sessions forecast levels: 1.2890/1.3130
Trend Sessions: European: Neutral/Downward
US: Neutral/Downward
Market Focus: 10:00 AM Leading Indicators.
Daily Strategy: The dollar gain against the euro due too serial of events. The most important is the widely expecting European Central Bank interest rates politic change. The investors expect Jean-Claude Truchet to cut the interest rates at least with 25 bps but is possible aggressive interest rates cut due too the deeper of Euro Zone problems. The Euro Zone interest rates may down close to zero is also expecting. On the other side of Atlantic the latest signals show that the economy in United States is still on downtrend. The traders will prefer to turn to the dollar these days. The trading strategy today is opening short positions.
Forex Forecast by FS Team

The dollar may continue rise this week

2009-04-27T06:19:00.000-07:00

It is not expecting good signals for the world largest economy this week. The temporary positive signals by the last few weeks will end. It is expecting bad signals for the key U.S. Durable Orders and Home Sales reports said Peter Mill forex expert in World-Signals.com. The companies are not ready to invest when the economy still go down. The unemployment rate continues rise the spending down no one is willing to invest in these conditions. We do not see optimism as the bottom is probably far away. The only one fast chance to stimulate the economy is to cause inflation to push the people to spend as invest to save their savings by the inflation said Peter Mill by World-Signals.com. But this is not a good idea add Mr. Mill. The dollar may continue rise this week if the expecting U.S. reports send negative signals for the economy.
Source: World-Signals.com

Latest East Midlands Business News

2009-04-27T06:13:00.000-07:00

Nottingham-based high street retailer Boots is considering a move into personal banking as part of a drive to create a broader business, its boss said in an interview today.

Stefano Pessina, executive chairman of the privately-owned Alliance Boots, told the Financial Times that while financial services were not on his immediate "to do" list, he had discussed launching these sorts of products throughout the company’s 2,600-strong chain of pharmacies and retail stores.

He said: "We are in a market that is not growing by 20% a year....the retail part, of course, and we have to add services; we have to be very active in order to offer more and more to customers and we have a lot of ideas. We are working on certain ideas."

A move into banking services would follow the lead of Tesco, which has been quick to pounce on rock-bottom consumer confidence in established bank brands.

It recently emerged that Tesco planned to open 30 bank branches in its stores by the end of this year.

Mr Pessina, who teamed up with Kohlberg Kravis Roberts in Europe’s biggest buy-out deal two years ago, ruled out moving into cosmetic surgery – "too difficult and too risky" – but he said he had other ideas.

Boots has already added doctors’ surgeries to a handful stores while vaccinations against the virus that can cause cervical cancer are available at three stores.

Mr Pessina said an earlier move into laser eye correction surgery and beauty treatments could have worked "but the execution was not fortunate".

He added: "If the execution had been more accurate, probably now Boots would have a good business there. It is probably too late to go back. We have to think of different options."

Mr Pessina also said the company achieved a "satisfactory" year in 2008 in terms of profit and sales.

He added the retail arm had "a very good year on the whole", while the wholesale drugs business delivered trading profit up 16% to £200 million in 2008, despite the toughest regulatory enviornment in years.

He added: "I would say retail is not as bad as we thought."

Source: Nottingham Evening Post

Average Daily Turnover by Currency

2009-04-22T01:00:00.000-07:00

N.B. Because two currencies are involved in each transaction, the sum of the percentage shares of individual currencies totals 200% instead of 100%.

Source: BIS Triennial Survey 2007

Currency Pairs

•Majors: EUR/USD (Euro-Dollar), USD/JPY, GBP/USD - (commonly referred to as the "Cable"), USD/CHF
•Dollar bloc: USD/CAD, AUD/USD, NZD/USD - (commonly referred to as the "Kiwi")
•Major crosses: EUR/JPY, EUR/GBP, EUR/CHF

Technical Analysis

2009-04-22T00:59:00.000-07:00

•Moving averages
•RSI
•Fibonacci retracements
•Stochastics
•MACD
•Momentum
•Bollinger bands
•Pivot point
•Elliott Wave

Currencies

•The US dollar is involved in over 80% of all foreign exchange transactions, equivalent to over US$2.7 trillion per day

Currency Codes

•USD = US Dollar
•EUR = Euro
•JPY = Japanese Yen
•GBP = British Pound
•CHF = Swiss Franc
•CAD = Canadian Dollar (Sometimes referred to as the "Loonie")
•AUD = Australian Dollar
•NZD = New Zealand Dollar

Major Markets

2009-04-22T00:58:00.000-07:00

Major Markets

•The US & UK markets account for just over 50% of turnover
•Major markets: London, New York, Tokyo
•Trading activity is heaviest when major markets overlap5
•Nearly two-thirds of NY activity occurs in the morning hours while European markets are open6
5. The Foreign Exchange Market in the United States - NY Federal Reserve
6. The Foreign Exchange Market in the United States - NY Federal Reserve

Average Daily Turnover by Geographic Location

Trading Hours

2009-04-22T00:57:00.000-07:00

•24 hour market
•Sunday 5pm EST through Friday 4pm EST.
•Trading begins in the Asia-Pacific region followed by the Middle East, Europe, and America

Size

•One of the largest financial markets in the world
•$3.2 trillion average daily turnover, equivalent to:

◦More than 10 times the average daily turnover of global equity markets1
◦More than 35 times the average daily turnover of the NYSE2
◦Nearly $500 a day for every man, woman, and child on earth3
◦An annual turnover more than 10 times world GDP4

•The spot market accounts for just under one-third of daily turnover
1. About $280 billion - World Federation of Exchanges aggregate 2006
2. About $87 billion - World Federation of Exchanges 2006
3. Based on world population of 6.6 billion - US Census Bureau
4. About $48 trillion - World Bank 2006.

Forex Market Snapshot

2009-04-22T00:54:00.000-07:00

Introduction
The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information from approximately 1280 market participants.

Excerpt from the BIS:
"The 2007 survey shows an unprecedented rise in activity in traditional foreign exchange markets compared to 2004. Average daily turnover rose to $3.2 trillion in April 2007, an increase of 71% at current exchange rates and 65% at constant exchange rates...Against the background of low levels of financial market volatility and risk aversion, market participants point to a significant expansion in the activity of investor groups including hedge funds, which was partly facilitated by substantial growth in the use of prime brokerage, and retail investors...A marked increase in the levels of technical trading – most notably algorithmic trading – is also likely to have boosted turnover in the spot market...Transactions between reporting dealers and non-reporting financial institutions, such as hedge funds, mutual funds, pension funds and insurance companies, more than doubled between April 2004 and April 2007 and contributed more than half of the increase in aggregate turnover." - BIS

Structure

•Decentralised 'interbank' market
•Main participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculators
•The free-floating currency system arose from the collapse of the Bretton Woods agreement in 1971
•Online trading began in the mid to late 1990's

Trading Online System

2009-04-10T06:16:00.000-07:00

The main feature of trading platform is the opportunity to trade Forex online on a 24 hour a day basis. Right on your own screen a trader can order either a price at the market or place a limit order, can specify both limit and stop orders, can change those orders while already in the market. But apart from the obvious advantages of online trading as a service, the terms of the trading service itself available to traders and investors is one of a kind. First, you only need $2,000 to open an account. The leverage you can enjoy on day trades is 100 to 1. Leverage without proper risk management, this high degree of leverage can lead to large losses as well as gains. You receive a market spread as low as 2 pips depending on market conditions.
Trading online is being improved constantly: both the technological aspect as well as service. An expansion of tradable currencies, lowering the required minimums to open an account, extension of trading hours to 7 days a week, are just some of the exciting planned improvements.

Market Information Service

2009-04-10T06:13:00.000-07:00

The trading platform is a great Market Information Tool that can satisfy some of the most rigorous demands of any professional analyst, investor or trader because it provides the client with the ability to watch currency exchange market movements in real time and around the clock. Historical Forex rates are presented in a form of 5min, 15min, 60min, and daily charts. Because no Forex trader can hope to successfully trade the currency market without economic and financial news that may affect the exchange rates, pertinent new data is added every day. Lastly, another necessity for successful currency trading is technical analysis. The trading platform incorporates a vast number of technical analysis instruments from trend-lines drawing to many popular studies

Trading Platform

2009-04-10T06:11:00.000-07:00

We are proud to present what we consider a revolutionary dealing platform that not only represents the cutting edge of technology, but that we feel is poised to transform traditional notions of Forex trading. We anticipate that this new system will provide constant liquidity to the market enabling traders to freely enter or exit trades.
System Requirements
Operating Systems: Windows 2000, XP, or Vista suggested
Wireless internet connections do not provide a consistent uninterrupted flow of data between your professional FX Trading Station and our Trading Desk. A physical internet connection is highly recommended.
Web Browser: Microsoft Internet Explorer 6.0
Processor: 300MHz Pentium (600MHz or higher suggested)
RAM: 128 MB (256 MB or higher suggested)
Hard Drive: 60 MB of free space
Important Material:
User Guide - Detailed description of how to use the new system.
The main screen appears after the trader logs into the online trading platform. All vital information about the trader’s account is visible on the main screen, including active orders, open positions, and available margin.
Live quotes in 17 currency pair appear in the Dealing Rates window. Traders are able to execute trades directly from the displayed quotes. To place a market order, the trader clicks with the left mouse button on desired rate. If the trader believes that the exchange rate will become greater, then the trader would click on the BUY exchange rate located to the right of the SELL exchange rate. On the other hand, the trader can click on the SELL exchange rate in expectation of the rate moving lower. In foreign exchange, there are no restrictions on short selling.
Trader is about to place an order to buy euros at the exchange rate of 0.8574
After a trader clicks with the left mouse button on an exchange rate, the Market Order box appears. The trader specifies the size of trade, inputting the currency pair, whether to BUY or Sell, and the number of dollars. The trader must maintain $1,000 in margin for every increment of 100,000. For example, if the trader has 500,000 in open positions, the trader would have $5,000 in used margin. The trader can send the order for execution by pressing OK or can CANCEL the order.
Trader has input the amount of trade, 100,000, which is 100,000 euros.

Within seconds, a confirmation of the execution will appear in the Open Positions Window. Each open position has a unique ticket number and appears on a separate line. Detailed information is displayed on each position, including up to the second P/L in terms of pips.. Traders can place through the Open Positions Window Stop/Loss and Limit Orders on each individual position. To place a Stop/Loss or limit order, the traders click with left mouse button on the box that appears under the Stop or Limit columns.
Trader has received confirmation that the order to buy 100,000 euros at 0.8575 has been executed.
A Stop/Limit box will appear. The trader will then set the desired rate for Stop/Loss or Limit/Orders. Once the market hits the limit exchange rate or moves through the Stop-Loss exchange rate, the position will be closed. If the trader has set both a Stop/Loss and Limit Order on a position, the execution of one of the orders will cancel the other order.
Trader is placing a stop-loss order at 0.8500 and limit order at 0.8600 on the 100,000 euro position.
To close a position, the trader clicks with the left mouse button on the exchange rate under the Close column in the Open Positions Window. The Close Position Window will appear giving the trader the opportunity to a close part or the entire position. After the trader clicks on OK, the information in Open Positions window will be modified.
Trader is taking a profit on the 100,000 Euro position by selling at 0.8645 and making $700.00 on the trade.

Vital information including account equity, balance, and usable margin is displayed in Account Information window. All information is updated in real-time based on the market exchange rates, enabling the trader to quickly and accurately assess the status of the account.
After taking profits, the (account) Balance and Usable Margin increase. The Used Margin decreases.

Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

How Can I Participate in the Spot Currency Market as a Trader?

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From 1971 until recent years the virtual owners of this market were the banks, multinational corporations and large brokerage firms. If an individual wanted to invest in this market, he could invest with a bank with a one million dollar cash deposit backed by the requirement of a 5-10 million dollar net worth. A slightly better option was provided by the brokerage firms, which asked a lower minimum deposit on average of a quarter million dollars.
But now the forex market has been opened up to Individual investors. *Unlike the huge sums of money previously required by the banks and brokerage firms, comparatively far lower margin requirements are finally available that now allows virtually any individual to trade along with the professionals and institutions. In addition, individual investors have the opportunity to take advantage of the growing boom in computer and communication technologies that has made this market accessible in ways previously exclusive only to large players.
*Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

Why is the Spot Currency Market Attractive to Investors?

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Why is the Spot Currency Market Attractive to Investors?
Professional investors for individual accounts have dramatically increased their level of participation in the cash Forex markets in recent years. Add to this the growing use of cash Forex by individual investors and you have a rapidly growing investment arena. The following summarizes the many reasons professional investors have flocked to this market.
Liquidity This market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggests the freedom to open or close positions at or near your requested prices.
Access A substantial attraction for participants in the Forex market is the 24-hour nature of the market. In Forex, a participant need not wait to react to a news event, as is the case in most markets.
Flexible Settlement Many professional investment managers have a particular time horizon in mind when they establish a position. In the Forex market, a position can be established for a specific period of time which the investor desires.

What Moves the Foreign Exchange Market?

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The primary factors influencing exchange rates include the balance of payments, the state of the economy, implications drawn from chart analysis as well as political and psychological factors.
Ebb and flow of capital between nations, otherwise known as Purchasing Power Parity (PPP) is the central factor that determines market momentum. In addition, fundamental economic forces such as inflation and interest rates are constantly influencing currency prices. Faith in a government's ability to stand behind its currency will also impact currency price. This is done in two ways: controls and intervention. Controls restrict citizens from doing things, which have a negative effect on the exchange rate (such as sending money abroad). Intervention takes two forms: changing the interest rate on the currency to make it more or less attractive to foreigners, or buying/selling the currency to raise or lower its market value.
Any of these broad-based economic conditions can cause a sudden and dramatic currency price swing if such conditions are seen to be changing. This is a key concept because what drives the currency market in many cases is the anticipation of an economic condition rather than the condition itself.
Activities by professional currency managers, generally on behalf of a pool of funds, have also become a factor moving the market. While professional managers may behave independently and view the market from a unique perspective, most, if not all, are at least aware of important technical chart points in each major currency. As major support or resistance levels approach, the behavior of the market becomes more technically oriented and the reactions of many managers are often predictable and similar. These market periods may result in sudden and dramatic price swings as substantial amounts of capital are invested in similar positions.

Cash Forex versus Currency Futures

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As a potential investor it is important for you to understand the differences between cash Forex and currency futures. In currency futures, the contract size is predetermined. Futures traders exercise leverage by utilizing Margin to control a futures contract. (Margin is money deposited by both the buyer and the seller to assure the integrity of the contract.) Leverage without proper risk management, this high degree of leverage can lead to large losses as well as gains.
But with liquidity in mind, the futures market may seem limiting because the data flow comes to a stop at the end of the business day (just as it does with the stock market) thus disrupting your perception of the market. For some traders this could lead to a certain level of anxiety. For example, if important data comes in from England or Japan while the U.S. futures markets is closed, the next day's opening could be a wild ride.
In contrast to the futures market, the spot forex market is a 24-hours, continuous currency exchange that never closes. There are dealers in every major time zone, in every major dealing center (i.e., London, New York, Tokyo, Hong Kong, Sydney, etc.) willing to quote two-way markets. The size of this market, over one trillion dollars per day gives you near perfect liquidity. Because of the advantages of sheer volume and daily volatility, we feel that the excitement of this market is unparalleled.

What is Forex?

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The Forex market is a cash inter-bank or inter-dealer market established in 1971 when floating exchange rates began to materialize. The simplest definition of foreign exchange is the changing of one currency to another. In comparison to the daily trading volume averages of $300 billion in the U.S. Treasury Bond market and the less than $10 billion exchanged in the U.S. stock markets, the Forex market is huge; in September 1992 The Wall Street Journal estimated the trading volume at $1 trillion per day. Today, it is believed to have grown in excess of $1.5 trillion per day.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Eurodollar, Swiss Franc, and Japanese Yen). Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers.
But Forex is not a "market" in the traditional sense. There is no centralized location for trading activity as there is in currency futures. Trading occurs over the telephone and through computer terminals at hundreds of locations worldwide.

make money online with Forex

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Now, you can make money online with Forex trading in the global Forex trading market which is the world's largest, most profitable, most powerful and most persistent trading market.
For those who do not know it yet, FOREX an abbreviation for "FOReign EXchange" or "foreign currency exchange". Foreign exchange is the purchase or sale of a currency against sale or purchase of another. The FOREX market is the global interbank market where all currencies are traded.
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