Is Forex Rising…


 

Is Forex Rising? Yes. While the markets are falling, Forex is rising

6, March, 2010

The global economic crisis has hit economies worldwide and made the financial
markets unstable. Recently, the crisis has deepened once more due to negative investor sentiment. In these critical conditions many investors are pulling their money out of
failing stock markets and looking elsewhere for more rewarding investments.

The Forex market offers a safe-haven for investors worldwide. Unlike other financial assets, the Forex market allows investors to benefit from all market directions. Because currencies always trade in pairs, when one weakens the other strengthens.Whether a currency pair is going up or down, the Forex market presents endless trends and trading opportunities which successful investors can profit from.

Recently, for example, while stocks have been crashing investors have fled to the  US dollar causing it to rise, while causing counter currencies, such as the euro and the pound to drop in value.

However, volatility in the markets offers excellent trading opportunities in Forex. Since the start of the current economic crisis volatility has increased across all the financial markets. Despite what many people think, Forex traders can actually benefit from the sharp movements which this creates. Actually, the sharper the movements, the more opportunity Forex traders have to make rewarding trades.

eToro’s trading tools are easy to use and help maximize opportunity while minimizing your risk. The Stop/Loss orders will allow you to predetermine the amount you are willing to risk on each trade, protecting your investments while allowing your profits to rise. By using our unique trading system you can fully control your positions even during volatile hours.

For example, on a $100 investment a trader can control trades with a value of up to $40,000 and receive the full profit from these positions, while limiting their risk to a very small amount which they decide themselves by the use of a Stop/Loss order. This allows traders to protect their account from sharp unpredictable market movements,
while allowing them to take full advantage of the market’s volatility.

Despite the excellent advantages which enable traders to monitor and control their trading portfolio, new traders are often hesitant when they start trading Forex. Due to eToro’s revolutionary trading platform, new traders can easily adjust to the world of currency trading. With a simplified and people-friendly visual interface, eToro is designed to help every trader master currency trading in no time at all.

eToro’s educational guides, tutorials and forums provides all type of traders with the knowledge they require to conquer Forex. eToro traders also have full access to trader chats, insight tools and up-to-date market news. New traders can also practice their trading strategies with live practice trading.

Open a real account today and start taking advantage of the Forex market for yourself.

All the best,
Good Trading,

Tom

Currency Market Updates by Tom Nadir

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

BoE Keep Interest Rates On Hold


 

Currency Market News on BOE Interest Rates, Germany and Greece and the US Non-Farm Payroll Data

5, March 2010

As the BoE  keep interest rates on hold at 0.5%, the asset purchase programme was held at £200 billion. The stronger PMI data this week and the improvement in the revision of Q4 2009 GDP has helped the MPC to be comfortable in their current wait and see policy.

An article in the Telegraph interestingly pointed out that if it was not for QE the UK would still be in recession. That could well be the case. The fact that there was no expansion helped to keep sterling supported just over 1.50 against the USD and 1.10 the euro. We really need to see a move beyond 1.52 before we can start to relax a little.

Over to the ECB and as expected they also kept rates on hold at 1%. They announced that it will continue to scale back their special lending measures as expected and equally as expected Trichet dodged the difficult bullets concerning Greece and gave little away. Yesterday’s Greek bond issue was a real success and this gave the markets a boost backing up the recent austerity measures introduced. The market is aware that we are not out of the woods but this certainly helps. Expect further wranglings with Greece but nice to get some good news for a change.

Today the German and Greek heads are meeting. Should be a spicy meeting after yesterdays comment from the German Economics Minister who said that the German government has no intention of offering Greece “even one cent” and that each country has to take care of its own affairs…..would be nice to be a fly on the wall for this meeting.

Later today we have the big US non-farm payrolls number but even this has lost some of its importance with the appalling weather expected to have considerably distorted the numbers. In a way this could prove to be Dollar positive with the whole community expecting a weak number therefore reaction should only materialise from a surprisingly better result.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

Pound On The Up


 

Currency Market News on The Pound, The Bank Of Canada and The AUD

3, March 2010

Not much movement overall yesterday on sterling as the markets paused on selling the pound. This morning we have news that the pound is on the up and has made some gains back. As we stand we are holding just above the key 1.10 level and 1.50 on GBP/USD.

The 1.50 level on GBP/USD is a crucial level to hold above and will help to steady the ship and prevent further selling pressure. This morning we have seen UK PMI data come in much stronger than expected rising to 58.40 compared to the 55 expected and giving the best reading for over 3 years. On top of this consumer confidence rose to 80 and a 2 year high as consumers look ahead to a brighter 2010 for the UK economy. The good data this morning was a huge breath of fresh air for sterling giving it a welcome break from the selling momentum.

GBP/USD has picked up this morning beyond 1.36 following the leaked news of an austerity package for Greece totaling 4.8 billion euros. There is still uncertainty on the level of support that Greece will receive from the EU and the Greek PM tactically said that the cabinet may turn to the IMF if the EU does not give support – nice move. If we get further clarity on the level of EU support then this should lift the euro further. In addition it will help lead to selling pressure on USD and the JPY and hopefully boost the pound as confidence improves.

The Bank of Canada yesterday did everything apart from actually raising rates, thus cementing their previous comment that they preferred to wait until the summer before actually tightening officially. The GBP strengthened on the accompanying bullish statement and with the AUD , looks set to be a star performer, certainly for the 1st half of 2010.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

Can The Pound Pick Up?


 

Currency Market News on Sterling, a UK Hung Parliament and RBA Interest Rates

2, March 2010

After being sold aggressively across the markets yesterday, can the pound pick up? The markets have taken a breather and we now await the next move. First let us dissect why the drop in sterling which fell over 2% against the USD pushing it to a 10 month low.

Well the focus is political with the opinion polls over the weekend indicating that the chances of a hung parliament were much higher. So why does this cause a problem? A hung parliament may actually prove successful, however the markets do not like uncertainty and the consensus is that a coalition government will have less political clout to push through the decisive decisions especially in relation to tough fiscal planning which is inevitable.

The Conservatives have come out of the traps today stating that protecting the AAA status is central to their plans. However, some feel their proposed aggressive cuts will be detrimental to recovery. On the other hand Labour propose to wait and cut later but waiting too long could mean that the horse has already bolted and the AAA rating could be lost. So this uncertainty and division is leading to a weaker pound.

Yes this could be good for the UK economy and for recovery but there is a fine line between a weaker pound and the loss of confidence in Sterling and the UK economy. This would lead to a sharp rise in import prices and inflationary pressure especially if commodity prices remain high, which is not good. This would spill into a pressure on the UK gilt markets and inevitably the UK losing the AAA rating adding yet more pressure.

So you can see the problem that uncertainty is creating. The pound needs to get back above the psychological 1.50 level against the USD The Times summed up the weakness in the pound by empasizing its 7% drop since the beginning of February against the Zimbabwe Dollar!

Sterling also lost yesterday on the purchase by Prudential of AIG’s Asian business which led to further selling of GBP and buying of the USD in the light of this purchase.

In other news the RBA raised interest rates by 25 basis points to 4%- giving further strength to the Aussie dollar. the AUD still the darling of the currencies and expected to strengthen further against the major currencies going forward.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

Pound Is Pummeled


 

Currency Market News on the Pummeled Pound, a Hung Parliament and Greece…of course

1, March 2010

Disastrous start as the pound is pummeled in the FX markets continuing the bearish trend witnessed last week. The pound has dropped to a near 3 month low against the euro, a 10 month low against the USD and a near year low against the Yen. The UK is under heavy selling pressure with unwanted attention and unease with the fiscal deficit combined with further indications that the general election will result in a hung parliament.

A hung parliament would severely limit the ability of a divided parliament to act decisively on the UK’s deficit spelling danger for sterling. In addition to this the potential purchase of the Asian life insurance unit of AIG from Prudential is causing large negative M&A flows out of sterling and into the USD. So all in all not a bright picture for the pound which is looking alarmingly fragile and dropping sharply.

Lots on the table this week for economic data with interest rate decisions in Australia, UK, Canada and Europe. The expectation is for another rise in Australia of 25 basis points. We will also have feedback from all major economies in relation to PMI data which will give a good gauge on the services and manufacturing sectors.

The Greece situation is still ongoing. A few rumblings of solutions have dissolved into nothing leaving the markets still uncertain and leaning to the safe havens of the USD, the Yen and the Aussie dollar performing well on the hint of another rate rise.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

Pound Sell Off Continues


 

Currency Market News on Falling Sterling, UK House Prices and The Greek Situation

26, February 2010

Let us start with the good news from the UK economy before we dive into the bad and the ugly. UK CBI distributive trades showed a good rise in the number of retailers expecting an increase in sales. The number was up from -8 to +23. John Lewis says weekly department sales up 15.1% so good feedback there.

UK GDP revision for the fourth quarter came in at 0.3% and upward revision from 0.1%- better than expected. The pound sell off continues but why has the pound dropped further?

I was bemused on the fall in the pound following the upward revision. I can only attribute it to speculators thinking the data would be stronger than 0.3% and buying the rumour and then selling the fact. Sterling has had a mini run lower over the last week falling 3% against the euro, 2% against the USD and 4% on the Yen.

Mixed economic data will not be helping, particularly UK investment data which was appalling, dropping 5.8% in the last quarter to leave the year on year figure down a whopping 24.1%. In addition Nationwide house price data came in weaker than expected at -1.0% much weaker than the forecasted +0.4%.

News from Greece continued to spread fears of contagion through Europe. The talk of a possible downgrade of the Greek sovereign rating, along with their onerous funding programme, provoked a surge in the country’s bond yields as well as comments from other European worthies.

Remember that a downgrade from current levels would remove Greece’s ability to enter into repurchase agreements with the ECB using their bonds thus cutting off access to the underlying cheap funding. The Greek PM is talking tough stating that those responsible for the crisis must pay and now is the time for decisions and actions for the country.

The mood of fear is still driving the USD and JPY higher.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance


 

US To Maintain Low Interest Rates World


 

Currency Market News on US Interest Rates, The Yen and Obama’s Big Day

25, February 2010

The US to maintain low interest rates world. This was definitely not a surprise but the markets appreciated the affirmation from the Fed which removes any potential near term surprises from the federal reserve interest rates. Equities picked up on the news but risk appetitie is far from returning.

Europe came back to the fore and this morning the markets are in a tailspin of fear again as the threat of a sovereign downgrade looms over Greece. This opens up the possibilty of Grrek bonds being illegible with the ECB, making it more difficult to borrow.

On top of this the war of words will not be helping the euro…hot topics have included the war and Italian book fixing; not good PR for the euro. The Yen is flying in the markets today and has pushed below 89.50 against the USD and pushed GBP down to 136.82 as we stand. The Yen is being favoured as a safe haven after recent strong economic data.

The USD has also experienced gains again today with EUR/USD dropping as low as 1.3449 and GBP/USD to 1.5270 a new 9 month low. Big day tomorrow for sterling in the revision of the Q4 2009 GDP It is expected that it will be revised up to 0.2% from 0.1%- we need as expected or better to stave off further sterling selling.

Today’s important world event is Obama’s meeting with both Democrat and Republican law-makers in the US to try and find a way to move forward on the introduction of legislation of the US healthcare system. The most expensive by a long way, in terms of % of GDP, in the world. Very important that the US move forward on this project and politically vital for Obama.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance