Alex`s Digest

100 Iraqi Dinars - Rarity Nowadays

2010-10-15T07:05:00.001-07:00

100 Iraqi Dinars - rarity nowadays

BP to restructure trading arm amid profit erosion

2010-10-12T05:42:00.000-07:00

BP to restructure trading arm amid profit erosion: Oil major BP is restructuring its trading arm to cut costs and focus on growth markets such as China and India to turn around falling profits.

UK inflation rate stays at 3.1%

2010-10-12T05:35:00.000-07:00

UK inflation rate stays at 3.1%: September's inflation figures mean benefits will rise next April by the CPI's 3।1% - but pensions will increase by the higher 4.6% RPI.
See the reaction of the global currency market at online quotes page.

$1 Dollar Origami. Part II

2010-10-11T06:05:00.001-07:00

Dinosaur

Crocodile and Bear

Fish

$1 Dollar Origami

2010-10-11T06:02:00.001-07:00

Dress

A pair of boots

Butterfly

Fan

Shirt

Global Currency

2010-10-05T06:46:00.001-07:00

Global currency

What is Qauntitative Easing

2010-09-24T06:40:00.000-07:00

After its last monetary policy meeting the US federal reserve started talking about a possibility of quantitative easing driving the market high to heaven. Now let us explain what quantitative easing is and find out whether it is good or bad for the US economy and currency market. Quantitative easing is not a complex transaction. The FED exchanges overnight deposits for treasury bonds extending liquidity by pushing private sector savings to the financial markets, i.e. quantitative easing is not just printing money or throwing from a helicopter, it is just an asset exchange transaction, just a swap. It means that when implementing quantitative easing policy, the Federal Reserve pumps money into economy (increasing supply of money) in order to prevent from inflation. Risks include the policy being more effective than expected. That is it, so there is no panic for the market.

August NFP Dropped by 54,000

2010-09-03T07:26:00.000-07:00

According to the US Labor Department, nonfarm payrolls dropped by 54,000 in August, however, analysts anticipated sharper decline. The US jobless rate remains steady at 9.6%. The US dollar sharply dropped shortly after Bureau of Labor Statistics released a report. Employment in private-sector payroll surged by 67,000, - official figures show. For instance, in July 2010 overall payrolls declined by 131,000 and payrolls in private sector rose 71,000.

Average earnings per hour rose by 0.2% or 3 cents to $19.08 while experts had expected 0.1% surge. The average workweek remained unchanged at 34.2 hours.

Yesterday the market moved up as ECB raised economic forecast in Euro-zone for 2010 and 2011. However, the European refinancing rate remained unchanged at a record low of 1%.

Euro-zone GDP up 1% in Q2

2010-08-13T06:07:00.001-07:00

The euro-zone GDP rose 1 per cent in the second quarter, at a pace exceeding the pace of US economic recovery। This pace is the fastest in last four years। On the annual basis euro-zone`s GDP rose 1,7%। Besides GDP of Germany, Europe`s first economy, rose 2,2% - the fastest pace in last 20 years. On the currency market the Euro halted its drop versus the Dollar. The EUR/USD currency pair is now traded at 1,28.

Germany in 'record' 2.2% growth

2010-08-13T05:44:00.000-07:00

Germany in 'record' 2,2% growth: Germany's economy grew at its fastest rate for more than 20 years from April to June, outpacing eurozone neighbours and the UK.

DuPont boosts 2010 forecast

2010-07-28T01:40:00.000-07:00

DuPont boosts 2010 forecast: "NEW YORK (Reuters) - DuPont forecast 2010 earnings well above expectations on Tuesday, sending its shares up 4.1 percent, as the rebounding global economy continued to fuel the company's recovery.

Profits rise 98% at British Gas

2010-07-28T01:35:00.000-07:00

Profits rise 98% at British Gas: "British Gas profits almost double as the company, which supplies half of households' energy, benefits from the cold weather"

BP shares rise on asset sale talk

2010-07-12T06:27:00.000-07:00

BP shares rise on asset sale talk: BP shares rise 6.9% on speculation it may have buyers for asset sales needed to fund the Gulf of Mexico clean-up

Wal-Mart names new U.S. CEO amid slumping sales

2010-06-30T07:20:00.000-07:00

Wal-Mart names new U.S. CEO amid slumping sales: CHICAGO (Reuters) - Wal-Mart Stores Inc on Tuesday named Bill Simon to run its U.S. discount stores, which have struggled with sluggish sales as their core customer continues to be pressured by high unemployment. Wal-Mart is a Dow-Jones IA enlisted company. Its shares are traded on CFD market.

Oil spill: Obama to 'make BP pay'

2010-06-16T03:42:00.000-07:00

Oil spill: Obama to 'make BP pay': President Obama vows to 'make BP pay' for the Gulf oil spill, and says the US must end its fossil fuel 'addiction'.

Will Switzerland Face Debt Crisis?

2010-05-18T02:45:00.000-07:00

Monday, May 17 Swiss National Bank's Governor Philipp Hildebrand said that euro-zone debt crisis may reflect of economic recovery of Switzerland. Hildebrand mentioned that now price stability is at risk as appreciation of Swiss franc is exaggerated. All time minimum was hit on Monday, when EUR/CHF currency pair dropped to 1,4000 level, unseen previously. On Forex today the pair is in a tight range near 1,4000.

Philipp Hildebrand emphasized the necessity of making European policy stable. The SNB is trying to limit franc`s rise versus the euro. It intervened several times.

In his speech Hildebrand also focused on future of banking industry in the country. He mentioned the situation over UBS and Credit Suisse. The Swiss government decided to bail out UBS bank. According to SNB chief, large banks' investment banking had been a loss-making business for the country.

US CPI Increased 0.1% in March

2010-04-14T06:47:00.000-07:00

US consumer prices rose 0.1% in March, the US department f Labor delivered today. The Consumer Price Index (CPI) rose 2.3% as compared to March 2009, signaling that the US economy is picking up strongly after the worst recession since World War II. The core index excluding fuel and food showed the same monthly reading signaling a 1.1% surging on yearly adjusted basis. The core CPI rate rose 1.1% from March 2009, after a 1.3% surge the previous month. The gain for the year to March turned out to be the smallest in last 6 years. The result was predicted by economists. 0.1% inflation remains within the frames forecast by the US government.

This spring such retailers as Home Depot and Wal Mart Stores offer a variety of discount programs encouraging retail sales.

CPI is a basic economic indicator measuringchange of retail prices for goods and services including food, clothes, fuel, transport, medical services etc.

Bernake to Testify on Exit Strategy

2010-03-25T08:42:00.000-07:00

Today the Chairman of the US Federal Reserve Ben Bernanke in his testimony before the Congress emphasized that the US economy still needs low rates, however the FED may tighten policy if necessary to prevent increase in consumer prices. According to Ben Bernanke, the emergency measures will be lifted when the Federal Reserve System finds it necessary. Once the economy becomes strong enough, the Federal Reserve will act. The tools used by FED, will vary depending on how economy recovers.

Extremely low refinancing rate

“Economy still needs support of monetary policy, and work on further lifting of credit stimulus,” – added Bernanke. In terms of financial crisis the FED, US central bank, voted to lower its key interest rate to its record bottom of 0-0.25% in order to provide the necessary monetary conditions for sooner recovery of economy after it was hit by recession. The US federal funds rate remains at its historical low since December 2008.

Besides, Mr. Bernanke repeated that a hike in discount rate – an emergency credit rate – did not mean a broader tightening of credit to companies and households.

Forex rates

In the Forex market the USD fell on Bernanke testimony as EUR/USD currency pair edged higher to 1.3368 level.

Romano Prodi: Greece`s Crisis Has Bottomed Out

2010-03-10T05:17:00.000-08:00

Romano Prodi, the former European Commission President during his interview told the reporters that Greece`s financial slump has already bottomed and there is no concern on further collapse of the European united currency system resulted from budget deficit in Greece. According to Mr. Prodi, the euro will strengthen in the Forex currency market as the other Euro-bloc countries avoid following the Greece`s way. The problem with shortfall of Greek budget deficit seems to be over now.

The deficit of budget of Greece already exerted a bad influence on the 16-nation economy as the euro tumbled to its lowest level in last 10 months.

Recently Greek officials announced they do not need cooperation with other European countries as Greece`s economy has enough strength to overcome a 12.7% budget deficit. The government decided to cut spending and to increase taxes. These plans were treated with hostility by working unions staging a series of strikes around the country.

Romano Prodi, who managed to cut Italy`s budget deficit from 7 percent to 2.7% when he was Italian Prime Minister believes that concerns over Greece debt will be subdued soon and euro will pare its losses versus other major Forex currencies.

Business confidence in Germany Declines on Intense Snow

2010-02-23T06:18:00.000-08:00

Business confidence in Germany in February dropped for first time in 11 months.

The decline is explained by extremely cold weather this winter which resulted into closing of unfinished constructions constraining work in most construction sites. The index, which measures business climate in Germany, Europe`s first economy, in January slid to 95.2 from 95.8 in December. The lowest point in last 26 years was marked in March 2009 when German business confidence index dropped to 82.2.

After an economic pickup in the third quarter recovery in the first Europe`s economy halted in the fourth quarter of 2009 as unexpected snow and extremely low temperatures dampened construction making the companies stop hiring new employees. Nevertheless, increase in global demand encouraged German exporters who managed to trim its losses.

According to the Bundesbank, Germany`s central bank, the economy is expected to grow at 1.6 percent pace compared to 5 percent slump in 2009.

Yesterday die Spiegel reported that the Minister of Finance of Germany prepared a plan of bail out to Greece of about $20 bln. Germany in cooperation with other EU countries is expected to help Greece suffering from budget crisis.

Solution for Greece`s Budget Deficit Is Found

2010-02-12T02:07:00.000-08:00

Today European leaders came to the agreement aiming to help resolve the problem of 13% budget deficit in Greece.

According to this agreement, Greek government will receive lending facilities. Thus, the financial crisis in this country may be avoided. The EU leaders pledged to take “determined” action to struggle against the worst crisis in 11-year history of Euro. Greece's attempts to cope with its exploding debt has added to worries that the country might default. The EU President Herman Van Rompuy said: “We fully support the efforts of the Greek government and their commitment to do whatever is necessary including adopting additional measures.”

In order to safeguard financial stability in the region the EU leaders pledged to bail out Greek economy as here the problem of one euro-zone country becomes the problem of all. This step is considered historic in last ten years since the single currency was introduced. Euro zone leaders had hoped to keep Greece off the summit agenda. But they had to include it as worsening market conditions showed that Athens's problems could spill over to other EU countries.

Next week, the Ministers of finance of the EU countries will gather to discuss issues over Spain and Portugal also suffering from high budget deficit and increasing unemployment.

The agenda including all major economic events can be found at Economic Calendar Page.

Planned Layoffs Drop to 2-Year Minimum

2010-01-06T05:27:00.001-08:00

The official data on planned job cuts in the USA were announced today. The December figures show the US economic activity began rising.

In December employers declared 45,094 planned layoffs, the lowest reading since December 2007. This figure is 73 percent lower than the reading in December 2008 with its 166,348 layoffs, the official research showed. In the second half of 2009 the employers fired their workers 56 percent lower than in the first half. After the second quarter of 2009 the US economy saw signs of recovery and the situation on the job market improved.

National US unemployment, the key indiator showing the sate of economy, decreased to a seasonally adjusted 10% in November from the 26-year high of 10.2 percent in October. The rate had increased for 12 out of the previous 13 months before November 2009. Analysts expect the national rate to edge up to 10.1% when the US Labor Department releases its December jobs report this Friday.

US Unemployment Declines to 10%

2009-12-07T07:16:00.000-08:00

According to the US Bureau of Labor Statistics, the US jobless rate dropped to 10 percent level in November from 10.2 percent in October. These figures show that the US job market is getting out recession, however, significant obstacles remain. In November employers fired 11,000 workers, far below prior expectations of 150,000, Bureau of Labor`s figures show. The strong improvement surprised analysts, mentioning that the US job market still remains weak, however, moves into right direction.

The highest degree of employed people was seen in business and professional services adding 86.000 jobs. Employment in healthcare and education showed signs of recovery, while construction and manufacturing industry delivered 27.000 and 41.000 monthly job losses correspondently. However, there are still over 15 mln people unemployed in the USA, this number is twice bigger than before the recession started in 2007.

President Barack Obama called this data “good news” and promised to continue carrying out his programs aiming at hiring people.

After the official report the US Dollar spectacularly appreciated versus other Forex currencies.

Euro-zone Economic Confidence Shows Recovery on the Way

2009-11-27T06:14:00.000-08:00

Euro-zone economic confidence in November showed signs of improvement delivering signal that the region is getting on rail of recovery.

Indicator of consumer sentiment rose to 88.8, European Commission figure say. This figures appear to be higher than expected level of 88. Manufacturing and services rose for a fourth straight month spurring up the degree of business activity in 16-nation region.
A better than expected result is mainly driven by ECB`s stimulus programs and its policy of close to zero rates. High unemployment rate and rising Euro are the sources of concern, threatening to slower recovery.

The business activity indicator inclined to -1.56 from revised -1.79 which is higher than the estimated -1.65. European consumer confidence in November rose to -17 better than prior -18 matching expectations. The news affected Forex market investors encouraging them to buy Euros.

Earlier the ECB Chairman Jean-Claude Trichet expressed the idea that the Euro-zone`s recovery will continue growing steadily in 2010. The bank made a decision to buy covered bonds and gave billions of euros to markets within the frames of its emergency programs.

UK Inflation Climbs in October

2009-11-17T04:22:00.000-08:00

The inflation rate in the UK climbed higher than experts predicted showing the first rise in last eight months. UK consumer prices rose 1.5 percent compared to 1.1 last months. The experts predicted 1.4 percent rise.

The reasons of such reading are and air fare costs and fuel prices as fuel producers shift their trading terms. However, between September and October the cost of fuel dropped by 0.7 percent.

Prices for second-hand cars, caused by a shortage of stock, rose at the fastest pace pushing up inflation in October, the figures released by the Office for National Statistics showed today. Climbing prices of recorders, games and toys also contributed to inflation.

According to the Bank of England`s growth and inflation forecasts released November, 11, the inflation will not reach 2 percent level until 2012. As the UK economy recovers there are some risks of rise in consumer prices, that is why the Bank of England ties not to withdraw stimulus measures too early and sticks to its low lending rate policy.

Economists Predict Us Jobless Rate to Hit 13% Level

2009-11-09T07:28:00.000-08:00

The unemployment rate may shortly rise to 13 percent level, the highest level since World War II, David Rosenberg, an economist at Gluskin Sheff & Associates Inc.

This prediction was made after the US Department of Labor released negative unemployment figures showing that the US jobless rate, one of the most important economic indicators, unexpectedly hit the level of 10.2 percent. David Rosenberg gave an interview to Bloomberg news agency. In this interview he said that “this is going to be the mother of all jobless recoveries.” He also noted: “At the beginning of the year, who was calling for unemployment to go up to 10 percent?”

In the near future joblessness rate has all the prerequisites to reach the 13 percent level. The rate of 13 percent would be the highest since monthly records started in January 1948. Previously postwar maximum was 10.8 percent in 1982. During the Great Depression in 1933 unemployment jumped nearly to 25 percent.

Besides, the under-employment rate, including part-time workers who would prefer a full-time post, and people who would like to work and have given up looking, hit 17.5 percent last month, the maximum reading since records started in 1994.

Significant Losses for BMW, but still Good Prospects

2009-11-03T05:30:00.000-08:00

BMW, one of Germany`s leading carmakers reported a slump in earnings for the third quarter as a result of decline in consumer spending.

Net earnings of BMW sank 73.8 percent to 78 million Euros, but the carmaker expects to end the year with profit after signs of recovery emerged. Third quarter figures delivered that sales of Rolls-Royce and Mini BMW brands contracted 7.2 percent. The overall decline in 2009 is now 15.7 percent comparing with a year ago.

Norbert Reithofer, the BMW top manager says that stimulus measures already put in place now start taking effect increasing company efficiency and reducing costs. He predicts moderate recovery over 2010 and security on the car market.

In spite of all losses the board of managers is targeting to achieve positive net profit this year. Usually carmakers do not worsen at the end of the year. Last year BMW sold near 1.43 million vehicles.

Euro Drops ahead of German Key Figures. Latest Currency Market Update

2009-10-28T05:21:00.000-07:00

Yesterday the EUR closed trades at 1.4769 versus the USD, the weakest level for the last two weeks. On Tuesday the European currency was at 1.4802, a little bit lower from Monday 14-month high of 1.5064 per Dollar on Monday morning. The EUR/JPY was 135.88, lower from 137.08 on the currency market.

The European currency drop is described by concern on negative German unemployment data due to be released tomorrow. The reading is expected to be 8.3 percent in the month of October, a 0.1 percent drop from September figures. Also the separate researches show that commodity and stock market is likely to peak as recovery in the USA seems to be fragile.

Among today`s important events in economic calendar the major one is the German CPI figures likely to deliver worsening of consumer prices. The Euro will probably lower a little bit moving away from 1.500 level versus the USD.

14-Month Low for the Dollar

2009-10-14T02:40:00.000-07:00

The USD reached its 14-month low versus the EUR as investors choose higher yielding assets for trading abandoning dollars. On Tuesday the EUR/USD reached the top of $1.4828 and ended trades at $1.4786. The last time when these results were seen was August 2008. Gold seems to be the most attractive asset for trading.
The investors looking for high yield ignored pessimistic Euro-Zone economic data to ensure the better-returning Euro to $1.50. It seems that this level will be attained shortly.

The greenback may drop even more today before the government reports its forecast to deliver consumer prices rose last month. This report is one the most important economic events for today.

Find more information on Forex currency market at Forex Trading Website.

Consumer Confidence in UK Reaches Its 18-Month High

2009-10-07T00:32:00.000-07:00

According to U.K. Nationwide Building Society, consumer confidence index rose to 71, its highest point for the last year and a half. Such an increase adds to recovery signs showing that the U.K. economy is on its way to complete growth.
Tomorrow Bank of England is supposed to announce its further direction of the monetary policy probably keeping its benchmark interest rate at its current low in spite of all signs that the recession fades away.

Economic reports last week appeared to deliver positive information. Thus, U.K. house prices have already reached its last year levels showing the end of shrinking in house sector. Consumer spending rose by 3 percent to 103 level.

Some positive news from labor market in Great Britain: the measuring of hiring for jobs inclined to 51.3 in September, from 50.6 in August.

American Unemployment Rises

2009-10-05T06:30:00.000-07:00

American job market remains now the worst problem zone in the US economy. 263,000 Americans lost their jobs in September much worse than expected by the market analysts. The major losses are seen now in services and construction industry. Thus, the unemployment rate in September is 9.8 percent from the active part of the population. Last month the jobless rate was 9.7 percent. Current result has been considered as the lowest one for last 26 years. 10 percent mark will probably be attained by the end of the year.

Worse than expected employment data have stopped and reversed the USD upside trend. This had traders questioning the US economy recovery and pushed them away from trades with dollar in the list of their financial operations.

ECB`s Decision Spurs the EUR for a Jump

2009-10-01T02:09:00.000-07:00

Yesterday the ECB announced it would lend banks 75.2 billion euros for a year term at the current interest rate of 1%. The number appeared to be lower, than it was anticipated by the experts. The EUR/USD currency pair achieved the level of 1.4634 from 1.4581 point marked on Tuesday. Loose economic policy measures encourages traders who use trading software to choose risky assets for trading.

The unexpectedly low PMI report added to a mixed results of U.S. data released Wednesday, including an improved second-quarter U.S. GDP report, but disappointing U.S. jobless claims, confirming investors' speculations that a sustained economic recovery won't take hold.

The GBP has continued its further falling against other currencies traded on the Forex currency market, unable to shake off the comments by Mervyn King Bank, the Bank of England governor that a weak Pound would be an advantage for the U.K.'s recovery from the global downturn. In today's trading the GBP is at $1.5942 versus the USD.

Today the ministers of finance of EU countries meet in Sweden to discuss further direction of the European economy.

Bearishness as Future for Dollar

2009-09-29T00:56:00.000-07:00

The advance of the USD continues. The EUR/USD pair is now traded 1.4620. And the GBP/USD is close to 1.5900 level durinf European forex trading hours. The JPY is the only currency to gain versus the greenback after reaching its 8-month low of 88.22. The pair is now traded near 90.00 mark as the latest Forex quotes show. Announcements made by Minister Fujii have producedinfluence on many traders wondering if Japan will not intervene in its currency's recent rise. If it chooses not to do that, the target for the USD/JPY may be close to 82.00 very soon.

Looking ahead to today`s events, however, the most important one will be the Conference Board's release of their Consumer Confidence announcement at 14:00 GMT. As the trend is currently pointing towards rising optimism in the US, bearishness for the USD may still be seen today.

Federal Reserve May Announce Exit of Stimulus Measures

2009-09-21T00:58:00.000-07:00

Concern that FOMC may remove stimulus measures encouraged appeal for the US Dollars. As a result the Dollar reached its week high versus the Yen and the Euro, according to Bloomberg.

Many economists tend to suppose that FOMC is likely to become a catalyst of USD rising as FED will probably announce the withdrawal of its economy stimulus measures. The USD rose to 92.17 yen as of 7:45 a.m. in London from 91.29 yen in New York Sept. 18. It jumped to $1.4645 per euro from $1.4712. The U.S. currency advanced to $1.6143 per pound from $1.6271, after earlier touching $1.6135, the highest level for the last three weeks. The USD index climbed 0.6 percent to 76.878.

The JPY fell to its three-week bottom versus the Euro after Hirohisa Fujii new Finance Minister refused to make comments meaning he would let the Japanese currency rise.

It is expected that Japan will remain the only country among big economies that will keep its benchmark interest rate at a record low. Japan`s Overnight call rate is now at the lowest level worldwide . The economy is likely to expand 0.8 percent next year after declining 6 percent in 2009 putting assets in the world’s second-largest economy not in favor comparing to those in countries with higher borrowing rates.

Extreme Budget Deficit for UK

2009-09-18T02:26:00.000-07:00

Today Great Britain released the highest level of budget deficit since 1993.

As the Office for National Statistics deliverd today, the 16.1 billion-pound ($26.3 billion) deficit in budget is the largest one especially compared with a deficit of 9.9 billion pounds in August 2008. Total current government receipts fell 9.1% from a year ago to 34.1 billion pounds, while total current spending inclined to 45.6 billion from 44.3 billion pounds.

These data may be considered as a significant impact on Gordon Brown`s positions before the elections. David Cameron, the leader of Conservative party accused Brown of misleading Parliament when Treasury documents showed that in April the Labour government was predictong it would have to curb departmental budgets by 9.3 percent in real terms by 2014 because of soaring welfare and debt-interest costs.

The GBP responded negatively falling to its lowest Forex rates.

Dollar Icreases Losses

2009-09-16T01:52:00.000-07:00

As the speculations emerge that the economy is growing the USD dropped Tuesday to its lowest level versus the EUR. The appeal for USD was reduced as investors decided to try trading with higher yielding assets that is why traders have sold the U.S. currency. For several months, the USD has a trend to move in the opposite direction as equities move as investors' willingness to buy riskier assets changes and depend on different factors. That trend showed signs of diminishing in August and resuming its more traditional correlation to economic data, as a result the USD index continues its contraction.

Looking ahead to today`s data capable to influence Forex rates, U.S. data will released later. The U.S. consumer price index (CPI) for August, Q2 current account data, August industrial production figures and September NAHB housing data will also be published.

Beach Scandal in Wells Fargo

2009-09-15T00:42:00.000-07:00

Wells Fargo, the fourth-largest U.S. bank by assets made a decision to fire its senior vice president Cheronda Guyton after investigating showed that she had violated her policies. Cheronda Guyton who was responsible for Wells Fargo's commercial premises, used the house on Malibu Colony Drive on weekends to organize private parties violating all the regulations. According to Los Angeles Times, citing neighbors, she used to invite guests arriving on a yacht.

Andy Stern, Malibu Mayor in his interview told that he approved the fact that Wells Fargo took appropriate measures.

Wells Fargo remains the second largest US bank in deposits, home mortgage servicing, and debit card service. It appeared to be the only US bank to be rated AAA by S&P, though its rating has since been lowered to AA- as a result of the 2008 Financial Crisis. Its stock is widely traded in futures and CFD market.

No Positive Future for Dollar

2009-09-14T02:14:00.000-07:00

Going short on the US currency brought lots of profits for traders last week. The USD continued its fall versus the EUR and other major Forex currencies. This fall accounted for 300 pips versus EUR, 400 pips versus the GBP and 350 pips versus the Japanese currency.

Another fall for the greenback was reasoned by negative US data. The gap between import and export increased by 16 percent or $32 billion, the largest difference since 1999. The U.S Consumer Credit fell by 21.6$ billion in July. Unemployment rate is constantly getting to 10 percent rate. It looks like until the employment condition will take a turn for the better, the Dollar might continue to weaken.At the beginning of the previous week market analysis showed a modest decline, but the final result appeared to be well below all expectations.

This week is full of important business events including the Consumer Price Indices, the Retails Sales Indices, the Producer Price Induces, the Long-Term Purchases, the Building Permits and the weekly Unemployment Claims.

Important Slide for USD

2009-09-10T05:34:00.000-07:00

Another bottom for the USD was reached as low borrowing costs spurred investors to sell off the Dollar and buy other assets. The USD index was at 77.002, after dropping on Wednesday as much as 0.7% to 76.803. Coming economic recovery spurs investors leave the greenback and try to trade other high profitable units as the greenback becomes highly unappealing to investors.

While the Federal Reserve stimulus measures helped pull the nation out of the recession, it also pumped an enormous amount of Dollars into the economy and with the continuous rise in the jobless rate the Fed is predicted to lift its interest rate soon.

Among important business events capable to make influence on the currency market are the release of the Trade Balance and the Unemployment Claims figures will be released on Thursday at 12:30 GMT.

US Trades after Labor Day

2009-09-08T02:11:00.000-07:00

As the US market was closed yesterday, the US Dollar slid versus other Forex currencies. The Labor Day holiday in the USA and Canada took its toll on the American currency. It came close to its 2-week low versus the GBP after the statement of Kraft Foods to buy British chocolate maker Cadbury. In spite of low trading risk appetite remained high on Monday. The Dollar Index, which measures the value of the Dollar versus its six main counterparts, dropped by 0.2% to 78.00 yesterday.The USD/JPY cross weightened by 25 pips yesterday to the 92.85 level.

On Monday the Australian Dollar performed a significant rise hitting a 1 year high vs. the U.S. Dollar. The AUD was received unexpected support from rising Gold and Crude Oil prices as of late, which Australia's currency is highly dependent. In addition, Australia's currency is in much greater shape than that of America. The CAD made became closer to the greenback. By the end of yesterday's trading, the EUR/USD pair finished trades at 1.4332.

Durable Telecom Alliance

2009-09-07T00:55:00.000-07:00

Chinese Unicom and Spain's Telefonica have concluded a deal that will encourage cooperation between the two telecom companies.

According to an agreement signed on Sunday each company will buy $1 billion of the other's stock. The Spanish firm's stock in Unicom will increase to 8%; and China's second-largest phone operating company will hold about 0.9% of Telefonica, the signing of an agreement is a strategic attempt to remain competitive as the global downturn has shortened. China Unicom currently competes with China Mobile and China Telecom. Unicom recently announced a three-year deal with Apple last month to become the number one Chinese phone company to make support of the iPhone, whose start in China is scheduled for Sept. 28. After the signing of the deal in Beijing Chinese Unicom stock appreciated in the CFD market.

Pending Home Sales Spur USD Rise

2009-09-02T01:50:00.000-07:00

Yesterday the US currency continued its bullish trend as optimistic U.S manufacturing data and Pending Home Sales figures were released. The U.S. manufacturers expanded in August for the first time in one year and a half, while home sales contract hit a two-year maximum in July, helping helped the economy to recover and thus spurred the demand for the USD. Factories and constructors, which have accounted for half of all the jobs lost since the recession started, may be rising in coming months as home sales are. The U.S dollar jumped against most of its major currency pairs yesterday as sharp losses in global stock markets offset lower than expected U.S. manufacturing data and boosted the greenback's demand. As a result, the USD finished yesterday trading session 150 pips higher against the EUR at the1.4216 level. As market analysis shows the US currency also saw bullishness against the GBP and closed at 1.6155.

The American Petroleum Institute informed yesterday that crude supplies declined 3.19 million barrels last week. A U.S. government report may also show stockpiles reduced. Oil’s gains were supported as Australia said economic growth unexpectedly accelerated in Q2, adding to expansion in Europe`s leading economies such as France and Germany.

Financial Market Update

2009-08-31T03:11:00.000-07:00

The previous week appeared to be very volatile for the US currency during Forex trading hours. The USD remained in a tight range 1.4200 and 1.4400 with no clear direction. The greenback performed a bearish activity yesterday as a result of yesterday`s parliament elections. The election outcome also pushed the Japanese yen sharply higher. The USD volatility was reasoned by mixed results from the US economy. The major data release that impacted USD behavior appeared to be the Preliminary Gross Domestic Product (GDP) report. It dropped by 1.0% in Q2 of the year, showing that the American economy continues its recession, despite some optimistic releases.

According to the Wall Street Journal, the DJIA dropped 0.4% on Friday also damped regional sentiment. DJIA futures were recently 50 points lower in screen trade.

US GDP Data Brind Dollar Fall

2009-08-28T02:46:00.000-07:00

The period of steady appreciation for the USD has ended. The greenback experienced the essential drop the end of European trading hours. The trades closed at the level of 1.4364 against the EUR and 1.6284 against the GBP. The fall was reasoned by the following reasons: crude oil appreciation as a result of the global economy growth. The Gross Domestic Product (GDP) of the United States contracted 1.0 percent, better than 1.5 percent expected by the analysts. And it looks like the USD index will continue falling next few days.

The drop in GDP was the fourth straight one, the longest recession since quarterly records started in 1947. The world’s number one economy has shrunk 3.9 percent since last year’s second quarter. Yesterday`s report is the second of three estimates on Q2 growth. As more information becomes available the data will be revised again in September.

Euro M3 Money Supply Grew at a Slower Pace

2009-08-27T02:36:00.000-07:00

The ECB stated on Thursday that M3 money supply in Euro-Zone rose at a slower pace of 3% in July compared to June's 3.6%. As market experts tend to think the annual growth rate will ease to 3.2%. Among the main components of M3, M1 increased 12.2% in July, up from 9.4% in June. Meanwhile, the annual rate of change of short-term deposits depreciated to minus 2.6% from 0.4% in June. Furthermore, the annual rate of change of marketable instruments dropped to minus 7% from minus 4% in the previous month. The euro-region economy barely contracted in the Q2 as Germany and France unexpectedly emerged from the decline.

Find more economic news at the website.

Strengthening of USD Positions

2009-08-25T01:14:00.000-07:00

On Monday the greenback gained its positions versus major currencies traded in Forex market, from a string of recent declines after signals at the end of the week that CBs of different countries continued to carry out a policy of keeping their Interest Rates low for the near future. Technical analysis experts continue to expect that at some point signs of strength in the U.S. economy will be treated as positive for the nation's currency, ending an inverse relationship since the period of financial recession, where negative news performed a negative influence on purchasing the U.S Dollar.

The US currency also appreciated yesterday versus the EUR and Japanese Yen as Wall Street halted earlier gains and traders shifted their trading positions ahead of U.S. consumer and Housing data to be released this week. Solid U.S. data and probable reappointment of Federal Reserve Chairman Ben Bernanke pushed investors to carry out riskier transactions at the expense of the JPY and USD.

First CFD Transaction in Romania

2009-08-18T02:02:00.000-07:00

An important event in the history of Romanian stock market. On Monday the Sibiu Stock Exchange carried out the first CFD transaction with SIF Banat-Crişana (SIF1) shares, in an overall value of 4.950 lei for the first time in the history of the home capital market. The SIF Banat-Crişana equities quoted at 0.99 lei / title, 2.94% below Friday's Forex quotes on the Bucharest Stock Exchange. Every contract for difference includes 1,000 shares, and for the transaction conducted Monday the buyer submitted a margin of 990 lei, 20% of the total value of the securities traded there.

Thecontracts for difference help the traders to take advantage of the indices in the price of shares, without effectively buy or sell the respective securities, i.e. if an investor bought a contract for difference for a single share, he did not buy the respective number of equities on the spot market, but has the possibility to gain from the difference between the bid and ask price. CFD's are similar to the futures contracts, with the difference that they have no due-date.

Positive US Indexes Data Brings Gains for USD

2009-08-17T02:17:00.000-07:00

The last week ended with significant gains versus other major currencies. But at the same time it ended with decline against the Yen boosted up by optimistic economic figures from Japan. USD/JPY is currently traded 94.50.

The previous week started for the US index with a significant drop caused by pessimistic U.S economic figures. The Federal Budget Balance delivered a negative result, revealing a strong deficit for the federal budget. This fact accompanied by the FOCM decision to leave the interest rates at a record low level added to the USD bearishness. But however, the second half of the week brought much better results and positive releases. The CPI report managed to provide a reversal sign for USD in all Forex crosses showing signs of further recovery of USD.

This week will bring the release of Building Permits and the Producer Price Index (PPI) this Tuesday capable to influence mobile trade. The Building Permits is anticipated to perform the best figures in 8 months.

Low Economic Data Bring Dollar Fall

2009-08-14T02:26:00.000-07:00

Yesterday`s trades were marked with a series of worse than expected economic reports. The U.S Retails Sales indicator dropped by 0.1% in July breaking all economists` expectations. The index was expected to rise by 1.8%. The U.S Core Retails Sales index also performed an unexpected drop of 0.6%. The negative data proved o show that Americans are not likely to expend their spending.

Retail sales shows the level of consumer spending so it is treated as a consumer demand and consumer confidence indicator, it may serve as a reference point for the currency market during reversal points of the economic cycle. This index is highly important for following the USA economy, as consumer demand is its main driving force. As a result the US currency reacted immediately. The Dollar dropped against all the Forex currencies. The greenback lose 100 pips at against the EUR on Thursday. The bearish trend against JPY continued.

EUR Goes on Falling against the Yen

2009-08-12T01:39:00.001-07:00

Yesterday the EUR performed a record 1.9% loss against the Japanese Yen. The reason of such a decline appeared to be negative data from German consumer prices in July raising opinions that the ECB will maintain interest rates at a record low till the end of the year. The EUR traded $1.4154 from $1.4142 late Monday and was at 135.74 yen, down from 137.32.

The British equity market movements tend to have major affects on the Pound`s value. Even more, Forex traders are staying cautious ahead of today's BOE inflation announcement. Looking ahead to today`s events from the U.K which will likely impact the Pound for the rest of the week with the Claimant Count Change to be released at 8:30 GMT. The Euro-Zone Industrial Production report is also set to be announced at 9:00 GMT, negative results will likely put further downside pressure on the EUR.

Dollar Extends its Gains against the EUR and Pound

2009-08-11T00:41:00.000-07:00

Yesterday`s trades were marked with USD appreciation versus European currencies such as EUR and GBP. Monday the Dollar Index, showing the Dollar position against 6 most traded currencies performed an increase of 0.4% hitting a 79.31, second consecutive week`s rise. Last week the index added 0.8 percent. Adding to the Dollar gains yesterday was the increased speculation that in the long run, the U.S. economy will probably grow at a faster pace than the Euro-Zone, Britain and Japan.

The USD's bullishness vs. the EUR continued yesterday. The rate reached its low at 1.4130 level. GBP/USD pair ended trades with a massive drop by 235 pips hitting the low of 1.6475 as a result of British banking woes revived.

Among today business events many news will come from the US economy including the release of Prelim Nonfarm Productivity and Prelim Unit Labor Costs data both at 12:30 GMT, and Wholesale Inventories at 14:00 GMT.

JPY Is the Week`s Loser

2009-08-10T02:19:00.000-07:00

The last week`s major loser is considered to be the Yen, which suffered a lot after the release of America's Non-Farm Payroll data. The Japanese currency reached its year lows versus the EUR and GBP correspondently 138.69 and 163.08. The fall was also considerable against the Dollar as the pair hit the June`s low of 97.76.

As a result of the US NFP report, risk appetite of Forex traders rose sharply. With a surprisingly heavy news week for the Japanese currency ahead of traders, the bearishness is likely to continue this week, since many are expecting positive results which may likely boost the appetite for risk in the market and thus put additional selling pressure on the Dollar and Yen.

New US−Specific Forex Regulations

2009-08-07T01:46:00.000-07:00

The approval of Compliance Rule 2-43(b) became effective in November, 2008, but parts of the ruling are still being implemented over time to allow for changes to Forex trading software. This new regulation is made to protect the US retail Forex trader from practices that the NFA (National Futures Association) has determined have no economic benefit to the trader. According to the NFA, this type of hedging increases the customer's financial costs by doubling the expense of entering and exiting positions. In addition, if the trader holds positions overnight, the differences in the interest rate rollover evaluation will cost customers additional money over time if they are short high yield currencies.

The National Futures Association has a website that every customer should visit for more information about their broker. Any Forex broker that is an NFA member has to meet high standards including a large minimum capital requirement to carry out business. Customers should check to see if their US Forex broker is an NFA member, and if they have any past customer complaints by doing a Background Affiliation Status Information Center (BASIC) search.

Bullish Stock Market Sentiment Brings Dollar Decline

2009-08-05T23:59:00.000-07:00

The US Dollar ended up yesterday`s trades at the lowest level for this year against the Euro. This decline was caused by decline in US equities and pessimistic services sector figures. The greenback also slid 0.2 percent versus the JPY reaching the level of 95.02 from Tuesday`s mark of 95.25.

The broad decline of the Dollar is spurred by rally of high yielding assets such as shares and commodities. As economists and experts of technical analysis stated the Dollar's inverse relationship with trader appetite for risky assets has reasserted itself in last weeks. The USD has also lost its position as equities started a strong global rally and investors rushed into assets perceived as higher yielding ones.

Optimistic figures from China and the US boosted investors to sell Dollars choosing for trade risky assets making it complicated for the Dollar to rally a lot.

Dollar Tumbles on Optimistic Manufacturing Data

2009-08-04T00:44:00.001-07:00

The release of better than expected figures of ISM Manufacturing PMI brought the Dollar tumbling. The indicator reached its 11 month high of 48.9. It appears to be much higher than forecasted 46.4. The improvement in U.S. construction also added to optimism. Risk appetite grew on Monday bringing decline in demand for the greenback. The U.S. currency tumbled against all major Forex currencies as traders believe that the worst of recession is over expecting sooner growth. Therefore, the Dollar declined to its 7 month bottom.

The EUR/USD pair jumped to as high as 1.4444, before ending the trades at 1.4421 level the lowest rate for 7 months. The USD fell by about 250 pips vs. the British Pound to 1.6980. One of the only currencies that the Dollar appreciated against yesterday was the Yen. Among today`s economic events, forex traders can assume volatile market. The Dollar is expected to rise against its major currency counterparts. The traders are expecting for the release of Personal Spending and Personal Income data at 12:30 GMT, and the release of U.S. Pending Home Sales at 14:00 GMT.

Recovery Signals Boost Dollar Decline

2009-07-31T00:18:00.000-07:00

The US currency ended up trades with a slide as the US economy showed first signals of recovery after the global recession. Today the US government is set to release its figures of GDP expected to decline at a slower pace in 2Q than in 1Q. Global corporate earning reports added to optimism. Participants of Forex market took advantage of the fresh optimism to choose higher-yielding currencies, such as the Euro and Aussie.

Yesterday Germany and the Euro-Zone issued better than expected reports on unemployment and consumer confidence bringing USD decline against EUR reaching 1.4128 level. The markets also witnessed the USD fall versus GBP as British consumer confidence showed optimistic results.

It is expected that today traders will go on trading with yesterday`s optimism. This behavior is expected to drive lower the USD index.

Dollar Continues Strengthening

2009-07-30T00:26:00.000-07:00

The US currency continues gaining versus its main counterparts. Yesterday it came close to its 2 week high against the Euro. It also rose against the Pound and Yen.

The reason of such appreciation is a better than expected Core Durable Goods Orders monthly report accompanied by China`s statements that it will keep on maintaining loose monetary policy. It seems that investors were impressed by the 1.1% rise in the Core Orders during June. The difference between the two reports is that the Core report measures the change in the total value of new purchases orders placed with manufacturers for durable goods, excluding transportation items. Orders for aircraft are known to be very volatile, and thus have the potential to distort the underlying trend.

Traders usually tend to pay more importance to the Core report as purchases orders placed with manufacturers for durable goods such as orders for aircraft are known to be very volatile. This report shows signs of positive growth, for the third straight month making investors believe that the global recession is coming to the end.

Among today`s news in economic calendar the main release from the U.S economy looks to be the weekly Unemployment Claims report at 12:30 GMT. Currently, while all the major economic indicators of the U.S economy are showing signs of recovery, it is only the job sector which goes on producing negative results.

Explosions in Spain provoke Euro’s fall.

2009-07-29T08:53:00.000-07:00

The attempt committed today in Burgos (Spain) has caused 46 injured men and 38 of them have been moved to sanitary centers of this Spanish city. It is most likely that there is no threat to their lives. People just have small courts and wounds.
According to the investigation, the responsibility of this act is to ETA.

The explosion took place in the back part of a house barracks of the Civil Guard, located in the suburbs of Burgos, in particular in Jerez street.

The deflagration damaged the paving and some neighboring houses.
The cameras of supervision marked that the source of the explosion was a car that parked on the Jerez Street.
The area is still surrounded, while the investigation continues and medical services try to help to affected.
These events influenced on Euro positions on Forex market. In the morning, in Asia people begun to sell Euro and Euro dropped relatively to JPY.People connected with Forex trading guess that Euro sales will be short-term ones, but today’s positions for Euro will be weak because of pre-planned purchase of obligations.

Rising Star for AUD

2009-07-28T06:47:00.000-07:00

Now, AUD reached its highest position relatively to USD. 1 Aussie cost 83.22 U.S. cents and it is expected that forex trading will bring AUD to its 2009 high.

Aussie’s rise relatively to USD was provoked by the optimistic declaration of Glenn Stevens from Reserve Bank of Australia that Australian economy was recovering faster than economists supposed, has provoked Besides, RBA representative marked that home prices should go up because of the fact that interest rates are low. In their turn, interest rates fell to 3 % because of suspicions that RBA could reverse its monetary policy.

But, it is necessary to notice that at the moment dollar positions on forex market went down not only against the Aussie. Dollar became weaker in comparison with the most part of other major currencies. For example, now people buy 94.87 yen for one dollar, and at the beginning of the week it was 95.26.

The index of American currency fell from 78.684 to 78.451.
As for EUR, now one EUR costs 1.4277 dollars (it rose from 1.4235). Pound costs $1.6533 ($1.649).

Dollar Outlook Suffers from Concerns over U.S Monetary Policy

2009-07-23T04:16:00.001-07:00

July 22, the US Dollar as well as other risk sensitive currencies dropped further against the Euro. However, unsteady equity markets brought risk aversion in forex trades. The Dollar trend is still bearish, as the EUR seems unable to perform a real jump. On Wednesday, the Dollar index was traded at 78.745, down from 78.920 on Tuesday

Pressure on the Dollar is put downwards, as strong performances from the stock markets goes on, as investors shift to riskier higher profiting assets. With rising uncertainty sentiment about the framework of the US monetary and fiscal policies, particularly in light of newly designed health care reform, the outlook on the Dollar looks very weak despite the Fed's and Treasury's guarantees.

Among toady`s important economic events are expected from the U.S, including the Unemployment Claims at 12:30 GMT and the Existing Home Sales at 14:00 GMT. These indicators are very important since they are leading indicators of economic state and are supposed to create great market volatility.

Wall Street Rally Brings Dollar Decline

2009-07-21T01:45:00.000-07:00

The US currency reached its month low against its major counterparts such as the Euro, as Wall Street rallied on Monday. CIT managers approved a $3 billion rescue package resulting into a strong rally in the stock market.
Risk appetite of traders was increased due to continued optimism from the financial reports of the banks for 2Q. U.S. housing data issued yesterday suggests stabilization of the U.S. housing sector.
The Dollar Index hit 78.799 on Monday, the lowest level since the 3rd of June. The greenback declined against the JPY by over 70 pips to 93.92, because traders left the dollar for higher profitable assets. The GBP/USD rose by 120 pips to 1.6518, as the GBP acted positively to the optimism in the banking sector. The EUR/USD closed nearly 60 pips higher at 1.4214. There are some grounds to assume that probable rise in equity prices would bring further dollar depreciation.
As for today, some important releases are to be issued both in the USA and Canada. Canada is set to publish both the BOC Rate Statement and Overnight Rate at 13:00 GMT. The results of these are set to determine the USD/CAD rate in the coming week. At 14:00 GMT, U.S. Federal Reserve Chairman Ben Bernanke will testify before the Financial Services Committee in Washington, DC. This is important for further U.S. monetary policy. The forex market is expected to experience heavy volatility.

Dollar Declines as Negative Economic Data Released

2009-07-17T04:43:00.000-07:00

Thursday in forex market the US Dollar declined against its counterparts, as EUR/USD hit its high of 1.4150 level. The greenback depreciated against British pound and Japanese Yen.The reason of such a decline appeared to be the Long-Term Purchases report issued yesterday by US Treasury International Capital. This report includes the difference in foreign long-term securities purchased by USA citizens and U.S long-term securities purchased by foreigners. This time the figures appeared to negative as the balance is $19.8 billion. According to the released data Chinese investors are currently holding $800 billion US securities. The huge debt has raised concerns that it might have the potential to pull down the value Dollar in the long term outlook.

The Philadelphia Manufacturing Index, used to measure the economic conditions in the Federal Reserve district, was issued. The index reached a -7.5 mark, which means that the factory activity in the district has declined for the 10th consecutive month in July. According to forex analyses this report has boosted the greenback for further downfall.

RBC Introduces New Practice Accounts

2009-07-15T06:28:00.000-07:00

RBC Direct Investing has just released its introducing practice accounts for currently existing customers.The practice newly created accounts starts with the amount of $100,000 of which can be reset anytime. Even more practice money can be transferred to set a new level that to practice Forex strategy.
The account is integrated into the real online site so all the tools and learning resources with which clients are familiar are still at their disposal. A practice mode is characterized by the colour scheme of the web page and a message with an icon of a printed open book appears.
RBC is also adding new content and a new interface to the regular site. According to Jason Storsley RBC Direct president, the main aim is to help investors sharpen their skills.

J&J in Focus To Report Lower 2Q Earnings

2009-07-14T04:26:00.000-07:00

Forex currency market will review data docket to follow risk trends in Europe, with 2Q earnings reports from Johnson & Johnson. Overall, risk sentiment is likely to prevail once again in European forex trading hours. 2Q earnings announcements of Johnson & Johnson are likely to be of particular importance for traders. Indeed, forex markets largely oscillated in overnight trading despite significant gains across Asian stock markets with the upswing in confidence already priced in during US hours.
The company will probably prove particularly downside market-moving.
Today Johnson & Johnson (J&J) health-care corporation is expected to report lower 2Q profit. Tuesday, as a result the recent loss of market exclusivity for its popular Topamax drug and the company slowed sale volume of consumer products. Based in New Jersey J&J corporation, listed in the Dow Jones Industrial Average, is likely to report earnings of $1.11 a share, $0.15 down from the earned in the three months ended June 30, 2008.
According to forecasts quarterly revenue may be flat on a year-over-year basis, at $15 billion

Todd Gordon Issues “Forex Trading Using Fibonacci & Elliott Wave”

2009-07-10T06:08:00.000-07:00

A famous forex analyst issued a DVD release of his book revealing major problems connected with forex trading. From this perspective, Todd Gordon’s training DVD can be of much use. You might read any forex trading book, yet the practice of an experienced trader such as Todd Gordon may really help. And as any respected trader, he has developed a system based on the Fibonacci & Elliott wave.

The idea behind is quite simple – trade on pairs of currencies based on certain patterns. As most of the technical analysis, it relies on the recent events to forecast future. The difference of the technique illustrated on the DVD’s is that it also tests the past models on real-time data – thus allowing to mark profits on a relatively secure time.The difference between the successful investor and the average one is the knowledge on the main features of the market. Todd Gordon made a good work on sharing the audience with his experience.

Wednesday Business Events Review

2009-07-09T05:01:00.000-07:00

Wednesday the US dollar continued strengthening its positions against European counterparts as currency traders were unlikely to risk. Investors` positions also helped Japanese yen to contest against the major forex currencies, as it remains one of the main reserve currencies.
Yesterday attention of currency market participants was drawn to Italy, home of another G8 economic summit. Chinese delegation headed by Hu Jintao had to quit the summit due to continuing disorder in some regions of Peoples Republic of China. Investors were not encouraged by such a fact as a result traders were not seen to risk that day.
The general sense of the first statements of summit participants is summed up as economic outlook remains mixed as serious risks cannot be ruled out. These statements gave grounds for further forex quotes decline and sharp oil price fall. As a result EUR/USD ended the session reaching 1,3885 level, GDP/USD traded 1,6070.
Thursday the most expected event in economic calendar is considered to be the decision of Bank of England on its benchmark Repo rate. It is expected to remain at the same level of 0,5 percent. Besides, market players should focus on UK international trade balance sheet, which is assumed to perform positive dynamics comparing with the previous period.

Alcoa 2Q Report

2009-07-08T05:35:00.000-07:00

Thursday American indexes started trades with decline and fall continued throughout the whole session, sales encompassed the whole stock. USA started its corporate report period for 2Q and the first company to issue a report traditionally is Alcoa and this report is expected to be one of major economic events for this Week. Both stock and currency markets are likely to respond positively to this report. Yesterday Alcoa`s stock gained a little bit marking a rare exception. Alcoa Inc., which is expected to report a quarterly loss Wednesday amid a slump in global aluminum demand, is positioning itself for an new economic rebound by investing in markets it thinks are ripest for recovery.
The largest U.S. Aluminum company has done a $750 million expansion of a construction factory in Russian Federation. This will allow it to produce beverage cans for the European market. The company recently bought a small Morocco fasteners business that supplies European aerospace customers.
Klaus Kleinfeld, Alcoa's chief executive, said on Tuesday that he observes recovery signals in some sectors, including the aluminum market. In Russian Capital, where he was traveling with U.S. President Barack Obama, Mr. Kleinfeld said the North American automotive market is on the way of reviving.
Alcoa is the world leader in the production and management aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa`s production is used in aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design and engineering.

No Change for Australia Cash Rate

2009-07-07T05:44:00.000-07:00

The major economic event for today is RBA`s meeting and announced decision on its interest rate. The Reserve Bank of Australia (RBA) left its key cash rate at a record low of 3.0 percent and also noted that the domestic economy was not as weak as expected just a few months ago and saw first signals of stabilization in Australia`s economy.

For a third straight month the RBA did not change the interest rate level. The RBA has maintained official interest rates at the lowest point for 49-year period of 3 percent, amid signals that the world economy is stabilizing and that Australia`s inflation will continue to decline. According to Glenn Stevens, RBA governor, the board's current view is that the outlook for inflation allows some scope for further easing of monetary policy.

According to many market analyses prior the RBA meeting the rate was to remain at the same point till the end of 2009.

Preventing Bias in Forex Trading System

2009-07-07T04:48:00.000-07:00

In many cases, forex traders or retail traders are looking for a forex trading system which would help them to take decisions, control risk and make certain profits. Traders from all over the world cope up with such successes and struggles, in all currency markets. A trading system is usually defined as a series of methods implying expectations, position sizes, entries into the market and exits. It is not difficult to construct a forex trading system.
Testing and implementation are not easy to comprehend. Achieving success always requires proper forex education. For forex traders, attribution bias and over optimization are related to one another. Over optimization is initially, a practice of fitting the past data into a model. The problem appears when forex traders begin back-testing the system, and then, start amending the parameters of the system until the past results reaches the maximum value. There is a manual for trading system which will make you realize how the forex markets operate and it also covers the rules for forex trading.

Stock Market Has Hit Its High in 2009

2009-07-06T06:50:00.000-07:00

According to Glenn Neely, the founder of Neowave global market will drop 50% in Next 6 months Glenn Neely, prominent Elliott Wave analyst, made a new announcement of an unexpected prediction: The S&P 500 has formed a major top in June, which will be followed by a large decline, eventually pushing the stock market to lows for last ten years. As Mr. Neely comments the situation, last October's bottom brought a new correction; the March-June rally is the final leg of that correction. "The March-June rally is ended, allowing the bear market to resume. During the next six months, the S&P will decline 50% or more, breaking well below 500 points. Currently, the S&P is steaks to 917 level. Glenn Neely stated this information not as a specific trade recommendation but as a general public service announcement. A founder of Neowave, Neely was recently recognized in Timer Digest's May issue as the #1 stock market analyst for the past 12 months.

NZB Funding Costs and Margins

2009-07-06T05:59:00.000-07:00

On Monday the Reserve Bank of New Zealand announced an analysis of interest rate margins. Alan Bollard, Reserve Bank Governor stated, that the bank released this analysis to respond to a number of issues received regarding the stance on what room there still is for interest rate swaps. The paper notes the Reserve Bank is continuing to talk to the banks to clarify new trends in their funding costs and margins. The Bank Governor promised to review these matters further in the Bank's Financial Stability Report that is expected to be issued November 2009.

Latest Forex Market Update

2009-07-03T06:35:00.000-07:00

Late Thursday the euro continued its sharp decline against other major currencies after the release June U.S. Payrolls report, which sent forex traders out risky assets.

The euro was at Y134.55 from Y136.76. In New York, the euro traded at $1.4017 from $1.4147 late Wednesday. The dollar was at Y96.01 from Y96.67. The U.K. Pound traded at $1.6352 from $1.6252, and the U.S. Dollar was at CHF1.0851 from CHF1.0748. Later the day, the bad U.S. Non-Farm Payroll report influenced negatively stock markets, bringing the dollar to new daily top against the other major forex currencies. In the U.S.A. stocks and futures for crude oil declined, moving euro below $1.40 level. It also reached its two-session low of Y134.47. The EUR/USD pair continues to be contained in a range although a sharp decline below 1.4000 would give scope to an test and break of 1.3750.

The GBP/USD pair remains 1.6230 and the USD/JPY pivot 93.50. Sideway forex market strategy is seen again for forex currencies bringing another period of economic uncertainty.

View the complete latest development of forex major pairs on the website.

Wednesday Market Update

2009-07-02T06:05:00.000-07:00

On Wednesday at the European market close in London the FTSE hit 1.89 per cent. Frankfurt's Dax and the Paris CAC 40 also made gains up to 2.51 per cent. Wall Street revived as well as foreign exchange markets on Wednesday as S&P- 500 performed record quarter high since 1998. European stock markets started to rise at midday on July the 1-st with commodities gaining. Encouraging reports on China manufacturing, Europe and the US added to optimism that the worst stage of the global recession is over with the decline slowing. M&S reported its smallest decline per quarter in two years.

Commerzbank AG gained 20 per cent after Morgan Stanley`s statement on an agreement by German politicians on a new plan may spur the rise of shares.

Forex Trading Robots. Estimate Profitability

2009-07-02T05:30:00.000-07:00

Nowadays Forex trading software has been developed to more complicated instruments such as Forex trading robots. Many proficient traders want to test this way of trading and find out how it useful cam it become in the Forex market.

Many of these programs have convincing presentations and nice performance records, but you need to be knowledgeable about about any particular Forex trading software. In most cases these robots have not traded with hard currencies. It doesn't mean that these Forex trading software systems are swindlers and cheaters. Some of these robots have profitability records for several years and have been tested during actual trading. To guess which one of these particular trading robots can bring advantage is to get the software and try it out.

The forex trading robots become useful to employ proven trading strategies. Since robots respond to the program and commands of its owner, forex trading robots will do the trading automatically for you, using the tested trading strategies which you can remember.

Australia's Manufacturing Decline Slows

2009-07-01T02:17:00.000-07:00

Australia's manufacturing contraction slowed in June as the lowest interest rates in 49 years and government policy encouragedapeeared to boost domestic demand. The performance of manufacturing index rose 0.9 points from May to 38.4, marking the highest point in eight months. A reading below 50 shows that manufacturing is shrinking. The central bank has reduced the key interest rate by a record 4.25 percentage points since September to 3 percent. Australia together with India and China were the only countries among major economies that performed rise in the first quarter. Australia's survey asked more than 200 producing companies about production, new orders, deliveries, inventories and employment. According to this survey, manufacturing, which consists 10 percent of the economy, shrank for a 13th consecutive month in June.

German Unemployment Rose in June

2009-07-01T01:35:00.000-07:00

The number of unemployed people in the first European economy reached 3.495 million on a seasonally adjusted basis, a rise of 31,000 on May's number, official figures showed.
However, many economy analysts forecasted a bigger rise of about 45,000. According to the Federal Labour Office the jobless rate rose to 8.3% from 8.2% in May.

On an unadjusted basis, unemployment fell by 48,000 from the previous month.
Timo Klein from Global Insight comments the situation: "Employment has generally not fallen quite as fast as unemployment has been increasing, as firms aim to hold onto their existing workforce wherever possible."

As Germany prepares for general elections in September the data about unemployment rate had caused speculation prior to their release. These figures influenced European stock and currency markets. Experts continue warning that unemployment figures could top 4.1 million by the end of 2009, if the German economy follows predictions and contracts by more than 6 percent this year. There are global concerns that the economic crisis can become deeper as a jobs crisis by year's end.

European Market News

2009-07-01T01:14:00.000-07:00

Consumer confidence in the US weaker than expected influenced European markets late Tuesday. That rattled the banks stocks. Deutsche Bank, HSBC and Societe Generale were down between 1.5 and 2.5 percent.

Due to sharp price rise for precious metals the quotes of mining enterprises inclined. Oil prices also took a more than 3 percent tumble, bringing energy shares down. Currency market was influenced by money flows related to the end of month and quarter. In Frankfurt USD/EUR trades ended at the level of 1.4016.

Euro-Zone's Confidence Rises Regardless Problems

2009-06-30T04:25:00.000-07:00

Economy and consumer confidence in the euro zone improved for the third consequent month in June. However, the European Commission still fears problems in future. According to a survey by the European Commission, the overall economic-sentiment indicator for the euro zone inclined sharply to a high of 73.3, from 70.2 in May. In the U.K., the Commission's economic-sentiment index grew sharply for 30 percent straight month to 68.8 in June from May's 66.1.

The gains gave ground to think that the European downturn could begin bottoming out. Economic analysts say, the European Central Bank will not change its medium-term view that it should take additional steps to support growth in the euro zone. The ECB's governing council meets on Thursday and is expected to keep unchanged its key interest rate at the same level of 1.0% and also to announce no changes in policy measures to inflate money supply. Many economists warn that improving sentiment should result better performance in output of goods and services.

Five-Year High for Japan's Jobless Rate

2009-06-30T04:07:00.000-07:00

Japan unemployment rate reached its five-year high in May, while household spending performed a rise as the government distributed cash to help the economy growth. According to the statistics bureau, the jobless rate gained 0.2 percent reaching a high 5.2 percent from 5 percent in April.

Japan`s household spending rose 0.3 percent, the first rise in a year and a half. Economists expected outlays to drop 1.5 percent. Takuji Aida, senior Japan analyst at UBS AG in Tokyo stated that the effects of the Japanese policy are already observed and the stimulus package will only have a large effect in the April-June quarter.

Forex Market Update. GBP/USD

2009-06-30T03:16:00.000-07:00

In Asian trading GBP traded to 1.6660, and just under the high this month and for the year at 1.6662. The improvement in the GfK consumer confidence figures released earlier today seemed to support the sterling.
The Bank of England information on lending shows the banking system remains frozen, with net mortgage lending in May at record lows.
As for GBP, a rejection of the 1.6662 level risks a retreat in sterling, possibly back to the base of the 1.6200-1.6600 range that has held for much of the month. Pound rebound from USD1.6505 sees rate pressuring up against resistance level ahead of USD1.6530. Above here and rate can edge on USD1.6540/50 ahead of USD1.6560 and stronger interest placed toward USD1.6580.

Japan Inflation in Record Drop

2009-06-26T04:06:00.000-07:00

Figures of Japan inflation rate are likely to show that inflation in Japan remained negative in May. The drop in prices for food and energy as well as with weak demand at home and abroad raised deflation in the first economy in Asia. Prices of goods also dropped for the third consequent month. Prices in Japan fell by the most on record last month, bringing fears of a new deflation, as official data from the Ministry of Finance shows .

Consumer prices fell 1.1% in May compared to same month a year ago, the most since records began in 1970. Japan was previously trapped in a deflationary spiral, where prices of goods kept falling, in the 1990s. To sum up the analyst`s forecasts, the say economy management should avoid collapse into deflationary spiral. Analysts consider deflation to be damaging to an economy because consumers delay purchasing until prices fall further. This factor drives down prices more.

Economic output and trading fall if there is little consumer spending. According to the latest data has the worst stage of recession for Japan may be over, the drop in consumer prices follows the worst recession in the economy of Japan.

Two More Years of Recession for Car Japanese Producers

2009-06-26T03:37:00.000-07:00

Akio Toyoda the new boss at Toyota, vehicle producer number one in the world, has explained his future plans for returning it to profit. Akio Toyoda the grandson of Toyota's founder became a president at the most decisive moment for the company. The last year was the first one to end with losses for 14 years. He stated, everything possible would be done to avoid a third year of losses adding he would take a 30 percent pay cut for his first year in a new job. Mr. Toyoda stated: "We're looking at two more tough years ahead. But if we unite as one with all our staff from distribution to sales, we'll get over this tough period and Toyota will return to profit."
He announced a new management structure with vice presidents assigned to separate regions to speed up decision-making and make the company more responsive. Also the production of environmentally friendly cars is forecasted. Stock markets negatively responded for Toyoda`s speech.

Euro-Zone Orders

2009-06-26T03:07:00.000-07:00

According to the EU statistical agency Eurostat new orders for manufacturers in 16 countries with the euro currency fell 35.5 percent in April from a year earlier. This decline is considered to be the toughest since previous year. The worst situation were orders for tools, parts and components sold on to other producers, down nearly 40 percent. Car and home appliance orders decreased by more than a 25 percent.
Orders in Germany economy dropped by 39.5 percent. Eurostat said euro-zone orders slipped 1 percent from level of March. The entire 27-nation EU orders in April fell 35 percent from the same month last year and 0.5 percent compared to March. In Europe, however, new industrial orders in the euro zone turned out to perform very poorly.

Wednesday Market Update

2009-06-25T02:13:00.000-07:00

European shares finished the day sharply higher, up to 3 percent. Such a rise is explained to be boosted by the following factors: optimistic US information on orders for durable goods increased higher than predicted 1.8 percent, optimistic economic outlook from the OECD.

But the main factor spurring the market trades was the European Central Bank`s credit for banks almost half a trillion euros, the largest investment in its history. So banks turned to be the biggest gainers. Oil prices rose supported by fall in stockpiles of US crude and growing geopolitical conflicts in some OPEC member countries.

OECD Economic Outlook

2009-06-25T01:37:00.000-07:00

According to the OECD economic outlook its 30 industrialized member countries will rise 0.7 percent next year after dramatic decrease 4.1 percent in 2009. In March, the Paris-based group forecast a 2010 recession of 0.1 percent. According to OECD economic outlook the slowdown in OECD economies is reaching its bottom following the worst decrease for more than 60 years. Though recovery seems to be fragile and weak, as the social and economic damage caused by the worldwide crisis will be lasting for a long time.

The new version of the economic outlook is the first in two years to see previous projections for economic growth most clearly for the industrial economies and the United States. But the economic perspective for the euro area this year have decreased and Japan's have changed little since the OECD's previous economic analyses were published in March. Angel Gurra, the OECD Secretary-General said, that due to firm action to stimulate economies it appears that the countries escaped the worst during this crisis.

Unexpected SNB Intervention

2009-06-25T00:56:00.000-07:00

On Wednesday the USD rose highly against the Swiss franc when traders said the SNB was intervening by selling the franc for dollars and euros.The dollar still remained the biggest beneficiary of the intervention reports, on which the SNB refused to make any comments.

The SNB intervention reports also distracted the foreign exchange markets from the fall of the European Central Bank's tender that was first for a year which was its biggest-ever liquidity injection and which weighed the position of the euro.

Analysts admit that the SNB has stepped up its approach and it has enlarged its intervention scope. The US dollar rose two percent against the Swiss franc to reach a high of 1.0907 francs from around 1.066 francs before the reports emerged CHF. Traders observed the SNB buying dollars around 1.0880 francs.

2009-06-24T05:52:00.000-07:00

The European economy is performing better, showing stabilizing signs after a decline at the fastest pace in at least 15 years in the first quarter. European business confidence rose for 30 percent in June, according to results showed this week. Jean-Claude Trichet, European Central Bank President assumed this month the worst of the recession may be past after the ECB shortened interest rates to a significantrecord low and promised to buy covered bonds to fight the crisis.

The euro-area economy may shrink about 4.6 percent this year and around 0.3 percent in 2010 accordingto the ECB forecasts. Trichet stated that the economy may contract "at much less negative rates" since July the year. In the first quarter, gross domestic product slid 2.5 percent.

Expectations from FOMC

2009-06-24T05:47:00.000-07:00

The dollar and euro gained slightly against the yen in Tokyo on Wednesday as trust funds of Japan purchased those units to buy overseas assets. As dealers state, anticipation of such investments, which the trust funds regularly make at month's finish, prompted some short-term foreign exchange traders to buy the dollar and euro earlier the morning. Many players were reluctant to make big bets, particularly on the dollar, ahead of a U.S. Federal Open Market Committee meeting scheduled for later in the global day.

That happens because the FOMC statement is forecasted to contain few dollar-positive cues, as it seems to be much more cautious about the outlook of an economic rise than market players, dealers said. That would also confirm the opinion that the Federal Reserve will take more time before deciding to end its ultra-low 0-0.25% policy Federal Funds Rate. Currency market players said, after the meeting of FOMC the dollar may also further decline against the yen as Japanese firms repatriate overseas earnings ahead of six months at the end of June.

Green Car Loan from Washington

2009-06-24T04:49:00.000-07:00

Washington is expected to give a $25 billion loan to the car producing companies Ford, Tesla, Nissan to maintain electric car producing program to develop more fuel-efficient vehicles.

Nissan expects to sell electric cars in the US and Japanese market since April 2010, and by 2012 to launch the production for sales worldwide. Japanese Nissan will get almost two billion dollars of government cash to build electric cars in the US and construct an advanced battery manufacturing plant.