Lately i was many times asked about, forex trading strategies for sale, they always offer big returns easy trading without stress and the can be applied by everyone.
So i decided to make my own investigation, and i must admit i had big issue with those trading strategies, they all show proofs of earning, have got "happy" customers statments even with their happy faces, but on the other hand i never heard that someone made money trading bought strategy. I actually couldn't find anyone who was or is using one of this strategies, so i asked asuthors.
Results where terryfinig it happens those who sell this strategies don't even know what they are talking about, for example what is "forex trading hours" some of sellers are not even aware of that they can trade forex 24 hours a day!!! Not to mention they do not even know what leverage, long or short position is.
There also happens sellers who know what forex is, proboably traded for some years but there are no proofs they made money, or that they strategies are succesfull.
Finally there are few gems i can recommend, i contacted their authors and belive buying this books will be a good investment.
If you have any experiences with any of this strategies please comment my post or write to me, it will be interesting for us all.
Tuesday, June 20, 2006
Monday, June 19, 2006
Foreign banks increase exposure in gilts & forex
With the ongoing volatility in domestic interest rates as well as in the Sensex movement, foreign banks, whose numbers may be small, have suddenly emerged as the leading players in both the segments - gilts and forex - in the money market. In the first week of the current month, foreign banks have bought g-secs worth nearly Rs 1,000 crore on a daily basis. This accounts for nearly 40% of the total daily g-secs deals , which is much higher than the earlier period.
According to Clearing Corporation of India Ltd (CCIL), the share of foreign banks in total g-secs' purchases was only 28% in May. In April, their share was still lower at 24%.
The Reserve Bank of India (RBI) permits foreign banks to classify government securities purchased under the reverse repo auction as part of the statutory liquidity requirements (SLR) exposure of the bank. However, given the 50 basis points rise in reverse repo rates in the last six months, purchase of securities through reverse repo auction has proved to be a costlier route. As a result, foreign banks prefer outright purchase of g-sec through the secondary market.
Further, given the prevailing high volatility in the domestic equity markets, many foreign banks have pared their exposure in equities and increased that in the government securities.
Financial Technologies (India) recommends 260% dividend
Financial Technologies India has recommended a final dividend of 260% for the year. During the year the company has paid interim dividend of 40% and accordingly, total dividend for the year aggregates to 300%.
The decision was taken by the board of directors of the company at its meeting held on June 17, 2006.
Financial Technologies (India) (FTIL), headquartered in India and listed on the Bombay Stock Exchange, is India`s leading vertical specialist enterprise delivering mission-critical, straight through processing solutions comprising domain expertise, technology licensing and development & transaction outsourcing services.
Read more here.
The decision was taken by the board of directors of the company at its meeting held on June 17, 2006.
Financial Technologies (India) (FTIL), headquartered in India and listed on the Bombay Stock Exchange, is India`s leading vertical specialist enterprise delivering mission-critical, straight through processing solutions comprising domain expertise, technology licensing and development & transaction outsourcing services.
Read more here.
Japanese Forex Trading Preview
The dollar starts the week softer against the euro, sterling and Swiss franc, but firmer versus the yen. Traders are in store for a slower week in the way of US economic reports, with the following slated for release; May housing starts, building permits, weekly jobless claims, May leading indicators and May durable goods orders. Returning to the fore is uncertainty from Asia, with North Korea completing fuelling of missiles with a range to reach the US.
Read more here.
Read more here.
FX Trading.com offers 2 wide spreads to RefcoFX Forex clients
Refco FX, one of the largest firms in the Forex industry, has recently announced it’s filing for bankruptcy protection. Refco FX, a subsidiary of Refco Group, has finally fallen to its parent company’s financial troubles and has been forced to suspend all trading.
Refco Group experienced a massive devaluation earlier this year as a result of its CEO, Phillip R. Bennet, being accused of a scheme to falsely inflate the company’s stock price through improper accounting practices. Refco FX was initially unaffected by the scandal, but has recently announced its inability to proceed.
Read more here.
Refco Group experienced a massive devaluation earlier this year as a result of its CEO, Phillip R. Bennet, being accused of a scheme to falsely inflate the company’s stock price through improper accounting practices. Refco FX was initially unaffected by the scandal, but has recently announced its inability to proceed.
Read more here.
Thursday, June 15, 2006
FOREX-Dollar hits 6-week high on core US inflation data
NEW YORK, June 13 (Reuters) - The dollar on Tuesday hit six-week highs against the euro and the yen after a higher-than-expected reading of core U.S. inflation heightened expectations for more Federal Reserve interest rate increases.
Interest rate futures markets pushed up the chances of a quarter percentage point rate increase in the federal funds rate at the end of June, and some analysts are now suggesting the Fed may not stop there.
"Topping out in the fed funds rate is not quite clear and no one is concluding that it is one more move and we're done," Alex Beuzelin, foreign exchange market analyst with Ruesch International in Washington, said. "That's supporting the dollar."
Join the Online Trading Revolution!
Forex is the largest trading exchange in the world. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day.
/24-7PressRelease/ - ODESSA, ON, CANADA, June 15, 2006 -- Forex is the largest trading exchange in the world. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day. With its unique style of instantaneous transactions, 24 hour trading and 0% commission on exchanges, Forex has become the largest and most lucrative trading platform in the world today.
In an industry built around perpetual motion, Forex has embraced the developments on the Internet to allow online brokerages and individual traders to make a market impact. With trading tools, analysis and all the plausible data at users' fingertips, trading on the Forex market has never been simpler.
But in a market overflowing with potential but still rife with danger, new and experienced traders alike need a resource to hone skills and understand exactly what is happening in the industry today. ForexFusion.com provides all of the solutions that will get any person on the right road for trading success.
With advice, jargon busting and basic foreign exchange strategies, ForexFusion.com is a one-stop shop for any aspiring trader. In an industry that never
stays still, ForexFusion.com will keep visitors up-to date on all the latest advances, as well as providing all the information a person could ever require to become a successful trader on the worlds largest exchange.
Read more here.
In an industry built around perpetual motion, Forex has embraced the developments on the Internet to allow online brokerages and individual traders to make a market impact. With trading tools, analysis and all the plausible data at users' fingertips, trading on the Forex market has never been simpler.
But in a market overflowing with potential but still rife with danger, new and experienced traders alike need a resource to hone skills and understand exactly what is happening in the industry today. ForexFusion.com provides all of the solutions that will get any person on the right road for trading success.
With advice, jargon busting and basic foreign exchange strategies, ForexFusion.com is a one-stop shop for any aspiring trader. In an industry that never
stays still, ForexFusion.com will keep visitors up-to date on all the latest advances, as well as providing all the information a person could ever require to become a successful trader on the worlds largest exchange.
Read more here.
Forex Fundamentals
US Dollar. The US dollar’s rally over the past month has become extremely overextended and the market is finally beginning to feel it.
After yesterday’s sharp movements in the
commodity and stock markets, today’s theme has been retracements. Oil and gold
prices are both slightly higher, along with the Dow. In the FX markets, the buck
has sold off even though today’s US data is more dollar positive than negative,
purely because buyers are starting to become scarce ahead of critical resistance
levels. Inflation is the Fed’s primary focus, which made today’s report on
consumer prices even more important. Headline prices rose 0.4 percent while core
prices rose 0.3 percent, which was slightly stronger than expected. Although it may
seem like only a mild up tick from the 0.2 percent forecast, the three month
annualized rate of core inflation, the number that Bernanke is keeping an eye on,
hit 3.8 percent, the highest level in over a decade. This strong pace of growth has
sent rate hike expectations to 100 percent, with the market already beginning to
price in a tiny chance for another hike in August. However, a closer look at the
report shows that a large part of the rise was due to the higher cost of owners
equivalent rent. The pickup in mortgage rates has made renting a far more
attractive option than owning. Bond yields has risen as traders price in higher
rates, but at the same time the yield curve has inverted further, indicating that
the market believes the higher interest rates will have a big impact on growth.
Even though the rise in owners equivalent rent is an immediate inflationary concern,
it is also a longer term headache. The higher mortgage rates rise, the more risks
it poses for the housing market. The Fed’s Beige Book is already showing signs of
this impact as many of the districts report slower growth and higher inflation. Yet
the Fed has chosen to focus exclusively on the inflation component at the risk of
growth. This is a dangerous game to play, but with such solidarity behind their
decision to unanimously tell the markets that another quarter point rise will be
coming in June, it is a message that we cannot ignore. Therefore until the next
meeting, even if we do see the dollar give back more of its gains, it will probably
not come close to 1.30 in the EUR/USD as the fear of how far the Fed will go keeps
dollar bears cautious of taking on new positioning. Meanwhile tomorrow we are
expecting the TIC data, also known as the report on net foreign purchases of US
securities. Talk of reserve diversification over the past few months could bring
about a weak number, which would extend the dollar’s losses.
Read more here.
After yesterday’s sharp movements in the
commodity and stock markets, today’s theme has been retracements. Oil and gold
prices are both slightly higher, along with the Dow. In the FX markets, the buck
has sold off even though today’s US data is more dollar positive than negative,
purely because buyers are starting to become scarce ahead of critical resistance
levels. Inflation is the Fed’s primary focus, which made today’s report on
consumer prices even more important. Headline prices rose 0.4 percent while core
prices rose 0.3 percent, which was slightly stronger than expected. Although it may
seem like only a mild up tick from the 0.2 percent forecast, the three month
annualized rate of core inflation, the number that Bernanke is keeping an eye on,
hit 3.8 percent, the highest level in over a decade. This strong pace of growth has
sent rate hike expectations to 100 percent, with the market already beginning to
price in a tiny chance for another hike in August. However, a closer look at the
report shows that a large part of the rise was due to the higher cost of owners
equivalent rent. The pickup in mortgage rates has made renting a far more
attractive option than owning. Bond yields has risen as traders price in higher
rates, but at the same time the yield curve has inverted further, indicating that
the market believes the higher interest rates will have a big impact on growth.
Even though the rise in owners equivalent rent is an immediate inflationary concern,
it is also a longer term headache. The higher mortgage rates rise, the more risks
it poses for the housing market. The Fed’s Beige Book is already showing signs of
this impact as many of the districts report slower growth and higher inflation. Yet
the Fed has chosen to focus exclusively on the inflation component at the risk of
growth. This is a dangerous game to play, but with such solidarity behind their
decision to unanimously tell the markets that another quarter point rise will be
coming in June, it is a message that we cannot ignore. Therefore until the next
meeting, even if we do see the dollar give back more of its gains, it will probably
not come close to 1.30 in the EUR/USD as the fear of how far the Fed will go keeps
dollar bears cautious of taking on new positioning. Meanwhile tomorrow we are
expecting the TIC data, also known as the report on net foreign purchases of US
securities. Talk of reserve diversification over the past few months could bring
about a weak number, which would extend the dollar’s losses.
Read more here.
Tuesday, June 13, 2006
Forex Fundamentals
When trading forex long term it is good to keep an eye on forex fundamentals, so here is a brief overview of what is going to happen with major currencies.
S Dollar. The foreign exchange market has been extremely quiet today with most currency pairs aside from the Canadian dollar calmly consolidating....
The next few days will be very
busy as traders prepare themselves for a long list of key economic data scheduled
for release from all of the major countries around the world as well as a number of
Fed speeches. Bernanke’s credibility has really come to question over the past few
days and will be tested even more so this week. Financial editors of the press have
had a blast touting his keen ability to confuse the markets which comes in clear
contrast to the transparency, clarity and simplicity that he initially promised when
he became Federal Reserve Chairman. He is slated to speak this evening and then
once again in the morning and in all likelihood, he will stick to the script on Bank
Supervision because he knows that if he fails to affirm his newly hawkish stance,
all credibility would probably be lost. Given earlier signs of slower growth, this
week’s data, starting with tomorrow’s retail sales report could potentially surprise
to the downside. If retail sales do come out extremely weak, the market will wonder
whether Bernanke is playing with fire, risking a global slowdown to combat
inflation. Of the other Fed officials that spoke today, they either refrained from
mentioning monetary policy or simply repeated their concerns with inflation.
Whether inflation is really prevalent will also be proved this week as we first see
the producer price index tomorrow morning and then the consumer price index on
Wednesday. These will be watched even more closely than they usually are because if
neither confirms the strong inflation concerns of the Fed, Bernanke’s credibility
will be in question once again, which would be negative for the US dollar. The only
piece of economic data that was released today was the US’ monthly budget statement,
which reported a larger deficit of -$42.8 billion compared to a -$35.4 billion
forecast. Structural problems have been plaguing the US economy for years and based
upon the latest figures, it is far from being resolved. Meanwhile the hurricane
season begins with warnings that the season’s first Tropical Storm Alberto could be
named a hurricane. With oil prices still hovering above $70 a barrel, if any
hurricanes this summer hit the US oil and gas heartland along the Gulf Coast, we
could easily see another record high in crude, which could pose another risk to the
sustainability of consumer spending. If the US consumer goes, so does the US
dollar. However as long as the US consumer holds on, the Fed will be able to as
well, which would validate and exacerbate the greenback’s recent climb * so keep an
eye on weather patterns as well as retail sales.
Read more here.
S Dollar. The foreign exchange market has been extremely quiet today with most currency pairs aside from the Canadian dollar calmly consolidating....
The next few days will be very
busy as traders prepare themselves for a long list of key economic data scheduled
for release from all of the major countries around the world as well as a number of
Fed speeches. Bernanke’s credibility has really come to question over the past few
days and will be tested even more so this week. Financial editors of the press have
had a blast touting his keen ability to confuse the markets which comes in clear
contrast to the transparency, clarity and simplicity that he initially promised when
he became Federal Reserve Chairman. He is slated to speak this evening and then
once again in the morning and in all likelihood, he will stick to the script on Bank
Supervision because he knows that if he fails to affirm his newly hawkish stance,
all credibility would probably be lost. Given earlier signs of slower growth, this
week’s data, starting with tomorrow’s retail sales report could potentially surprise
to the downside. If retail sales do come out extremely weak, the market will wonder
whether Bernanke is playing with fire, risking a global slowdown to combat
inflation. Of the other Fed officials that spoke today, they either refrained from
mentioning monetary policy or simply repeated their concerns with inflation.
Whether inflation is really prevalent will also be proved this week as we first see
the producer price index tomorrow morning and then the consumer price index on
Wednesday. These will be watched even more closely than they usually are because if
neither confirms the strong inflation concerns of the Fed, Bernanke’s credibility
will be in question once again, which would be negative for the US dollar. The only
piece of economic data that was released today was the US’ monthly budget statement,
which reported a larger deficit of -$42.8 billion compared to a -$35.4 billion
forecast. Structural problems have been plaguing the US economy for years and based
upon the latest figures, it is far from being resolved. Meanwhile the hurricane
season begins with warnings that the season’s first Tropical Storm Alberto could be
named a hurricane. With oil prices still hovering above $70 a barrel, if any
hurricanes this summer hit the US oil and gas heartland along the Gulf Coast, we
could easily see another record high in crude, which could pose another risk to the
sustainability of consumer spending. If the US consumer goes, so does the US
dollar. However as long as the US consumer holds on, the Fed will be able to as
well, which would validate and exacerbate the greenback’s recent climb * so keep an
eye on weather patterns as well as retail sales.
Read more here.
Online Education Helps FOREX Currency Trade
FOREXBusinessSchool.com currency trade education has conducted research aimed at identifying the training needs of FOREX traders... who want to increase their chances of success.
Staff of FOREXBusinessSchool.com, determined that, especially due to the "investor beware" climate of the FOREX markets, there is a need for an independent source to provide currency trader training.
The FOREXBusinessSchool.com program is being developed by college educators who are experienced investment and finance professionals. This educator advantage does not exist with currency trader training programs that are affiliated with dealers and brokerage houses.
"We will undoubtedly make FOREXBusinessSchool.com the very best online training source for people interested in, or involved with, online currency trading" said Leonard Cox, program developer for the online FOREX school.
Many educators and investment experts are previewing drafts of the FOREXBusinessSchool.com curriculum. The preliminary ratings of FOREX Business School are excellent. You can subscribe to the mailing list on the FOREXBusinessSchool.com contact page to receive updates.
Read more here.
New Online Business Opportunity Helps Entrepreneurs Succeed Where They Once Failed
Alexandria, VA, June 13, 2006 --(PR.COM)-- The number of new online businesses started every year is growing at an astounding rate. Enticed by promises of a three-hour workweek and a million dollar salary, people are convinced that all they have to do is build their own website and they’ll be rich. But less than 1% ever actually generate any income from their venture.
Now there is an opportunity that lives up to its promises. Backed by 12 years of experience, the Prosperity Automated System (PAS) is a new type of network marketing that is allowing entrepreneurs to succeed where they once failed.
"The complete automation of PAS, from the presentation of the opportunity to the professional follow through by the team leader staff among other things, truly remove many of the variables potentially responsible for past failure rates” says Amber Barth, a PAS business owner. “With a bit of effort, I believe anyone, regardless of their background can have success with this business."
As its name suggests, the Prosperity Automated System is an automated system for earning money online. With PAS, business owners focus on getting prospects to visit their website and from there a trained PAS representative does the follow up and closes the sale. Unlike other network marketing businesses, members do not have to spend time cold calling, answering customer questions or following up with prospects.
Read more here.
Now there is an opportunity that lives up to its promises. Backed by 12 years of experience, the Prosperity Automated System (PAS) is a new type of network marketing that is allowing entrepreneurs to succeed where they once failed.
"The complete automation of PAS, from the presentation of the opportunity to the professional follow through by the team leader staff among other things, truly remove many of the variables potentially responsible for past failure rates” says Amber Barth, a PAS business owner. “With a bit of effort, I believe anyone, regardless of their background can have success with this business."
As its name suggests, the Prosperity Automated System is an automated system for earning money online. With PAS, business owners focus on getting prospects to visit their website and from there a trained PAS representative does the follow up and closes the sale. Unlike other network marketing businesses, members do not have to spend time cold calling, answering customer questions or following up with prospects.
Read more here.
Gold, oil extend drop, dollar up on rate talk
Gold, metals and oil extended losses on June 14 as investors dumped higher-risk assets, Japanese stocks regained lost ground and the US dollar set a seven-week high on persistent talk of higher US interest rates.
Japan's Nikkei stock average (N225) dropped almost 1% at the start but clawed back the losses and registered a 1.05% gain, thanks to advances by retailers such as Aeon Co which are dependent on the domestic economy.
The insipid recovery in Tokyo was reflected in other Asian stock markets with South Korea's benchmark KOSPI rising 0.9% and Taiwan's key index adding 0.85%.
Tokyo shares had their biggest one-day percentage fall in two years on June 13. The losses in Asia spilled over into Wall Street where the Dow Jones industrial average dropped 0.8% to 10,706.14 yesterday. After more than a month of steady declines, it has now lost all of its gains for the year.
The tech-heavy Nasdaq composite index fell for the eighth straight day, dropping 0.9% to 2,072.47.
Investors have dumped riskier assets and moved their money to dollars since May on worries that the US Federal Reserve would be forced to raise rates for the 17th straight time at a meeting on June 28-29 to stymie inflation despite signs that the world's biggest economy and Asia's biggest export market was slowing.
The rate expectations helped push the dollar to a seven-week high against the euro and yen in New York and kept them near those levels in early Asian trading on June 14.
Spot gold plunged to US$561 (RM2,070) an ounce to notch up a 22% drop in the past month. June 13's drop in gold prices was its sharpest decline in 15 years.
"The market continues to see movements linked to risk aversion," said Kota Kimura, forex manager at Shinkin Central Bank. "Unless some fresh and strong incentives come out, money is likely to keep flowing back to dollar assets."
Seven Big Things Professors Won�t Teach You (But You Should Know)
Are you studying finance? If so, then terms like present and future value, efficient market theory, capital budgeting, arbitrage pricing and a whole slew of other exciting phrases are becoming part of your vocabulary. And if you�re thinking about studying finance in college or graduate school, be prepared to be lectured on those topics and more during your coursework. This is all well and good. If you plan on a future in finance, you�ll need a grounding in financial theory. Here�s the problem, though. Your instructors won�t teach you the good stuff, the stuff that can really help you excel in your job or make money in the markets. That all falls under the umbrella of �practical knowledge� which is not what college curricula are generally designed to pass along to young, eager minds looking to learn.
Have no fear, though! This report will help fill in the gaps. While it�s impossible to cover everything you could possibly want to learn in this brief space, here you will be given seven specific areas of focus. It is my intent to provide you with something of a guide to help you go beyond your text books and take your financial education to another level. From there you�ll be able truly accelerate your growth at a rapid pace, allowing you the opportunity to have more success.
Read more here.
Have no fear, though! This report will help fill in the gaps. While it�s impossible to cover everything you could possibly want to learn in this brief space, here you will be given seven specific areas of focus. It is my intent to provide you with something of a guide to help you go beyond your text books and take your financial education to another level. From there you�ll be able truly accelerate your growth at a rapid pace, allowing you the opportunity to have more success.
Read more here.
Sunday, June 11, 2006
Greed Can Force The Remote Forex Trader Into An Early Retirement
I recently found an interesting article about currency trading and greed. Athor makes few good points so i think it will be good to read and reread it.
In the markets, greed is often a good thing. It is what drives companies to perform well, and what drives much of the markets movement. It’s the effort that the remote forex trader will expend trying to make a profit that creates the market movement that enables you, as a remote forex trader, to succeed.
The desire to make money is what motivates a remote forex trader to become successful. But the desire to succeed is different from the desire to get every bit of possible profit from a trade. This kind of reckless greed makes a remote forex trader hold on to their position long after the downside has started to outweigh the upside, until risk outweighs potential reward.
Here's an example: a remote forex trader sees that a particular stock is starting on a run; it's reported good news and is already up 20% for the day. The volume is still building; it's stable at the current price; the market is rallying strongly; and it looks like it will go higher. The remote forex trader buys 1,000 shares at $6 a share. By 12:15 P.M., the stock has raced up to $10 - a gain of over 66% for the day, and a profit of $4,000 on 1,000 shares.
This remote forex trader knows that round number price points, like $10, are psychological barriers for the remote forex trader and that if a stock is going to stop rising, it will probably be near a point like this. As it turns out, after momentarily shooting to $10.03, the price stops rising and starts to go down.
Read more here.
In the markets, greed is often a good thing. It is what drives companies to perform well, and what drives much of the markets movement. It’s the effort that the remote forex trader will expend trying to make a profit that creates the market movement that enables you, as a remote forex trader, to succeed.
The desire to make money is what motivates a remote forex trader to become successful. But the desire to succeed is different from the desire to get every bit of possible profit from a trade. This kind of reckless greed makes a remote forex trader hold on to their position long after the downside has started to outweigh the upside, until risk outweighs potential reward.
Here's an example: a remote forex trader sees that a particular stock is starting on a run; it's reported good news and is already up 20% for the day. The volume is still building; it's stable at the current price; the market is rallying strongly; and it looks like it will go higher. The remote forex trader buys 1,000 shares at $6 a share. By 12:15 P.M., the stock has raced up to $10 - a gain of over 66% for the day, and a profit of $4,000 on 1,000 shares.
This remote forex trader knows that round number price points, like $10, are psychological barriers for the remote forex trader and that if a stock is going to stop rising, it will probably be near a point like this. As it turns out, after momentarily shooting to $10.03, the price stops rising and starts to go down.
Read more here.
Surge in aluminium prices helps lift trade figures
A surge in prices for aluminium exports helped lift the merchandise terms of trade index 1.1 per cent in the March quarter, Statistics New Zealand (SNZ) said today. The figure was unexpectedly good with economists polled by Reuters having forecast a 1 per cent fall. The terms of trade index measures how many goods can be imported for every dollar of exports. SNZ said merchandise export prices were up 3.2 per cent, the largest quarterly increase since a 7.2 per cent rise in the June 2004 quarter. The most significant contributor was non-food manufactures up 5.9 per cent, predominantly driven by a 22.6 per cent increase in aluminium prices. The second most significant contributor to the rise in export prices was a 4.9 per cent rise in the forestry products index, with prices for wood exported as logs up 6.5 per cent, wood pulp up 5.1 per cent, and paper and paper products up 2.7 per cent. The rise followed depreciation of the New Zealand dollar against currencies of our major trading partners, combined with increasing world prices for some of our major export commodities, SNZ said. Import prices were up 2.1 per cent, with transport equipment up 4 per cent, pushed by higher prices for aeroplanes and other aircraft, and new passenger motor cars. The petroleum and petroleum products index continued to rise although at a slower rate. In the March quarter it was up 4 per cent, following a 5.6 per cent rise in the December quarter and 11.3 per cent rise in the September quarter. Weakness of the New Zealand dollar had been a factor in the import price rise, with the March quarter being the first since June 2004 that the currency had fallen against the currencies of all major trading partners, SNZ said. Seasonally adjusted export volumes fell 2.4 per cent, with a 17.2 per cent drop in meat volumes the main contributor. The volume of meat exports was at its lowest level since the December 2002 quarter. Seasonally adjusted import volumes were up 0.5 per cent with fuels and lubricants the main contributors.
Read more here.
Read more here.
Central bank to unite forex trading systems
The central bank is planning on combining the nation's traditional foreign exchange trading system with a new system initiated last year by the end of 2006, the China Securities Journal said Saturday.
An integrated system would be the lastest in a series of reforms to increase market efficiency and monitoring, the newspaper said.
The new system was launched a year ago and allows domestic trading in eight foreign currency pairs. It is a step toward a market-based environment by allowing domestic banks to trade foreign currencies, but is separate from yuan trading.
Morgan Stanley, Calyon Diverge on Dollar-Euro Amid Volatility
Forecasters Stephen Jen and Mitul Kotecha agree that traders may have to get used to abrupt currency swings of the kind they saw last week, when the dollar had its biggest surge against the euro in nine months. They disagree on where the U.S. currency will end the year.
Morgan Stanley's Jen says the dollar will strengthen to $1.24 to the euro by Dec. 31 from $1.2645 now. Along the way, it will bounce wildly, falling below $1.30 before rising, he said. Kotecha, at Calyon, a unit of Credit Agricole SA, sees the dollar slumping to $1.35 per euro by year's end.
``We will be in a much more volatile environment in the second half,'' said 35-year-old Kotecha, Calyon's London-based head of global foreign-exchange strategy. ``The dollar won't fall in a straight line.''
The divergent forecasts show the difficulty of predicting currency moves at a time when Federal Reserve policy-makers have been changing their tone on the pace of interest rate increases. Thirty-two economists surveyed by Bloomberg on average predict the dollar will weaken by year's end to $1.30 per euro -- a level almost reached at the beginning of last week, when it touched $1.2980.
The U.S. currency then gained 2.1 percent against the euro, its biggest advance since August, to finish at $1.2650 as Fed officials makers signaled that they would keep raising rates to keep inflation in check. The central bankers' comments also helped trigger the biggest weekly slump in global stock markets in more than 3 1/2 years.
Fake currency seized, one held
Thirteen fake currency notes of denomination Rs 100 were seized from one Md Ibungo(30) s/o Md Shah of Lilong Turel Ahanbi while he along with two other accomplices tried to make use of the fake currency in purchasing petrol at Kyamgei Pal Ahanbi at around 7.15 am today.
Read more here.
Read more here.
Currency Strategists: Deutsche Bank Says to Buy Yen on BOJ Move
June 12 (Bloomberg) -- The yen will rise to its strongest since January 2005 in the next six months on prospects the Bank of Japan will boost borrowing costs at a faster pace than the Federal Reserve, according to Deutsche Bank AG.
The yen has gained 3.3 percent against the dollar this year on speculation the BOJ will lift its benchmark rate from near zero percent, while speculation is building the Fed is close to the end of its cycle of rate increases. Japan's central bank cut overnight rates to zero in 2001 to combat deflation.
``The Fed is going to be on hold while the BOJ will continue to hike throughout the year,'' said Jens Nystedt, a currency strategist in New York at Deutsche, in a phone interview on June 9. ``The interest-rate differential going forward is going to favor the yen. I certainly want to be long,'' or buying the yen, he said.
From 113.97 per dollar at 5:27 p.m. in New York on June 9, the yen will rally to 102 per dollar by year-end, Nystedt predicts. It would be the strongest since 101.68 yen on Jan. 17, 2005. The yen reached an eight-month high of 109 yen on May 17.
Frankfurt-based Deutsche is the largest currency trader, according to an annual survey by Euromoney magazine.
Nystedt predicted the BOJ will boost its benchmark rate starting in July by a total of 0.75 percentage point by year-end. The Fed will lift its target a 17th straight time by a quarter- percentage point to 5.25 percent at its June 28-29 meeting and then pause, he said. The U.S. benchmark rate will only exceed Japan's by 4.5 percent by year-end, he said.
Dollar May Gain on Inflation Reports, Forecast for Fed Rates
June 12 (Bloomberg) -- The dollar may gain against the euro on speculation U.S. government reports will signal inflation is accelerating and prompt the Federal Reserve to raise interest rates for a 17th consecutive time.
Sixty-two percent of the 53 traders, strategists and investors surveyed by Bloomberg on June 9 from Sydney to New York advised buying the dollar against the euro. Forty percent recommended purchasing the U.S. currency against the yen.
``The market's very nervous about inflation and the prospect of higher interest rates, and that's favoring the dollar,'' said Ian Gunner, head of foreign exchange in London at Mellon Financial Corp., which holds $4.13 trillion in assets. ``We're likely to see more strength for the currency.''
Producer prices probably rose 4.3 percent in May compared with a year earlier, the biggest increase since January, according to the median forecast of economists in a Bloomberg survey. Consumer prices likely increased 3.9 percent in May from a year earlier, after a 3.5 percent gain in April. The reports are scheduled for release June 13 and 14.
The U.S. currency rose the past five days, its longest rally since January, as traders boosted bets the Fed will lift its target rate by a quarter-percentage point on June 29 to 5.25 percent. Odds of an increase surged to 84 percent last week from below 50 percent a week earlier, trading in interest-rate futures show, after Fed Chairman Ben S. Bernanke and central bankers emphasized their concerns about inflation.
DGCX launches currency futures trading
Trading in currency futures commences tomorrow, Monday 12th June 2006 on Dubai Gold and Commodities Exchange (DGCX).
This is the third product to be launched on the DGCX after Gold, (November 2005 at launch) and Silver (March 2006).
From today, DGCX brokers will be able to trade Euro/US Dollar, Yen/US Dollar and Sterling /US Dollar contracts with other contracts coming on line over time. Each of these currencies will have four forward months contracts maturing in March, June, September and December. The contract size for Euro/USD and Sterling/USD will be 50,000 while the contract size for Yen/USD will be 5,000,000.
DGCX continues to develop apace with the existing contracts achieving phenomenal growth. In the most recent market update, DGCX confirmed that Gold futures volumes grew by 54% from April to May, reaching a staggering 62,139 Kilos. These figures include a highest ever daily traded volume of 6062 contracts on 15th May.
With commodity markets in the middle of a major bull run, the introduction of a diverse range of commodities on DGCX, offers an ideal platform for market participants to trade all the products on a single exchange platform. The Exchange plans to introduce futures contracts on steel and marine fuel oil in the fourth quarter of 2006.
Read more here.
This is the third product to be launched on the DGCX after Gold, (November 2005 at launch) and Silver (March 2006).
From today, DGCX brokers will be able to trade Euro/US Dollar, Yen/US Dollar and Sterling /US Dollar contracts with other contracts coming on line over time. Each of these currencies will have four forward months contracts maturing in March, June, September and December. The contract size for Euro/USD and Sterling/USD will be 50,000 while the contract size for Yen/USD will be 5,000,000.
DGCX continues to develop apace with the existing contracts achieving phenomenal growth. In the most recent market update, DGCX confirmed that Gold futures volumes grew by 54% from April to May, reaching a staggering 62,139 Kilos. These figures include a highest ever daily traded volume of 6062 contracts on 15th May.
With commodity markets in the middle of a major bull run, the introduction of a diverse range of commodities on DGCX, offers an ideal platform for market participants to trade all the products on a single exchange platform. The Exchange plans to introduce futures contracts on steel and marine fuel oil in the fourth quarter of 2006.
Read more here.
Saturday, June 10, 2006
Euro FX Trade
We just exited our June Euro put spread for a little more than a 200% return in 11 trading days. As I mentioned in the June spread I remain a longer term bull of this market. Today's breakdown is nothing more than a shakeout of the longs one day before June's option expiration, coincidence?...I think not.
We may break down a bit more in the coming days but by then end of this month I expect to see this market back towards 1.30. Mr. Bernanke may have spooked the markets but it is nothing more than the typical over reaction that we are seeing in the Dollar.
The ECB did surprise us by only raising rate by .25 point rather than the .50 point that was expected. While this story was spun as bearish, I believe that as a whole the European's financial house is in better order than here in the US and we should see that reflected in the currency exchange rates as this becomes more evident.
Friday, June 09, 2006
U.S. Dollar Mixed Against Other Currencies
The dollar turned mixed Friday against other major currencies, rising against the euro, holding steady against the British pound and falling against the Japanese yen.In late New York trading, the euro slipped slightly to $1.2644 from $1.2646 in New York on Thursday.
The British pound was lower at $1.8413 in late New York trading, while the dollar fell to 113.92 Japanese yen from 114.21; 1.2312 Swiss francs from 1.2323; and 1.1063 Canadian dollars from 1.1224.
The European Central Bank boosted its key lending rate by a quarter percentage point to 2.75 percent at a meeting Thursday in Madrid, Spain, but some had speculated it would raise rates even higher.
Read more here.
The British pound was lower at $1.8413 in late New York trading, while the dollar fell to 113.92 Japanese yen from 114.21; 1.2312 Swiss francs from 1.2323; and 1.1063 Canadian dollars from 1.1224.
The European Central Bank boosted its key lending rate by a quarter percentage point to 2.75 percent at a meeting Thursday in Madrid, Spain, but some had speculated it would raise rates even higher.
Read more here.
Weekly Outlook: Aussie Cools Its Heels At A Bad Time
The plethora of data released for the aussie this past week could not save it from overpowering dollar strength and weak commodity prices, especially considering the mixed nature of data.This coming week much more brief, which may lend even less support to the currency as it consists almost completely of surveys and lacks any heavy economic announcements.
Traders will have to wait until Monday night for the first release as Manpower Inc announces its third quarter employment outlook. With the labor market showing strong improvement, the outlook should be positive, however this may be slightly dampened by evidence that a cooling economy may be hurting companies’ intentions to hire more workers. Tuesday, National Australia Bank releases its May business survey. Recent surveys have shown that, despite higher fuel, wage, and borrowing costs, businesses do have a positive outlook for their futures and have confidence in the economy.
The next day lists the Westpac consumer confidence survey for June. Confidence fell 6 percent during May after the Reserve Bank raised rates 25 basis points, but should have recovered slightly as consumers become accustomed to the higher rate. Thursday has the RBA bulletin for May to provide figures on the foreign exchange activity of the bank for April. Also released will be consumer inflation expectations for June. May’s expectations revealed that the majority felt prices would rise considerably. Expectations for June may be slightly less severe after last month’s rate hike but the price of energies will be in the back of Australians’ heads.
Read more here.
Traders will have to wait until Monday night for the first release as Manpower Inc announces its third quarter employment outlook. With the labor market showing strong improvement, the outlook should be positive, however this may be slightly dampened by evidence that a cooling economy may be hurting companies’ intentions to hire more workers. Tuesday, National Australia Bank releases its May business survey. Recent surveys have shown that, despite higher fuel, wage, and borrowing costs, businesses do have a positive outlook for their futures and have confidence in the economy.
The next day lists the Westpac consumer confidence survey for June. Confidence fell 6 percent during May after the Reserve Bank raised rates 25 basis points, but should have recovered slightly as consumers become accustomed to the higher rate. Thursday has the RBA bulletin for May to provide figures on the foreign exchange activity of the bank for April. Also released will be consumer inflation expectations for June. May’s expectations revealed that the majority felt prices would rise considerably. Expectations for June may be slightly less severe after last month’s rate hike but the price of energies will be in the back of Australians’ heads.
Read more here.
Oil, imports help push up trade deficit
The trade deficit is rising again after two months of declines, pushed by higher oil prices and a flood of imports from China. Analysts warned that oil prices of more than $70 per barrel will further swell the deficit in coming months.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in February and March, after hitting a record high of $66.2 billion in January. While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth-largest imbalance on record.
U.S. Trade Deficit Up to $63.4B in April
The trade deficit is rising again after two months of declines, pushed by oil prices and a flood of imports from China. Analysts warned that global oil prices above $70 per barrel will swell the deficit more in coming months.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in both February and March after hitting an all-time high of $66.2 billion in January.
While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth largest imbalance on record. They said deficits in comings months were likely to be worse given the jump in global crude oil prices.
On Wall Street, stocks finished their worst week of the year as investors remained nervous over worries about inflation and interest rates. The Dow Jones industrial average fell 46.90 points Friday to close at 10,891.92, ending the week with a loss of more than 355 points.
Investors' worries about inflation increased after the Labor Department reported that prices for imported goods jumped 1.6 percent in May. Excluding the big rise in petroleum products, import prices were still up 0.6 percent last month.
Read more here.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in both February and March after hitting an all-time high of $66.2 billion in January.
While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth largest imbalance on record. They said deficits in comings months were likely to be worse given the jump in global crude oil prices.
On Wall Street, stocks finished their worst week of the year as investors remained nervous over worries about inflation and interest rates. The Dow Jones industrial average fell 46.90 points Friday to close at 10,891.92, ending the week with a loss of more than 355 points.
Investors' worries about inflation increased after the Labor Department reported that prices for imported goods jumped 1.6 percent in May. Excluding the big rise in petroleum products, import prices were still up 0.6 percent last month.
Read more here.
Investors nervous about rates
Stocks were mixed in early trading Thursday as investors eyed sinking oil prices and a selloff in stock markets overseas.
The Dow Jones industrial average (down 15.05 to 10,915.85) and the broader Standard & Poor's 500 index (down 0.75 to 1,255.40) both hovered around the breakeven about a half hour into the session.
The Nasdaq composite (down 6.27 to 2,145.53) lost 0.5 percent.
The European Central Bank hiked its key interest rate a quarter percentage point at its meeting in Madrid Thursday, in line with forecasts of economists, sparking concerns about rising global interest rates.
Asian markets ended lower, with Japan's benchmark Nikkei index tumbling 3 percent, and European shares were lower in early afternoon trading.
Oil prices sank for the third straight session Thursday on news of the death of Abu Musab al-Zarqawi, the leader of al Qaeda in Iraq.
DGCX to start currency trading from June 12
The Dubai Gold and Commodities Exchange (DGCX) will start currency futures trading in three currency contracts from June 12, said Framroze Pochara, Chief Executive Officer of DGCX yesterday.
With the launch of currency futures, DGCX has entered select league of global derivative exchanges that offer currency derivatives. DGCX already has gold and silver futures and expects to add fuel oil and steel futures in the near future.
Speaking to Khaleej Times yesterday, Pochara said there is a huge spot market for leading international currencies in the UAE. While the futures market will serve as an ideal hedging platform for banks, money exchange houses and trading houses it will also offer investment opportunities for currency investors.
Initially DGCX will trade futures contracts in 3 currencies — Euro-Dollar, Yen-Dollar and Sterling-Dollar with contracts maturing in March, June, September and December each year. These will be deliverable contracts. This will establish DGCX as the first exchange for trading currencies in the Middle East.
The global spot market for currencies exceeds $2 trillion daily turnover while the derivative transactions are several fold larger than the spot market. DGCX expects participation from all leading local, regional and international banks in the currency futures trading. “Currently we have more than 100 broker members on DGCX and all of them are eligible to participate in currency trading from day one. The initial response has been very encouraging and we expect good response from all market participants,” said Arshad Khan, Director of DGCX.
DGCX will follow T+1 trading system in currency trading with National Bank of Dubai and HSBC acting as delivery banks for settlement of DGCX currencies futures contracts.
Thursday, June 08, 2006
CBR has no intention to change structure of forex reserves-Ignatiev
Russia’s Central Bank has no intention of changing the structure of the foreign exchange component of its gold and foreign exchange reserves.
“That component is diversified well enough,” CBR President Sergei Ignatiev told the international banking congress in St. Petersburg on Thursday.
The dollar component constitutes half of the foreign exchange reserves and the euro component, 40 percent. The other currencies are the British pound and the Japanese yen, the latter accounting for less than one percent of the reserves.
SAFE lifts forex quotas
China will scrap quota restrictions on how much foreign exchange domestic companies can buy to finance their overseas investments, the latest move in a string of measures to relax the country's forex controls.
Under the new rules, which will take effect on July 1, domestic companies will be allowed to use their own foreign exchange holdings, buy foreign currency from regulators or borrow from both overseas or domestic lenders to invest abroad, the State Administration of Foreign Exchange (SAFE) said in a statement posted on its website yesterday.
Overseas investments refer to companies setting up subsidiaries, mergers and acquisitions, the foreign exchange regulator said.
"The policy revisions will help companies' 'go abroad' strategies and meet their increasing demand for conducting overseas investments," it said in the statement.
"The move is not surprising and is in line with the country's changing forex management policy," said Li Yongsen, an economist with the Renmin University of China, referring to the country's new policy of encouraging households and businesses to hold more foreign exchange.
Read more here.
China will remove restrictions on how much foreign exchange domestic companies can buy to fund overseas acquisitions or expansion, a step toward a more freely traded currency.
Companies may use their own holdings, buy foreign exchange from regulators or borrow from overseas or domestic lenders to invest abroad starting July 1, the State Administration of Foreign Exchange said in a statement on its Web site on Thursday. The regulator’s move won’t change approval requirements set by other government bodies.
China is gradually loosening controls on the yuan after ending a decade-old peg to the dollar in July. Surging exports helped drive the nation’s foreign-exchange reserves up 33% to a record $875.1 billion in the year to the end of March.
Forex - US dollar little changed vs yen in Tokyo after correcting from NY levels
The US dollar was little changed against the yen in midday trade here though it was well off its New York levels overnight, with the greenback having posted solid gains in recent days on the back of renewed expectations for further US interest rate hikes, dealers said.
'The dollar had risen 3.30 yen over the past four trading days and it was too fast,' prompting a mild technical correction from levels in New York, said Kikuko Takeda, a currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
However with Federal Reserve officials expressing unhappiness over inflation levels, expectations for further Fed rate hikes have moved up considerably this week, and this could provide further support for the dollar in the near term.
Read more here.
'The dollar had risen 3.30 yen over the past four trading days and it was too fast,' prompting a mild technical correction from levels in New York, said Kikuko Takeda, a currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
However with Federal Reserve officials expressing unhappiness over inflation levels, expectations for further Fed rate hikes have moved up considerably this week, and this could provide further support for the dollar in the near term.
Read more here.
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