U.S. Dollar Trading (USD) was put squarely on the back foot as the largest currency pair EUR/USD broke through the topside of the recent range at 1.4200. Good news on the CIT front and a broad rally in the DOW let risk appetite surge and become the main theme of the trading day. Oil, GBP, CAD and AUD all made major gains. In US share markets, S&P ended +10.75 points (+1.14%%) at 951.13, NASDAQ ended +22.68 points (+1.20%) at 1909.29 and DOW JONES ended +104.21 points (+1.19%) at 8848.15. looking ahead, Federal Reserve Chief Ben Bernanke to testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee in what could be a significant market moving event.
European Euro
The Euro (EUR) with help from its crosses especially the EUR/JPY the EURO as stated above made a fresh leg higher into the 1.42's running out of steam just before 14250 but holding the level for the rest of the day. June German PPI at -0.1% vs. +0.5% confirmed that Producer Prices are falling at the fastest rate in 40 years as cheaper Oil and Higher Unemployment reduces demand. The next major level for the EUR/USD is the 2009 Year high at 1.4338. Overall the EUR/USD traded with a low of 1.4126 and a high of 1.4252 before closing at 1.4225.
Japanese Yen (JPY)
The Japanese Yen (JPY) kept to a tight range against the USD but with Japan away on holiday's the market took advantage and pushed most crosses higher. GBP/JPY and EUR/JPY were major movers tracking their respective majors. Some Focus is turning to the Japanese Government issues with Speculation the Lower House will be dissolved Tuesday. Overall the USDJPY traded with a low of 93.49 and a high of 94.37 before closing the day around 94.25 in the New York session. Looking ahead, BoJ Meeting Minutes released.
Pound Sterling (GBP)
The Sterling (GBP) found strength in the improved risk appetite see in the market with US futures trading higher in Asia and 1.6500 broken on the topside. GBP/JPY provided a lot of support but so did EUR/GBP selling which was not an easy feat with the Euro also making major moves. Overall the GBP/USD traded with a low of 1.6364 and a high of 1.6560 before closing the day at 1.6535 in the New York session. Looking ahead, PSNCR in June forecast at 20Bn vs. 18.78Bn previously.
Australian Dollar (AUD)
The Australian Dollar (AUD) was well supported from the open in Asia trending higher to test 0.8080 first then 0.8150 in the US session on improved risk appetite. AUD/JPY flows returned and the year highs at 80 Yen are now squarely in focus of the bulls as global equity markets test year highs. Commodities including Oil and Gold made substantial gains and this in turn supports the Commodity currency. Overall the AUD/USD traded with a low of 0.8002 and a high of 0.8183 before closing the US session at 0.8150. Looking ahead, July RBA minutes released.
Gold
Gold (XAU) track Oil higher breaking above $950 an ounce. Gold is historically used by investors as an inflation and weak USD hedge. Overall trading with a low of USD$936 and high of USD$955 before ending the New York session at USD$949 an ounce.
Technical Analysis: Risk Appetite Improved In The Market
Euro (EUR)
Euro – 1.4230 : Initial support at 1.4056 (Jul 16 low) followed by 1.3833 (Jul 8 low). Initial resistance is now located at 1.4267 (Jun 5 high) followed by 1.4338 (Jun 3 high)
Yen (JPY)
Yen – 94.10 : Initial support is located at 93.26 (Jul 15 low) followed by 92.72 (July 14 low). Initial resistance is now at 94.89 (Jul 8 high) followed by 95.46 (Jul 7 high).
Pound Sterling (GBP)
Pound – 1.6545 : Initial support at 1.6266 (July 17 low) followed by 1.6034 (Jul 13 low). Initial resistance is now at 1.6745 (Jun 30 high) followed by 1.7000 (Big Figure).
Australian Dollar (AUD)
Australian Dollar – 0.8150 : Initial support at 0.7925 (July 15 low) followed by the 0.7814 (July 14 low). Initial resistance is now at 0.8170 (June 20 high) followed by 0.8237 (Jun 11 high).
Gold (XAU)
Gold – 938 : Initial support at 932 (Jul 17 low) followed by 918 (July 14 low). Initial resistance is now at 965 (June 10 high) followed by 990 (Jun 3 high).
Friday, January 1, 2010
Thursday, December 31, 2009
Information on Forex Markets Worldwide
Forex is a buying and selling system also referred to as FX or foreign market exchange. Those concerned in the foreign exchange markets are some of the largest businesses and financial institutions from around the world. They deal in multiple currencies from many nations to produce a balance as some are going to gain money and those who fall down. The basics of forex are similar to the form of dealing found in any country, only much bigger and complex. Forex buying and selling involves individuals, currencies and trades from around the world, between every last country.
Different currency rates happen and change every day so the measure of the dollar on one particular day of trading might be different on the next trading day. Forex trading can be hard to keep track of so you must dedicate yourself to keep an eye out on your funds, especially if you have invested a great amount of them, there is a chance you could lose it all. Primarily, trading in the forex exchange occurs in Tokyo in New Your and in London as well as several other spots around the globe.
The types of currency that are commonly traded are the Swiss franc, the Australian dollar, the British pound, the Japanese yen, the Eurozone euro, and the United States dollar. You can cross-trade currencies and you can intermingle one currency trade to another in order to attain supplemental interest and monetary gains.
The regions included where forex trading will start at one hour then shut down as other markets start to open shop. This is seen also in the stock exchanges from around the world, as different time zones are processing orders while making other transactions during various times. What happens in forex trading in a certain country might create various results in another forex exchange as time zones dictate the opening and closing of forex markets. The exchange rates will be varied between forex exchanges, and brokers and day traders alike will want to know the rate changes for each new day before committing money.
The stock exchange is primarily measured on products, prices, and other factors within businesses that could alter the cost of shares. If someone knows what is going to happen before the general public, it is often known as inside trading, using business secrets to purchase or sell stocks on that information — which is punishable by law. There is very little, if any at all inside information in the markets of forex. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but much more dependent on the status of the currency, economy of any given country.
Code are given to each type of currency on the forex market exchange so no confusion exists when knowing which currency one is investing with at the time. EUR is the symbol for the euro and the US dollar is known as the USD. The GBP is the British pound and the Japanese yen is known as the JPY. If you want to get involved in the forex market and want to contact a brokerage then you should have no problems finding and online brokerage where you can investigate the type of exchanges and profile ahead of throwing your money down the drain.
How To Trade With Forex
When we start to trade foreign exchange and potentially very profitable as well as there is also significant risk factors.we will try to introduction you the forex market and the opportunities that foreign exchange trading offers.
there are several why how to make money,you can do it on your own or you can choose forex broker.
But what we prefer is that you will consult a trusted broker,with the broker you have to Get a charting package which allows you to see the current price as it happens and make technical analysis and after that learn a system which gives you an indication of when to enter and when to exit trades,finally Get a course which gives you an education, a strategy and a way to carry out all the above steps successfully and affordable, from a reputable dealer.
Intro FOREX
Forex Market
Forex (Foreign Exchange) is the name given to the "direct access" trading of foreign currencies. With an average daily volume of $1.4 trillion, forex is 46 times larger than all the futures markets combined and, for that reason, is the world's most liquid market. In the past, forex trading was limited largely to enormous money center banks and other institutional traders. But in just the past few years, technological innovations and the development of online trading platforms allow small traders to take advantage of the significant benefits of trading foreign currencies with forex.
In contrast to the world's stock markets, foreign exchange is traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online. With this transaction structure as its foundation, the Foreign Exchange Market has become by far the largest marketplace in the world.
Buying and Selling
In the forex market, currencies are always priced and traded in pairs. You simultaneously buy one currency and sell another, but you can determine which pair of currencies you wish to trade. For example, if you believe the value of the euro is going to increase vis-?-vis the U.S. Dollar, then you would go long on EUR/USD instrument (currency pair). Obviously, the objective of forex currency trading is to exchange one currency for another in the expectation that the market rate or price will change so that the currency you bought has increased its value relative to the one you sold. If you have bought a currency and the price appreciates in value, then you must sell the currency back in order to lock in the profit. An open trade or position is one in which a trader has either bought / sold one currency pair and has not sold / bought back the equivalent amount to effectively close the position.
Forex Trading Currency Useful Information
When you trade in the forex exchange, you’re engaged with foreign stocks, currency and the goods of these nations. One country’s currency is weighed against the currency from a different country to figure the worth. The final worth of that currency is calculated when trading stocks on the FX markets. Many outside markets will be in control over the adjusted worth their country brings involving the currency, or money. Individuals who are often concerned in the FX market exchange accepts many large businesses, banking institutions international administrations and finance companies.
What are the things that make the forex exchange so different from the US stock market? A trade on the forex market is one between two countries, and it can take place worldwide. Each country involved should be either 1, that of the investor, and 2, the country the money is being invested in. The greater amount of transactions that occur in the forex market are going to take place through a broker, such as a bank.
What are the ingredients of trading in the forex market? The overseas market is comprised of a mixture of financial exchanges amongst nations. For those invested in the forex exchange generally trade in massive bulk with vast amounts of currency. For those deep into the forex stock market are likely to have companies who are cash businesses or are in the market of buying and selling liquid assets. The US market is massive but it is correct to think of the forex exchange as a giant in comparison than an individual market exchange in any one country. Those involved in the forex market are trading every single hour of every single day and sometimes on the week-ends.
You may be shocked to know the number of people that are involved in forex trading. In 2004, as much as two trillion dollars was the mean forex trading volume This is an immense number of trades for the number of daily dealings at a time. You can imagine how much one trillion dollars might be and multiply that by two, and this figure is the number of financial transactions every day on forex!
The forex market is not something new, as it has been used for over thirty years but with the introduction of computers, and the world wide web, the forex market multiplies as more everyday people and businesses start to understand the power of the forex market. Forex trading only makes up around ten percent of the total trades between countries but with greater popularity will come a greater volume.
