Forex

Institutional Investors Continue to Drive the USD/CAD Down

2007-09-29T12:15:00.001-07:00

Evening DailyFX Radio PodCast

Key Points

· US Dollar Plummets and Euro Sets Record Heights, no end in sight?

· Can Monday's ISM Manufacturing Report provide a dollar booost?

· Be sure to view the rest of the week's event risk on the DailyFX Weekly Calendar

To discuss these or any other FX topics with the DailyFX analysts, check out the Forum

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Tags: forex,foreigne exchange,currency,euro,usd

Institutional Investors Continue to Drive the USD/CAD Down

2007-09-29T12:15:00.000-07:00

Institutional investors continue to hold their bearish bias toward the USD/CAD, and the pair continues to fall.

Institutional investors are net short the USD/CAD and their sentiment becomes more and more bearish with each passing week. The USD/CAD may not stay at parity for long.

For more information on the PFX COT Sentiment Indicator, click on the following link:

http://www.pfxglobal.com/index.php?o...785&Itemid=191

Tags: forex,foreigne exchange,currency,euro,usd

US Dollar Plummets and Euro Sets Record Highs, No End in Sight?

2007-09-28T15:09:00.000-07:00

The US dollar hit multi-decade lows on a trade-weighted basis, with the Euro at all-time highs and the Canadian dollar strongly past parity against its US namesake. Traders asked themselves whether we will see an end to protracted greenback weakness, but early signs suggest that the dollar may fall further before setting any meaningful lows. Continued disappointments in economic data and overwhelming dollar-bearishness have thus far prevented a worthwhile rebound.

Continued calls for a top on the Euro have fallen on deaf ears, with the single currency setting fresh record-highs of $1.4247 through the New York afternoon session. Persistent dollar selling pushed the trade-weighted Dollar Index to its lowest in 15 years, with the British Pound likewise rallying an impressive 160 points to $2.0435. The downtrodden Japanese Yen remained sold against most foreign counterparts, but the dollar nonetheless shed ¥0.85 to ¥114.76.
Morning US economic data only intensified dollar selling pressure, with University of Michigan Consumer Confidence figures and Personal Income results failing to inspire confidence in the greenback. A positive surprise in Personal Spending was largely offset a slightly weaker-than-forecast Income measure. Consumption grew by 0.6 percent through August, matching its fastest rate of growth since April. Yet Income growth decelerated to 0.3 percent through the same period?pushing the Savings rate to a paltry 0.7 percent. Given overall fears of growing consumer debt, such a result will hardly improve sentiment on the future of lending market performance. Yet one month is hardly the signal of a new trend. July's 0.9 percent savings rate had matched February's highs of 0.9 percent.

source: http://www.forexfactory.com

Tags: forex,foreigne exchange,currency,euro,usd

Preview - Tankan To Strongly Influence Bank of Japan Rate Decision

2007-09-28T15:06:00.001-07:00

The Tankan index will be significant on Monday local time as it will have a significant impact on economic optimism and interest rate expectations

The Bank of Japan remains concerned that interest rates are too low from a medium-term perspective. The difficulty for the bank is that the economic data has made it difficult to a further policy tightening.

The headline inflation index, for example, has remained subdued with core consumer prices falling 0.1% in the year to August.

Evidence of a robust economy would make it much easier for the bank to raise interest rates and a strong Tankan index could give the bank a green light for an October interest rate increase.

The latest industrial data was stronger than expected with a 3.4% production increase for August.

The survey evidence has been very mixed over the past few weeks. The monthly Tankan index fell to a two-year low while other surveys have suggested that confidence strengthened during the third quarter

Overall, with markets expecting a slightly lower reading from 23 last time, the yen should strengthen significantly if there is a headline Tankan reading above 25.

In contrast, the yen will tend to weaken on a figure below 20. The net risks suggest that the yen will react more strongly to a higher than expected figure.

source: http://www.forexfactory.com

Tags: forex,foreigne exchange,currency,euro,usd

Forex Broker Guide

2007-09-28T14:24:00.000-07:00

Introduction

The following is a list of questions you may like to ask yourself, your broker and other traders about a particular firm you have in mind. You can use this checklist to narrow down your selection of forex companies to fit your requirements. You might also like to read the forex broker ratings page on this site to see how other traders are rating and reviewing other brokers.

1. Word of Mouth
What do other traders say about the broker?
What is their customer service/dealing desk like?

2. Safety of Funds
Is the broker regulated?
What regulatory organisation are they registered with and what protections does this afford you?
Are client funds insured against fraud at the firm?
Are client funds insured against bankruptcy of the firm?

3. Execution
What business model do they operate? i.e. Market Maker, ECN or NDD?
How fast is their order execution?
Are orders manually or automatically executed?
What is the maximum trade size before you are put on manual execution?
Are all clients trades offset?

4. Spread
How tight is the spread?
Is it fixed or variable?
Is it larger for mini accounts?

5. Slippage
How much slippage can be expected in normal and fast moving markets?

6. Margin
What is the margin requirement? e.g. 0.25% (max 400:1 leverage), 0.5% (max 200:1 leverage), 1% (max 100:1 leverage), 2% (max 50:1 leverage), etc.
Does it change for different currency pairs or days of the week?
Is it the same for standard and mini accounts?

7. Commissions
Do they charge commissions? (Most market makers commissions are built into the spread, whereas ECN's charge a small fee)

8. Rollover Policy
Is there a minimum margin requirement in order to earn rollover interest?
What other requirements or conditions are there for earning rollover interest?

9. Trading Platform
How reliable is it during fast moving markets and news announcements?
How many different currency pairs can you trade?
Do they offer an Application Programming Interface (API) for automated trading systems?
Does it offer any other special features? (e.g. One click dealing, trading from the chart, trailing stops, mobile trading etc.)

10. Trading Account
What is the minimum account opening balance?
What is the minimum trade size?
Can you adjust the standard lot size traded?
Can you earn interest on unused equity in your account?

Source: http://www.goforex.net

Tags: forex,foreigne exchange,currency,euro,usd
BestLinksOn.Net

St. Louis Fed's Poole sees 'tentative signs' of financial market recovery

2007-09-28T12:06:00.001-07:00

WASHINGTON (Thomson Financial) - Financial markets are showing 'tentative signs' of recovery from their upset, St. Louis Federal Reserve Bank President William Poole said today, but 'financial fragility is obviously still an issue.'

He warned that 'if the upset were to deepen in a sustained way, it might have serious consequences for employment stability.'

And further Federal Reserve action might be needed, Poole told a New York City audience, because as of now, 'we just do not know what the consequences may be.' His text was released to reporters.

'My best guess,' the St. Louis Fed president said, 'is that the inherent resilience of the US economy along with future policy actions, should they be desirable, will keep the economy on a track of moderate average growth and gradually declining inflation over the next few years.'

Most of Poole's talk was devoted to explaining how central bankers think differently from people in the financial markets. The goal is a kind of equilibrium in which 'the market behaves as policymakers expect and the central bank behaves as the market expects.'

But, since it began publicly explaining its decisions in 1994, the Fed has 'almost constantly grappled' with disclosure.

In part, Poole believes, that's because people in the press and the financial markets are usually asking the wrong question. 'What is important is not the policy action at the next FOMC meeting,' he said, 'which is typically what people want to know, but the policy regularity that will extend across many FOMC meetings, which is what people should want to know.'

And as he said is his policy, Poole refrained from 'being committal' about what the Fed might do at the next FOMC meeting.

Source: http://www.forexfactory.com

Tags: forex,foreigne exchange,currency,euro,usd

McCain optimistic about global economy

2007-09-28T12:06:00.000-07:00

DETROIT (AP) - Republican presidential candidate John McCain told an audience Friday in an area hard hit by plant closings and job losses that he's optimistic about opportunities in a global economy even as he acknowledged it won't solve every worker's woes.

'Globalization is here, globalization is an opportunity, but globalization will not automatically (benefit) every American,' McCain said in a speech at the Hispanic Business Expo and Economic Summit.

'We must remain committed to education, retraining and help for displaced workers, regardless of whether their job went away because of trade, technological innovation or shifts in consumer spending patterns.'

McCain credited Hispanic entrepreneurs with helping to power the economy. He said nearly three quarters of Hispanic business owners 'staked their personal savings on their success,' and only 1.5 percent secured a government loan. That, he said, represents the lowest percentage of any group in the U.S.

He said that entrepreneurial spirit is important in Michigan, where automotive industry cutbacks have led to the nation's highest unemployment rate.

'Economic freedom is at the heart of our ability to transform tough times to boom times,' he said. 'We have succeeded in the past. We will do so again.'

McCain also used Friday's speech to sound broader economic themes, such as his support of repealing the alternative minimum tax and flattening the tax structure.

Source: http://www.forexfactory.com

Tags: forex,foreigne exchange,currency,euro,usd

Will the EUR/USD Rally Be Reignited By US GDP, Housing Data?

2007-09-27T03:58:00.002-07:00

Foreign exchange trading, in the way that we know now it, would not exist if it were not for the rapid development of forex trading software. These software packages allow forex traders to work from their own personal computers and to interact with the large trading platforms that actually oversee and place forex trades. In addition to being the tool that traders use to complete their deals, many of these software packages also contain multiple sources of information that investors will find very useful. Everything from current pricing to performance history can be looked up in short order using forex trading software. Quick fact : The Forex market is by far the largest financial market in the world, and includes trading between large banks,central banks, currency speculators,multinational corporations, governments, and other financial markets and institutions. One site that offers their own version of forex trading software when you open an account with them is forex. com. This custom designed software is widely used and has a high rate of customer satisfaction. The site's customer service center is open 24 hours a day Monday through Friday (basically when the worldwide forex markets are open) so that you can address any issues that you may have immediately. Experienced forex traders know just how costly down time can be, so it's important to have someone to turn to immediately should any problems occur. Did you know that the average daily trade in the global forex markets currently exceeds US$ 2-2.5 trillion ! Another great website that offers free downloadable forex trading software when you open an account is gftforex. com. The software they make available to their clients is called Dealbook360. This state of the art trading software is simple enough to allow even beginning forex traders to feel comfortable but powerful and comprehensive enough to keep even the most demanding foreign exchange traders happy and satisfied . In addition, Dealbook 360 monitors some of the tightest bid/buy spreads available, thus increasing your profit margins. One web site that you may find exceedingly helpful is fxstreet. com. The creators of this page have made a running list of all of the major trading platforms and the banks that support them. Additionally, the software packages utilized by each company are listed here. This information will allow you to choose your institution based on software if you feel more comfortable with one program than another does. This site also provides information on which sites offer the best customer support. Whether it's online support, phone support, or even live support, you can find out what is available as fxstreet. com. You will find that most forex trading software is similar in design and function. The features that separate good from bad are the support features that each forex trading company offers with its trading software. Before you choose a foreign exchange trading company to use, make sure that you do plenty of research on all of the companies that you are interested in. Take advantage of the investment simulators that each offers on its site and get a feel for how the forex trading software works in real time. Read consumer reviews to see other forex trader's opinions and experiences with a given company. Check to make sure that their customer service record is reliable and prompt.

If you want to find valuable information and free tips regarding forex software please visit Fresh-Article-Directory.com for more reprintable articles.
Source:www.isnare.com

Tags: forex,foreigne exchange,currency,euro,usd

Will the EUR/USD Rally Be Reignited By US GDP, Housing Data?

2007-09-27T03:58:00.001-07:00

How Will The Markets React?

Traders may face yet another round of negative US economic data on Thursday, but with equity markets keeping their eyes on the prize of another possible rate cut by the Federal Reserve in October, forex traders may be the only ones paying heed to the news. First, annualized GDP for the second quarter is anticipated to be revised down to 3.8 percent from initial estimates of 4.0 percent. Nevertheless, even 3.8 percent marks a strong pace compared to the tepid 0.6 percent growth experienced in the first quarter. Furthermore, this indicator clearly looks back at the economy’s performance rather than looking ahead, which may limit its impact on the markets (barring a significantly worse-than-expected revision). One of the other factors that traders will be looking at is personal consumption for the same quarter, which is estimated to be confirmed at 1.4 percent. Nevertheless, this still represents the weakest rate since Q4 2005 and a sharp slowdown from the 3.7 percent pace we saw in the first quarter. With consumer confidence dwindling and the housing recession deepening, concerns have been brewing that spending will slowdown even further and serve to damage the already-fragile economy in coming quarters. Later in the morning, the release of new home sales may exacerbate this sentiment, as the Commerce Department’s index is estimated to plummet 5.2 percent to a nearly 10-year low of 825K. With borrowing costs remaining elevated (mortgage rates have actually risen since the Fed cut last week) and stricter lending regulations are making it more difficult to qualify for loans, the number of unsold properties on the market are rising quickly and pulling prices lower.

Source: http://www.dailyfx.com

Tags: forex,foreigne exchange,currency,euro,usd

Japanese Yen Shows Clear Signs of Potential Breakout

2007-09-27T03:58:00.000-07:00

Implied volatility is one of the most tried and true methods for objectively measuring expected volatility in the spot market. Derived from currency options with different maturities, implied volatilities are used to help predict potential movements in the spot market and is one of the most popular strategies of systems traders and other professional hedge funds.

At its most fundamental, the basic and intuitive interpretation of this implied data is often the most telling for traders. Taken alone, a steady rise in the longer-term implied volatility (the red line) is indicative of a strengthening trend; while inversely, a decline often reveals that a period of range or consolidation in spot is ahead or already in place. Additionally, the histogram or spread between the shorter and longer-term implied volatilities (the blue colored bars) tells a different perspective. As the histogram rises, volatility is expected to pick up faster in the near future relative to the longer-term range. Ultimately, this increases the probability of a breakout scenario in the underlying currency.

Source: http://www.dailyfx.com

Tags: forex,foreigne exchange,currency,euro,usd

What Does Fukuda Election Mean for the Yen?

2007-09-25T04:10:00.000-07:00

At the ripe old age of 71, Yasuo Fukuda is becoming the next Prime Minister of Japan taking over the leadership of the ruling Liberal Democratic Party from the much younger but far more beleaguered Shinzo Abe. Mr. Abe resigned his post suddenly amidst deep voter dissatisfaction after suffering from physical exhaustion.

What Does Fukuda Election Mean for the Yen?

At the ripe old age of 71, Yasuo Fukuda is becoming the next Prime Minister of Japan taking over the leadership of the ruling Liberal Democratic Party from the much younger but far more beleaguered Shinzo Abe. Mr. Abe resigned his post suddenly amidst deep voter dissatisfaction after suffering from physical exhaustion.

Mr. Fukuda’s father was the Prime Minister of Japan in the 1970’s and the Fukudas are the first father and son team to occupy the post in modern Japanese history. Mr. Fukuda himself was ambivalent about taking on the position. "I didn't think Japan should have father-and-son prime ministers and I didn't want any part in making that happen," he said. But the crisis within LDP made him change his mind.

The LDP has ruled Japan for all but 10 months during its post war period and is, on the one hand, credited with bringing enormous stability to the country but on the other criticized for its unresponsive, institutional cronyism which many analysts believe has exacerbated Japan’s economic problems by favoring party interests ahead of voter needs.

Source: http://www.dailyfx.com

Tags: forex,foreigne xchange,currency,euro,usd

Ahead of the Bell: Consumer Confidence

2007-09-25T04:02:00.003-07:00

EURUSD: Consolidates, The 1.4000 Level To Provide Support

EURUSD- After an initial run to an intra high of 1.4130 Monday, EUR turned off that high to close lower at 1.4072 at the end of the session. With daily momentum topping out as a result of its recent rally, consolidation to pullbacks is likely with its psychological level at 1.4000 expected to provide support where a cap is expected before further challenges on upside again. If however this fails to materialize, a run at the 1.3928 level, marking its Sept 13’07 high could be seen with a breach of there paving the way for further weakness towards its July 24’07 high/its .382 Ret (1.3551-1.4130 rally) at 1.3838/52.The next support lies at its rising trendline drawn off the 1.3551 low currently at 1.3772.On the upside, nearby resistance stands at its Sept’1992/Sept 24’07 highs at 1.4104/30 followed by the 1.4160 level, its Oct 22’0 high ahead of its 1.272 Ext at 1.4250(monthly chart) and then its 1995 high at 1.4535.This view is supported by its weekly studies which are bullish and heading higher. On the whole, EUR’s outlook remains to the upside in both the medium and longer terms.

Support Comments
1.4000 Psychologically important levels
1.3926 2007 peak
1.3839/52 Aug 06’07/July 24’07 high
1.3772 Rising Trendline

Resistance Comments
1.4104/30 Sept’1992/Sept 24’07
1.4160 Oct 22’0 high
1.4250 1.272 Ext
1.4535 Mar’1995 high

GBPUSD: Backs Off Its Falling Trendline

GBPUSD-GBP turned ahead of the 2.0365 level, its Sept 12’07 high and below its falling trendline at 2.0300 to close at 2.0201, forming a higher level rejection candle on Monday. This is coming on the back of an intra upmove above the said trendline. With the wiping out of almost yesterday’s upside gains, odds are for further downside weakness which is now evident on the daily time frame in early trading today. The 2.0059/72 area, its April 25/26’07/May 01’07 high is now seen as the next downside target with a loss of there opening the door for additional downside pressure towards the 1.9966 level, its Jun 05’07/ high and even lower at the 1.9909/1.9877 zone, which is the location of its weekly channel base/weekly 200 ema/Sept 21’07 low. Below here will turn focus to the 1.9659 level printed in Mid-Aug’07.The daily RSI is now heading lower implying more downside weakness. On the whole, the pair’s short term downside weakness looks to continue as price action has clearly shown.

Support Comments
2.0059/72 April 25/26’07/May 01’07 highs
1.9966 Jun 05’07 high
1.9909/1.9877 Weekly channel base/Weekly 200 ema/Sept 21’07 low
1.9659 Mid-Aug’07

Resistance Comments
2.0132 .50 Ret (1.9632-2.0652)/April 18’07 high
2.0181/191 July 30’07 low/Aug 27’07 high
2.0365 Sept 12’07
2.0461 Aug 06’07 high

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.

Tags: forex,foreigne xchange,currency,euro,usd

Ahead of the Bell: Consumer Confidence

2007-09-25T04:02:00.002-07:00

WASHINGTON (AP) - Consumer confidence held steady in August, experts predict, suggesting fears about volatile financial markets and housing problems may be easing.

At 10:00 a.m. EDT Tuesday, the Conference Board is scheduled to issue its monthly survey of consumer sentiment. The consensus estimate of Wall Street economists surveyed by Thomson/IFR is 104.5, slightly lower than August's 105.0 reading. Economists' latest estimates ranged from 100 to 106.

Wall Street monitors such data closely since consumer spending accounts for two-thirds of U.S. economic activity.

Consumers were concerned in August due to a softening in the labor market and continued subprime housing woes, the Conference Board said.

The survey is based on a representative sample of 5,000 U.S. households to measure consumer sentiment on present economic conditions and the spending outlook for the next six months. In 1985, the consumer confidence index stood at 100, according to the board. Changes of 5 points in the index are considered significant.

Consumers have had to deal with high gas prices, a deep housing slump and problems in the credit markets, which investors worry could spread and lead to a recession.

The Federal Reserve took action earlier this month and sliced a key interest rate by one-half a percentage point to 4.75 percent for the first time in more than four years.

While the move by the Fed won't cure the housing market's problems, it could help prevent the economy from being thrown into a recession. Lower rates tend to boost borrowing, spending and investing by consumers, which could energize economic activity.

That's good news for the nation's retailers, such as Wal-Mart Stores Inc., Target Corp. and Kohl's Corp., which have struggled in recent months amid slowed consumer spending.

Source: http://www.forexfactory.com

Tags: forex,foreigne xchange,currency,euro,usd

Polish stats office forecasts 26 pct rise in 2007 grain output

2007-09-25T04:02:00.001-07:00

WARSAW (Thomson Financial) - Poland's statistical office forecast that grain production would rise 25.7 pct year-on-year in 2007 to 27.4 mln tonnes, roughly in line with its earlier indications of 27-28 mln tonnes, office forecasts showed today.

Rises in food prices this year, a key factor in Polish inflation, have been cooled by the rise in grain output, which helps cap the prices of bread and other goods.

Source: http://www.forexfactory.com

Tags: forex,foreigne xchange,currency,euro,usd

2007-09-24T02:31:00.000-07:00

GBP/USD - 2.0211...Although cable fell sharply last week initially due to active cross selling in sterling following U.K. lender Northern Rock's financial woes, the British pound was able to rebound strongly fm there after the Fed cut interest rates by more than expected n also as global stock markets stabilised, leading to renewed carry trade accumulation such as in gbp/jpy.

Sterling's rise fm last week's low at 1.9880 suggests the decline fm 2.0366 (Sep 12) has ended there n abv 2.0273 (80.9% r of 2.0366-1.9880) wud lend credence to this view, bring resumption of the upmove fm 1.9653 (Aug '07 low) for re-test of said res n then twds 2.0463 (Aug 4 high). Abv said latter res is needed to signal MT uptrend has resumed n yield eventual gain twds July '07 top at 2.0656. On the downside, below 2.0076/80 wud 'prolong' choppy trading n risk weakness to 2.0000 but only break of 1.9951 wud yield another fall twd 1.9880.

Today, buying cable on pullback in anticipation of one more rise is still recommended but profit shud be taken on upmove as o/bot condition wud cap price below 2.0300. Below 2.0105/10 wud risk correction twds 2.0076/80 1st...

Source: http://www.forexfactory.com

Tags: forex,foreigne xchange,currency,euro,usd

Sarkozy says euro strength a problem for competitiveness, appreciates Fed policy

2007-09-24T02:27:00.000-07:00

PARIS (Thomson Financial) - French President Nicolas Sarkozy said the euro's rise above 1.40 usd is a problem for the competitiveness of the euro zone.

'I am not saying that it is dangerous...but of course, a dollar at 1.40 to the euro is a problem for the competitiveness of our economies,' he said in an interview with the International Herald Tribune. A transcript of the interview was published on the newspaper's website.

Sarkozy said he 'appreciated' the policy of the US Federal Reserve, which last week cut interest rates in response to concerns about the economic impact of the recent turmoil in financial markets.

'I am saying that I appreciate the policy of the Federal Reserve Bank which clearly sees that priority has to be given to entrepreneurs rather than speculators,' he said.

Sarkozy has criticised the European Central Bank for not paying enough attention to economic growth.

He said the recent problems in credit markets showed a need for changes in the way the financial system is regulated. US Treasury Secretary Henry Paulson agreed on this when they met in Paris last week, he said.

'I'm in favour of liberalism, of competition, of globalisation, but I think it's time now to set new rules: more transparency, more ethics in financial capitalism,' he said.

'I didn't much appreciate the way the credit ratings agencies rated savings plans 'triple A' one day and 'triple B' the next. This is not responsible, we need new rules and, when I had talks with Mr Paulson, he agreed that regulating financial capitalism is imperative for every country in the world,' he said.

Source: forexfactory.com

Tags: forex,foreigne xchange,currency,euro,usd

Czech koruna hits record high against dollar

2007-09-24T02:25:00.000-07:00

PRAGUE (THOMSON FINANCIAL) - The Czech koruna (crown) hit a record high against the dollar after the US currency fell through the 19.50 koruna/dollar threshold to trade at 19.49 koruna per dollar.

'The koruna is shadowing the euro's gains against the dollar,'

said David Marek of the Prague brokerage Patria.

Higher inflation fears twinned with worries about a slowdown in the economy and interest rate cuts were hurting the dollar, Marek added.

The Czech currency was stable against the euro at around 27.50 koruna per euro, after hitting an all-time high against the euro last week.

Czech president Vaclav Klaus said in an interview Saturday that the fundamentals of the Czech economy do not at present favour the adoption of the euro.

Source: forexfactory.com

Tags: forex,foreigne xchange,currency,euro,usd

Euro Zone’s industrial new orders fall lower than expected in July

2007-09-24T02:14:00.000-07:00

FXstreet.com (Barcelona) – Industrial new orders have dropped sharper than expected in the Euro Zone in July, in a sign of the sector's weakening righ before the crisis in the financial markets, and even before the euro’s recent appreciation.

New orders have decreased 4.0% on the month, a lager than expected decrease, as the experts had forecasted a 3.2% fall in orders. On the year, New orders have increased 10.9%.

The decline has been specially strong in the volatile transport equipment sector, where orders decreased 16.0% on the month, after having increased 15.6% in June.

Source: fxstreet.com

Tags: forex,foreigne xchange,currency,euro,usd

2007-09-23T09:46:00.000-07:00

By Gerald Mason
If you are actively trading in the New York Stock Exchange, one of the most active exchanges in the world, you should be very thankful. Its total daily transactions are averaging approximately at U.S. $50 billion, making it the largest stock exchange in the United States in terms of dollar volume. There are many individuals who want to get their feet wet on the ground of this New York City-based stock exchange. Yet, you are luckier if you are actively involved in trading foreign currencies, or commonly known as Forex trading, which is considered to be the largest market on the world. Its average daily trading turnover is approximately U.S. $2 trillion, exceeding the combined magnitude of all other equity markets, including the New York Stock Exchange. Thus, you are luckier since you have the opportunity of getting more profits out of that $2 trillion traded everyday. If you are not yet involved in Forex trading, then you are currently missing the benefits of trading foreign currencies—24 hour trading time, transactions conducted in real time, extreme liquidity, and others. Thus, you should decide to get a Forex trading account and start trading right away. However, just like other types of investment, you must be aware of what kind of ground you are stepping into. In other words, before getting a live Forex trading account, you must be properly educated first about the background of Forex trading. You must learn how you will maximize your earning potentials as well as decrease the risk that you are into through practicing with free demo accounts. Moreover, you must have a trading system to follow and the necessary tools that will help you analyze varying conditions of the Forex market to position yourself on the profiting aspect of a certain trade. Once you know what you are getting into, you are now ready to get your live Forex trading account, web-based trading system and platform, and other tools that you will need in your Forex trading career. Most neophyte Forex traders obtain their trading accounts and platforms through a Forex brokerage company or agents. There are many brokerage firms out there and you need to be selective, or else you will suffer the adverse consequences. If you are still uncertain which Forex trading company you will trust in the early start of your Forex trading career, why don't you try ACM Forex? They probably got what you need and at the same time the key towards the success of your Forex trading career. ACM Forex stands for Advanced Currency Markets Forex, a Swiss-based online Forex trading company that is founded in the city of Geneva, Switzerland in 2002. Since it was founded on that year, ACM is now one of the major Forex institutions, particularly in online day trading, with an average monthly trade volume of U.S. $70 billion. They offer their clients quick access to the speculative Forex market through online dealing platforms that allows forward and stop trading of 27 pairs of foreign currencies as well as of several precious metals. If you will open a live Forex trading account with ACM Forex, you will receive several benefits such as the following: • WYCIWYG or "what you click is what you get" advantage. It means that the price you clicked on at the start of the deal will be the price you are executed at, thus no single movement on the foreign currency price. • NRFQ or "no request for quote". You can click on any live streaming price list and there are no requisites even on fast markets. Expect that there will be no dealer intervention and timers. • There will be no commission collected for every transaction that will be completed using the ACM Forex trading platform. All profits will go to your pockets and not to somebody else. • You are allowed to have multiple online trading platforms for maximized trading flexibility. • With ACM Forex, your risk is only limited to deposits or funds. Thus, you will never owe more than what you have invested in your Forex trading account. This means that there are no negative balances, whatsoever. • You can open a live Forex trading account for as low as U.S. $5,000. • There are 27 pairs of foreign currencies that you can trade within several clicks. • You have access to 24-hour foreign currency trading and technical support services even on weekends. • There are no confirmation delays—only instant and real time trade executions. • Secured online trading platform. • Technical analysis and real time charting tools for your market evaluation tasks. With ACM Forex, the start of your Forex trading career is as good as a veteran trader. A good jump start and continuous success awaits you in ACM Forex.

Free Forex Software
Source: isnare.com

Tags: forex,foreigne xchange,currency,euro,usd

US Dollar Could Recover Next Week

2007-09-23T07:29:00.000-07:00

Written by Kathy Lien, Chief Currency Strategist
• US Dollar Could Recover Next Week
• 2 Things Will Stop the Euro’s Rise
• Canadian Dollar Back at Parity

US Dollar Could Recover Next Week
One of the most emailed articles in the online edition of the NY Times today was a story titled Dollar Falls to a New Low against the Euro. The fact that the weakness of the dollar has hit mainstream interest illustrates the significance that it has for not only currency traders, but also for anyone with international interests, including corporations, investors and travelers. The main reason why the dollar has weakened so significantly over the past month is because the Federal Reserve has embarked on a brand new monetary policy cycle. This week’s 50bp cut of the Fed Funds and Discount rate sent three messages to the market. The first is that the Federal Reserve has adopted a new policy of being proactive and not just reactive; the second is that the outlook for the US economy could be worse than most people thought and the third is to expect more interest rate cuts in the months to come. According to Fed Fund futures, interest rates are expected to be lowered by another 50bp before the end of the year followed by another 75bp of easing in 2008. In the medium term, this will be extremely negative for the US dollar but in the week ahead, the dollar may get a chance to recover. Although there are a number of US economic releases next week, none of these numbers are meaningful enough to shift the outlook for the US economy or change the Fed’s mind about the need to lower interest rates further. Next week’s releases are divided into 3 divisions; housing, consumer and manufacturing. The new and existing home sales data are expected to be weak, but that has pretty much been already discounted by the market. The Chicago PMI and Durable Goods data should be mixed. In the long run, the weak dollar will be a big boost for the manufacturing sector as a whole. As for the consumer data which includes consumer confidence, personal spending and personal income, confidence is likely to fall, but the spread between spending and income could narrow. There is also second quarter GDP, but that is a final number. Overall, none of these reports are market moving enough to shift the overall trend in the financial markets. The US dollar may use this opportunity to lick its wounds.

Source: dailyfx.com

Tags: forex, foreign exchange

Dollar hits record low against euro

2007-09-22T08:30:00.000-07:00

The dollar plunged to a record low against the euro this week after the Federal Reserve surprised investors with an aggressive interest rate cut.

The Fed cut its main interest rate by 50 basis points to 4.75 per cent on Tuesday and also cut the discount rate – at which it lends directly to banks – by 50bp to 5.25 per cent.

The Fed had been expected to deliver a 25bp cut. Analysts said the size of the move intensified fears over the state of the US economy, heightening expectations that the Fed would deliver a series of cuts in the months ahead.

Moreover, analysts said the subsequent rally in equity markets and risk appetite resulted in less safe haven demand for the dollar from US investors repatriating funds from overseas.

Meanwhile, there were signs that foreign investors were beginning to shun US securities as the Treasury TICS data revealed a collapse in portfolio capital inflows to the US in July as well as a growing reliance on short-term inflows.

The dollar fell through the $1.40 level against the euro for the first time, hitting a record low of $1.4120 on Friday. Over the week, the dollar lost 1.5 per cent against the single currency.

Source: ft.com

2007-09-22T08:26:00.000-07:00

It is tempting to fade big market moves. The idea is to catch the top (in an advance) or the bottom (in a decline). This method almost always ends up disastrous as the market continues to trend. Many traders have been trying to fade the USDCAD decline recently (we know because the FXCM SSI is at +5, indicating longs outweigh shorts by a factor of 5). Attempting to catch a bottom in the USDCAD as the pair trades at 31 year lows is a good way to go broke, but there is a way to take advantage of the extreme CAD strength…look for opportunities to sell the currency on the crosses. Patterns in both the EURCAD and AUDCAD have caught our attention.

Source: dailyfx.com

Forex Trading Tips

2007-09-21T11:07:00.000-07:00

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.

Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.

Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.

The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.

Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.

Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.

Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.

Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.

Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.

Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.

Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.

Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.

The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.

Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.

Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.

Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.

Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.

Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.

The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.

Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.

Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.

Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.

Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.

Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.

Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.

Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.

Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).

One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.

Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.

Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.

Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.

John Gaines
online trading, currency trading, financial service
A veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, including forex, CFDs, futures, options and stocks.

Article Source: http://EzineArticles.com/?expert=John_Gaines

2007-09-21T04:50:00.000-07:00

FRANKFURT (Thomson Financial) - European Central Bank Vice-President Lucas Papademos said it is "too early to say" if the real economy in the euro zone has been affected by the turmoil in the financial markets worldwide.

Speaking to reporters on the sidelines of a symposium, Papademos also said the ECB however is still holding on to its baseline growth scenario on the region.

"We still believe on our baseline scenario is still progressing, even if somewhat protracted. A return to more normal conditions in the financial markets is a likely one," he said.

Source: forextv.com

Euro hits fresh highs but data disappoints

2007-09-21T03:51:00.000-07:00

The euro thrust higher on Friday, hitting a record high on a trade-weighted basis and reaching a fresh peak against the dollar.

Although the European currency slipped back following the release of much weaker-than-expected eurozone economic data, it had already moved as high as $1.4120 - a record high.

Manufacturing and services purchasing managers indices fell sharply in September, reflecting the market turmoil seen since the beginning of August.

“The data will increase pressure on the European Central Bank to adjust its policy stance from a tightening bias to a neutral bias,” said Martin van Vliet at ING Financial Markets.

By late morning in London, the euro had slipped back to $1.4071, unchanged on the day.

Sterling climbed 0.2 per cent against the euro to £0.6983, as sentiment improved following turmoil at the Bank of England over the past few sessions. The central bank had come under criticism for its handling of the financial crisis that triggered a run on UK bank Northern Rock.

As relative calm returned to the UK equity market, the pound was lifted. It rose 0.3 per cent to $2.0150 against the dollar and 0.7 per cent against the yen to Y232.57.

The Canadian dollar continued its record run to C$0.9945, having moved beyond parity for the first time since 1976 on Thursday.

Source: ft.com

2007-09-21T03:10:00.000-07:00

WARSAW (Thomson Financial) - Poland's Finance Minister Zyta Gilowska said today there was no need to raise interest rates and that she hoped the central bank would not even speculate publicly on the potential for more tightening.

"There is no need to interfere with interest rates, in particular seeing as the main rate is at the same level as in the US," Gilowska said.

"I would express my hope that the monetary policy council will not even speak further of rises in interest rates, because this kind of public comment stirs inflationary expectations."

Analysts widely expect the central bank to raise interest rates, now at 4.75 pct, by another 25 basis points this year and to up borrowing costs further in the first half of 2008.

"The economy is very well-balanced," Gilowska said. "The current account deficit is under control. We are seeing a rise in imports, which is normal. At the end of the year, the deficit will be around 4 pct of GDP."

Source: fxstreet.com

Is it a Coincidence that the US dollar, Canadian Dollar, Oil and Gold are Breaking Significant Levels at the Same Time?

2007-09-21T03:05:00.000-07:00

It is a record breaking day in the financial markets and the action is not in US stocks, which have been bouncing between positive and negative territory all morning but in the currency and commodity markets. If you haven’t realized it, the US dollar has plummeted to a record low against the Euro and a 30 year low against the Canadian dollar. The trade weighted Dollar Index is hovering right above 78.19, its lifetime lows set back in 1992. Gold prices also hit 28 year highs above $730 an ounce and even though oil prices are softer this morning, the front month October contract on the NYMEX hit a high of $82.15. Gold at $800 an ounce and oil at $100 a barrel has now become an increasingly likely possibility.

Source: dailyfx.com

US Dollar Likely to Continue Declines Through Short Term

2007-09-20T05:29:00.000-07:00

The US dollar continued on its losing ways, matching fresh record lows against the Euro and plumbing new depths against its Canadian counterpart. Fresh consumer price inflation data only worsened outlook for the downtrodden greenback, with a softer-than-expected CPI figure boosting the likelihood of further Federal Reserve interest rate cuts through year-end. Yet the swift dollar sell-off moderated in later trade, with the US$ showing signs of life through the New York afternoon session.

The euro matched yesterday’s record highs of $1.3988 following the US CPI data, but near-instant reversal left the dollar bid in the moments that followed. The British Pound suffered a similar fate near the New York session open, but a later retracement left the sterling an impressive 80 points off of intraday lows at $2.0021. A strong performance in global equity markets left the Japanese Yen lower for the second consecutive trading day, with the dollar improving ¥0.28 improved to ¥116.10 in US trade.

Source: dailyfx.com

Forex Market History - Be A Part Of It

2007-09-20T04:40:00.001-07:00

The Foreign Currency Exchange (Forex) Market enables investors to make trades between major world currencies in order to make a profit. The Forex is the epitome of all traded markets since it is the least complicated and allows for trading 24 hours a day five days a week. It is hard to beat this combination when the goal is to develop a good system, stick to it and make a profit. The simplicity of the Forex Market as compared to the thousands of possible investments in other markets, combined with a person's ability to trade nonstop almost every day of the week, makes the Forex an ever increasing and desirable trading partner. Pharaohs to the Middle Ages: Foreign Exchange Markets have been alive and well since the Middle Ages. And even long before that, various currencies changed hands between regions and countries since money first originated during the time of the Pharaohs. It appears the Babylonians were the first to use paper bills and receipts which facilitated the exchange of currencies between third parties. U.S. Centennial to World War I: Between 1876 and World War I, Foreign Exchange Markets were very stable. This stability was created because everyone was on the Gold Exchange Standard. Currencies were now supported by gold prices! Unfortunately, the gold standard had one major problem. When countries would become prosperous, thus allowing their imports to increase, their gold reserves would run down. These were the same gold reserves used to support the country's currency. One thing led to another and before long the country would go through a recession. Then its products would look attractive to other countries and the gold would start coming back in to fill the coffers. There was just too much boom and bust under the gold exchange standard. Something had to change. Great Depression to Early 70's: Shortly after World War I, in the 1930's, Foreign Exchange Markets became overly speculative, increasing volatility tenfold. Things were out of control and something had to eventually change. From the early 30's till the early 70's the Forex Market went through many changes, which can still be seen today. In fact it wasn't until 1973 that the modern Forex Market as we know it today started. In 1944, after World War II was over, the major governments across the world came together in Bretton Woods, New Hampshire to agree on a way to move forward with Foreign Currency Exchange so each country's economy could maintain and renew itself in an orderly fashion on a regular basis. The Bretton Woods Accord was established to mesh currencies and the International Monetary Fund (IMF) in order to stabilize the world's economies. The accord fixed the major world currencies against the Dollar at a rate of USD 35 for each ounce of gold. The accord was also established to keep the world currencies from fleeing across countries and to decrease the speculative end of the market. Up until World War II, the Great British Pound (GBP) was the currency by which most all other currencies were measured. When the British fell victim to German Nazi counterfeiting during WW II, thus devaluing the Great British Pound, the U.S. Dollar became the standard by which other currencies were valued. In fact, the destruction to Europe during World War II allowed the U.S Dollar, which had become a failed currency during The Great Depression, to rise from the ashes and become the dominant world currency. The Bretton Woods Accord didn't last a long time, but it lasted until 1971, long enough to accomplish its mission, which was to re-establish monetary consistency and stability to post war Europe and Japan. Present Day: Our present day Forex Market, as we know it, began in 1973 when currencies were allowed to become part of a free-floating system since none of the agreements or accords were then in force. In 1978, the free-floating arrangement was officially required of all major currencies. All major currencies move independently of one another in today's world. They are no longer tied to a particular accord. This can lead to increased speculation with central banks occasionally intervening to get currencies back to desired levels. Basically it is supply and demand for currencies that is the driving force today in the Forex Market. If you are considering becoming involved in the first market ever established for profiting from currency fluctuations, you may want to consider the Forex Market. It is tried and true and was the first. It is also less complicated and has more liquidity than any other market. This is important when you are trying to develop a trading strategy for maximizing your profits.

Chris Murphy is a freelance writer who publishes articles of interest to his readers. For additional information on the history of the Forex Market, please visit http://www.lyonsforex.com
Source:www.isnare.com

First post

2007-09-20T04:40:00.000-07:00

Welcome!
It's blog about forex! What is forex?

Foreign Currency Exchange (FOREX) Trading is an exhilarating way to trade foreign currency in a market that runs 24 hours a day, five days a week. The Forex market is also the most volatile financial market in the world. It doesn't have a physical location, trading floor or central exchange like the NYSE or futures market does, but instead it functions and operates amid a global network of banks with trades taking place over an electronic network or by phone. With its nearly nonstop currency market where Forex brokers trade in the currencies of the world, profits are made or lost depending on how various nations' currencies increase or decrease relative to each other. Current, real time events can influence currency prices and thus Forex trading brokers typically keep track of worldwide events on a minute by minute, hour by hour basis each day. Even though Forex trading is volatile, there are many things to like about it. Since the Forex Trading System is open 24 hours a day, the majority of each week, it allows for ample time and numerous trading opportunities around the clock. This means Forex Brokers are not under as much pressure to initiate a trade as quickly as if they were playing the stock market. Also, since world government currencies are very liquid, they are much easier to trade than other securities. As with the stock and option markets, profits can be made either way, whether in a rising or falling market. And since Foreign Currency Trading is volatile by nature, it can afford even more profit opportunities than other markets. Of course a person's Forex Trading Strategy should be to profit from the movement in currency values. As with any financial market, the more times a person "gets it right", the more money they will make. In Forex or FX Trading, currency pairs are always used. FX Traders will try to determine, for instance, if the U.S. Dollar will rise in value over the British Pound, or vice versa. This is called a Currency Pair. Another trader may have some Forex information that informs them that the Euro will increase in value against the Dollar. They would then pay X amount of Dollars for X amount of Euros. As time went on and the Euro did strengthen against the Dollar then they could sell the Euros for even more Dollars than they had invested originally. Foreign Currency Exchange is essentially the simultaneous buying of one currency and the selling of another. There is no doubt that the Forex Currency Trading System is unique. It has its own set of rules and opportunities. It can be as fast moving or slow as a trader would like. A big advantage is the number of hours in a week that a trader can place and execute trades. It can be volatile just as with any market. If a person studies their options and does their homework, a great deal of profit making opportunities exists in Foreign Currency Trading. As with any financial markets, a good Forex Trading Strategy will go a long way in determining what kind of profits you will make.

Chris Murphy is a freelance writer who publishes articles on subjects that are of interest to his readers. For additional information about Forex Trading, please visit http://www.lyonsforex.com
Source:www.isnare.com