Overnight Markets Dow Jones Index +7.65 FTSE 100 +19.54 S&P 500 Index +2.00 DAX 30 +40.04 NASDAQ Index +11.37 CAC 40 +14.71 Gold +$9.90/oz Nikkei -13.35 Silver +$0.20/oz Oil +$1.13/bbl COMMENTARY - With little major offshore direction overnight, expected a standard quiet Friday to close out the week on local trade today. Data today sees Japanese CGPI, Chinese Trade and the Australian RBA Statement. T Full post…
Archive for the ‘Forex Tips’ Category
Euro hit yet another fresh yearly high in late Asian trade today, but stalled at the 1.3300 level in morning European trade as markets awaited the ECB press conference scheduled for 13:30 GMT. Earlier, the pair tumbled to 1.3215 on headline news that Greek negotiations reached an impasse, but sentiment improved when it was revealed that Greek authorities are within 300M of reaching the austerity target cuts required by the Troika of creditors.
The office of Prime Minister Papademous issued a statement saying that the leaders of the three parties supporting the government “agreed on all the points of the program with the exception of one which requires further elaboration and discussion”. The
Markets are unstable and therefore investment in any market is subject to great volatility. It is in the best interest of the investor to maximize their interest while reducing risks to a minimum. To achieve their aim the investors nowadays are highly utilizing hedging methods and diversification techniques.
Conditions favoring different currencies may prove unfavorable for the stock indexes, commodities or bonds. Conversely, digging into a currency as a trader or an investor can prove to be daunting.
Now forex market can be easily understood with help of newly established currency electronic traded funds or simply ETF’s. O
Euro is feeling some resistance against dollar at around 1.28 level as risk rally loses steam. Markets reaction to S&P’s downgrade was so far limited, which reflected in successful bill auctions in Eurozone. But the current recovery in Euro is mainly seen as short squeezes following the pre-downgrade selloff. The common currency’s down trends against dollar, yen, aussie and even sterling are still intact. It remains vulnerable to more downside. Portugal will sell a maximum of EUR 2.5b of 3-, 6- and 11-month bills today and might not trigger much reaction.
GBP/USD: 4-hour
Gather ’round and take a look at this falling channel on GBP/USD’s 4-hour chart! It seems like the pound’s selloff could come to a halt once the pair reaches the bottom of the channel. Stochastic is already in the oversold area, hinting that pound bears are losing steam. Keep your eyes on the 1.5300 major psychological level, which lines up with the bottom of the channel, in case reversal candlesticks form right there.
Brazil has overtaken the UK as the worlds sixth largest economy, an economic research group has said.
The Centre for Economics and Business Research said its latest World Economic League Table showed Asian countries moving up and European countries falling back.
The CEBR also predicted that the UK economy would overtake France by 2016.
It also said the eurozone economy would shrink 0.6% in 2012 if the euro problem is solved, or 2% if it is not.
CEBR chief executive Douglas McWilliams told BBC Radio 4s Today programme that Brazil overtaking the UK was part of a growing trend.
I think its part of the big economic change, where not only are we seeing a shift from the west to the east, but were also seeing that countries that produce vital commodities food and energy and things like that are doing very well and theyre gradually climbing up the economic league table, he said.
- GDP: $2.52tn ; CEBR estimate for 2011
- Main exports: manufactured goods, iron ore, coffee, oranges and other agricultural produce
- Exports in 2010 totalled $201.9bn*
- Imports in 2010 of $181.6bn*
- Its main export partners are China, the US and Argentina*
- Government forecasts growth of 3.5% in 2011, compared with 7.5% in 2010
*Source: Brazilian Ministry of Development, Industry and Export
A report based on International Monetary Fund data published earlier this year also said the Brazilian economy would overtake the UK in 2011.
Brazil has a population of about 200 million, more than three times the population of the UK.
Brazils economy grew by 7.5% last year, but the government has cut its growth forecast for 2011 to 3.5% after the economy ground to a halt in the third quarter, with analysts blaming the countrys high interest rates and the worsening situation in the eurozone.
And although Brazil currently sells more to China than it imports, Brazilian manufacturers have complained that their industries are being affected by cheap mass-produced goods from the Asian giant.
The CEBR also said that Russia moved up one spot in its league table to ninth in 2011, and predicted that it would rise to fourth spot by 2020.
It predicted that India, the worlds 10th biggest economy in 2011, would become the fifth largest by 2020.
And it said European countries would drop down the table, with Germany falling from fourth in 2011 to seventh in 2020, the UK from seventh to eighth, and France from fifth to ninth.
1 US US 2 China China 3 Japan Japan 4 Germany Russia 5 France India 6 Brazil Brazil 7 UK Germany 8 Italy UK 9 Russia France 10 India Italy
The European leaders agreed to a fiscal compact but failed to secure changes to the EU treaty over the strenuous objections of UK at the EU summit today causing disappointed investors to sell the EUR/USD in Asian and early European trade, but the pair found support at the 1.3300 level and stabilized ahead of the North American open.
“Orders” indicate how you enter and exit a trade. There are different types of orders that you can place into the foreign exchange market. It is very important to you to be aware of which types of orders are acceptable to your brokers, as different types of brokers accept different orders. There are certain basic types of orders that are provided by all brokers and there are some weird types of brokers too.
It is an order for buying or selling at the best available price. For instance, the current bid price of EUR/USD is 1.2140 and the ask price is 1.2141. If yo
Euro extends it’s decline against other major currencies after Italy’s bill auctions. While Italy still managed to sell the maximum target of EUR 8b of six-month T-bills, yields was sharply higher at an euro era record of 6.504%, comparing to 3.535% in last auction in October. Bid-to-cover ratio was at 1.47, showing weaker demand than prior auction with 1.57 bid-to-cover ratio last month. Yields on both two- and five-year bonds jumped to new euro era high in the secondary markets, at 7.70% and 7.80% respectively. 10-year yield also stays above the 7% level and move further to 7.28%.
USD/CHF: Daily
Ahh… Don’t you just love waking up to beautiful setups? Take a look at this one on USD/CHF! It’s almost ripe for the picking yo! The pair is fast approaching the .9300 handle, a major area of interest, and with Stochastic deep in overbought territory, it seems like we have a valid sell signal on our hands.