n Part 1, Matthew Cherry details how traders can use the two statistics, frequency and range to help navigate sideways markets. To read part 1, click here.
In the second part of this article we will discuss the remaining two statistics, reaction time and strength, as well as start our initial development of a trading strategy.
Reaction time and strength are both measures of the price movement, however unlike the other statistics, these two measures are highly time sensitive. To calculate reaction time, you need to count the amount of bars that fall in to the range and divide it by the total frequency of each bound. To get the best representation of this measure you need to view the price action on a shorter time frame, one where you can break the price movement down to more precise time frames. If you do not break the chart in to more manageable time frames then you can get a very different figure that can lead to miscalculations in your trading.
Friday, August 14, 2009
How to Properly Trade a Range Bound Instrument, Part 2
What Are The Advantages Of Creating A Long-Term Forex Trading Strategy?
A major reason why so many people are drawn to forex trading is because the volatility of the currency markets makes it possible to trade the markets on an intraday basis. Indeed a lot of people generate some decent profits from day trading the forex markets, but my own view is that you should always focus on finding a profitable long-term trading system as well.
With regards to the forex markets, long-term trading generally refers to trades that last anything from a few hours up to a few days, weeks or months. However I personally think that if you use the 4 hour charts and upwards, then you can regard yourself as a long-term trader.
In my opinion if you only concentrate on taking short-term intraday trading positions, then you are taking undue risks and are missing out on lots of profitable trading opportunities. Of course it's possible to make money trading the 1, 5 and 15 minute charts, for example, and I've been known to trade these time frames myself on occasions, but it's generally a lot easier to trade the longer time frames.
FX Universal Offers Spot Gold and Silver Trading in Addition to Forex
FX Universal Offers Spot Gold and Silver Trading in Addition to Forex
FX Universal, a New York based company specializing online forex trading services, now offers spot gold and silver trading on the same cutting edge platform: GTS (Global Trading System). Their global client base now has access to spot metal trading in addition to the 28 currency pairs already offered.
Lake Success, NY (Advertiser Talk) 12-Aug-2009 — FX Universal is proud to introduce Spot Gold and Silver trading now available in the GTS platform in addition to Forex trading. Traders can enjoy the same unprecedented execution quality, speed and accuracy of data feed available in the Global Trading System to place buy/sell trades anytime, 24 hours a day, 6 days a week.
Spot gold trading has been gaining increasing popularity among traders recently due to world-wide economic instability of the financial markets driving prices of precious metals to all time highs. Gold closed at $948.00 USD/Oz yesterday, and in the neighborhood of all time high of $1002 in mid 2007. A strategic position in gold or silver can be used to potentially hedge a position in foreign exchange or other markets.
Using the GTS trading platform, traders can take advantage of small minimum trade sizes with low margin requirements and tight spreads. Access these two popular Precious Metal markets and benefit from: commission-free trading, increased leverage and flexible contract sizes starting at 1 Oz gold and 100 Oz silver.
Based in New York, the financial capital of the world, FX Universal, LLC is a world class provider of Forex (foreign exchange) and spot metal trading services. Their staff is comprised of a dedicated group of trading, technology, and finance professionals who apply their experience, teamwork and innovation towards a common goal – helping traders succeed in the market. FX Universal provides its global client base with access to trading accounts, platforms, signals, charting and analysis software as well as an array of free Forex trading tools.
FX Universal also offers one of the industry’s leading Forex signals and analysis software: DashBoard FX Pro. Using a multitude of technical analysis and proprietary indicators, DashBoard FX provides Forex signals for 20 of the most popular currency pairs. It features an easy to use interface with visual indicators providing information such as trend, strength, volatility, range and other pieces of information in an intuitive format. Users can also receive buy/sell alerts to their email, mobile phone via SMS (text messaging) or IM (instant messengers such as Yahoo!, MSN, AIM and ICQ).
CCI Divergence forex trading system
his is one of the simple trading system available nowadays that can really spin your investment into creating fortune. The system is very simple to use and can easily be adopted by the new forex traders. It will only take you a few days to master how the system works and you will certainly be ready to commence trade on any given market at that particular period and day.
This simple trading system is basically based on the CCI or Commodity Channel Index divergence and it is an indicator which shows you the effective trade divergence patterns on any given market. The system may look complicated at first glance due to the patterns you will have to observe but when you get to understand how the system works you will soon find out that the divergence patterns are entirely observed automatically by the system and all you have to do is decide which trade market would be best for you.
CCI divergence is one of the momentum oscillators indicators. Momentum oscillators react very quickly to short-term changes in price, flipping back and forth between overbought and oversold levels. Oscillators are useful in both ranging and trending currency markets.
There are two types of divergence which are:
1. Regular
2. Hidden
Regular Divergence is often used or understood as a possible trend reversal while hidden Divergence is often used or understood as a possible trend continuation.
Since its introduction, the indicator has grown in popularity and is now a very common tool for traders in identifying cyclical trends not only in commodities, but also equities and currencies. The CCI can be adjusted to the timeframe of the market traded on by changing the averaging period.
The system makes use of trading circles at which it basically focuses on the price whether it makes new highs of falls at a given period of time. Therefore the system uses an indicator to monitor the market prices and you are also able to decide which type of markets you would like to monitor and also set you entry and exit points and also to include setting up your stop losses. To some traders the CCI system may look too complex but this system will definitely give you maximum profits if you are to make use of it and follow the steps closely.
We all know that forex indicators are always lagging but price is king because they are leading indicators. In divergence trading, it's something like price action because you can use it as a leading indicator. You can master this forex strategy after some practicing as practice makes perfect.
When divergence is used properly in forex trading, you can profit from the method consistently too. It is a lower risk to sell near the top and near the bottom of a trend because the risks are relative smaller to the potential reward.
With the CCI system when ever there is a downward trend the system makes new price lows and indicating signals due to the market trend that would have started going out of momentum. Therefore the CCI system would always make divergence patterns indicating a reversal that is taking place.
So when the price is making higher highs and lower lows, we expect the indicators to follow suit. If they are not, then the price and the indicator, in this case the MACD, are diverging from each other and will mean that the forex market may reverse. Again, the method works better on higher timeframe like H4 or higher.
When making use of the CCI system it is strongly advised that you should plot the price chart along with two CCI indicators. Once this has been done you would have to wait and observe the divergence pattern to emerge from both the indicators. It can also be of great use to make use of a single indicator but the use of both indicators gives out the very best signals. There are also other settings that you are able to try out and these will extremely work well for you. The settings are very easy to employ and you should not be worried at all because the system comes with a tutorial and the best part of this system is that you can make use of it using a demo account before you start off investing with your money. The use of indicators is very useful because it will certainly give out strong signals when ever a market starts to run out of momentum and at this point you will be able to decide whether to exit a trade or to set up stop loses.
For example, you can make an excellent set up on the following pair the GBP/USD giving yourself a 15 minute period chart. You will certainly observe that the prices did not trade lower but it will form more like a double bottom formation. If pairs begin to make low prices then the CCI will definitely make new lows indicating a reversal of a positive sign that is taking place and hence this will be correct in this case.
The CCI system is a forex trading system that is very good to use and you do not have to always monitor the events that are taking place. All you have to do is set up your indicators and the system will do the rest for you. Forex market trade can become very easy only is you make use of the right system for your investment and also if you are to include several trading strategies in your system.
Your system will certainly work well if it is combined with several other forex trading strategies and you should also make it a point that you get to understand how other systems work so that you are able to select the very best system for your investment.
Archive for the 'Canadian Dollar' Category
After finishing 2008 on a low note and getting off to a disastrous start in 2009, the Canadian Dollar (”Loonie”) is slowly clawing its way back. It has now risen over 14% since the beginning of March, and is up 7 cents in May alone, en route to a seven-month high. Circumstances have changed so rapidly that no one could have seen this coming. “The rising Canadian dollar has taken some forecasters by surprise; recent predictions by some Canadian banks said the dollar would be in the high 70-cent US to mid-80-cent range by June.”
USD Sinks Pressured by Improving Risk Appetite
USD traded at a five month low pressured by improving risk appetite as global equities and crude prices rally to a new high for 2009. Hope for second-half of the year recovery in the global economy fuels demand for equities and commodities. The USD was also pressured by report that South Korea plans to reduce exposure to US bonds and concern about financing of US debt. The Daily Telegraph reports that the six-month high in US 10 year bond yields defies efforts by the Fed to push long-term interest rates lower.
GBP/USD Breaks Through 1.60
The Cable busted through our 2nd tier downtrend line and the psychological 1.60 level as investors return to risk. We view the defeat of our 2nd tier downtrend line as a significant move, giving a green light to the Cable’s bull trend. Our 2nd tier downtrend line stretches back to July 2008 highs, meaning the GBP/USD has a ton of room to the upside with all near-term downtrend pressures out of the way. Investors are reacting to a much stronger than expected Nationwide HPI release, showing home values are improving in Britain.
Mid-Day Report: Dollar and Yen Extends Down Trend
Dollar and yen extends recent down trend today, riding on further improvement the optimism of economic recovery. Q1 GDP contraction was revised from -6.1% to -5.7% annualized rate. U of Michigan consumer sentiment was also revised up from 67.9 to 68.7 in May. Though, Chicago PMI disappointingly dropped from 40.1 to 34.9 in May. Commodity currencies are the biggest winners today, boosted additionally by rise in commodity prices as crude oil 66.4 while Gold jumped to as high as 980 level. on the other hand, note that USD/JPY gives back much of the earlier gain this week as Treasury Yields retreat further.
Canadian Dollar Underperforms on Fundamental Forecast
Fundamental Outlook for Canadian Dollar: Bearish
- Overextended futures positioning boosts Canadian Dollar Outlook
- Canadian CPI inflation unexpectedly accelerates, boosting interest rate outlook
The Canadian dollar gained sharply against its US namesake on recent Federal Reserve actions, but the Loonie nonetheless underperformed major G10 counterparts on mixed results in domestic economic data. Canadian dollar forecasts remain muted as traders take stock of economic developments in the highly trade-dependent country. Indeed, recent data releases pointed to continued weakness in key export-related industries, and domestic consumption has fallen sharply as a result. Looking to the week ahead, a relatively empty economic calendar promises little in the way of foreseeable event risk. Yet it will be important to watch developments in the US economy and effects on the Canadian dollar.
Canada’s strong dependence on international trade leaves its currency at the mercy of international demand, and forecasts for a global economic recession bode poorly for the downtrodden Canadian dollar. According to 2008 estimates, Canadian exports amount to approximately 30 percent of domestic GDP. Recent January figures show that said exports plunged 18.2 percent on a year-over-year basis. Clearly, a continuation in the ongoing trend will have substantial effects on domestic GDP.
Such bearish outlook for global consumption makes it difficult to feel bullish on the downtrodden Canadian dollar, but its continued resilience against the USD suggests that bulls have not yet given up the fight. Likewise significant, clear downward momentum in the US Dollar could maintain downward pressure on the USD/CAD exchange rate—offsetting relative Canadian Dollar weakness. It will be critical to watch whether US dollar concerns will outweigh clear risks of sustained Canadian economic contraction. – DR
Australian Dollar May Benefit As Inflation Concerns Rise
Fundamental Outlook for Australian Dollar: Bearish
- Westpac Leading Index for January fell 0.2% signaling that the economy may have entered a recession.
- Reserve Bank Of Australian policy meeting minutes showed that further easing may ahead.
The Australian dollar ended higher against most major currencies for a second week in a row as improving risk appetite has pushed commodity prices higher. The local dollar started the week flat against the greenback, but the Fed’s announcement to purchase government bonds sent the AUD/USD higher by over 300 pips. Fundamentally the picture remains cloudy for the high yielder, as the Westpac leading index fell another 0.2 percent—signaling that the economy may have contracted in the first quarter which would confirm that it has entered a recession. Additionally, the RBA’s minutes showed that despite the central bank leaving interest rates on hold, they still see downside risks to the economy and potential for further easing. Policy makers chose to pause in order to be able to gauge the impact of their prior easing which saw them lower their target rate by 4.0 percent to 3.25 percent—a 45 year low.
The printing of money by major central banks has raised concerns of re-inflation which has pushed commodities higher as traders look to hedge their exposure. The CRB index jumped from 209.98 to over 226.0 which was the largest weekly gain in two months. The action by the governments has also feed risk appetite which has made the high yielding currency attractive to investors seeking larger returns. The Conference Board Leading Index is the only major release on the schedule and if it declines for a fifth straight month it would add to concerns over the economy and could weigh on the Australian dollar. If bullish momentum continues we could see the ADU/USD look to test the January 7th high of 0.7272 with the psychological level of 0.7000 as possible resistance. - JR
New Zealand Dollar's Rally Needs Favorable Data To Survive
Fundamental Outlook For New Zealand Dollar: Bearish
- Fourth quarter manufacturing activity unchanged while sales plunge 5.4 percent
- Service sector activity contracts yet again as sales, employment and orders slide
- Credit card spending contracts for the fifth consecutive month on a year-over-year basis
The New Zealand dollar rallied across the board over the past week as fundamental weakness in some of the kiwi’s major counterparts helped leverage a derivative rebound in risk appetite. Fear, however, is still an indelible element to all markets; so strength in risk-sensitive instruments like the New Zealand currency could soon sputter without a real grounding in fundamentals. This means that either the market will need to see risk dissipate and appetite for yield rise; or the kiwi will need to find fuel to sustain its budding bull trend. Looking at data scheduled for release next week and the lingering macro events on tap, this com bloc staple could finally see a significant retracement of its aggressive two week advance.
As has been the case for months, the most influential and lasting driver of kiwi price action going forward will be the broader appetite for risk. Typically, these trends are ill-defined by schedules and have recently followed the intensity of global financial strains matched against policy officials’ ever-growing efforts to stabilize the markets. Over the coming week, the focus on the balance in fear will intensify leading up to the April 2nd G-20 meeting. Policy officials have been constantly putting out fires in their own economies; and the focus will likely be on the Euro Zone and US through the immediate future. The EU recently announced it would extend its credit line to those members in financial stress to 50 billion euros and was working out an individual bailout loan for Romania – helping to dampen fears that the Eastern European states could fall into bankruptcy and take the Euro Zone with it. A curve ball to keep an eye on is Switzerland. With SNB President Roth’s comments that the Swiss franc cannot afford to appreciate any further, protectionism may get in the way of a global rescue effort that could ultimately call an end to the now, 19-month old crisis.
Typically, the New Zealand dollar is merely caught up in the risk winds generated by its larger, industrialized counterparts; but this week we could actually see the country’s fundamentals actually contribute to the currency’s development. Major economic releases are scheduled for release; and topping the list is the 4Q GDP report. This indicator will force the market to take a critical look at the New Zealand dollar as a risk-sensitive currency and high yielder. It has been the rule of thumb for years that the New Zealand currency rallies when the market is seeking out higher returns because the small economy relieves most of its capital inflows through investment channels as market participants take advantage of the nation’s relatively high yields. However, the benchmark has come down quickly (pulling down rates of return on investable assets with it); and RBNZ Governor Bollard hasn’t officially brought an end to his dovish regime yet. Should data confirm economy shrank 1.1 percent over the quarter for its fastest decline since early 1991, it will severely undermine the hope for outsize returns from New Zealand investments. The same can be said of the current account balance through the same period and more timely trade and consumer sentiment readings. With global rates near the same low level across the world, the potential for higher rates of return down the line is largely dependent on growth. Lacking liquidity, reasonable expectations of return and even financial stability; Australia could end up being an appealing alternative to all the flows New Zealand used to earn. -JK
Reasons Why Forex Trading Courses Are So Important
From ancient times, people have been engaged in different types of businesses. Buying, and selling of commodities, is still the backbone of any business. Businesses have not only provided bread and butter to generations but have also helped build many great nations.
Trading is also one of the very old ways of doing business. Long ago, people traded goods for other goods. Later on, goods were traded for services and services were traded for money.
Forex trading is just one of the many forms of trading business. Simply put, forex trading is the trading of different currencies in the world. Known as the largest financial market in the world, forex trading is the least regulated market which provides absolute liquidity to most investors.
In the beginning forex trading seems very easy. But in reality, it’s quite difficult. To make money in forex trading, you should be able to buy currencies at a cheaper rate and sell them later at a higher rate. If you don’t have proper knowledge about it, you will lose a whole lot of money.
To become a pro in forex trading, you will need to learn the basics and then practice with some advanced learning tools. If you do it right, it won’t be long when you will become a master.
There are many forex trading courses that you can choose from. They vary not only by the content but also by the audience type. For example, you can choose to attend a forex trading class traditionally (inside the classroom) or online over Internet. There are courses designed for beginners, intermediate level and even for professional traders.
Whichever course you choose, you will definitely learn more and benefit from it. Practicing what you learn is also important. Although the actual trading requires additional expenses on your part, the amount that you’ll be spending will be doubled or even tripled once you do your actual forex trade.
Trading courses offered to the new forex traders teaches all the basic principles and aspects of forex trading. There are many institutions which offer the latest software and tools used in forex trading. Apart from detail on forex trading, many institutions educate the first time traders about the difference between equities and forex trading. They show how the pros make use of different instruments when doing the actual trade, which helps the beginner to choose the best possible instrument.
Since trading in forex goes on across the world, you can actually engage in forex trading twenty four hours a day and six days a week. You can just imagine how much money you can make in very little time; but this can only be realized if you attend forex trading courses.
Some new traders initially enjoy and benefit from forex trading even without attending any proper course. But in due time, they realize that they can lose a lot of money if they don’t seek professional help. As you can guess, a little help from outside can prove to be very useful.
Forex trading requires a lot of knowledge about the market itself, and if you hardly have any knowledge about it, you’re in big trouble. People who want to engage in business naturally want to make money, and to achieve that in forex trading, you must have a good grip of the different aspects of the trade.
One of the very important traits in doing forex trading is discipline. It’s not enough to have your own plan; you also need to stick to it at all times. With the help of adequate technical tools, you can go a very long way.
It would be wise to find a course in physical offices so that you can get the most professional and comprehensive learning experience. Check if they also offer study materials to be used at home. The opportunity brought about by the different courses offered in the market is infinite, and any trader can highly benefit from it.
Many forex trading courses allow you to have training with real quotes and data. You can learn the proper skills in risk management, and how you to preserve your capital. You will know how to make your very own business plan, and you will be able to improve on you plan as per your instructor’s comments.
Instructors of such courses are among the best; they have all the experience and knowledge about the trade. Almost any physical office which offers forex trading courses allows their students to do networking, which means they can have alliances and collaborations outside the four walls of the classroom.
To enroll yourself into any trading course requires background study and careful evaluation of the trading institution that provides the course. You can always ask your friends and colleagues who are already into forex trading about good forex trading course institutions. Or you can do some research online in case you want to attend classes on the Internet.
Remember, learning will always make the difference if you want to succeed in forex trading. So make a right decision when you choose right trading institute.
Advice On Learning Forex Trading
Business these days is a very tough task and it pays to know exactly what your doing. This is especially to true when dealing with the forex market. It is indispensable that learning forex trading and all that is associated with it to best of your ability in order to succeed. The various stakes and players. When you choose to learn forex trading you need to know exactly what your dealing with such as
* The value of the currency
* The various factors that will affect the value of the currency
* The trading strategies
* All the different market trends.
Knowing these will greatly help your cause. The fundamentals to forex trading is solid research. As it’s such a tough market then getting your hands on a good course to help in your knowledge of learning forex trading will help.
Why Should You Look For A Good Forex Trading Course?
Forex trading courses will help in teaching you the ways in which to predict or chart the continuous movement in the market as well as when the perfect time to buy or sell a commodity is. It will help you in getting familiar with various forex trading terminologies and the process of trading.
Because forex trading is done in real time and decisions are done on the spot, a trader should be emotionally equipped and prepared to handle the demands, challenges and the stress of the market. And these, one can learn in a forex trading education.
What To Look For in Forex Trading Courses
The Basics. A good forex trading education should include in its program the basics on margins, types of orders and leveraging as these are essential in the forex market transactions. It should teach the basic terminologies, the types of analyses being used, the software and tools and other such important things as charting and leverage. These are essential as the trader learns when to cut back and minimize his losses as well as gain profit.
Analysis. It should also teach you how to analyze common mistakes and at the same time, the ways to avoid such mistakes. Basic to a forex trading course is a detailed discussion on doing technical and fundamental analysis and tools.
Values. More than the theories and the basics involved, a good forex trading education should teach you proper money management and the development of a proper trading disposition and psychology. As the stakes are upped, a trader may become too emotionally involved. It is important that a forex trading course develops the appropriate values needed in money trading, such as discipline, patience and commitment.
Experience. A good forex trading course should provide real life experience through apprenticeship. There is no better teacher than experience, they say, and as forex trading is as real as it can get, forex courses should offer avenues where the student can practice trading. Some courses have live conference rooms or boards where the trader can learn to trade in real time or, in some cases, in a simulated environment. These experiences should also have a one-on-one feedback and forums for discussion and exchange of information and lessons.
For those who’d like to get a good grasp of the market and the rules of the game, there are online sites offering courses and workshops on forex trading. These sites offer courses on risk and money management, trading strategies, technical analysis, market trends and networking. There are also tutorials on the latest softwares and tools being used. There are also online sites that offer lifetime membership and support. Some online schools allow their students to retake the course for updates on the newest trends and strategies. You can try www.trainingacademy.com, www.realtimeforex.com, www.go-forex.net, www.forexmentor.com and www.fxcm.com.
Innovations
With the advent of the Internet, there’s already online forex trading, a system that allows corporations and players in the game to do business virtually. With online forex trading, one can check and monitor the value of the currencies, and even trade directly on the internet. It offers trading of almost 15 currencies, and with the growing number of online traders, it spells more possibilities and more earnings.
Of course, nothing beats the real thing. And a successful forex trader’s skill and knowledge is developed with continued experience. A forex trading education may or may benefit you, but it sure can spell a difference. With the forex market’s volatile environment and fast-paced transactions, one must be fully-equipped with the appropriate tools, knowledge, skill and disposition. The key here is to know the market. Of course, don’t forget to read up on the market, learn how to compare the currency values and generally become a better money manager.
The Latest Online Forex Trader Brokers System
Some brokers are exceedingly distinguished people to their clients, but there are those that are not. Brokers may work for insurance companies, real state, and even companies which supply trading systems. They are influential people which many individuals can rely on whenever they would need help of some sort. But a broker system differs.
The online forex trading broker system has a principal function of supplying clients with trading platforms. Trading platforms are well-known as the place to trade. There are also forex broker systems which supply training and programs which educate clients on how to invest money and how forex trading is being completed.
The training that is provided by these broker systems help several trade investors to reduce risks whilst maximizing profits. Investors therefore are able to profit a lot from these broker systems due to the facr they may also be able to acquire forex advice, help, knowledge, currency analysis, stock, and the coming market. Some also supply trading ideas and daily picks from newsletters.
The final goal of almost any forex broker system is to make an investor succeed. And this can only be achieved with a system having accomplished professional teachers and advisors who are able to give directional market tuition and forex training.
Beginners of the trade should be made aware that forex trading is a high risk investment. The currency market offers a lot of opportunity to earn huge amounts of profits but at the same time coupled with a lot of risks. Currency trading can give you a fortune in minutes, days and hours. But the sad truth is that it can also be lost just at the same time.
Currency forecasting is not an easy task, which is why many traders should not forget to gain knowledge of the trade first before they decide on making a trade. An intensive forex trading course can help in the learning of all the in and outs of trading. The pros can supply you with the needed educational knowledge before entering the real world of forex.
You can find a complete forex trading course that is of reasonable cost either online or in a traditional class. Look around, or you can ask around for a good trading course available.
Additional services are now provided by many broker systems to draw the attention of prospects and clients. Forex is considered as a sophisticated game, which is why you need a forex broker system.
Get scrolling updates and information for the individual currency trader. Federal Reserve’s intention about the interest rate is also required by traders, and a broker system will help in finding and providing this information. Professional traders repeatedly write newsletters that can be of good use by other forex traders, they will be able to supply information about technical and fundamental analysis. Set up alerts are sometimes provided to give traders certain ideas for them to make more money.
Broker systems are entrusted by many individuals to buy and/or sell on their behalf. Make sure that the broker is registered as an FCM with the CFTC. FCM stands for futures commission merchant; and CFTC is commodity futures trading commission.
First, you would need to have an account before you can set up a broker system. You can find a lot of them online, but make sure that you choose one wisely. You must ask about the fees being charged.
Friends and co-workers are a good source of trusted brokers; ask about the broker’s information and the troubles that they encountered, if any.
Online forex broker systems provide different services, but they should particularly be quick in buying or selling and automatic execution. The ’spread’ should be clearly identified, whether variable or fixed.
Pay thought to even the littlest thing before signing up for a forex broker system. The margin terms are also of utmost consideration. Ask how margins are calculated and margin requirements.
The broker system should be trustworthy and its efficiency as to performance should not be questionable. The trading software used by the trader is quite indispensable, that is why you should first see all the available options for you. Take advantage of free demos, this will help you greatly in making an informed decision.
Check all the policies of the forex broker system. Read especially those in fine print; oftentimes it is the most important part that the investor fails to read.
CHINA CONGRESS:Guangxi May Launch Yuan Settlement Trial In 09
CHINA CONGRESS:Guangxi May Launch Yuan Settlement Trial In 09
BEIJING -(Dow Jones)- Guangxi may launch a trial to allow the yuan to be used to settle international trade transactions this year, but neighboring Yunnan province will likely launch its trial first, a People's Bank of China official from the province said Saturday.
"Yunnan may be able to launch the trial as soon as the first half of this year, but they have their timetable and we have ours," said Huang Liangpi, the deputy chief of the PBOC's Nanning center sub-branch.
"The financial institutions in our region are less developed. We will, however, make an effort to get the trial program launched this year."
Huang also said that no foreign banks have applied to take part in the trial. He declined to say which Chinese banks had applied.
He was speaking on the sidelines of the National People's Congress.
-By Michelle Ng, Dow Jones Newswires; 8621 6120-1200; michelle.ng@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=zUK7V1MWWBLH%2BGwHj0et8Q%3D%3D. You can use this link on the day this article is published and the following day.
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CFTC Commitments: CME Mexican Peso Futures/Options-Mar 6
CFTC Commitments: CME Mexican Peso Futures/Options-Mar 6
Mexican Peso - Chicago Mercantile Exchange
Option And Futures Combined Positions As Of 03/03/09 |
==============================================================| Nonreportable
Non-Commercial | Commercial | Total | Positions
==========================|=================|=================|================
Long | Short |Spreads | Long | Short | Long | Short | Long | Short
===============================================================================
(Contracts Of Mxn 500,000) Open Interest: 48,835
Commitments
4,750 22,011 197 42,045 20,918 46,992 43,126 1,843 5,709
Changes From 02/24/09 (Change In Open Interest: 2,780)
-540 2,441 72 3,087 45 2,619 2,558 161 222
Percent Of Open Interest For Each Category Of Trader
9.7 45.1 0.4 86.1 42.8 96.2 88.3 3.8 11.7
Number Of Traders In Each Category (Total Traders: 75)
7 49 3 9 11 19 61
-By Linda Rice; Dow Jones Newswires; 913-322-5173;
csstat@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=nzprSMl7gIBAvtgyRSxkFA%3D%3D. You can use this link on the day this article is published and the following day.
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Swiss Franc Direction May Be Determined By SNB Rate Decision
Fundamental Outlook for Swiss Franc: Bearish
- SVME PMI fell to a record low of 32.6 from 35 in January, as manufactures cut production on declining demand
- Swiss GDP fell 0.3% in the 4Q which was the most since 2004, confirming that the economy was in a recession.
- Inflation unexpectedly rose 0.2% in February on higher food and clothing costs.
The Swiss Franc broke below the 20 and 100 Day SMA’s to end the week as the currency gained from broad based dollar weakness. However, the pair found support at 1.1500 which has held since February 4th. The Franc spent most of the week stuck in the 1.1700-1.1800 range despite a record low SVME-PMI and 4Q GDP contracting by 0.3%. The Swiss economy officially entered its first recession in six years as the fourth quarter decline followed a 0.1% contraction in the prior three month period. An 8.1% drop in exports was the main source of the negative growth as the global downturn has hurt demand for Swiss goods. The outlook doesn’t look bright for the export driven economy as its main trading partners the U.S. and Europe find themselves in deepening recessions themselves. Despite declining growth consumer prices in the country unexpectedly rose for a second month to 0.2% in February, as food and clothing costs rose.
Although rising inflation is justification for the SNB to consider raising rates, the dearth in growth will most likely lead the central bank to keep rates at 0.50% or lower them to zero at their upcoming rate decision. The Swiss National Bank was one of the first to aggressively cut their benchmark rate and continues to focus on getting the economy growing again. SNB Chairman Jean-Pierre Roth reiterated that commitment in a letter to his staff when he announced he was retiring at the end of the year. Therefore expect the central bank head to do everything in his power to leave the economy in the best shape possible before his departure. He also warned that “The impact of the financial crisis will be felt for a long time” and “the creation of a new economic upturn and the reform of the international financial system will therefore take all the attention of the Swiss National Bank in coming years”. Therefore, if the central bank paints a grim picture following their expected rate hold then we could see the Franc reverse recent gains and return back to the 1.1700 -1.1800. However, if the pair manages to cleanly break below 100-Day SMA at 1.1539 then it could be heading for a test of the 50-day SMA 1.1411.-JR
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Dollar Appreciates on Better Economic News
The U.S. dollar continued to gain today after the yesterday’s rather significant rally as the speculations that the world’s biggest economy is soon to leave its recession period arise.
The dollar grew against the euro and the British pound today, while being almost unchanged versus the Japanese yen. Yesterday, after the fundamental indicator news were released along with some corporate reports, the U.S. dollar advanced against all major currencies that are traded on Forex. The overall picture is definitely improving for the United States.
A somewhat unique flavor of the current situation lies in the fact that the dollar gains on good U.S. news, whereas previously good fundamentals from U.S. were benefiting only for their stock market and were very negative for the dollar. It looks like the traders now need to buy the greenback not only to get into a «safe haven» (and U.S. looks extremely safe comparing to other big economies) but also to buy the U.S. stocks, which promise huge earnings to the greedy investors that have enough courage to enter the market today.
The currency analysts point at the banks’ Q1 2009 reports (Wells Fargo’s being most prominent) as the main moving factor for the dollar. The say that more investors would want to buy dollar to use for the entry into the U.S. private financial system.
EUR/USD fell from 1.3156 to 1.3142 as of 11:05 GMT today after reaching as low as 1.3088 earlier — the minimum level since March 18. GBP/USD declined from 1.4670 to 1.4611, whole USD/JPY remains virtually unchanged near its 100.40 open level.
The Latest Online Forex Trader Brokers System
Some brokers are exceedingly distinguished people to their clients, but there are those that are not. Brokers may work for insurance companies, real state, and even companies which supply trading systems. They are influential people which many individuals can rely on whenever they would need help of some sort. But a broker system differs.
The online forex trading broker system has a principal function of supplying clients with trading platforms. Trading platforms are well-known as the place to trade. There are also forex broker systems which supply training and programs which educate clients on how to invest money and how forex trading is being completed.
The training that is provided by these broker systems help several trade investors to reduce risks whilst maximizing profits. Investors therefore are able to profit a lot from these broker systems due to the facr they may also be able to acquire forex advice, help, knowledge, currency analysis, stock, and the coming market. Some also supply trading ideas and daily picks from newsletters.
The final goal of almost any forex broker system is to make an investor succeed. And this can only be achieved with a system having accomplished professional teachers and advisors who are able to give directional market tuition and forex training.
Beginners of the trade should be made aware that forex trading is a high risk investment. The currency market offers a lot of opportunity to earn huge amounts of profits but at the same time coupled with a lot of risks. Currency trading can give you a fortune in minutes, days and hours. But the sad truth is that it can also be lost just at the same time.
Currency forecasting is not an easy task, which is why many traders should not forget to gain knowledge of the trade first before they decide on making a trade. An intensive forex trading course can help in the learning of all the in and outs of trading. The pros can supply you with the needed educational knowledge before entering the real world of forex.
You can find a complete forex trading course that is of reasonable cost either online or in a traditional class. Look around, or you can ask around for a good trading course available.
Additional services are now provided by many broker systems to draw the attention of prospects and clients. Forex is considered as a sophisticated game, which is why you need a forex broker system.
Get scrolling updates and information for the individual currency trader. Federal Reserve’s intention about the interest rate is also required by traders, and a broker system will help in finding and providing this information. Professional traders repeatedly write newsletters that can be of good use by other forex traders, they will be able to supply information about technical and fundamental analysis. Set up alerts are sometimes provided to give traders certain ideas for them to make more money.
Broker systems are entrusted by many individuals to buy and/or sell on their behalf. Make sure that the broker is registered as an FCM with the CFTC. FCM stands for futures commission merchant; and CFTC is commodity futures trading commission.
First, you would need to have an account before you can set up a broker system. You can find a lot of them online, but make sure that you choose one wisely. You must ask about the fees being charged.
Friends and co-workers are a good source of trusted brokers; ask about the broker’s information and the troubles that they encountered, if any.
Online forex broker systems provide different services, but they should particularly be quick in buying or selling and automatic execution. The ’spread’ should be clearly identified, whether variable or fixed.
Pay thought to even the littlest thing before signing up for a forex broker system. The margin terms are also of utmost consideration. Ask how margins are calculated and margin requirements.
The broker system should be trustworthy and its efficiency as to performance should not be questionable. The trading software used by the trader is quite indispensable, that is why you should first see all the available options for you. Take advantage of free demos, this will help you greatly in making an informed decision.
Check all the policies of the forex broker system. Read especially those in fine print; oftentimes it is the most important part that the investor fails to read.
Tips On Forex Trading Signal Software
If I ask you to name the five most important things in your life without which you can not possibly survive, you would probably count money in. Money is indeed an absolute necessity these days to live a comfortable life. You need money not only for your basic needs such as feeding your family, but also to buy things that help you to live a happy and content life.
There are various ways to earn money and it depends on an individual to choose the right way of making money. Some people work for an organization and trade their services for money, while others prefer running independent businesses to earn the money they need.
However, there is another way to make money which is called trading. People trade in a number of things, such as stock trades, commodity trades etc. But those who trade in money make millions of dollars in a very short time.
This kind of trade is called Forex trading. In the Forex market, you buy or sell currencies. Forex is the largest and the most liquid financial market in the world that operates 24 hours a day and produces monetary transactions that amount up to 2 trillion dollars in a single trading day.
One distinguishing fact of the Forex market is that, unlike the stock market, the Forex market has no centralized location. Markets across the world have different time for opening and closing which means that this type of trading is open 24 hours a day. Trade starts in Australia and ends the next day in New York.
It’s a fact that the Forex market is one of the best money making financial markets in the world. A lot of people have made millions of dollars in the Forex market and that too in a very short amount of time. Some people consider the Forex market as one of the best career that anyone can ever get into. And for this reason, people have quit their regular jobs and ventured in the Forex market to get a piece of this huge pie.
However, as you can guess, along with the money making advantage, there is equal amount of risk in the Forex trading, which you can not overlook. As the rate of the potential returns increases in any market, the risk of losing money increases too. It is a known fact that many people who ventured into this very large financial market have lost a lot of money and some even suffered huge financial losses. This is why you should think hard about it first before you even consider entering this financial market that offer huge potential to make money and also equally risky market.
Sound financial and market knowledge is an important aspect to any type trading. To be successful in Forex market, you should have the right knowledge and skills to trade currency. The basics of a Forex market is that you should buy low and sell high in order to make a profit. In addition, there are many different strategies involved using which you can earn money even when the market is down. You should also practice few techniques that help minimize the losses.
With time, trading in Forex has become possible from the comfort of your home. Thanks to the improvement and the advancement in communications technology, everyone who has investment potential and forex trading skills can now trade online and earn money from home.
All you need is a fast computer dedicated to your Forex trades alone and a fast Internet connection to avoid lags in updates in prices. You will also need a software program which acts as trading platform and assists you with your trades in the Forex market.
Obtaining the software program is easy. When you register and open a Forex account with your preferred Forex broker, the broker or the brokerage company will provide you with either an online version of software program or a downloadable and installable software program that you can install and run from your computer.
As there are many software programs available for Forex trading, it is important to choose the right one to suit your needs. You have to determine if the software has all the necessary things to assist you with your trades. For example, a good Forex trading software program should allow you to see real time charts, real time price updates and also let you use different tools that you need to effectively trade in the Forex market.
Safety and reliability are the two other points that you should consider in making the right choice for Forex trading software. The software should save you from hacker attacks or malicious transactions and should offer a safe channel for data exchange. The software should allow you to back up your data and also to restore it back in case of any damage or problem.
Information from this article should give you a basic understanding of Forex trading and guide you in obtaining resources for trading effectively in the Forex market. You can rest assured that with the right knowledge, skills, and the right Forex trading software, you can increase your chances in making a profit and decrease the risk of losing money in Forex market.
Intermarket Technical Analysis: Trading Strategies for the Global Stock, Bond, Commodity, and Curren
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Canada Afternoon: C$ Hits More 2009 Highs As Oil Rallies
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Wednesday, May 6, 2009
Canada Afternoon: C$ Hits More 2009 Highs As Oil Rallies
TORONTO (Dow Jones)--The Canadian dollar established more new 2009 highs Wednesday, as another surge in oil prices added to the ongoing willingness of investors to take on more risk and move back into pro-growth, pro-cyclical currencies.
The U.S. dollar was trading at C$1.1675 at 3:35 p.m. EDT (1935 GMT), from C$1.1809 at 8:00 a.m. EDT (1200 GMT) and C$1.1763 late Tuesday.
Along with other commodity-linked units like the Australian dollar, the Canadian dollar has benefitted enormously in recent days from a further easing of risk aversion in global markets, seen also in equity and commodity price gains.
Wednesday, those forces drew further nourishment from news that the U.S. April employment estimate from private payrolls firm Automatic Data Processing suggested a smaller-than-forecast number of job losses when the official figures are announced on Friday.
Developments such as these have kindled optimism that the U.S. and other economies are on the road to recovery, and that global demand for raw materials and other key Canadian exports might soon revive.
As part of this rosier sentiment, another upleg in world oil prices past the $56 per barrel mark also assisted the Canadian dollar in setting new year-to-date highs just past the C$1.1700 figure.
"We've seen some new momentum in oil and a number of other commodity prices today, and so we're seeing the same thing happen with commodity-sensitive assets like the Canadian dollar," said senior currency strategist David Watt of RBC Capital Markets in Toronto.
Watt added that the negligible market response to leaked information about Thursday's planned release of the U.S. government stress tests of U.S banks demonstrates that "people are prepared to keep buying risk."
Barring any major downbeat surprises in either the bank test issue or Friday's Canadian and U.S. employment reports, the Canadian dollar could continue to rally towards its next major technical target in the C$1.1477 area, Watt suggested.
These are the exchange rates at 3:35 p.m. EDT (1935 GMT), 8:00 a.m. EDT (1200 GMT), and late Tuesday.
USD/CAD 1.1675 1.1809 1.1763 EUR/CAD 1.5560 1.5708 1.5669 CAD/JPY 84.18 83.31 84.19
-By Paul Evans; Dow Jones Newswires; 416-306-2022; paulr.evans@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=2mGhBVCXrMyghSy2py0uGA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
CURRENCIES: Dollar Falls On Better-than-expected ADP Jobs Data
The U.S. dollar fell against most of its major rivals Wednesday, as investors opted for high-yielding, riskier currencies after a U.S. jobs report increased investor sentiment.
Reducing the dollar's safe-haven appeal, U.S. stocks and some economic sensitive commodities such as crude oil and copper rose after the ADP employment index showed the U.S. private sector lost fewer jobs than expected.
"The dollar's weakness return to the fray as risk appetite is boosted by a smaller-than-expected decline of payrolls," said Ashraf Laidi, chief market strategist at CMC Markets.
"But interestingly, the weakness is not as pronounced as it seems as key levels are still held. This is all raising possibilities that Friday's jobs report will show a smaller decline in payrolls than expected."
In mid-afternoon trading, the euro rose 0.2% to $1.3341, while the British pound gained 0.5% to $1.5131. The dollar also weakened against the Japanese yen, down 0.7% to 98.25 yen.
The dollar index (DXY), a measure of the greenback against a basket of currencies, lost 0.2% to 83.826. Over 12 months, the dollar index is up about 14%.
U.S. private-sector employment fell by 491,000 jobs in April, the smallest decline since October, according to the ADP employment index released Wednesday.
The index comes two days before the government releases its estimate of April nonfarm payrolls. Economists surveyed by MarketWatch are looking for payrolls to drop by 580,000 in the government survey, which would be the smallest decline since October.
The dollar had risen against the euro earlier in the session after Standard & Poor's cut its ratings for five out of six rated German Landesbanks, financial institutions owned by regional government and local community savings banks.
The downgrade "contributed to risk aversion and pushed up the dollar," said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon.
Optimism no good for buck
"This is a risk-taking trade," said T.J. Marta, strategist and founder of research firm Marta on the Markets. "If people are pessimistic, they buy the dollar. If they are confident, they sell the dollar."
Investors remained cautious on the euro ahead of Thursday's European Central Bank meeting. Adding more risks in currencies trading, the U.S. government will release the results of its banking sector stress tests Thursday.
"People are still negative on the euro zone," said Win Thin, senior currency strategist at Brown Brothers Harriman. "They don't want to move too much ahead of the ECB meeting tomorrow."
Investors were also awaiting the results of bank stress tests due out Thursday. The results may show Bank of America would need roughly $35 billion in fresh capital - contrasting with reports just a day earlier that it wouldn't need more than $10 billion, the Wall Street Journal reported.
Daniel Tenengauzer, head of foreign-exchange strategy at Merrill Lynch, said the dollar will continue to strengthen through the third quarter of 2009.
"We still do not believe a quick recovery and reflation scenario, i.e., the kind of inflation that would be U.S. dollar-negative, is likely in the next few quarters. Commodity prices have stabilized, but without the sort of substantial boost that would signal immediate trouble for the dollar," he said in a note to clients.
Rate decisions in Europe are due Thursday, with the focus on the European Central Bank, which is expected to cut interest rates and possibly announce new measures designed to reflate the contracting euro-zone economy.
In the U.K., meanwhile, a gauge of the services sector rose to an eight-month high.
The CIPS/Markit purchasing-managers index rose to 48.7 in April from 45.5 in March.
Any level below 50, however, indicates an economy that's contracting.
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=2mGhBVCXrMyghSy2py0uGA%3D%3D. You can use this link on the day this article is published and the following day.
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Forex: Pound rallies to 1.5140
The pound strengthen against the dollar and rose breaking above 1.5100. So far today GBP/USD has risen 0.55% and is near 4 month high reached last week at 1.5159.
The pair moved in an upside trend most of the American session recovering early losses and rising more than 130 pips. Current price is 1.5140. If the pair ends the day around these levels it will be the highest daily closed since January 7th.
Argentina's Bonds Jump Higher; Peso Declines To ARS3.7125
BUENOS AIRES (Dow Jones)--Argentine bond prices rose Wednesday on renewed optimism about the U.S. economy and on speculation the government is buying back its own debt.
The benchmark peso-denominated bond rose 7.31% in price terms at ARS55, yielding 19.92%, while the Boden 2012 dollar-denominated bond rose 6.94% at the dollar equivalent of ARS227.80 ($61.36), putting its yield at 41.87%.
Bonds rose because of better prospects for the U.S. economy and because of speculation regarding a possible government buyback of its own debt, said Sabrina Corujo, a trader at Lopez Leon Brokers.
On Tuesday the economic consulting firm Bein & Asociados said the Argentine Central Bank and the social security agency, Anses, were jumping into the market to buy government bonds at discount prices.
A Central Bank spokesman wasn't immediately available for comment.
Corujo said investors also have been increasingly attracted to local debt because of diminishing expectations that the government may default in the near future.
"Prices have been rising since April as rumors of a default subside," she said. "Nobody is speculating that the government will default in the near term. Meanwhile, yields are very attractive and prices are cheap, making this a risk worth taking for many investors."
Argentine stocks also rose, with bank Banco Macro (BMA) leading the gains by rising 9.62% to ARS5.01.
It was followed by the power distributor Edenor, which rose 6.19% to ARS0.908.
The Merval stock index rose 3.42% to 1,409.91.
The only stock on the Merval index to decline was Petrobras Energia Participaciones (PBE.BA), the local unit of the Brazilian oil giant Petroleo Brasileiro SA, or Petrobras (PBR).
Earlier Wednesday PBE reported a first-quarter net loss totaling 205 million Argentine pesos ($55.4 million), versus an ARS261 million profit a year earlier.
PBE cited lower sales of oil, refined oil and petrochemicals as well as lower sales prices for the decline.
Net sales fell to ARS2.666 billion, compared with ARS3.206 billion a year earlier.
Volume totaled 56 million pesos ($15 million).
The peso weakened to ARS3.7125 to the U.S. dollar versus ARS3.7 the previous day.
Volume totaled $494 million in the exchange market.
-By Taos Turner, Dow Jones Newswires; 54-11-4103-6728; taos.turner@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=2mGhBVCXrMyghSy2py0uGA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires