How do I make money in FOREX?
FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments.
Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.
Saturday, August 2, 2008
What is FOREX?
What is FOREX?
The FOREX Market (Foreign Exchange) is the biggest market in the world, where the average daily trading is over $1.9Trillion.This is a world wide market in which currencies are exchanged by various participants, such as world banks, multinational corporations, financial markets and most importantly – individual traders!YOU can be part of the excitement in the biggest trading market in the world, and share some of those $1.9 Trillion being exchanged daily! You can buy or sell Dollars, Euros, Yens, Pounds, and more, at a click of a button.All that’s needed is to chose a broker, sign up, and start trading Now! Join at any time - the FOREX market is always open, encompassing all time zones around the world (excluding Friday 10:00 pm GMT till Sunday 00:00 GMT). Most brokers offer web based trading platform, making it easy for you to trade anytime anywhere.If you are new to FOREX, many brokers will provide you with demo accounts, where you can practice trading with virtual money. Once you feel ready to start earning money, you can go ahead and open a real money account. Many brokers provide mini-accounts too, in which the initial deposits are lower than in the standard account.There is an abundance of educational tools out there, to help you learn the trade. Anything from books, land based classrooms, online guides, and even interactive simulators.While learning, it is advised to read users' forums to get the daily insight of what experienced traders are doing, until one day – you become one of the experts on the forum.The trick in FOREX is to trade on margin, meaning you are trading with capital borrowed from your broker. When choosing your broker you want the one who offers you the best terms. You also want to be aware of any risks involved in trading.Like everything else in life – practice makes perfect! It will take time to be an expert trader, but the liquidity is out there and the trading tools are easy to use, so you can start making money NOW!
The FOREX Market (Foreign Exchange) is the biggest market in the world, where the average daily trading is over $1.9Trillion.This is a world wide market in which currencies are exchanged by various participants, such as world banks, multinational corporations, financial markets and most importantly – individual traders!YOU can be part of the excitement in the biggest trading market in the world, and share some of those $1.9 Trillion being exchanged daily! You can buy or sell Dollars, Euros, Yens, Pounds, and more, at a click of a button.All that’s needed is to chose a broker, sign up, and start trading Now! Join at any time - the FOREX market is always open, encompassing all time zones around the world (excluding Friday 10:00 pm GMT till Sunday 00:00 GMT). Most brokers offer web based trading platform, making it easy for you to trade anytime anywhere.If you are new to FOREX, many brokers will provide you with demo accounts, where you can practice trading with virtual money. Once you feel ready to start earning money, you can go ahead and open a real money account. Many brokers provide mini-accounts too, in which the initial deposits are lower than in the standard account.There is an abundance of educational tools out there, to help you learn the trade. Anything from books, land based classrooms, online guides, and even interactive simulators.While learning, it is advised to read users' forums to get the daily insight of what experienced traders are doing, until one day – you become one of the experts on the forum.The trick in FOREX is to trade on margin, meaning you are trading with capital borrowed from your broker. When choosing your broker you want the one who offers you the best terms. You also want to be aware of any risks involved in trading.Like everything else in life – practice makes perfect! It will take time to be an expert trader, but the liquidity is out there and the trading tools are easy to use, so you can start making money NOW!
LiteForex offers
LiteForex offers revolutionary trading technology for beginner traders, and lets you start trading in the Forex market depositing just ONE DOLLAR! Your deposit appears in US cents on the Lite group accounts, so you feel like you are trading the same amount in US Dollars. This new technology allows Forex beginners to learn Forex in a REAL life situation with minimal investment!
LiteForex also offers competitive trading conditions for Forex professionals all around the world, and provides a dedicated Forex trading server and experienced customer support as well as analysis of Forex market and a professional affiliate program.
With more than 124,000 serviced users, more than 45,000 unique and live Forex trading accounts, more than 300 new traders every day, and more than 700,000 live orders every month, LiteForex is one of the most popular and fastest growing Forex companies in the world.
Take your first step to financial freedom. Enter the Forex world!
Open a Live Forex Account
LiteForex is a service mark and division of Straighthold Investment Group, Inc. - an independent market maker based on a MetaTrader 4, a very powerful and popular Forex trading platform, known throughout the world.
Join the very experienced Forex trader community learn how to use the MetaTrader 4 platform!
Get started on the Forex market with a Demo Account
Trading on the Forex market involves substantial risks, including possible complete loss of principal and other losses and is not suitable for all people. You are the best judge as to whether Forex trading is appropriate for you in light of your financial condition, investment experience, risk tolerance etc.
LiteForex also offers competitive trading conditions for Forex professionals all around the world, and provides a dedicated Forex trading server and experienced customer support as well as analysis of Forex market and a professional affiliate program.
With more than 124,000 serviced users, more than 45,000 unique and live Forex trading accounts, more than 300 new traders every day, and more than 700,000 live orders every month, LiteForex is one of the most popular and fastest growing Forex companies in the world.
Take your first step to financial freedom. Enter the Forex world!
Open a Live Forex Account
LiteForex is a service mark and division of Straighthold Investment Group, Inc. - an independent market maker based on a MetaTrader 4, a very powerful and popular Forex trading platform, known throughout the world.
Join the very experienced Forex trader community learn how to use the MetaTrader 4 platform!
Get started on the Forex market with a Demo Account
Trading on the Forex market involves substantial risks, including possible complete loss of principal and other losses and is not suitable for all people. You are the best judge as to whether Forex trading is appropriate for you in light of your financial condition, investment experience, risk tolerance etc.
KKI Forex Rates
KKI Forex Rates
Updated at: 8/2/2008 6:09:38 PM (PST)
Courtesy: KalPoint.com / Forexpk.com
Khanani & Kalia International (Pvt.) Ltd.
Pakistan's First ISO 9001 & 27001 Certified Exchange Company
Remittance
KKI'S Buying
KKI'S Selling
US Dollar TT
72.1
72.5
US Dollar DD
72.1
72.5
Currency Notes
Australian Dollar
66.7
67.1
Bahrain Dinar
189.6
189.8
Canadian Dollar
69.7
70.1
China Yuan
9.7
10
Danish Krone
14.85
14.95
Euro
112.6
113.6
Hong Kong Dollar
9.12
9.22
Indian Rupee
1.65
1.75
Japanese Yen
0.664
0.669
Kuwaiti Dinar
268.2
268.5
Malaysian Ringgit
22.4
23
NewZealand $
52.2
52.6
Norwegians Krone
13.84
13.94
Omani Riyal
186.05
186.25
Qatari Riyal
19.69
19.79
Saudi Riyal
19.12
19.22
Singapore Dollar
52.1
52.5
Swedish Korona
11.72
11.82
Swiss Franc
68.1
68.5
Thai Bhat
2.2
2.4
U.A.E Dirham
19.55
19.65
UK Pound Sterling
142.6
143.6
US Dollar
72.1
72.4
Disclaimer
The Open Market Rates offered by KalPoint.com, in collaboration with Khanani and Kalia International (Pvt.) Ltd are provided to our users as a part of our premium services free of charge. The open market rates are current and are updated through out the day so that their accuracy can be maintained. However these are only the indicative rates. Since, the money market rates keep on changing through out the day, therefore, KalPoint.com does not hold any responsibility or liability whatsoever with respect to any transactions made by the users on the basis of these rates.
Open Market Analysis
On Saturday, 2nd Aug 2008
CURRENCY MARKET REPORT FOR THE WEEK ENDING AS ON 2nd August 2008
RUPEE/US DOLLAR:Bearish trend continued to prevail in the kerb as rupee shed shine versus the US dollar in the kerb market amid demand of US currency continued to rise. The American dollar started off new week’s trading at Rs.71/65, kept showing upward trend and was trading at Rs.72/10 on Saturday at 12:33PM local time. Thus, rupee incurred a loss of 0/45 paisas versus dollar on the local desk. In the international market, the dollar rose to a one-month high against the euro as a government report showed employers in the U.S. eliminated fewer jobs last month than analysts forecast. U.S. payrolls shrank in July for a seventh straight month, decreasing by 51,000, matching the previous month's decline, the Labor Department said today in Washington.
SBP Updates: As SBP disclosed monetary policy for the period of July-December 2008 on Tuesday and has further tightened by increasing the key discount rate by 100 basis points (bps) in a bid to control the soaring inflation.
Major Headlines of the week:
ABN AMRO renamed as RBS in Pakistan (www.thenews.com.pk)
Special session to rescue trapped investors today (www.dawn.com)
Inflation surges by 31.9pc (www.dawn.com)
Forwarded premium on foreign exchange has also come down(www.brecorder.com)
U.S. Jobless rate highest in 4 years, payrolls drop (www.reuters.com)
GM, Toyota, Ford’s July U.S. sales tumble (www.msnbc.com)
German retail sales fall in June (www. bbcnews.com)
RUPEE/EURO: Euro traded on a negative note versus rupee this week amid decline in its demand in the local market and weak performance in the international market. The single currency kicked off new week’s trading at Rs.113/25, continued to shed shine and was changing hands at Rs.112/30 on Saturday. Thus, rupee recovered 0/95 versus 15-nation currency in the open market. On the international desk, the 15-nation euro fell earlier today versus the dollar as German's Federal Statistics Office in Wiesbaden said retail sales, adjusted for inflation and seasonal swings, dropped 1.4 percent in June after increasing 0.5 percent in the prior month. ECB President Jean-Claude Trichet said on July 3 that he had ``no bias'' or ``pre-commitment'' after policy makers increased the main refinancing rate to 4.25 percent.
RUPEE/POUND STERLING:The cable continued to depreciate versus the national currency in the kerb this week amid demand of British Pound declined and remained weak in the international market. Pound Sterling opened new week’s trading at Rs.143/40, continued to slide and was trading at Rs.142/20 at close of markets on Saturday. Thus, rupee recovered Rs.1/20 versus Pound. On the international desks, the pound headed for its biggest weekly drop since mid- June as U.K. manufacturing shrank by the most in a decade. The pound declined as much as 0.6 percent to $1.9727, the lowest level since July 10, as an index of British manufacturing dropped in July to the weakest since December 1998. Sterling depreciated 0.8 percent versus the dollar this week.
RUPEE/YEN:The Japanese currency shed mere grounds versus rupee in the kerb dealings. Yen started off new week’s trading at 0/666 and was changing hands at 0/664 at close of markets on Saturday. Thus, rupee ended the current week on a positive note versus Japanese currency.
OPEN MARKET ANALYSIS ARE UPDATED DAILY
Courtesy : KalPoint.com / Forexpk.com
Updated at: 8/2/2008 6:09:38 PM (PST)
Courtesy: KalPoint.com / Forexpk.com
Khanani & Kalia International (Pvt.) Ltd.
Pakistan's First ISO 9001 & 27001 Certified Exchange Company
Remittance
KKI'S Buying
KKI'S Selling
US Dollar TT
72.1
72.5
US Dollar DD
72.1
72.5
Currency Notes
Australian Dollar
66.7
67.1
Bahrain Dinar
189.6
189.8
Canadian Dollar
69.7
70.1
China Yuan
9.7
10
Danish Krone
14.85
14.95
Euro
112.6
113.6
Hong Kong Dollar
9.12
9.22
Indian Rupee
1.65
1.75
Japanese Yen
0.664
0.669
Kuwaiti Dinar
268.2
268.5
Malaysian Ringgit
22.4
23
NewZealand $
52.2
52.6
Norwegians Krone
13.84
13.94
Omani Riyal
186.05
186.25
Qatari Riyal
19.69
19.79
Saudi Riyal
19.12
19.22
Singapore Dollar
52.1
52.5
Swedish Korona
11.72
11.82
Swiss Franc
68.1
68.5
Thai Bhat
2.2
2.4
U.A.E Dirham
19.55
19.65
UK Pound Sterling
142.6
143.6
US Dollar
72.1
72.4
Disclaimer
The Open Market Rates offered by KalPoint.com, in collaboration with Khanani and Kalia International (Pvt.) Ltd are provided to our users as a part of our premium services free of charge. The open market rates are current and are updated through out the day so that their accuracy can be maintained. However these are only the indicative rates. Since, the money market rates keep on changing through out the day, therefore, KalPoint.com does not hold any responsibility or liability whatsoever with respect to any transactions made by the users on the basis of these rates.
Open Market Analysis
On Saturday, 2nd Aug 2008
CURRENCY MARKET REPORT FOR THE WEEK ENDING AS ON 2nd August 2008
RUPEE/US DOLLAR:Bearish trend continued to prevail in the kerb as rupee shed shine versus the US dollar in the kerb market amid demand of US currency continued to rise. The American dollar started off new week’s trading at Rs.71/65, kept showing upward trend and was trading at Rs.72/10 on Saturday at 12:33PM local time. Thus, rupee incurred a loss of 0/45 paisas versus dollar on the local desk. In the international market, the dollar rose to a one-month high against the euro as a government report showed employers in the U.S. eliminated fewer jobs last month than analysts forecast. U.S. payrolls shrank in July for a seventh straight month, decreasing by 51,000, matching the previous month's decline, the Labor Department said today in Washington.
SBP Updates: As SBP disclosed monetary policy for the period of July-December 2008 on Tuesday and has further tightened by increasing the key discount rate by 100 basis points (bps) in a bid to control the soaring inflation.
Major Headlines of the week:
ABN AMRO renamed as RBS in Pakistan (www.thenews.com.pk)
Special session to rescue trapped investors today (www.dawn.com)
Inflation surges by 31.9pc (www.dawn.com)
Forwarded premium on foreign exchange has also come down(www.brecorder.com)
U.S. Jobless rate highest in 4 years, payrolls drop (www.reuters.com)
GM, Toyota, Ford’s July U.S. sales tumble (www.msnbc.com)
German retail sales fall in June (www. bbcnews.com)
RUPEE/EURO: Euro traded on a negative note versus rupee this week amid decline in its demand in the local market and weak performance in the international market. The single currency kicked off new week’s trading at Rs.113/25, continued to shed shine and was changing hands at Rs.112/30 on Saturday. Thus, rupee recovered 0/95 versus 15-nation currency in the open market. On the international desk, the 15-nation euro fell earlier today versus the dollar as German's Federal Statistics Office in Wiesbaden said retail sales, adjusted for inflation and seasonal swings, dropped 1.4 percent in June after increasing 0.5 percent in the prior month. ECB President Jean-Claude Trichet said on July 3 that he had ``no bias'' or ``pre-commitment'' after policy makers increased the main refinancing rate to 4.25 percent.
RUPEE/POUND STERLING:The cable continued to depreciate versus the national currency in the kerb this week amid demand of British Pound declined and remained weak in the international market. Pound Sterling opened new week’s trading at Rs.143/40, continued to slide and was trading at Rs.142/20 at close of markets on Saturday. Thus, rupee recovered Rs.1/20 versus Pound. On the international desks, the pound headed for its biggest weekly drop since mid- June as U.K. manufacturing shrank by the most in a decade. The pound declined as much as 0.6 percent to $1.9727, the lowest level since July 10, as an index of British manufacturing dropped in July to the weakest since December 1998. Sterling depreciated 0.8 percent versus the dollar this week.
RUPEE/YEN:The Japanese currency shed mere grounds versus rupee in the kerb dealings. Yen started off new week’s trading at 0/666 and was changing hands at 0/664 at close of markets on Saturday. Thus, rupee ended the current week on a positive note versus Japanese currency.
OPEN MARKET ANALYSIS ARE UPDATED DAILY
Courtesy : KalPoint.com / Forexpk.com
Trading Advice by Youssef Kassantini
Forex trading strategies and techniques are designed to help traders optimize trading styles and systems.¦nbsp; We hope you enjoy our Forex strategies!
Youssef Kassantini
The following strategies are posted for the purpose of education only.¦nbsp; Trading rules may be subject to different interpretation. Planned risk levels may be increased dramatically under extreme market conditions. Use ideas and/or modify them to suit your trading style, but only at your own risk. We recommend testing your trading system on demo account prior to investing real money.
Trading Advice by Youssef Kassantini
1. There is no sure method to always win, do not look for it.
2. Stocks do not sell for their worth, but for what traders think they are worth.
3. Buy on rumors; sell before news (not on news).
4. Be "objective", minimize emotion.
5. Do not overtrade; you pay the dues in health and commissions.
6. Never trade or invest based on hope.
7. The real news is not in the headlines, but behind them.
8. Pay little attention to gossips and rumors.
9. Cut losses, let profits run.
10. Look after your losses, your gains will look after themselves.
11. The crowd is correct most of the time; it is at turning points that they get things wrong.
12. News known is news discounted in the price.
13. A suitable broker is selected by referral, not newspapers.
14. Mental rehearsal helps in anticipating possible outcomes.
15. Most successful traders are loners; they think independently from the crown.
16. Buy when stocks have few friends.
17. Keep an eye on what smart traders are doing.
18. Never risk more than 10% on any single trade.
19. If you lose 50% of your capital, you have to make 100% for breakeven.
20. When in doubt, stay out.
21. Don't try to call every market turn.
22. Never invest more than you can reasonably afford to lose.
23. Trade liquid markets.
24. Cut down losses at a logical point, not convenient.
25. Investment objectives should be Liquidity, Income and Growth.
26. Don't speculate unless you can make it a full time job.
27. Don't buy too many securities you cannot follow up on.
28. Always keep cash reserve.
29. Never trade with a serious personal problem.
30. Ask yourself what you really want.
31. Learn to wait, be patient.
32. Always understand the Risk/Reward ratio.
33. Look at the big picture at all times.
34. Undertrading is better than overtrading.
35. Trade in steps, never buy the quantity of stocks you need at one time.
36. Speculation requires cool judgment, flexibility and courage. Pliability.
37. The worst losses come from uninformed people buying greatly overvalued stocks.
38. Never speculate with money you need to live.
39. Expect the unexpected when investor opinions are too unanimous.
40. Specify risk capital and the level of risk.
41. The trend is your friend, never trade against the trend.
42. Pay all bills before speculating.
43. Don't speculate with other person's money.
44. Don't neglect your business to speculate
45. Money you invest should be money you do not need.
46. Don't go joint account with a friend, play a lone hand.
47. Corrections are three times more severe than rallies.
48. Don't take advice from the uninformed; they know no more than you do.
49. It is easier to buy than to sell.
50. Don't spend your paper losses, they might turn into losses.
51. Don't give tips, they get you in trouble and seldom pays you back.
52. Don't blame others for mistakes. A professional trader should consider everything.
53. If you cannot sleep over an investment, it shouldn't have been done in the first place.
54. Protect profits, avoid uncertainties.
55. Plan the trade then trade the plan.
56. Be patient.
57. Know and follow the above rules!
Youssef Kassantini
The following strategies are posted for the purpose of education only.¦nbsp; Trading rules may be subject to different interpretation. Planned risk levels may be increased dramatically under extreme market conditions. Use ideas and/or modify them to suit your trading style, but only at your own risk. We recommend testing your trading system on demo account prior to investing real money.
Trading Advice by Youssef Kassantini
1. There is no sure method to always win, do not look for it.
2. Stocks do not sell for their worth, but for what traders think they are worth.
3. Buy on rumors; sell before news (not on news).
4. Be "objective", minimize emotion.
5. Do not overtrade; you pay the dues in health and commissions.
6. Never trade or invest based on hope.
7. The real news is not in the headlines, but behind them.
8. Pay little attention to gossips and rumors.
9. Cut losses, let profits run.
10. Look after your losses, your gains will look after themselves.
11. The crowd is correct most of the time; it is at turning points that they get things wrong.
12. News known is news discounted in the price.
13. A suitable broker is selected by referral, not newspapers.
14. Mental rehearsal helps in anticipating possible outcomes.
15. Most successful traders are loners; they think independently from the crown.
16. Buy when stocks have few friends.
17. Keep an eye on what smart traders are doing.
18. Never risk more than 10% on any single trade.
19. If you lose 50% of your capital, you have to make 100% for breakeven.
20. When in doubt, stay out.
21. Don't try to call every market turn.
22. Never invest more than you can reasonably afford to lose.
23. Trade liquid markets.
24. Cut down losses at a logical point, not convenient.
25. Investment objectives should be Liquidity, Income and Growth.
26. Don't speculate unless you can make it a full time job.
27. Don't buy too many securities you cannot follow up on.
28. Always keep cash reserve.
29. Never trade with a serious personal problem.
30. Ask yourself what you really want.
31. Learn to wait, be patient.
32. Always understand the Risk/Reward ratio.
33. Look at the big picture at all times.
34. Undertrading is better than overtrading.
35. Trade in steps, never buy the quantity of stocks you need at one time.
36. Speculation requires cool judgment, flexibility and courage. Pliability.
37. The worst losses come from uninformed people buying greatly overvalued stocks.
38. Never speculate with money you need to live.
39. Expect the unexpected when investor opinions are too unanimous.
40. Specify risk capital and the level of risk.
41. The trend is your friend, never trade against the trend.
42. Pay all bills before speculating.
43. Don't speculate with other person's money.
44. Don't neglect your business to speculate
45. Money you invest should be money you do not need.
46. Don't go joint account with a friend, play a lone hand.
47. Corrections are three times more severe than rallies.
48. Don't take advice from the uninformed; they know no more than you do.
49. It is easier to buy than to sell.
50. Don't spend your paper losses, they might turn into losses.
51. Don't give tips, they get you in trouble and seldom pays you back.
52. Don't blame others for mistakes. A professional trader should consider everything.
53. If you cannot sleep over an investment, it shouldn't have been done in the first place.
54. Protect profits, avoid uncertainties.
55. Plan the trade then trade the plan.
56. Be patient.
57. Know and follow the above rules!
FREE FX Seminar and Private Meetings
FREE FX Seminar and Private Meetings
Dear Traders and Money Managers
In our continuous efforts to expand our presence on the Asian FX market we decided to better explore new possibilities in such a flourishing and rising economy. In this perspective, Crown Forex senior specialists will be present in Jakarta in August 2008 to meet with potential clients and introducing brokers.
A two hour free seminar will be presented by our senior analyst and forex strategist Mohammed Isbeer on 25th August 2008 at a very prestigious hotel in Jakarta (the location will be communicated along with the confirmation of your registration).
FOREX Seminar
Topic of the seminar: Can Fundamentals guarantee profits?
The seminar will explain how we can apply fundamental analysis to FX trading, over short, medium and long term; how fundamental analysis can provide entry points and entry time. We will explain how fundamentals can lead your trades to more profit than any other tool in the FX market.
For more information about the schedule of the event please click here.
Private Meetings
One of the main goals of our visit to Jakarta is to answer all your questions and concerns with regards to Crown Forex SA and its unique services. A senior team will be present in order to give you a more comprehensive image of Crown Forex SA throughout the four days.
Make sure to book a private meeting directly with our team! A great opportunity to discuss Crown Forex SA offer and services with our senior specialists on a one-to-one talk.
Private meeting can be scheduled using the registration form at the link below. Meetings will take place from August 26th through August 29th. We are looking forward to seeing you there!
For more information send an email to marketing@crownforex.com or call +41 32 420 7070
U.S. Dollar Finishes the Week Higher Against Most Major Forex Markets
By James A. Hyerczyk
Commodity Trading Advisor registered with the National Futures Association
01 August 2008 @ 05:14 pm EST
In a sign of strength in the face of a global economic slowdown, the U.S. Dollar finished higher for the week against most major Forex markets. The only exception was the USD JPY which closed slightly lower mainly because of stock market uncertainty late in the week. The higher close is most likely a sign that the U.S. economic woes are about to recover while the global weakness may just be beginning to spread.
The EUR USD closed lower for the week as traders ignored the string of weak U.S. economic reports last week and instead chose to focus on the developing weakness in the Euro Zone. Despite a report of higher inflation, the Euro could not rally as many traders feel the ECB will leave rates unchanged because the economy is in the midst of a slowdown. Continue to press the downside in the Euro next week with 1.5302 the next possible downside target. Shorts really do not have to worry unless 1.5768 is taken out.
The USD JPY could not muster a gain last week after looking so promising early in the week. This pair made several attempts to breakout to the upside at 108.42 and 108.59 on its way to a major 50% price at 109.94 but failed to attract any buying interest at the high levels. The inability of the stock market to take out the previous week's high also weighed on this market. The Yen suffered from a lack of demand while the stock markets retraced inside of a tight range toward the end of the week. The daily chart indicates more downside pressure is likely as the trading action on Friday confirmed a closing price reversal top at 108.33. The next downside target is 106.07. Do not expect much on the upside unless this market can blast through 108.59. Without a strong rally in the stock market, this pair may trade sideways to lower until it reaches an area attractive to buyers.
The GBP USD finished lower for the week as traders are finally beginning to realize the U.K.'s economic problems are not going to go away. Pound traders are looking at high inflation, low consumer confidence and a tumbling housing market as the main reasons to continue to sell rallies against the trend. Based on the failure of the rallies last week, it looks as if shorts are entering on the rallies. Talk is still circulating that the U.K. economy is on the brink of recession.
The USD CHF closed higher for the week on expectations the stock market may stabilize and rally next week. With global weakness spreading the Swiss economy is looking weaker than usual. This is leading to talk that the Swiss central bank will leave rates unchanged. The key number to overcome is the main top at 1.0541. A rally through this area is likely to cause short-covering and a push to the major retracement area at 1.0625 to 1.0630.
The USD CAD traded higher for the week. With the global economies weakening, traders believe that demand for commodities may dry up, causing a substantial rally in the U.S. Dollar against the Canadian Dollar. The inability to break this market on the small rally in crude is a sign that traders are beginning to look at the long term picture and seeing lower oil prices. This week the USD CAD may continue to rally to the last major resistance on the weekly chart at 1.0321.
The AUD USD received bad news all week from poor retail sales to bearish home building approvals. Traders are starting to worry about the stability of the Australian economy. Financial market traders are increasing bets of a possible interest rate cut. The main trend turned down on the weekly chart, indicating further weakness to follow.
The New Zealand Dollar is feeling pressure from credit markets risks and the threat of another interest rate cut. In addition to the basic fundamentals, this market received a surprise later in the week that investments and withdrawals were suspended for the New Zealand Guardian Trust Co. Technically, the next downside target is .7241. Watch for a technical bounce at this level.
Please do not hesitate to contact us at 1-800-971-2440, with any questions.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from B.I.G. Forex, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
By James A. Hyerczyk
Commodity Trading Advisor registered with the National Futures Association
01 August 2008 @ 05:14 pm EST
In a sign of strength in the face of a global economic slowdown, the U.S. Dollar finished higher for the week against most major Forex markets. The only exception was the USD JPY which closed slightly lower mainly because of stock market uncertainty late in the week. The higher close is most likely a sign that the U.S. economic woes are about to recover while the global weakness may just be beginning to spread.
The EUR USD closed lower for the week as traders ignored the string of weak U.S. economic reports last week and instead chose to focus on the developing weakness in the Euro Zone. Despite a report of higher inflation, the Euro could not rally as many traders feel the ECB will leave rates unchanged because the economy is in the midst of a slowdown. Continue to press the downside in the Euro next week with 1.5302 the next possible downside target. Shorts really do not have to worry unless 1.5768 is taken out.
The USD JPY could not muster a gain last week after looking so promising early in the week. This pair made several attempts to breakout to the upside at 108.42 and 108.59 on its way to a major 50% price at 109.94 but failed to attract any buying interest at the high levels. The inability of the stock market to take out the previous week's high also weighed on this market. The Yen suffered from a lack of demand while the stock markets retraced inside of a tight range toward the end of the week. The daily chart indicates more downside pressure is likely as the trading action on Friday confirmed a closing price reversal top at 108.33. The next downside target is 106.07. Do not expect much on the upside unless this market can blast through 108.59. Without a strong rally in the stock market, this pair may trade sideways to lower until it reaches an area attractive to buyers.
The GBP USD finished lower for the week as traders are finally beginning to realize the U.K.'s economic problems are not going to go away. Pound traders are looking at high inflation, low consumer confidence and a tumbling housing market as the main reasons to continue to sell rallies against the trend. Based on the failure of the rallies last week, it looks as if shorts are entering on the rallies. Talk is still circulating that the U.K. economy is on the brink of recession.
The USD CHF closed higher for the week on expectations the stock market may stabilize and rally next week. With global weakness spreading the Swiss economy is looking weaker than usual. This is leading to talk that the Swiss central bank will leave rates unchanged. The key number to overcome is the main top at 1.0541. A rally through this area is likely to cause short-covering and a push to the major retracement area at 1.0625 to 1.0630.
The USD CAD traded higher for the week. With the global economies weakening, traders believe that demand for commodities may dry up, causing a substantial rally in the U.S. Dollar against the Canadian Dollar. The inability to break this market on the small rally in crude is a sign that traders are beginning to look at the long term picture and seeing lower oil prices. This week the USD CAD may continue to rally to the last major resistance on the weekly chart at 1.0321.
The AUD USD received bad news all week from poor retail sales to bearish home building approvals. Traders are starting to worry about the stability of the Australian economy. Financial market traders are increasing bets of a possible interest rate cut. The main trend turned down on the weekly chart, indicating further weakness to follow.
The New Zealand Dollar is feeling pressure from credit markets risks and the threat of another interest rate cut. In addition to the basic fundamentals, this market received a surprise later in the week that investments and withdrawals were suspended for the New Zealand Guardian Trust Co. Technically, the next downside target is .7241. Watch for a technical bounce at this level.
Please do not hesitate to contact us at 1-800-971-2440, with any questions.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from B.I.G. Forex, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Subscribe to:
Posts (Atom)
