Make Money with Currency Trading

For those unfamiliar with the term, Forex (Foreign Exchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

Forex is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the Forex money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How Forex Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in Forex investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in Forex are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on 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.

by Rich McIver

Explosive Profits: 7 Reasons to Trade Forex

There are many money-making opportunities out there and we've been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc.

We've come to a few conclusions with the help of some well-known properity coaches.

Often people with the income they desire don't have the time to enjoy it. Those that have time don't often have money. You don't have to sacrifice your life-style to earn an above-average income. If you focus on the for a few months you can make that dream a reality and create time and money to do what you REALLY want.

To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it's a repeat type of product or service.

Money is a medium of exchange. There's no magical formula to possess it, you need to exchange something of value for it.

What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn't it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that's like), competition stealing your business without providing the same value etc.

All that is possible with . You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go.

Another advantage is that you don't need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.

Here's 7 more reasons to trade :

1. It never closes. It's open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It's a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.

2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It's the best use of trading capital around, even banks lending on property investments don't come close.

3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. 'Technical Analysis' helps to see these trends and profit from them.

4. Low Transaction Cost. In other words, you mistakes won't cost you a fortune. Good brokers won' charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.

5. Unlimited Earning Potential. has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).

6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you're selling in another so there's no biase towards either currency moving up or down. This means it's up to you to choose which currency to buy or sell with. Yu can make money going up or down.

7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It's highly efficient and allows you to avoid unexpected 'surprises'.

I hope you're now convinced that is the best investment and income opportunity around.

by Sorna Devadas

Forex The Future Investment

There are many many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the European and then the Asian. One of the great times to trade is during the over lapping periods. The USA and European overlap between 5am & 9am eastern and the Euro & Asian between 11pm & 1am eastern. Usually the busiest time and best to trade.

The is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with a lot more from your pocket. It can be very risking. But not in Forex. Worst case generic you could lose whats in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. But That wouldn't happen with a smarth trader.

Then there are the demo accounts which is an account where you can trade using all the right things, platform,charts,and information. But you are using play money, or what we call paper trading too.

Plus with Forex you have a mini account. Instead of needing thousands of dollars to get into it. You can open an account with as little as $300.00. Now of course you will be trading at 1 tenth of a trade. IN other words you controlling 10,000 instead of 100,000.00 These are call lots. Which also means you will only risk 1 tenth too!

So if you would love to learn to do investing and not have near the risk you really need to take a closer look at Forex trading.

by Mike Pachuta

Tips to MAKE Money Fast in Forex

This is all about making a fortune with Forex. Most traders just go with the flow and make average gains, with this article you will learn what makes some traders stand out and a lot richer than others!
We are going to assume that you know how to trade, and has quite an experience in trading.

With simple changes in your trade selection, money and risk management, and mindset, you can change that average gains into larger ones!
Fast money is in Forex, it is a lifestyle. here is it how its done.

Tip 1 . Embrace Changeability and Risk With a Smile Forex systems have instability.
If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?).
But taking manageable risks has its rewards.It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high!
That is what I call excitement, my friend.To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.

Tip 2. Trade Less, gain more
Most traders think that if they don't trade, another door has closed, or miss some move. The tendency, they trade frequently. Most of the trades that come big come a few times in a year. Focus on the trades that make the really big gains. Be alert, and informed.

Tip 3. Diversify is a no-no
Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.

Tip 4. Money and Risk Management
This article has been concentrating on the Big gains, because this is your money, so every penny should be controlled, this is where money management kicks in.Control your risks, but increase your chances of success:-
Give yourself staying power by buying options at or in the money, this prevents you from getting stopped out. Many traders lose not by the market direction, but because they were stopped out by a in stable move, and options will give you staying power.- Keep your stop in its original position - until the move is well in profit, before moving it up.- Trading fast and selectively - have the courage to trade when you feel it is good. and enjoy the cash.

Tip 5. Compound growth has its benefits
The way to make money fast in forex, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.Break the norm, and gain more. Follow some of these tips and make your way into the big gains!

Currency Exchange Rates

Currency Exchange Rates Exchange Currency - Trading Foreign Currencies In the market of foreign exchange trading is always done in currency pairs, and Forex brokers around the world access money indices via currency converters and online platforms with rates given in real time. The value of major currencies changes continually, with investors hoping to make a profit from the purchase of stronger currencies. Trading between two non-dollar currencies occurs first by trading one against the US Dollar and then trading the US Dollar against the second non-dollar currency. Exchange rates are usually given as one unit of one currency to units of another...

What is Foreign Currency Exchange Rate? The existing exchange rate of a foreign currency is one of the most desired financial information by many - name it exporters, importers, investors, tourists or even ordinary. Even the ordinary citizens outside the United States hold on to their precious dollars hoping for an increase in the foreign currency exchange rate later on CURRENCY EXCHANGE RATE information Foreign currency exchange rate refers to the value of a certain currency based or compared to the rate of another country’s currency. A foreign currency exchange is said to be increasing its value if it is gaining strength against the.

Investing in Forex by Joe Clinton

Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.

A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor's time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It's easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.

I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.

by Joe Clinton

Advantages of the Forex Market

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

by Heather Redmond

Dollar Edge Down Against Yen In Asia

TOKYO: The dollar edged down against the yen in Asian trade on Wednesday with the market closely watching Chinese share prices following their recent volatility, dealers said.

The dollar fell to 94.65 yen in Tokyo morning trade from 94.70 in New York late Tuesday. The euro gained to 1.4136 dollars from 1.4132 but slipped to 133.65 yen against 133.85.

“The foreign exchange market is being influenced by global share prices, particularly the Shanghai market,” said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank. “Prospects for the global economy are still uncertain.”

He said the safe-haven yen might gain further if shares suffer another fall, triggering selling of risky assets.

Chinese shares fell slightly in morning trade Wednesday as sentiment remained fragile after recent market losses.

Traders were mulling a mixed batch of data. US home construction activity saw a surprise decline in July, with both new starts and building permits falling, the Commerce Department said Tuesday.

But in Germany, the closely watched ZEW index of investment sentiment rose 16.6 points to 56.1 points, well ahead of analyst forecasts.

“It’s almost certain that the global economy is through the worst phase,” Hosokawa said. “Now we are at the next stage, where we will see a zigzag trend for the time being before reaching a full recovery.”

HYSTA Announces 2009 Annual Conference - 'Survive and Thrive amidst a Global Economic Crisis: New Opportunities across China and US'

August 21, 2009

SAN JOSE, Calif., Aug. 21 /PRNewswire/ -- HYSTA (Hua Yuan Science and Technology Association) will present its annual conference on Saturday, October 3, 2009 at the Santa Clara Convention Center. The conference brings together top industry leaders from both Silicon Valley and China and is targeting business executives, high-tech professionals, investors and those interested in entrepreneurship.

This year's conference will focus on how to not only survive in business during global economic hardship but to also thrive; grow and expand, a new leader emerging from the pack. The conference will feature keynote speeches and panel sessions on topics such as Green Energy / Clean Technology, Innovation in the current Global Economy and Venture Capital Opportunities. We are proud to announce that Steve Ballmer, CEO of Microsoft, will be our keynote speaker to share his insights on the opportunities for US and China that exist in an unstable market. An expected list of speakers includes:

    --  Steve Ballmer, CEO of Microsoft
    --  Fang Fang, Managing Director and CEO JP Morgan China
    --  Steve Westly, Former Controller of CA, Managing Partner of The Westly
        Group
    --  YiBing Wu, Managing Director, Legend Holding
    --  Jeff Xiong, Co-CTO, Tencent
    --  Stephanie Tilenius, Senior VP and General Manager, eBay North America
        and Global Platform
    --  Clarence Kwan, National Managing Partner, Deloitte Chinese Services
        Group
    --  ShuHua Zhou, Partner, Northern Light
    --  David Chen, President, VanceInfo
    --  Walter Fang, President, Neusoft America
    --  Marc Porat, Chairman/Founder, Calstar, Serious Materials
    --  Zheng Xu, CEO, Sierra Power

    --  Jonathan Hsu, CEO, 24/7 Real Media

Stocks spike on recovery hopes

Optimism from Fed chief Bernanke and jump in existing home sales propel Wall Street to fresh 2009 highs.

NEW YORK (CNNMoney.com) -- Stocks surged Friday, with the Dow, Nasdaq and S&P 500 all ending at fresh 2009 highs, after Fed chief Ben Bernanke said the economy is near a recovery and existing home sales posted their biggest jump in two years. The Dow Jones industrial average (I N D U) gained 156 points, or 1.7%, closing at the highest point since Nov. 4. The S&P 500 (S P X) index added 19 points, or 1.9%, closing at the highest point since Oct. 6. The Nasdaq composite (COMP) rose 31 points, or 1.6%, ending at the highest point since Oct. 1.Stocks have managed to rally in the last week, despite light trading volume and some worries about the impact of a potential economic slowdown in China. The advance got an additional leg up Friday after the economic news.In particular, investors welcomed a report that showed existing home sales jumped for the fourth month in a row, rising well beyond forecasts. "It was basically the highest level in two years and higher even than a year ago before the whole financial crisis, pre-Lehman," said Stuart Hoffman, chief economist at PNC Financial Services Group. He said it is notable that economic indicators seem to be getting back to levels prior to last September, when the collapse of Lehman Bros. exacerbated an already brewing financial market meltdown."The report is basically telling us that the housing market has hit bottom," Hoffman said.Gains were broad-based, with 29 of 30 Dow shares rising, led by Chevron (C V X, Fortune 500), Exxon Mobil (X O M, Fortune 500), Boeing (BA, Fortune 500), United Technologies (U T X, Fortune 500), IBM (IBM, Fortune 500), JPMorgan Chase (J P M, Fortune 500), Caterpillar (CAT, Fortune 500) and 3M (M M M, Fortune 500).Since hitting a more than 12-year low in early March, the S&P 500 has gained more than 50% as investors have moved out of panic mode and into a sense of cautious optimism.That optimism is likely to sustain gains in the short term, as it enables investors to draw more cash out of money market funds and put it to work in riskier assets, said Mark Travis, president and CEO of Intrepid Capital Funds. "We've had an awfully nice run since March and there's still enough skepticism to keep us moving higher," Travis said. "Having said that, prices are not as attractive as they were in March and historically, there's often a bigger selloff."Housing: Sales of existing homes spiked 7.2% in July versus June and 5% versus a year ago.Existing home sales for July rose at a 5.24 million unit annualized rate from a 4.89 million unit annualized rate in June, the fastest monthly pace in two years. Economists surveyed by Briefing.com expected sales to rise at a 5.1 million unit annual rate.In other economic news, the number of states showing a drop in the unemployment rate tripled in July from June levels, according to a government report released Friday.Bernanke: The Fed chief said the U.S. economy is on the cusp of a recovery, speaking at the Kansas City Fed Economic Symposium in Jackson Hole, Wyo. Bernanke said that the pace of the recovery will be slow and that unemployment will remain high.Hoffman said the speech showed the significance of the coordinated actions taken by the Fed and Treasury and central banks around the world to stem the financial meltdown."The recovery is going to be moderate, but without all the actions taken over the last year, I don't think we'd be talking about the economy stabilizing right now," he said. "We'd be talking about how the recession has no end in sight."Company news: Gap (G P S, Fortune 500) reported higher quarterly earnings that topped forecasts in a report released late Thursday. But the clothing retailer also said sales fell from a year ago. Shares gained 3%.Market breadth was positive and trading volume was light. On the New York Stock Exchange, winners beat losers by four to one on volume of 1.48 billion shares. On the Nasdaq, advancers topped decliners by over two to one on volume of 2.28 billion shares.
World markets: In overseas trading, European markets gained. Asian shares ended mixed, with the Chinese market higher and the Japanese market lower. Oil: U.S. light crude oil for October delivery settled up 98 cents to $73.89 a barrel on the New York Mercantile Exchange, a 10-month high.Bonds: Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.57% from 3.42% Thursday. Treasury prices and yields move in opposite directions.Other markets: COMEX gold for December delivery rose $13.50 to $955.20 an ounce.In currency trading, the dollar fell versus the euro and gained against the Japanese yen.

ECB President Trichet: More Work To Do To Stem Crisis

ECB President Trichet: More Work To Do To Stem Crisis

   By Maya Jackson Randall
  Of DOW JONES NEWSWIRES

JACKSON HOLE, Wyo. -(Dow Jones)- Policy makers around the world must keep up efforts to stem the global crisis - despite signs that the global recession is easing, European Central Bank President Jean-Claude Trichet said Saturday.

In a broad speech to international finance officials, Trichet said finance officials must not get complacent. They need to do all they can to prevent another crisis and sustain recovery, he said.

"This is the very demanding, immediate task of the international community," said Trichet. "And now that we see some signs confirming that the real economy is starting to get out of the period of 'free fall' - which does not mean at all that we do not have a very bumpy road ahead of us - the largest mistake we could make would be to forget the importance and the urgency of this task."

Trichet spoke on a panel during an annual economics conference that has once again attracted central bankers and academics from around the world to Jackson Hole, Wyo.

Trichet also touted monetary policy in Europe as being steady-handed in the face of financial shocks.

"The ECB has acquired a reputation for moving interest rates in a steady and persistent fashion over time," he said. "This is a conscious choice."

Additionally, he weighed in on the issue of whether central banks should respond to asset price bubbles. Trichet argued that there's value in policies that identify financial imbalances and assess the risk of any misaligned pricing of risk. Waiting for an asset bubble to burst and then easing monetary policy creates a moral hazard issue, said Trichet.

Meanwhile, Trichet argued that the current crisis would be worse had central banks not collaborated on efforts to ease the turmoil.

"Without such trustful cooperation, global events could have been much more dramatic," he said.

- Maya Jackson Randall maya.jackson-randall@dowjones.com. 202-862-255

Click here to go to Dow Jones News-plus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=Sys6UH%2Fz82Zcam2S06IWAw%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

Currency News – Thursday, 20 August 2009

USD – The Dollar Turns Down as US Stocks Rebound

The greenback fell against 11 of its 16 major currency counterparts Wednesday before a report, expected to show an index of U.S. economic indicators, rose for a 4th consecutive month. The U.S Dollar traded near a 1-week low against the EUR on speculation economic data will add to signs the global recession is easing, prompting investors to seek higher-yielding assets. The Dollar changed hands at $1.4230 vs. the EUR down from $1.4127 yesterday.

The U.S. Dollar was supported in earlier trading by declining U.S. stocks, following Chinese markets, prompting investors to move toward assets perceived as less risky.
However, the Dollar weakened against the Japanese yen, although it came off the day’s worst levels, as a sharp slide by China’s stock market overnight raised concerns about the global economic outlook and boosted the Japanese currency’s allure.

In recent months, the USD has tended to fall as stock prices and risk appetite rises, giving investors less impetus to buy dollars as a safe haven. In the absence of fresh economic data, currencies were mostly following stock prices for direction. Traders may see more volatility and choppy trades given that not much is happening in terms of events. So any correction to stock markets could be a key driver for the USD currency.

EUR – The EUR Hits Session High above $1.42

Europe’s single currency gained versus 11 of its 16 major rivals on Wednesday as economists said the Markit Economics’ composite index of both industries may be the highest in a year. The index is based on a survey of purchasing managers and due for release on Aug. 21st. The EUR added to gains against the U.S. Dollar, rising 0.6%, as stocks pared losses and oil prices rose sharply. The EUR also pared losses against the Yen and was last down 0.1% at 133.60 yen, off a one-month low of 132.16.

The European currency rose from near a 1-week low against the GBP on speculation a European report this week will show manufacturing and service industries contracted at a slower pace, adding to signs the recession in the 16-nation region is abating. The British Pound weakened 0.9% to 86.07 pence per EUR and dropped 0.2% vs. the Dollar to $1.6534.

The GBP extended losses after Bank of England (BOE) meeting minutes showed that some policymakers had wanted to extend quantitative easing by more than the amount decided. The central bank is spending 175 billion pounds to buy assets in a move aimed at pushing down borrowing costs to revive the U.K.’s shrinking economy. Asset purchases require the BOE to print money, which some investors fear may lead to an oversupply of the Sterling and eventual inflation.

JPY – JPY Rises as Chinese shares fall more than 2%

The Japanese yen rose versus other major currencies on Wednesday as a fall in Chinese shares made investors cautious about returning to risky investments. The Yen climbed to its strongest level in 3 weeks against the U.S. Dollar after China’s benchmark stock index fell into a so-called bear market, reigniting concern that the global economic recovery is stalling.

China’s main stock index, which tracks the bigger of China’s stock exchanges, slumped 4.3%, leading other Asian bourses lower and boosting demand for the Yen as a refuge. The Yen typically rises during times of financial turmoil because Japan’s trade surplus reduces the nation reliance on foreign capital. The JPY also gained against all 16 major counterparts after the Daily Telegraph cited Hartmut Schauerte, the economic state secretary, saying Germany is preparing measures with the Bundesbank in anticipation of a new credit crunch wave early next year.

Crude Oil – Oil Rallies on Sharp U.S. Inventory Data

Crude prices soared above $73 a barrel on Wednesday, as rising U.S. equities and an unexpected drop in inventories propelled oil prices to finish at their highest level since early June. Oil surged as much as 5.2% yesterday after crude stockpiles dropped 8.4 million barrels last week, the most since the week ended May 23, 2008, an Energy Department report showed. Crude Oil also gained as the U.S Dollar declined against other currencies, increasing the appeal of commodities to investors looking for an inflation hedge.

Oil prices fell earlier on Wednesday, hitting a low of $68.05 after a near 5% slump in Chinese shares sent doubts rippling through global markets about the strength of the world economic recovery. Traders also watched for storms in the Atlantic Basin but no immediate threat was seen to U.S. oil installations in the Gulf of Mexico. Expectations for a potential rebound in the economy could increase fuel consumption and have already helped lift prices.

EUR/USD	GBP/USD	USD/JPY	USD/CHF	AUD/USD	EUR/GBP
Daily Trend
Weekly Trend
Resistance	1.4365	1.6665	95.25	1.0755	0.8450	0.8650
	1.4300	1.6595	94.85	1.0705	0.8400	0.8630
	1.4250	1.6560	94.60	1.0685	0.8365	0.8615
Support	1.4200	1.6460	94.00	1.0640	0.8250	0.8585
	1.4150	1.6380	93.65	1.0600	0.8195	0.8565
	1.4105	1.6280	93.30	1.0565	0.8130	0.8525

Technical News

EUR/USD

Fresh bearish crosses on the hourly MACD and 4-hour Slow Stochastic suggest that a downturn is impending. With weekly momentum shifting into a downward posture, forex traders may see this pair go bearish in the coming hours. Going short may be a wise choice.

GBP/USD

This pair is currently giving off mixed signals as bullish and bearish crosses have recently formed on various indicators, which are contradicting one another. Long-term momentum still appears bearish and the doji candlestick formation on the daily chart suggests a downward correction may be imminent. Going short appears to be the preferable strategy.

USD/JPY

Recent upward movement has pushed the price of this pair into the over-bought territory on the hourly chart’s RSI, suggesting downward pressure. The bearish crosses on the hourly Slow Stochastic support this notion. Going short with tight stops appears to be a good decision for today’s trading.

USD/CHF

There appears to be a bullish cross on the 4-hour Slow Stochastic, with an impending bullish cross on the 4-hour MACD as well, indicating an impending upward movement. The bullish cross on the hourly MACD supports this notion and gives it some added urgency. Going long as soon as possible might be a wise decision.

The Wild Card

CHF/JPY

The latest upward movement on this pair has given forex traders two distinct signals for a downward correction later today. The first is a bearish cross on the 4-hour Slow Stochastic, suggesting a downward movement is imminent. The second is a fresh doji candlestick formation on the 4-hour chart, which typically signals a reversal is in the making. Entering short positions as soon as possible may help traders capture decent profits.

UPDATE 10-Oil slips as U.S. jobs data boosts dollar

U.S. July unemployment data better than expected

* Offshore crude storage up sharply in last 2 weeks (Updates with settlement prices, replaces last graph on offshore storage)

By Matthew Robinson

NEW YORK, Aug 7 (Reuters) - Oil fell from six-week highs on Friday, pressured by gains in the dollar following the release of better-than-expected U.S. job-loss numbers.

U.S. employers cut 247,000 jobs in July, far less than expected and the least in any month since last August, according to a government report, adding to optimism that the world's largest economy was turning around. [ID:nN07385157]

"The jobs report was a mixed bag for crude traders. On the one hand, it was good for fundamentals for people to be working and able to buy things," said Chris Jarvis, senior analyst at Cap-rock Risk Management in Hampton Falls, New Hampshire.

"But it could mean that Europe will be seen as the lagging market and get people to short the euro, and a stronger dollar longer term, and put some pressure on commodities."

U.S. crude settled $1.01 lower at $70.93 a barrel, after touching a six-week high of $72.84 earlier. London Brent crude fell $1.24 to settle at $73.59 a barrel.

The drop came as the dollar gained against the euro and the yen, putting pressure on commodities denominated in the greenback. [.N] Wall Street gained following the release of the U.S. jobs data.

The economic crisis has damped fuel demand, pushing crude from record highs near $150 a barrel in July 2008 to below $33 a barrel in December.

Oil prices have found support from optimism that a potential turnaround in the economy could boost flagging fuel consumption, although global inventories of crude remain high, especially in top consumer the United States. [E I A/S]

Several industry sources estimated that there were 70 million barrels of crude oil being stored at sea. While the estimates vary from around 60 million to 100 million barrels, most sources agree offshore storage levels rose by around 10 million barrels in the last two weeks alone.

Chilean Peso Declines on U.S. Consumer Confidence

The Chilean peso posted the biggest decline in August this week as consumer sentiment declined in the United States during the past month, pushing traders away from emergent market currencies.

Commodities and stocks went down today after a report was published in the U.S. indicating a considerable fall for consumer confidence for the month of July, attracting investors to safer investments and consequently damping demand for emergent-market high-yielding currencies, like the Chilean peso.

USD/CLP climbed massively to 552.60 as of 18:51 GMT from an opening price in the U.S. session of 544.75.

If you want to comment on the Chilean peso’s recent action or have any questions regarding this currency.

Brazil’s Real Worst Performer This Week

The Brazilian currency had its most negative performance in more than a month, making it the biggest loser this week among the 16 most traded currencies, as stocks declined worldwide.

Grim numbers reflecting U.S. consumer confidence pushed stocks down this Friday after already negative reports in Europe influenced the markets earlier, making investors to purchase safer assets towards the end of this week’s session, punishing Latin American currencies like the Brazilian Real and the Colombian peso. Despite this week’s performance, the real remains the best performer among the main currencies in 2009.

USD/BRL traded at 1.8462 as of 20:17 GMT from a previous rate of 1.8223 in the beginning of the day.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

U.S. Consumer Confidence Affects Euro Perfomance

The euro was affected towards the end of this week’s session as U.S. consumer sentiment declined, raising risk aversion among traders which opted mostly for the yen and the dollar to protect their assets.

The euro closed this week nearly neutral from its opening price 5 days ago versus the greenback as multiple factors caused a high volatility for the Euro zone currency. This Friday, unexpected reports moved markets and two of the main European Union countries, France and Germany, posted a surprising growth of 0.3 percent for their economies, helping the sentiment towards the economic recovery in the region to rise, supporting the euro. Hours later, a U.S. consumer confidence report posted negative figures beyond the expectations, slashing the Euro zone currency previous gains, making its price to be virtually neutral in the weekly comparison versus the greenback, and posting a significant loss of 2.5 percent versus the yen.

Even if GDP figures are highly significant for a currency outlook, risk levels in trading markets still beyond average, which is providing support for refuge currencies like the yen to climb. Despite Germany’s importance in the EU economic scenario, other countries in a less favorable condition are weighing on the euro outlook, decreasing attractiveness for the 16-members common currency.

EUR/US $ closed at 1.4199 from 1.4188 in the beginning of the week. E U R / J P Y traded at 134.68 from 138.55

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Hot Stocks to Invest in 2009

The stock market should present you with a wide variety of NEW hot stocks in 2009. Many of them are going to be new technology stocks that come from the nanotech, biotech, financial, energy, healthcare & communications sectors.Most of them might seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That's why it's very important to know how to choose among the best especially if you want to day trade them. When you know how to pick and approach the best hot stock trading opportunities, you are able to generate a consistent and respectable amount of money in a very short period of time.Experienced day traders recognize that trading hot stocks on momentum can be the fastest way to make money in the stock market, especially on uncertain times like these.You don't necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.If You decide to day trade stocks just keep always in mind that for a trader to survive and be consistently profitable, its necessary to keep things as simple as possible. To much confusion and technical indicators will most of the time make you slow in your decisions and froze you up when a good opportunity is right in front of your screen.In the end, stock market day trading is all about picking the best daily stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

Automated Forex Systems - Let Technology Easily Push Your Profits to Unimagined Heights

Learning the right strategies in forex market trading does not necessarily spell out a success in this field. One has to know how to implement these strategies before they get converted to cash. However, putting these two into practice entails a lot of time, effort and money and for somebody who wants to venture into trading but does not have the luxury of time, this could be a big obstacle.Now that technology is present in almost all sectors, it has also found a way to provide a solution to this obstacle, and that is through the automated Forex system. Though a lot of traders had been skeptical about this system, later on, they also came to realize that this system can be their key to success in Forex market trading.An automated Forex system functions with the use of an artificial intelligence. Patterned according to the strategies of a seasoned trader, this artificial intelligence makes it possible for the system to address trading issues and matters, which simplies the whole process. It also makes it capable to adapt to any type of trading environment that makes it flexible and versatile.Because of this capacity of an automated Forex machine, it is now possible to for a trader's investment to grow with the use of this innovation. A notable increase of earnings to as much as 400% has been attributed to this machine. Coupled with the theoretical knowledge in Forex market trading, this automated Forex machine will surely be a trader's secret to success.