Market Traders Institute specializes in developing partnerships with international individuals and institutions. We have the technological expertise, around-the-clock facilities, administrative back-up, materials, intellectual property and flexible attitude that enables us to provide and grant authority to Investor partners to market proprietary technical analysis and foreign currency exchange course material, including all study-at-home material, introductory course and class room based instructional material. Of course we provide a very thorough business and intellectual property orientation and training program . In other words, we provide you with all the necessary tools.
Market traders offers two great licensee plans:
Join the MTI winning team. Income generating activities for the Licensee include Forex education, web based Forex subscription services, Forex product sales and Forex trading revenue.
We expect a strong commitment to provide our combined services to the client base and to position the services geographically in your marketing approach.
Career In The Forex
Forex Career
Forex VS Stocks Market
Forex VS Stocks MarketForeign currency exchange (Forex) market and stocks market work quite differently. Neither Forex market or stock market is greater than each other but the investing concept in them differs quite a lot.
However, by comparing their differences, we wish to give you a clearer picture on these two markets thus help you to select the market type that suits you the best. Fact is you might want to get involved in both market to diversify your on hand capital.
The Explosion of the Euromarket
Forex ArticlesA major catalyst to the acceleration of Forex trading was the rapid development of the eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia’s oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities.
The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields.
From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.London was, and remains the principal offshore market.
In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.
Learn Forex
Forex ArticlesHow do I begin? Please give it to me SIMPLY.
1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days. We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training. It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.
2. While you are learning you will need charting software to practice reading the Market. Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.
3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market. You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor. Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.
We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.
Explain More About Charting Services
To trade successfully you also must have good charting software and instantaneous data feeds critical to helping you analysis and interpret the movement of currencies moment to moment so you know when/why to buy or sell — this you subscribe to monthly. You can get a 2 week or more demo to familiarize yourself with one that has the features you like. The costs also vary, and some companies require a year commitment. There are some free charting services offered through the clearinghouses, but they tend to lack the tools to be truly useful. There are also some costly proprietary Specialty Software charting ’hybrids’ which are market forecasters tools that look more like video games than charts.
Explain More About How Clearinghouses Work
A good clearinghouse (i.e.. your computer access/link to the live Forex Exchange Market) is the partner with which you trade the money you have deposited with them in your trading account. After trying and demo-ing many we have found a small handful that are truly excellent for the beginner (and continue to be excellent as you grow) — meaning user friendly, legally accountable to regulatory bodies, and offering fair costs (spreads) for their services/trading software platforms. There still are many worrisome ones practicing in this closing era of unregulated forex trading (new Commodities laws are imminent).
The topic of matching the right clearinghouse for your needs is discussed more in Tools of the Trade, because it depends on a number of factors — how much you can open an account with, how much the clearinghouse profit spread, what your liquidity needs are, your minimum/maximum stop loss and margin requirements, even where you live and how much time you have to give to trading in a 24 hr. day.
How Much Does it Cost to Begin to Trade?
Learning to trade will entail the cost of books and whatever traiining method you choose. It will also include a reliable computer with a minimum 128 Mb of memory to run the charting software and trading platform. Ongoing ’costs of operation’ include the monthly costs of high-speed internet, charting software, the email forecasting subscriptions — plan on spending $150./mo. up for ongoing costs.
What about Pooled Clearinghouse Accounts to Trade with More Leverage?
We strongly do not recommend pooled accounts in any circumstance. Perhaps you are considering self-trading a pooled- together family account because it would give you a perceived advantage of more leveraged funds to trade (50:1 up to 100:1 leverage) — any risks of loss represent a potential risk to family relationships, and for this reason alone we do not recommend aggregating with family or friends.
However much worse are the too-numerous negative experiences of people allowing their investment funds to leave their control to become part of a ’managed’ pooled account. Not only is it a very risky investment idea, it is illegal for anyone to ’pool’ accounts without compliance with SEC (a USA Securities Exchange Commission) or international equivalent license. Never relinquish direct control over your money/trading account to anyone (i.e.. the ability to make withdrawals, deposits etc. directly by your own authority into your own account).
A good fund manager, if you do choose to go the (legitimate) Managed Account route rather than the Self-Trader route, will make certain you have your own ’segregated account’ in your own name in a bank or brokerage firm. These individual segregated accounts can still be traded together as though they were in a single account by a designated trader as long as the clearing house uses a trading platform that allows it. You, as the investor/account holder, have direct access online to your account activity at all times, and direct control over your own account in your own name (just like a bank account). The importance of this, for the safety of your funds, cannot be over emphasized.
Fibonacci Trading Techniques
Introduction to Fibonacci trading techniques.
First, a few words about Fibonacci himself…
Leonardo Pisano (nickname Fibonacci) was a mathematician, born in 1170, in Pisa (now Italy). His father was Guilielmo, of the Bonacci family. His father was a diplomat, as a result Fibonacci was educated in North Africa, where he learned "accounting" and "mathematics".
Fibonacci also contributed to the science of numbers, and introduced the "Fibonacci sequence"
The Fibonacci sequence is the sequence 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, introduced in his work "Liber abaci" in a problem involving the growth of a population of rabbits.
Aside from this sequence of number where every next number is the sum of the proceeding two, 0, 1 (0+1), 2 (1+1), 3 (2+1), 5 (3+2), 8 (5+3), 13 (8+5), etc.
There are the "Fibonacci ratios".. By comparing the relationship between each number, and each alternate number, and even each number to the one four places to the right, we arrive at some fairly consistent ratios.. The important ones are .236, 50, .382, .618, .764, 1.382, 1.618, 2.618, 4.236, and for good measure we include 1.00 ..
It turns out that the ratios are mathematical principles prevalent in nature around us, and is also in man-made objects. There are many interesting, entertaining, and poetic observations about Fibonacci numbers and ratios in the universe (see the reference section below). Fibonacci numbers appear in ancient buildings, in plants, planets, molecules, the dimensions of human bodies, and of course snails… But of what use is all that to the lowly trader?
What really interests you, the application of Fibonacci techniques in the trading environment.. Traders usually study charts! Fibonacci ratios may be applied to the Price scale, and also to the time scale of charts. I study the price scale. My focus here will be on the price scale for now, perhaps in the future I’ll add some time-scale studies.
Prices never move in a straight line. Look at any chart, you will see many wiggles, as price advances and retraces.. Stocks, Futures, Forex, all instruments which are liquid, will often retrace in Fibonacci proportions, and advance in Fibonacci proportions. Not always, and not precisely to the penny. But very often, and reasonably close! This happens often enough that profitable trades can result. I will show you some examples below.
I used Fibonacci ratios with a few simple indicators to help determine probable price turning points, optimum entry, exit and stop-loss levels. My complete techniques are available in on-line video seminars, in-person seminars, and via my real-time on-line chat facility. For more details, see the this web page
The application of Fibonacci to trading can be very complex, and take much time and experience to perfect. Many traders enjoy making the process as difficult and as complex as they can tolerate.. I do the opposite, I try to simplify, try to bring clarity.
Flat Base Chart Pattern
As you can see, finding stocks that exhibit certain chart patterns (Cup and Handle, Double Bottom and Flat Base) can lead to strong price appreciation when they breakout on strong volume.
Day Trading Indicators and Indicator Trading
Forex ArticlesDid You Begin Day Trading As An Indicator Only Trader?
Did you start day trading after buying a book on technical analysis, and getting a charting program - probably a free one that you found online - in order to save money? While reading your book you learned about trading indicators which could ’predict’ price movement, and what do you know, the ’best’ indicators were actually included in your free charting program - let the games begin.
Now that you have all the day trading tools that are necessary, the book for education AND the free charting program with those ’best’ day trading indicators, you now need a day trading plan so you can decide which ones of those ’magic’ day trading indicators you are supposed to use. This really is a great book, besides telling you how to day trade using indicators to ’predict’ price - it also said that you need a trading plan to day trade.
So what should this plan be? The book told you about trend following using an indicator called macd, and it also told you how it was possible to pick the top or bottoms using an indicator called stochastic; my guess is that you picked the stochastic indicator to start your day trading - this must be the ’best of the best’ since this indicator was going to ensure you of entering your trades with the ’best’ price. Amazing, simply amazing how easy this day trading stuff really is. In fact, why even bother taking the trades, each time your indicators give a signal - just call up your broker and tell him to stick $100 in your account.
My book was Technical Analysis of the Futures Markets. My charting program was TradeStation with an eSignal fm receiver; that was the one that if you hung the antennae wires just right, and you put enough foil on the tips, you might even get quotes. I had sold a business before I started trading so I did have some capital - isn’t that how everyone gets into trading, you either sell a business or you lose your job? My indicator was the macd as I had decided that I was going to be a ’trend follower’ instead of a ’top-bottom picker’. I also decided that I was going to be ’extra’ clever, if one indicator was good than two indicators must be better, so I added a 20 period moving average. My first trade was a winner, then after many months of extensive therapy, I was finally able to forget the next twelve months - ahhh the memories ƒ؛
Learning To Day Trading - The Learning Progression
Beginning to day trade, or learning to day trade, as an indicator trader is very typical. This is also logical when you consider - HOW are you supposed to initially learn how to trade? Trading indicators are available to anyone who has a charting program, and simply using line crosses, or histogram color changes, provide ’easy’ signals to understand. If you will also take the time to learn the arithmetic behind your indicators, as well as learning what each indicator is specifically intended to do, not only is this a logical way to begin, it is also a good ’step’ in your learning progression - understanding the WHAT you are doing, instead of attempting to create ’canned’ indicator only trading systems, without any regard as to WHY you are trading this way.
This does become one of the ’sticking’ points in your learning progression, as you come to find out that you are unable to profitably trade indicators as signals only - now what? Now what - you ’can’t’ develop your own indicators, so you start doing google searches for day trading indicators and start buying your ’collection’ - they don’t ’work’ either. Now what - you buy a mechanical trading system - what does hypothetical results may not be indicative of real trading or future results mean? Now what - you start subscribing to signal services OR you start joining the ’latest and greatest’ chat room - am I really the only person using the signals who isn’t profitable?
Now what - you never learn how to trade.
I began trading as an indicator trader, and I did try to learn everything that I could about the various indicators, as well as trying to combine indicators that were consistent with how I wanted to trade - I just could never develop a mechanical day trading system from what was available to me. I read a couple more books that didn’t really help me, so I then started looking for someone who could teach me. From what I now know about gurus -vs- teachers, I am very lucky that I got involved with a money manager-trader who taught me a tremendous amount, but I still couldn’t get profitable, in part because there was also ’pressure’ to learn how to trade using real money. As well, any discussions or thoughts about trading psychology and the issues involved, especially to beginning traders, was non-existent.
Now what - learning but losing - I stopped trading. Learning to trading using real money, and ’scoffing’ at trading psychology as simply individual weakness, really was something that I now regard as misinformation. I always mention this as I now feel that this cost me as much as a year of time, and was very close to costing me my trading future, as stopped trading was VERY close to quitting trading. How can’t trading psychology be real to a beginner, when you consider that you are risking losing money at a very fast pace as a day trader, and when you further consider that you are also doing this when you really don’t know what you are doing - this is NOT by definition being weak. And if trading psychology is real, how are you going to learn to make ’good’ trading habits with real money while you are fighting the implications?
Now what - not trading and not ready [quite] to quit - still studying and searching.
Probably the single most important ’thing’ that got me to a next step in learning how to trade, was the concept of a trading setup, and that a setup and a signal were not the same. This was extremely meaningful to me, as it also led to an understanding of how to better use trading indicators for the information that they can provide, but not to use them as trading signals - in essence I began learning about trading method where discretion could be consistently applied -vs- trading system that was mechanical and arithmetic rules.
Traders who are indicator only traders, are also what I refer to right side only traders, that is they are always looking at the right side of their charts for an indicator signal. BUT what about the left side of the chart, what about price and patterns, what about market conditions - WHAT about the relevant ’things’ that are ’moving’ price, instead of indicators only as an arithmetic derivative of price, and thus, one that is dependant on the time frame that you have chosen to trade from? These ’thoughts’, along with the concept of trade setup, became instrumental in the development of a trading method, and how I came to turning my trading around.
When I think about the steps in my learning progression - I would list them as follows:
2/95 - 6/96 indicators only teaching service that included signals learning to trading with real money and trading psychology issues stop trading
6/96 - 3/97 understanding of trading psychology issues learning about trading setups concept trading method -vs- trading system trade setup - trade trigger are not the same method development understand the importance of the left side of the chart and what is happening ’across’ the chart related trading setups and how/when they triggered indicators + pattern indicators + pattern + price indicators + pattern + price + market conditions
I have attempted to discuss the way I started day trading, and the way I think many-most traders typically begin. Along with this, I have pointed various issues and problems that I had - those regarding how to learn to trade, and then progressing into a profitable trader. My experiences have been both personal, as well as those of many traders that I have worked with over the last 8-9 years through Tactical Trading - that a very large number of these problems are due to day trading only with indicators, the specific indicators used, along with trying to turn these indicators into a mechanical trading system. This is not to say that this can’t be done - I simply couldn’t do it. However, I would strongly suggest that anyone who is in the early stages of day trading, or struggling with their day trading, consider these things that have been discussed.
What makes a good Trading Strategy?
Forex ArticlesAsk most NEW traders, and they will tell you about some moving average or combination of indicators or a chart pattern that they use. This is, as the more experienced trader knows, an entry point and not a strategy.
Any trader who is more experienced will say a strategy should also include money management, risk control, perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality.
BUT there is one other vital ingredient that many traders forget - and that is to fully understand the "personality" of what you trade. Some traders specialise in say, gold or Brent crude or currencies or they might specialise in a particular index such as the FTSE 100 or the Dow but many traders choose to trade shares. Indeed some traders dabble in a bit of everything. I think this is the area that causes many traders to fail or at least not reach their full potential.
In my view: You absolutely MUST specialise.
I am sure that on the surface most people would say that sounds sensible but here is why it is a MUST!
Superficially, many charts look the same. I bet if you had not seen the charts for some time and someone where to show you a chart of Brent Crude over 6 months and then a chart of Barclays PLC over the same 6 months you would be hard pushed to say which was which purely on the look of the chart.
However, I bet that if you found a trader who trades ONLY Barclays day in and day out and also found someone who trades ONLY Brent Crude day in and day out, both of them would easily identify which was which. WHY?
Because every share, index or commodity has it’s own "personality".
Some will be volatile intra-day, some will follow their sector or the main index (market followers), some will do their own thing, some will spike up and down regularly, some will stop at key moving averages and some will just plough through. Some will move by 5% on average before they retrace and some by 2%. Some will gap up or down regularly, some will not. You get the idea!
Therefore, no matter how good you are at analysing indicators, moving averages, trends and patterns, the same strategy WILL NOT work for everything. I would go so far as to say that a strategy that works well for Bovis Homes, for example, is likely NOT to work for BT Group - they have very different "personalities".
So let’s return to our question: What makes a good trading strategy? Let me answer with a series of ten questions that you need to find answers to, in order to build a REALLY GOOD strategy.
What do you want to trade (share, index, commodity, currency, etc)? If your answer is shares (plural) I would urge you to pick one typical share at this stage to really specialise. You can add more later.
What "personality" does that share, index etc have?
What entry system is the most reliable for that share?
What stop loss system is the most effective for that share?
What average risk will a typical trade carry?
What exit system works well for that share?
What is your trading personality (attitude to risk, losses, discipline, how much do you worry etc) and can you trade that strategy without overriding it?
What timescale do you want to trade? (Using intra-day or end of day data)
How much data do you keep on past trades to help identify strategy weaknesses?
How does all this fit with your trading objectives?
Once you have an answer to each question you need to do one final thing. Make sure all those things fit together and complement each other. For example, if the ideal stop loss position represents a big average risk and conflicts with your own attitude to risk, you need to start again. If you will override your exit point because greed makes you hang in for more, you need to think again. Perhaps you shouldn’t trade that stock in the first place - look for one with a different "personality" which will lead to a strategy you can trade comfortably.
It is a long and sometimes painful iterative journey. You might need to go round and round in ever decreasing circles over a long time. Testing and refining, testing and refining before you can truly have a reliable and repeatable strategy that REALLY WORKS for you.
THEN, you can look for other things to trade that have the same "personality" as your specialist stock, index, commodity or currency.
But if it were easy, everyone would be doing it right?
Good luck and enjoy your trading.
Rupee hits 2-week high as inflows gather steam
At 10:35 a.m., the partially convertible rupee traded at 49.61/62 per dollar, stronger than Wednesday's close of 50.04/05.
It climbed as much as 1 percent from the previous close in early deals to an intraday high of 49.55, its strongest since April 16, before easing back in mid-morning trade. The currency market was shut on Thursday and Friday for holidays.
"The rupee has risen in line with other Asian currencies and there are bunched up dollar inflows due to the holidays. The stocks are also higher, which is helping," a senior dealer with a foreign bank said. "It is likely to trade in a 49.50 to 49.85 band today," he added.
Traders cited a strong psychological support level around 49.50 due to a build-up of long dollar/rupee positions and a heavy order pipeline of importer orders.
The BSE Sensex shares rose nearly 5 percent early, tracking gains across Asia. The benchmark stock index climbed 17.5 percent in April, its biggest monthly gain in 10 years.
Foreigners moved more than $1.4 billion into Indian shares during April 1-27, helping the rupee rise 5.2 percent from its record low of 52.20 hit in early March. Last year record outflows of over $13 billion had pushed the rupee down by a fifth.
The dollar index, a gauge of the dollar's performance against six major currencies, was down 0.3 percent as investor confidence about the global economy encouraged buying of commodities and riskier currencies.
Traders said the rupee was unlikely to rise sharply beyond 49 until the results of the national elections are announced in mid-May, which would then set the tone for the Indian currency.
One-month offshore non-deliverable forward contracts were quoted at 49.67/77, weaker than the onshore spot rate.
Yen Weakens on U.S. Economy Recovery Speculations
Forex news
The dollar rose against the yen after Chrysler LLC filed for bankruptcy and will ally the Italian Fiat SpA with the investment of federal funds, as President Barack Obama confirmed this Thursday. The euro has posted favorable news about the Eurozone consumer confidence and companies like Siemens AG reported earnings, making the European currency to hit a two-week high against the yen. Concerns that the swine flu could take pandemic catastrophic dimensions also eased after the disease was found to be not so lethal, which increased optimism on global markets this week.
Investors are hopeful and certain that solid evidences from an economic recovery in China and in the United States are pushing the markets up, which due to the consequences of the global financial turmoil, had several months of consecutive losses since last year, when the recession started. Analysis indicate that the yen, an investment considered as a refuge, is very likely to lose popularity, as risk appetite will be triggered by better economic conditions.
The EUR/JPY strengthened from 129.55 to 131.72 and the USD/JPY is on its way to hit the 100 mark, being traded at 99.34 from 97.30 in the intraday comparison.
Gold Fields Revises Down Q1 Operational Guidance - Update
Forex news
CURRENCIES: Dollar Up Vs Yen On Upbeat U.S., Weak Japan Data
Forex newsCURRENCIES: Dollar Up Vs Yen On Upbeat U.S., Weak Japan Data By William L. Watts The dollar fell against most major counterparts Friday, but gained ground versus the yen, as it was helped by better-than-expected U.S. manufacturing data and weak Japanese economic data. The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six major currencies, slipped to 84.54, down from 84.764 in North American trade late Thursday. But the dollar rose to 99.11 yen versus the Japanese currency, up from 98.55 yen. The factory sector contracted again in April, but the pace of decline slowed, according to the Institute for Supply Management index released Friday. Separately, consumer sentiment improved more than expected earlier in April, according to the University of Michigan's latest survey. "Today's U.S. reports provided an array of upside surprises that have reinforced the view that the pace of GDP decline will moderate significantly into [the second quarter], while the [first-quarter] GDP figures now face a likely small upward bump," said Mike Englund, chief economist at Action Economics, in a note. Earlier, Japanese reports had already put the yen under the pressure. "In Asia, the green shoot story has been much talked about of late, but the latest economic data out of Japan captured a severely struggling economy," wrote strategists at Brown Brothers Harriman. "In March, unemployment climbed to the highest in four years, wages fell at the quickest pace in six years, while inflation fell for the first time in 18 months." The Japanese government reported Friday that the country's core consumer-price index fell 0.1% in March, the first year-over-year decline since late 2007, raising concerns of a potential deflationary spiral. The nation's unemployment rate, meanwhile, rose to 4.8%, the highest level in four years. Traders said activity in foreign-exchange markets was subdued due to May Day holidays in Asia and continental Europe. London markets were open Friday but will be closed on Monday. The euro rose to $1.3268 versus the dollar in quiet trade, up from $1.3224 late Thursday. The British pound rose 1% to $1.4917 from $1.4783. Sterling extended gains after the purchasing-managers index for the U.K. manufacturing sector indicated that activity at factories continued to shrink in April, but at a slower-than-expected pace. The purchasing-managers index produced by Markit Economics and the Chartered Institute of Purchasing and Supply rose to 42.9 in April from an upwardly revised 39.5 in March, continuing a recovery from a record low of 34.9 in February. The reading remains well below the neutral 50 mark, however. A reading of less than 50 indicates a majority of purchasing managers saw declining activity. A figure of more than 50 signals expansion. 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=rX4niQXJjYgIJl3Wiwfg5g%3D%3D. You can use this link on the day this article is published and the following day.
Low volume and range trading characterized Friday
Forex newsFXstreet.com (Córdoba) – The Dow Jones Industrial Average transit between gains and losses during the trading session and finally ended up 0.5%; for the week gained 1.7%. In Forex activity was characterized by low volume and range trading; with no mayor moves across the board. USD/JPY ended the American session lower but above 99.00. GBP/USD rose after starting at a session low at 1.4825. The pair moved in an up trend constantly but with quiet moves topping at 1.4920. EUR/USD rose slightly for the day spending most of the session in a range between 1.3250 and 1.3275. During the week the pair was able to recover early losses as risk aversion eased. This movement also favored GBP and CHF, who also gain against the dollar for the week.
Forex: EUR/USD: Euro bottomed at 1.3210 and approaches 1.3275 level
Forex newsFXstreet.com (Barcelona) - Decline from 1.3385 high yesterday has bottomed at 1.3210 support level and the EUR/USD has been moving on a range from the mentioned support to 1.3260 during today’s Asian session, to rise towards 1.3270 resistance ahead of the European opening.If the Euro breaks resistance level at 1.3275/85, next resistances could be located at 1.3295, and above there 1.3345 (Apr 29 high). On the downside, support levels stand at 1.3210, and below there, 1.3190 (Apr 3’0 low) and 1.3160/65. EUR/GBP has risen from 0.8920 low yesterday to reach a session high at 0.8985 during today’s Asian session. Resistance levels stand at 0.8995 and 0.9020. On the downside, support levels lie at 0.8925 and 0.8880.
Forex: GBP/USD: The Pound consolidating above 1.4765
Forex newsFXsteet.com (Barcelona) - GBP/USD reached yesterday a fresh two-week high at 1.4950 to decline, on correction, to 1.4700 intra-day low. During today’s Asian session, the Pound has moved from 1.47645 to 1.4800.Immediate resistance level lies at 1.4800/15 area, and above here, 1.4870 and yesterday’s high at 1.4950. On the downside, immediate support stands at 1.4690/1.4700, and below here, 1.4628 and 1.4600.GBP/JPY has been moving from 145.60 to 146.55 levels during today’s Asian session. Resistance levels stand at 147.10 and 147.50. On the downside, support levels stand at 144.55 and 143.65.
DATA SNAP:Indonesia Mar Trade Surplus $3.27B;$2.68B Expected
Forex newsDATA SNAP:Indonesia Mar Trade Surplus $3.27B;$2.68B Expected JAKARTA (Dow Jones)--Indonesia's trade surplus increased sharply to $3.27 billion in March from $2.52 billion in February, the Central Statistics Agency said Friday. Imports in March fell 33.4% on year to $5.27 billion, while exports declined 28.9% to $8.54 billion, the agency said. In February imports tumbled 42.0% on year, while exports fell 32.9%. Including imports to so-called bounded zones where imported commodities are reprocessed for exports, the trade surplus was $2.01 billion, up from $1.26 billion in February. A Dow Jones Newswires poll of 11 regional economists yielded a median forecast for a trade surplus of $2.68 billion, excluding imports to bounded zones. "On a on-month basis, exports rose 20.6%, due to the significant increase in the volume of resource-based exports," the agency's chairman Rusman Heriawan told reporters in a press briefing. He said the prices of commodities also increased during the month, which helped to boost the value of Indonesia's coal exports by $444 million and that of crude palm oil exports by $217 million in March from a month earlier. -By Farida Husna, contributing to Dow Jones Newswires; 62 21 39831277; I-Made.Sentana@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=rX4niQXJjYgIJl3Wiwfg5g%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresMay 01, 2009 03:24 ET (07:24 GMT)Copyright 2009 Dow Jones & Company, Inc.
GLOBAL MARKETS: London Stocks Flat With Europe Closed
Forex newsGLOBAL MARKETS: London Stocks Flat With Europe Closed
By Kimberly Vlach
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--London stocks were little changed Friday in very quiet trade as European equity markets remained closed for the May Day holiday, leaving investors in the U.K. to start the new month with some profit-taking and sector rotation following April's stellar run. "In the near term, we believe the rotation out of defensives into cyclicals may continue, provided we don't get a significant relapse in economic newsflow or stock market performance," said strategists at Morgan Stanley. London's FTSE 100 index was almost unchanged at 4244.17 at 0755 GMT, while the Frankfurt and Paris markets were closed. Morgan Stanley said a sustained and solid economic - and stock market - recovery is unlikely and that it prefers defensive stocks in the medium- to long-term horizon. European corporate announcements were thin, with only U.K.-listed companies reporting. Rentokil Initial reported first-quarter revenue growth but a drop in operating profit, adding it expects earnings growth to start in the third quarter. Its shares rose 14% to 75.8 pence. Pan-European telecoms operator Colt Telecom Group reported a doubling of first-quarter pretax profit before exceptional items, helped by currency movements and an increasing proportion of high margin data revenue. Its shares were 2.7% higher at 97 pence. And Informa PLC launched a GBP242 million rights issue to cut its debt levels and said it was changing its corporate structure to take advantage of favorable Swiss taxes. Its shares were 14% higher at 340 pence. On Wall Street Thursday, the Dow Jones Industrial Average closed down 0.2% at 8168.12 and the Standard & Poor's 500 index finished 0.1% lower at 872.81. Much of the afternoon slide came after President Barack Obama said Chrysler will file for Chapter 11 bankruptcy protection. While the move was expected, trading desks noted it provided a reminder that economically sensitive companies remain on a weak footing, even after many have paced a more than month-long surge for the market. On Friday in Asia, Japan's Nikkei 225 index closed 1.7% higher but Australia's S&P/ASX 200 index finished 0.2% lower. Hong Kong, China and Korea were closed for public holidays. Those who were investing the in the markets mostly shrugged off the Chrysler news, as well as further updates on the spread of swine flu. The World Health Organization said Thursday that a new flu strain continued to spread, particularly in Mexico and the U.S., but refrained from declaring a global pandemic even as more countries confirmed cases. Amid a growing debate around the globe about travel restrictions, the United Nations public-health agency raised the number of confirmed cases of the A/H1N1 virus to 236 from the 148 reported Wednesday. "Despite the attention given to swine flu and the odd looks at colleagues who cough or sniffle, markets have remained focused on facts and figures. Measures of risk continue to show that fear is dissipating, helping bolster risk appetites," said analysts at RBC Capital Markets. Elsewhere, in the currency markets, the small increase in risk appetite benefited the euro and sterling against the dollar and the yen. The euro climbed to $1.3275 at 0745 GMT from $1.3230 at the Thursday New York close. But the dollar firmed to Y99.33 from Y98.63. In the sovereign debt market, trading activity was restricted due to the May Day holiday and a closed bund futures market. However, gilts opened higher Friday, as traders looked to square positions ahead of the holiday weekend. June gilts were up 0.54 at 121.14 at 0750 GMT, with the 10-year gilt up 0.45 at 108.77, yielding 3.44%. Spot gold eased to $883.65 per troy ounce from $899.15 in late New York business Thursday, and July Nymex light, sweet crude oil futures dipped to $50.55 per barrel from $51.12. -By Kimberly Vlach, Dow Jones Newswires; +44-20-7842-9352; kimberly.vlach@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=rX4niQXJjYgIJl3Wiwfg5g%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresMay 01, 2009 03:59 ET (07:59 GMT)Copyright 2009 Dow Jones & Company, Inc.
Forex: USD/JPY: Dollar breaks above 99.00
Forex newsFXstreet.com (Barcelona) - The Dollar continues appreciating against the Yen and The Pair has broken above 99.15 previous two-weeks high reaching 99.30; 0.75% above its day opening level.Tim Salem, collaborator at FXstreet.com points out to 99.20 as a key level on the upside: “If Breached, Appreciation sees 99.21 Dynamic Resistance followed by 99.68 and 100.04 in the Near-Term. Failure to hold the Double-Top will define the Formation, as Price Depreciates to the Dynamic Static Support Area of 97.72. 97.50 Confluence supports the Hourly 200SMA and Violation here sees Bearish Momentum under Resumption with 96.91 Static Support Contact.”EUR/JPY rally from 124.30 low on April 28 has reached 1.32.00 so far although the pair remains beloeww the mentioned level. Above 132.00, next resistance levels come at 132.44 and 132.65/85. Support levels lie at 131.50 and 129.75.
Interest Rates Table
Interest Rates TableCentral bank interest rate is the rate at which country's central banking institutions lend short-term money to the country's commercial banks. Interest rates also play an important role in Forex market. Because the currencies bought via broker are not delivered to the buyer, broker should pay trader an interest based on the difference between "short" currency interest rate and "long" currency interest rate.
In the interest rates table you can not only find the current interest rates of 20 different countries, but also scroll back in time and see how and when interest rates were changed by the central banks.
Interest rates of the following countries are covered in this interest rates table: United States of America, United Kingdom, European Union, Japan, Switzerland, Canada, Australia, New Zealand, Norway, Denmark, Chile, South Africa, Sweden, Brazil, South Korea, Russia, Poland, Latvia, Hungary and Czech Republic.
Click the small green arrows above and below the table to see the past rates decisions.
Federal Reserve System 1.25% on 2009-04-02 by 0.25%
European Central Bank 0.50% on 2009-04-09 by 0%
Bank of England 0.10% on 2009-04-07 by 0%
Bank of Japan 0.25% on 2009-04-21 by 0.25%
Bank of Canada 3.00% on 2009-04-07 by 0.25%
Reserve Bank of Australia 3.00% on 2009-03-12 by 0.50%
Reserve Bank of New Zealand 0.375% on 2009-03-12 by 0.125%
Swiss National Bank 9.50% on 2009-03-25 by 1.00%
South African Reserve Bank 1.75% on 2009-04-09 by 0.50%
Central Bank of Chile 2.00% on 2009-04-03 by 0.25%
Danmarks Nationalbank 2.00% on 2009-03-26 by 0.50%
Norges Bank 0.50% on 2009-04-22 by 0.50%
Riksbank 11.25% on 2009-03-19 by 1.50%
Banco Central do Brasil 1.75% on 2009-02-06 by 0.50%
Czech National Bank 9.50% on 2009-01-20 by 0.50%
Magyar Nemzeti Bank 5.00% on 2009-03-24 by 1.00%
Bank of Latvia 3.75% on 2009-03-26 by 0.25%
National Bank of Poland 12.50% on 2009-04-24 by 0.50%
Bank of Russia 2.00% on 2009-04-09 by 0%
Top 10 Mythes About Forex
Forex MythesForex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another.
Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:
1) Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy — you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession — it takes time, money and a lot of practice.
2) "I will make money in Forex, if I can trade stocks successfully." Success in stock market doesn’t imply that you will get success in Forex market — there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.
3) "I can make profit whenever I want if Forex market is open 24 hours a day." Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours. You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.
4) "I can be a successful Forex trader just following someone else’s signals." Many beginning traders get burned by the blind signal-following. That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.
5) No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread? It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.
6) Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the "brand" of Forex, that doesn’t mean that the Forex itself is a scam. There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.
7) I need to exactly predict the market outcome to be profitable in Forex." There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.
8) "I need to use a very complex strategy to be successful in Forex." It’s a popular myth, in which many on-line sellers would want you to believe. The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.
9) "I need to have a lot of starting capital to get profit in Forex." Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that). Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.
10) Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random. And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck.
Knowledge is power — so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational — this quality will help you either if you are going to trade in Forex or not.
Pounds Weakens After UK Treasury Advisor Declarations
Forex news
The pound had a bad start this week after former U.K. Treasury adviser Roger Bootle said that a depression might be coming for the national economy as house prices decline.
French April Business Confidense Rises More Than Expected
Forex newsThe International Monetary Fund (IMF) warned Tuesday that total losses from the ongoing global economic downturn could reach $4 trillion and the global financial system "remains under severe stress".Though the IMF had predicted total losses from the credit crunch to hit $1 trillion a year ago, the lender in its latest Global Financial Stability Report (GFSR) estimates losses incurred by banks alone would be over $2.7 trillion."In this GFSR, estimates for write-downs have been extended to include other mature market-originated assets and, while the information underpinning these scenarios is more uncertain, such estimates suggest write-downs could reach a total of around $4 trillion, about two-thirds of which would be incurred by banks," the IMF said in its Global Financial Stability Report.The IMF report blamed the worsening base-case scenario for economic growth for losses suffered by banks, adding that the shrinking economic activity has put further pressure on banks' balance sheets as asset values continue to degrade, threatening their capital adequacy and further discouraging fresh lending.
Singapore Inflation Continues to Ease in March
Forex news
Gold Rises above $890 Again
Gold news
Forex-yen gains on export data, dollars dips vs euro
Forex newsNEW YORK, April 22 (Reuters) - The dollar fell against the yen on Wednesday, partly due to signs of a modest recovery in Japanese exports, while the British pound plunged after the government forecast a surge in borrowing this year.
The euro also gained on the dollar, but retreated from a session peak above $1.30 as Wall Street stocks fell in late trade, boosting some safe-haven flows into the greenback.
Nagging worries about the financial system kept investors from taking on too much risk, however, undermining higher-yielding currencies such as the New Zealand dollar and boosting the yen, which typically firms when anxiety rises.
The International Monetary Fund said the world economy was in a deep recession and slashed its global growth forecast, while Morgan Stanley reported a second straight quarterly loss. For more, see [ID:nN21500818]"Investors are trying to decide which way to jump," said Wells Fargo currency strategist Nick Bennenbroek. "The question is whether to bet on a more sustained recovery in financial markets or position for a renewed risk aversion."
