Development of main currencies

Inviato il 17 November 2010 da Rod

The euro is linked to growing concerns about the budget problems of many European states and is target to continuous pressure. The currency pair EUR / USD fell to 1.3850. In the coming days and in the coming hours we must be careful; for those wishing to invest in the market, the trend of this currency pair may go in favor of the greenback. Bring also attention to news coming from the U.S., which could be very heavy.
The U.S. dollar showed some strength against the application and declined to relatively high-risk activities.
The British pound was also under pressure, due to the release of the development of house price for the month of October, which showed an unexpected drop of 49%, against the expected value of  39%. After an initial descent by early European session, the pound was able to go uphill.
The Japanese yen showed a sort of stabilization, the currency pair USD / JPY fell to 80.50 yen level. The Japan’s currency rose against its main competitors such as China, following the announcement of the decision to strengthen monetary control measures.
Regarding oil prices, it is traded at about $ 86.90 per barrel, in the context of strengthening of the U.S. dollar. The gold instead reached a new record level of $ 1422.00 per ounce.
Regarding instead the minor currencies, we can see that the exchange rate between the dollar and New Zealand dollar the Reserve Bank of Australia has released the country’s financial stability report, which had no specific effect on the New Zealand dollar, then the currency pair USD / NZD has traded at $ 0.7820.

Alternative investments

Inviato il 18 November 2010 da Rod

When you decide to invest in the market there are several things you should necessarily take into consideration. If you study the market trend, if you make wise choices and if you have a little luck, then you will most likely be able to have an interesting and positive return on your investment. Nothing makes an investor more devastated than the fact of having to rely on year-end losses instead of profits. The recession that recently has hit thousands of investors is the proof.
Some experts say it is a good time to invest again in the market, if until now you have been on the sidelines. The question is, where to invest? And if you were to reinvest in something that could then lose value? Fears of a recession is loose, but not disappeared. The development of  currencies leaves many with the doubt of wondering where to invest.
We’re going to see some “safe harbors” that investors have already used successfully in previous years, where the stock market seemed to be more inhospitable.
Investment in services. Since most service companies operate under rate regulation at the state level, the U.S. power companies listed on stock exchanges are often regarded as an area that will not go down, even in difficult times. Although government regulations have a major impact on profitability, the highly regulated environment also protects against fluctuations. Some of the biggest names on which you can choose to invest are Exelon, FirstEnergy and Mirant.
Blue-Chips. Investors may have had a bad experience with GM, but there are other companies that are still going strong even after years, like General Electric and Pfizer. Even McDonald’s is one of the favorite stocks and low-risk, especially when long-term investment.

How are currencies proceeding after the G20

Inviato il 22 November 2010 da Rod

The dollar had its first weekly gain after Ben Bernanke, chairman of the U.S. Federal Reserve, has opened the way for further quantitative easing. The rally of the dollar has come down to the last meeting of G20 leaders in Seoul, where there have been little progress in defusing the tensions international currency. Instead, events outside the sphere of influence of those who gathered in Seoul see a return to risk aversion.
After hitting its lowest level, the dollar has risen by 1, 2 percent against the yen, at a value of 82.15. The euro has had the worst performance among the major currencies, after the re-emergence of concerns over the debt of the euro-zone countries. Ireland was the last country to create such fears. Meanwhile, rumors of an imminent bail-out Irish have brought down the euro against the dollar of 1.6 percent.
The turmoil of sovereign debt in Ireland and Portugal has raised concerns that the contagion could drag other countries in the euro zone in trouble and that delaying the ECB attempts to normalize interest rates in the region it could be even more serious.
The crisis in the euro zone is set to become even worse if nothing is done. The ECB policy makers are once again called upon to reverse course from implementing exit strategies. The fact remains vulnerable euro against the currencies.
In addition, even speculation that China has stopped its efforts related to monetary tightening after the stronger expected inflation data has prompted fears of weakening demand. The possibility of increased rates of Chinese debt woes in Europe and continues to have a fairly marked effect on the currencies. Meanwhile, the disclosure of information about the willingness of the Chinese People’s Bank of China to raise the reference rate for the renminbi.
The pound has been rather quite in flux, as investors remained uncertain about the next move by the Bank of England.

The British pound proceeds better than euro and dollar

Inviato il 1 December 2010 da Rod

In the last article we began to see the current situation of the British pound. In addition to those already considered, another argument in favor of the pound is the fact that inflation is still very high in the United Kingdom. After three consecutive months of stagnant inflation, the rate is once again on the rise, reaching 3.2 per cent share in the month of October.
This means that the chances that the Bank of England put up another round of quantitative easing is increasingly unlikely. With inflation at these levels just six weeks before the jump of 2.50 percent VAT, a rise in interest rates in the United Kingdom must be almost certain.
The moment this happens, the pound would begin to appear more attractive to investors around the world, which could help push the value even higher.
It’s not only the positive news coming from the UK that are supporting the pound, but also the fact that it is not an area that is suffering as the States and the euro zone. For some time the dollar has suffered losses in response to concerns that the U.S. could slip back into recession, while the euro is under pressure because of the fear related to your debt due to the Irish, Greek and Portuguese. Against these currencies, the British pound gained, as the British economy is seen as relatively healthy, sick or at least not as in Europe and the United States.
Here you make the forecast of exchange rates extremely challenging and difficult, as nobody is willing to say too much about predicting the trend against the euro and the pound against the dollar. Surely the next trading week will be very busy and to take control.

The stories of success are important

Inviato il 25 November 2010 da Rod

The stories of success in Forex are crucial to understanding the real potential of this sector. However, since it does not take much to make up a story only to attract attention,  you’ll always need to deepen the story you are reading. You can not take a book on forex and then start trading the next day. You must carefully follow the directions and build skills and above all their confidence. The only thing that you can not learn from a trading system is your emotional response to the winnings and losses.
Most forex systems should be started with fake money, or with the demo account. This helps to develop skills. However, since you are using counterfeit money, there is no element of risk. So we just develop the skills, while the transition to trading with real money will also add pressure.
The success stories of traders are able to provide a comprehensive framework as to how they treated the trading with real money. From the moment the changes are very emotional for some people, success stories can help paint a clearer picture while you are still learning to trade. The stories that provide the greatest benefit are those that dig deep into the commercial aspects, including stress.
This is a whole new world. The more you begin to understand the world in which you are participating in the more you develop unique abilities.
Self-discovery of how to react to wins and losses are part of learning to make money with Forex. Everything counts, even the most insignificant.
The Forex is so different from most investment systems that you prefer not to learn it. But if we consider how many hours you invest to be experts in a field, then you also understand how the Forex can be learned.

Should you invest in the pound?

Inviato il 1 December 2010 da Rod

Most analysts agree that if the EU sovereign credit crisis continues, the pound would have a certain advantage over the euro. In addition, the quantitative easing that, now, the United Kingdom, it is becoming less likely, the pound has an advantage against the dollar. Needless to say, the United Kingdom is experiencing its risks, but for now the focus is elsewhere and this should contribute to the fact that the pound should keep the head above water, for the first time in a long period.
Some people think that we should invest in the pound, by converting some of the investments previously made in euro or dollars. Considering the highly volatile currency markets and the fact that there is a real possibility that the strength of the pound has recently shown it can meet this currency, then it might be time to re-invest their money, or at least a part of it.
Please note that the prediction o f the evolution of exchange rates is very difficult now. The pound is better than other currencies, but experience tells to stay alert to possible danger. There are steps you can take to try to take advantage of investment opportunities that can be given away by the pound.
Some say to make the cover of their investment, ensuring a certain amount of investments made in euro or dollars in the hope that the market continues to improve. Experts warn that volatility in currency markets is above historical averages and the risk of weakening of the pound can not be excluded. Any change in perspective of the United Kingdom, in particular with regard to the quantitative easing, could push the pound to fall again.
With the debt crisis in Europe being worse, no one can predict how the pound will be affected.

Irland accepts the salvage plan

Inviato il 2 December 2010 da Rod

The Irish government faced imminent collapse during these days, but only after signing for acceptance of a plan to save 100 billion dollars, paving the way for a new election early next year and injecting the threat of political instability within the European financial crisis that is already at the very limit.
Faced with the high-level defections from his coalition government, Prime Minister Brian Cowen said he would dissolve the government after the passage of the 2011 budget, which will take place in early December. His announcement capped a bad day for Ireland, with the agency Moody’s Investors Service has downgraded the debt rating of Ireland.
By accepting the new election, Cowen was sure to become the first political casualty of the debt crisis in the euro area. Meanwhile we awaits developments, given that financial markets and policy in the euro area have to calculate the austerity measures to be imposed.
The imminent collapse of the Irish Government, after the use of the rescue, only seems to confirm fears that the financial crisis is far from passed. Analysts have indicated that heavily indebted countries such as Portugal and Spain, that are making of unpopular budget cuts, could soon face an uncomfortable choice too.
It will be the same story in all these other countries and Ireland is only a step forward and has done things before. All countries must make major adjustments.
Meanwhile, Cowen’s abilities have helped to maintain in the country for three consecutive years, in a situation of economic contraction, followed by the collapse of the largest banks outside of Iceland, and now the use of this bailout forcing the country to review its accounts.