The Euro Shows Disappointing Performance In Forex Trading

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Euro Performance In Forex Trading

According to recent EU Forex trading numbers, the euro has been taking some losses against its main competitors in the currency markets. This disappointing news is coming on the heels of less-than-stellar retail sales performances and lower order numbers for Germany-based factories. Other assets such as crude oil and the British pound are now predicted to see bear market patterns as well in the near future. In the most current EU market news, traders will want to keep a close watch on the German Industrial Production figure, which will become available at 11:00am GMT. If this number posts below predicted performance, further EU market losses are expected to follow close behind it.

Euro
Euro (Photo credit: aranjuez1404)

News on the Economy

On the other side of the pond, the US dollar saw more bull market patterns and yielded higher returns. This data surpassed that of EU retail sales and orders from German factories. Mid-day trading saw a USD/CHF increase of almost 50 pips. The GBP/USD data decreased to about 60 pips during the same trading period.

Little news has been released from the US regarding this performance, and movement of the US dollar will probably happen again as a result of the latest euro-zone trading data. Many analysts predict that this month’s indicator will be higher that last month’s, which will probably generate more risk in the market. It could also wipe out any gains the greenback made yesterday. During trading later in the week, US dollar traders will want to watch for the latest US Unemployment Claim numbers as well as figures from the trade balance. Both of these figures will likely generate further volatility in the case of the greenback.

Losses of the euro in Forex trading are attributed to EU unemployment numbers, low retail sales and disappointing factory order numbers. These losses are considered moderate against currency rivals designated safe trading havens. Compared to recent Japanese yen market performance, the common currency took a 60 pip loss to start trading as low as 114.23.

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Commodities: Speculators Lower Wagers As Annual Advance Is Erased

Net-long positions across eighteen United States futures and options have been impacted by hedge funds cuts.  These cuts have reduced these positions by 0.2 percent to slightly more than one million contracts in the week that ended on October 23.  Commodity Futures Trading Commission reveals that this is the lowest point since July 24.  Copper holdings and sugar wagers fell significantly.  Bullish bets on gold also dropped to the lowest point within three months.  A Commodity Day Trade System USA can help traders take safe positions that can help them make profitable returns.

Donald Selkin is currently the chief market strategist for National Securities Corporation in New York.  This well-known company manages close to three billion dollars of assets.  He stated, “Commodity liquidation is related to the perception of the world-wide economic slowdown.” He also stated, “People are getting out of more economically sensitive types of commodities.”

Recent data collected by The Commerce Department reveals that the economy in The United States grew at a two percent annual rate in a three-month period.  Their data also shows that this positive activity topped the median economist forecast for an impressive 1.8 percent gain. Consumer confidence climbed to a five-year high in October.  The real estate market experienced a nice change when home sales climbed to a two-year high in September.

The state of the economy has been a central theme for President Barack Obama and Republican candidate Mitt Romney.  Pacific Investment Management Officer Bill Gross said, “The budget deficit, structural headwinds, and the fiscal cliff will dominate the economic debate.”  The Commodity Day Trade System USA can help traders sustain profitable positions during sudden market changes.

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Currency Wars: A Valuable Economic Resource and Insightful Read

Books about finance don’t come more riveting than Currency Wars by James G. Rickards. Part novel, part non-fiction, the Currency Wars book explains in chronological order the global wars fought over the decades, not with guns and oil but with currencies. In doing so it lays down the foundation for the next forecasted world implosion, which although is sparked by imagination is alarmingly full of insight and probability. Currency Wars reviews have applauded his work, with US Today commenting that it is, “Outside-the-box thinking…an important contribution to the nation’s economic dialogue…an invaluable resource”. Others speak with more trepidation about his predicted financial threats.

Currency Wars: Section One

The Currency Wars book is split into three sections. The first section has the characteristics of a novel as opposed to a financial book. In the section the author Rickards describes in detail his participation in an activity at the Warfare Analysis Laboratory. Usually the group is used by the defense department to simulate war games for planning strategies. However, the activity that Rickards was involved in had nothing to do with on the ground military action, rather military, academic and government interests participated in a simulated currency war that used currencies and capital to bolster power in certain regions. He contributed to this ‘currency war’ by offering advice on the markets. I won’t tell you what the outcome of the war is.

Currency Wars: Section Two

The second section of the book is more historical and outlines the events and conditions that led up to the first two currency wars (named CWI and CWII) in the twentieth century. Rickards also provides some valuable insight into the motivations that drove these wars. According to the book Currency Wars, CWI was fought between 1921 and 1936 and CWII between 1967 and 1987. Both of these wars were waged between countries of competing national interests. These currency wars forced competitive devaluations and government interventions with global finances.

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Currency Wars: Section Three

It is noteworthy that gold reappears throughout the Currency Wars book. According to Rickards, the currency wars were largely caused by the end of the Gold Standard in the global currency market after World War II. It also comes into play in the final section of the book where he gives his explanation as to why the world is now fighting CWIII. He also analyses in details the possible outcomes of CWIII (paper, gold and or chaos), giving the reader much to think about after the book even after the book has been put down. Currency Wars does not only target those concerned with finance, but also those who are interested in the future of our world and who enjoy solid and insightful speculation.

Penny Munroe is an avid writer in currency trading news and tips and aims to encourage any currency broker or trader to practice responsible trading. Her interest in currency markets started after she opened her own Forex trading account with a foreign currency broker.

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Bristol Pound Currency will Launch in May 2012

Currency TradingThe English city of Bristol could soon be making history with the launch of the UK’s very first city-wide currency; the Bristol Pound is an initiative designed to boost the city’s economy and strengthen local trade.

The Bristol Pound is not the only alternative local currency used in the UK – the city of Totnes in Devon introduced the Totnes Pound in 2006, while the Lambeth city of Brixton launched its own city-wide currency, the Brixton Pound (B£), in 2009 and this currency is still thriving. However, the Bristol Pound will be the first local UK currency with the backing of a regulated financial services provider – in this case, the Bristol Credit Union. This means the currency can be used to pay not only for goods but also for bills.

As a forerunner to the Bristol Pound, the Brixton Pound serves as a stellar example of local currency; the B£ was even launched in electronic format last year, allowing local users to make instantaneous payments by text. Following the launch of the Bristol Pound notes, this new city-wide currency could also be developed to include an electronic format in the coming months.

Here’s a closer look at the UK’s latest alternative currency – the Why, How and When of the Bristol Pound:

Why?

The purpose behind the introduction of the Bristol Pound is to provide support to the city’s independent retailers and other businesses, stimulate the Bristol economy and build a sense of community among local consumers. Ideally, the widespread use of the Bristol Pound within the city will ensure that money spent in Bristol will stay in circulation in the city of Bristol. This will reduce the amount of money going into the financial systems of larger offshore corporations.

How?

The Bristol Pound can be exchanged with pound sterling, and one Bristol Pound will of course be equivalent to one British Pound. Locals can currently register for a Bristol Pound account online, after which they will be contacted with the appropriate registration forms. Those who choose to get involved with the Bristol Pound initiative are making a clear statement about their support for local businesses and the Bristol community.

When?

The Bristol Pound is due to launch on May 21st this year, and local residents have been asked to submit their ideas for the design of this local currency. The Bristol Pound will be available in £1, £5, £10 and £20 notes, and each will feature an image on both sides. Many Bristol locals are hoping for the honour of seeing their designs or illustrations appear on the brand-new Bristol Pound in May!

Nicky Warner is an enthusiastic writer with a special interest in UK news. Whether you’re an experienced foreign exchange broker, or just starting out with a new MT4 demo account, you’ll find Nicky has plenty of relevant financial and economic news to share.

 

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Forex Trends of 2011: Opportunities for the Future

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It is impossible to predict what the future holds with regards to currency trading. It is a form of betting where one must make use of Forex trends from the past, weigh out probabilities and examine the overarching social, political economical environment that the Forex market resides in. For Forex geniuses like George Soros or Jimmy Rogers, this information paints Forex trends as clear as day. Nevertheless, they are still using archives of information and their understanding of outside influences to make informed decisions as opposed to intuitive guesses. Fortunately, beginners or enthusiasts can rely on the expert analysis of professionals and Forex trading companies on the web, who share insight in exchange for loyalty. Below is the general web consensus of the Forex trends of 2011, both the mistakes and opportunities that were made as well as what there is to gain in 2012.

The Major Events that Affected 2011 Forex Trendscurrencies

There were a few major events that sent the Forex trend lines in varying directions. The first came from the United States who lost their AAA credit rating for sovereign bonds. Next there was the move towards ‘Oliver Twist’, that is the Federal Reserve Banks decision to trade some of its shorter dated bonds for longer bonds, with consequently affected the interest rate. The third and most publicized event was the yo-yo economic changes within the Eurozone. Going from red to green and then red again, a pattern which is expected to continue in 2012. This will heavily affect Forex indicator trends as fear of further contamination will dictate the attitude of the market. The US Dollar is expected to be a safe refuge for the Euro and experts in Forex trend forecasts expect a similar role from the British Pound.

Forex Trends and Trading Opportunities

Forex trend strategies and tips that have been suggested by expert Forex trend forecasters include going long with the USD/JPY; they have also warned to be careful with the timing. However, a profitable trend Forex system is to start off small, going larger only when you have confirmation that the strategy is working. Keep a look out for reversal opportunities for the USD/CAD, AUD/USD, NZD/USD and USD/CHF. Look back on Forex market trends in 2011 to ensure when past conditions for reversals are repeated in 2012. The biggest pointer to remember when examining forex trading trends is to remove the bias that is inherent in the human mind. Although it is not possible to completely do this, be consciously aware of ingrained biases. Put analyses, past Forex trends and overarching global conditions first and watch signals from the market as closely and objectively as possible.

Penny Munroe is an avid writer in currency trends and forecasts and aims to educate readers on how to be responsible traders. She started trading under a metatrader 4 broker but after downloading a mt4 demo she now manages her own Forex account.

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Currencies to Watch Over the Next Few Months

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Whether your interest lies in playing the Forex market, or you’re simply planning an overseas trip for the coming year, it’s worth your while to spend some time learning what global currency exchange is doing during these tumultuous times. The upheaval caused by the dramatic and sudden decline of the American economic situation had major ramifications which have echoed across the world, and most of us are feeling the impact.

If you’re planning an overseas trip and you’re negotiable on your destination, then you’re most likely constantly checking the various exchange rates, in the hope of selecting the most stable and best possible deal, but it’s been a trial to maintain a track of and more so to identify any discernible pattern. If you’re playing the Forex market, then you need even more assurance on the stability of your approach and investments, but this is difficult to come by.

Below I’ve listed some of the most popular opinions and estimations which are shared on the web, but please bear in mind that these are only the opinions of market players and government officials, certainty is never a possibility.

Asia:

The Asian market has been suffering along with other key players, and over the next few months, it’s predicted that the various currencies of the region will continue to devalue. On the upside, however, respected analysts have stated that they expect the region to begin a recovery early next year, leading to a strengthening of currencies. This upturn is attributed largely to an anticipated increase in import demands.

 

China:

As a major global player they, perhaps, deserve an entry independent of the Asian one. China’s overseas sales climbed 17.1 percent in September 2011, likely due to the low cost of their exports at a time when everyone is struggling to survive. The country currently has 3.2 trillion dollars held in reserve, and has shown impressive resiliency since the 2008 depression hit. The smart money is most likely on the Chinese, in terms of a good investment.

Australia:

The Australian dollar has always been a strong contender and a very stable forex trade commodity, but certainly took a hit of its own in recent times. Growth may have been slowed by the 2008 depression, but the Australian dollar fared better than most due to its strong export policy, consisting in large part, of raw materials which are always required by the global market. It seems that Australia is the master of another of the few currencies which have remained relatively stable and could see healthy growth in the coming year.

US and Europe

Needless to say, North America and the majority of Europe (especially England and Ireland) were savagely injured due to their investments in the USA. When the credit system of the US collapsed, the impact was widespread indeed and Ireland, for one, has suffered a chain reaction, the repercussions of which are still not fully clear. Although both the US dollar and the Euro have seemingly stabilized, this has been an opportunity for emerging currencies to gain trade-able strength.

Warren Kings writes on many different topics. Have a look at his latest articles on mt4 demo account and metatrader 4.

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