Forex Trading

US Dollar’s Future in the Hands of Speculators

Fundamental Outlook for US Dollar: Bullish

- Even the IMF pegs the US dollar as the top funding currency for a market hungry for yield
- A sharp jump in the trade deficit and drop in consumer confidence contradict an outlook for recovery
- The US dollar has held its low; but can the greenback finally reverse course or will it once again collapse?

The dollar was able to manage its most aggressive rally against its chief counterpart (the euro) in months this past week; but the move would not last. Without a scheduled or unscheduled event to dramatically alter the dollar’s status in the well-worn carry trade, risk appetite would ensure the currency would remain shackled to its eight-month old bearish trend channel. Looking out over the week to come, the most pressing question for any trader is determining if and when the greenback will finally catalyze its next trend. Some may argue that direction is the primary concern; but without momentum and follow through, the result is fundamental chop that leaves the market open to volatility while slowly building up the pressure behind the eventual breakout. So, is there potential for a clear, dollar trend in the week ahead?

While there are a few notable economic indicators scheduled for release over the coming days, the experienced fundamental trader knows there is a low probability that any one (or very likely all of data working in conjunction) could actually leverage such a meaningful change of trend. These indicators’ principal value is in establishing the forecasted pace of economic recovery and, to a lesser extent, offering minor adjustments to the Fed’s time frame for a return to a hawkish policy regime. However, those following the dollar know that the asset’s primary role is as the safe haven and funding currency for the broader market. Therefore, the analysis on this single currency’s future turns into an assessment of overall risk appetite through the global financial markets. Taking a more expansive look at sentiment, there seem to be few scheduled events or indicators that can spark fear or greed all on its own. In fact, the quality of the data is all-in-all relatively reserved. Somewhat counter-intuitively, these may be the ideal conditions to reestablish a true bias. Often times, when there is a major market-moving event due; price action leading up to its release is muted as traders do not want to leverage risk by increasing exposure. What’s more, if the news doesn’t fall far from forecasts or it otherwise doesn’t play into the larger market themes; a modest increase in volatility is all it can rouse. More often than not, it is those times when the docket is otherwise unencumbered that we see sentiment build momentum and define new trends.

Through the coming weeks and months there is little doubt that risk appetite will define the dollar’s future. However, eventually this negative correlation will eventually fade. To break from the all-consuming fundamental current, the greenback will need to shed its role of the market’s safe haven and funding currency (depending on whether optimism or pessimism is the primary temperament at any time). Altering this brand will be difficult; but a shift in interest rates (target and market) and/or the fiscal health of the US can do it. Currently, the benchmark market rate, the three-month Libor, is at a discount to its Japanese counterpart (history’s favored carry trade component) at 0.2725 percent. A major shift in capital flows into the US or an accelerated timeline for Fed rate hikes can change this. To increase the tepid probabilities of a near-term rate hike (there is a mere 5.7 percent chance for January 27th and only 44 percent probability for June 23rd according to Fed Fund futures), we will take note of the week’s economic offerings. Retail sales will serve as a barometer for consumer spending (accounting for approximately three-quarters of GDP) and the October CPI numbers will reveal whether there is any merit to hawkish concerns through fears of looming inflation. – JK

For the past 24 hours, the Dollar-yen did not break any of the levels specified in yesterday's report, it did not penetrate 90.23, it did not drop below 89.53. The most important thing to happen from a technical point of view was the fact that the falling trendline and the rising broken trendline came closer to each other. The most important resistance is provided by the falling trendline from October 27th top, which is currently at 90.00.

The bears will be in control as long as price is below this line that provides today's most important resistance. And if this happens, we expect the price to fall and test Fibonacci 61.8% support for the short-term at 89.56, and may be a break as well, that will lead to the important bottom 88.82. If the opposite of what we expect happens, and we break the resistance 90.00, the price will be on its way to 90.90 first, and may be 91.31 later.

Support:

• 89.56: Fibonacci 61.8% for the short-term.

• 88.82: Oct 14th low, and an important low for determining the medium-term trend.

• 88.33: previous support.

Resistance:

• 90.00: the falling trendline from Oct 27th high.

• 90.90: a well known previous support/resistance.

• 91.31: Nov 4th high.

The Euro fluctuated in a tight range, breaking both the support & resistance specified in yesterday's report, without reaching the target in either cases, and without any large moves to follow the breaks. Short-term support is still at 1.4975 where there is the moving average SMA100, and the previous support. If broken, the Euro will probably fall today in a correction for the last move up from 1.4625, targeting 1.4886 & 1.4836 and may be the most important support for medium-term currently at 1.4786. In this case, the later will become a crucial support, for setting the direction for the next few days, because breaking it would indicate that the drop from 1.5047 is not just a correction.

For the past 24 hours, the Dollar-yen did not break any of the levels specified in yesterday's report, it did not penetrate 90.23, it did not drop below 89.53. The most important thing to happen from a technical point of view was the fact that the falling trendline and the rising broken trendline came closer to each other. The most important resistance is provided by the falling trendline from October 27th top, which is currently at 90.00.

For the past 24 hours, the Dollar-yen did not break any of the levels specified in yesterday's report, it did not penetrate 90.23, it did not drop below 89.53. The most important thing to happen from a technical point of view was the fact that the falling trendline and the rising broken trendline came closer to each other. The most important resistance is provided by the falling trendline from October 27th top, which is currently at 90.00.

The dollar mostly lost ground Friday, with strategists attributing the modest weakness to market participants taking profits on the greenback's recent bounce.

Technical considerations appeared to be the biggest factor in Friday's currency dealings, even with data reported from opposite sides of the Atlantic showing the European economy returning to growth as well as a wider-than-predicted U.S. trade deficit for September, analysts said.

The dollar index (DXY), a measure of the U.S. unit against a trade-weighted basket of rival currencies, fell to 75.551 compared to 75.648 in late New York trading on Thursday.

The greenback briefly extended losses after data showed that the U.S. trade imbalance widened more than forecast, to USD36.5 billion in September, and that import prices rose 0.7% last month.

Meanwhile, the euro retreated against the Japanese yen and the British pound as euro-zone data showed the 16-nation region that shares the single currency returned to growth in the third quarter, but at a slower pace than expected.

The euro fetched USD1.4843, giving up an earlier gain to stand virtually unchanged from USD1.4841 late Thursday. The single currency fell by 0.8% and 0.4% against the yen and the pound, respectively.

The dollar bought 89.74 yen, down from 90.35 yen on Thursday.

Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:

* Being a professional company you can trust
* Provide you with real-time quotes
* Execute your orders fast and accurately
* Don't take a lot of commissions
* Support the withdraw/deposit methods that you can use

For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:

* FXOpen — one of the most popular and progressive brokers with MetaTrader platform and comfortable trading conditions for all kind of traders.
* InstaForex — a reputable MetaTrader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via WebMoney.
* FXcast — good because you can start trading Forex with as little as 10$, use MetaTrader 4 platform and the dozoen of various deposit and withdraw methods, including WebMoney, e-Bullion and wire transfer.
* LiteForex — broker that supports MetaTrader 4 Forex trading platform and doesn't require a lot of money to start with.

Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:

Forex Basics

If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:

* Forex Fundamental Analysis
* Forex Technical Analysis
* Money Management
* Forex Trading Psychology
* Forex Brokerage

Understanding and mastering these sides of trading are crucial to organize your Forex trading experience.

Published on Tue, Nov 10 2009

Crude oil fell in New York after Tropical Storm Ida weakened in the Gulf of Mexico as it approached the U.S. coast, reducing the potential of further supply disruptions. Ida’s sustained winds have dropped to 65 miles (104 kilometers) per hour from 70 mph earlier, with additional declines expected later today as it makes landfall, the National Hurricane Center said on its Web site. Producers have begun preparations to resume operations. The dollar rebounded from a two-week low against the euro, reducing the need for commodity purchases as an inflation hedge. “Most people feel that the storm isn’t going to be that severe,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “This is the last hurrah for the hurricane season.” Oil for December delivery declined as much as 53 cents, or 0.7 percent, to $78.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $78.98 a barrel at 12:16 p.m. Singapore time. Yesterday, the contract rose $2, or 2.6 percent, to $79.43. Prices have gained 77 percent this year. Workers were evacuated in the Gulf of Mexico and companies idled 29.6 percent of oil and 27.5 percent of natural gas output, according to government data. Ida was centered 100 miles south- southwest of Mobile, Alabama, at 9 p.m. local time and was moving north at 13 mph, the center said. Marathon Oil Corp. said it may start work on bringing output back tomorrow. The company had evacuated and shut in production at a platform located at Ewing Bank 873, which can produce the equivalent of about 12,000 barrels of oil a day, Lee Warren, a company spokesman, said in an e-mail.

U.S. Stockpiles
The dollar moved higher on prospects investors reduced short positions on the currency before a U.S. public holiday tomorrow. The greenback traded at $1.4981 per euro as of 11:40 a.m. in Singapore from $1.4999 in New York yesterday, when it touched $1.5020, the lowest since Oct. 26. U.S. crude-oil inventories probably rose 1 million barrels in the week ended Nov. 6, according to the median of 10 estimates by analysts before an Energy Department report. Supplies of distillate fuel, a category that includes heating oil and diesel, declined 700,000 barrels from 167.4 million the prior week, according to the survey. Gasoline stockpiles probably dropped 400,000 barrels from 208.3 million in the week before, the survey showed. The department is scheduled to release its weekly report on Nov. 12 at 11 a.m. in Washington, a day later than usual because of the Veterans’ Day holiday on Nov. 11. Brent crude for December settlement fell as much as 47 cents, or 0.6 percent, to $77.30 on the London-based ICE Futures Europe exchange. It was at $77.35 a barrel at 12:11 p.m. Singapore time. Prices rose $1.90, or 2.5 percent, to $77.77 a barrel yesterday.

Tuesday, 10 November 2009 00:00

From International Desk - International Conversion Rates

	USD	EUR	JPY	GBP	CHF	CAD	AUD	HKD
HKD	7.75	11.618	0.0862	12.9059	7.6851	7.3233	7.1928
AUD	1.0775	1.6152	0.012	1.7943	1.0684	1.0181		0.139
CAD	1.0583	1.5865	0.0118	1.7623	1.0494		0.9822	0.1366
CHF	1.0084	1.5118	0.0112	1.6794		0.9529	0.9359	0.1301
GBP	0.6005	0.9002	0.0067		0.5955	0.5674	0.5573	0.0775
JPY	89.864	134.7151		149.6487	89.111	84.9159	83.4028	11.5954
EUR	0.6671		0.0074	1.1109	0.6615	0.6303	0.6191	0.0861
USD		1.4991	0.0111	1.6653	0.9916	0.9449	0.9281	0.129

PETROLEUM ($/bbl)
Nymex Crude Future	79.04	-.39	-.49
Dated Brent Spot	77.06	-.16	-.20
WTI Cushing Spot	79.43	2.00	2.58
PETROLEUM (¢/gal)
Nymex Heating Oil Future	205.00	-1.27	-.62
Nymex RBOB Gasoline Future	197.22	-.96	-.48
NATURAL GAS ($/MMBtu)
Nymex Henry Hub Future	4.60	-.07	-1.50
Henry Hub Spot	3.76	-.15	-3.84
New York City Gate Spot	4.05	-.16	-3.80
ELECTRICITY ($/megawatt hour)
Mid-Columbia, firm on-peak, spot	39.24	3.36	9.36
Palo Verde, firm on-peak, spot	36.42	.39	1.08
BLOOMBERG, FIRM ON-PEAK, DAY AHEAD SPOT/ERCOT HOUSTON	35.83	1.23	3.55

Closing rates as On Sun, November 8, 2009
Bullion rates in Rupees per 10 grams
Karachi
Silver Tezabi(24-ct)	441.42
Gold Tezabi	29575.00
Lahore
Gold Tezabi(24-ct)	N/A
Gold Tezabi(22-ct)	N/A
Gold Tezabi(21-ct)	N/A
Silver Tezabi(24-ct)	N/A
Silver Thobi(bar)	N/A
Multan
Gold Tezabi(24-ct)	29150.00
Gold Tezabi(22-ct)	26650.00
Silver Tezabi	430.00
Silver Thobi	405.00

KARACHI: The government was not even thinking of two holidays a week for the industry and the recent steps of the government were for gas management owing to its shortage. The industry may run seven days a week and on gazetted holidays if it wants to, said Zubair Motiwala, renowned industrialist and Adviser to Chief Minister Sindh on Economic Affairs.

Last week, a big hue and cry was observed when industrialists and businessmen asked the government not to endorse the idea of two holidays a week.The government in a bid to conserve energy had announced a gas management plan, especially for Punjab and NWFP, which entailed gas supply cut for two days a week on rotational basis for industries and Compressed Natural Gas (CNG) stations. The government action was misread by many as a two-day closure of industries despite the fact that the government announced that industries may run on Saturdays on furnace oil or diesel instead of gas. The gas load management plan was mainly for Punjab and NWFP, for Sindh there has not been much gas shortage so industries in the southern region have relatively more space, he said when asked how gas management would affect industries in the southern region. No government could even think to shut down industry for two days a week in these times of crisis. The government has no plans to shut down industry for two days a week, he said firmly. The government put forward the gas load management plan owing to the shortage of gas in the country. Mushroom growth of 2,700 CNG stations and phenomenal surge in gas consumption were the factors behind this government move of gas conservation, he added.

Industrialists, especially from Sindh, have been demanding the government compensate strike days and forced holidays with the gazetted holidays so that industrial output could not be affected owing to haphazard holidays. Last week, the SITE Association of Industry Karachi repeated their same demand to the Sindh government.Under the international labour laws, a worker should work for 40 hours a week and he or she would only be entitled for overtime if he works more than this. What industry wants is to give overtime to those workers only who complete 40 hours a week. In present crisis, industries may run seven days a week, Motiwala continued. Siraj Kassam Teli, Patron in-Chief of SITE Association of Industry, said there is no issue of running industries on gazetted holidays as no law barred industry in this regard. But, running industry on gazetted holidays would increase the cost of production, for labourers ask for overtime. Idrees Gigi, Former Chairman of Federal B Area Association of Trade and Industry said that some three years back, industrialists used to run on gazetted holidays but now the situation has changed. Owing to the slowdown in economy and dwindling industrial output, it is not feasible now for the industry to run on holidays. Law and order, limited orders, rising cost of production have been the core reasons behind this development, he said, adding that giving additional overtime to workers on holidays would also increase overhead expenses. When asked why industrialists were opposing two holidays a week, he said that the rising cost of production was the core reason as industrialists would have to give overtime to labourers. He added that no law actually bans industrial production on gazetted holidays. It seems that now very few units would like to operate on holidays, they may if present conditions improve and there are substantial amount of profitable orders to be furbished.

The British Pound was among the top performing currencies to finish the week’s trade, as relatively bullish fundamental developments helped push the currency from major bearish sentiment extremes. The highly-anticipated Bank of England monetary policy statement predictably shook FX markets, sending the British Pound immediately higher on unexpectedly limited actions from the central bank. The BoE expanded its Quantitative Easing measures by ₤25 billion to ₤200Bn—normally a bearish fundamental shift. Yet financial markets are all about discounting expectations, and consensus forecasts of a ₤50Bn change meant that the British Pound actually rallied on the news. Whether or not the GBP can continue recent gains may depend on the coming week’s employment numbers, but previously-extreme FX market positioning suggests that risks remain to the topside through the foreseeable future.

FX Options market volatility expectations remain elevated on what promises to be yet another eventful week of price action. Major highlights will likely include a Bank of England Quarterly Inflation Report and UK Jobless Claims Change results—both capable of forcing substantive moves in the British Pound. The recent Bank of England rate announcement underlined market sensitivity to any and all shifts in monetary policy. Fundamental trends have left BoE interest rate expectations in the middle of their 3-month range as markets are unsure of when the British central bank will withdraw its aggressive monetary policy stimuli. Much like interest rate markets we are unsure of what to expect from the often-unpredictable central bank. Yet we would advise that traders pay close attention to the upcoming Quarterly Inflation Report release. Any excessively dovish or hawkish rhetoric could easily force substantial volatility in forecasts and—by extension—the domestic currency.

UK Jobless Claims numbers are similarly difficult to handicap, but fairly bullish market expectations arguably leave the door open for bearish surprises. Current consensus forecasts call for the smallest unemployment gain in since May, 2008—likely a positive result for economic trends. The Bank of England is an inflation-targeting central bank and, as such, does not technically target unemployment rates. Yet one can reasonably be sure that the Unemployment rate is a major factor in the BoE’s decision-making process. If nothing else, any surprises in UK Jobless Claims numbers could force major moves in yield expectations.

The British Pound currently trades at fairly substantial technical resistance against the Euro and US Dollar. We have argued that previous bearish sentiment extremes would lead to a major GBP recovery, and we believe that a further correction in overextended positioning could force major breaks higher for the UK currency. – DR

The euro is still the fundamental chameleon of the currency market. Without particularly stimulating forecasts for interest rates (hawkish or dovish) or an economic recovery that looks to keep pace with the US or Japan through 2010; the world’s second most liquid currency doesn’t have the kind of influence that can overcome volatility and trends that emanate from the partner in its various pairs. However, looking at the economic docket for the week ahead; we may finally have a round of European data that can finally distinguish the currency for its own fundamental prospects. On the other hand, this influential release is scheduled at the very end of the week; and late break are rare – trend development as liquidity is draining from the market is even more uncommon. Therefore, general risk appetite will once again have the most time with the euro as traders try to gauge their conviction in their speculative positions.

Though it is a long-term concern; the desire to diversify away from a heavy exposure to a volatile US dollar is a global one. And, as we can see through the IMF’s recent measure of the world’s central bank’s reserves, there is already a definable effort being made to lessen the single currency’s presence on balance sheets. In this fundamental change, the primary benefactor is without doubt the second most liquid currency: the euro. It is important to understand that this relationship doesn’t mean that we will have a significant shift from the dollar to euro in the next week, month or even year; but what it does mean is that these two currency’s are inextricably linked. And, the dollar is threatening a meaningful, bullish reversal after a month of congestion. There are a few factors that can turn the dollar; but the most likely culprit is risk appetite. Still among the top funding currencies in the currency market; the dollar has been drawn lower than economic fundamentals and interest rate speculation would alone suggest. This chasm between speculative and fundamental interest will likely be closed sooner than many expect; and we can be sure that the euro will lead the retreat as the dollar regains lost ground.

With that larger and ill-defined threat in the back of our minds, there is also a round of European economic data due this week; and the headline release is the first round 3Q GDP numbers. As suggested above, Friday is the worst day of the week to develop trends because liquidity fades as each session closes for the weekend. Nonetheless, if there is substantial shift in the data; the market will move whether everyone is there to participate or not (and if it is indeed meaningful enough, it can spark a trend that carries momentum well beyond a single day’s volatility). Looking at economists’ official forecasts, the German economy is seen growing 0.8 percent over the three months; France will have expanded 0.6 percent; and the entire Euro Zone is expected to push back into positive territory for the first time in six quarters with a 0.5 percent pickup. Considering the IMF is projection a meager 0.3 percent growth through 2010 and ECB President Trichet has warned that growth could be very frail; this data has the ability to charge bullish or bearish expectations.

Before we come to the main event on Friday, the economic docket will offer plenty of data to feed more timely expectations of activity and sentiment. The ZEW and Sentix investor confidence surveys will gauge the expectations from the most sensitive economic players. Industrial production and trade are also notable updates – which will be especially important for Germany who is heavily dependent on its manufacturing and export sectors for broader growth. – JK

The US dollar was easily the weakest of the majors during the past week of trading as fed fund futures shifted to price in a lower chance of rate increases in mid-2010 after as the Federal Reserve left rates at 0.25 percent and indicated that they would likely leave rates “extremely low” for an “extended period.” The other factor to consider was the increase in risk appetite, as evidenced by the concurrent weakness in the Japanese yen (the other “safe haven” currency) and the 3 percent increase in the S&P 500 over the course of the week. The continued correlation between the greenback and risk aversion is a notable one, and will be quite useful in the coming week of trade as scheduled event risk will be remarkably low and contained to Friday. First, the US trade balance may show a wider deficit for the month of September as it is expected to reach -$31.8 billion from -$30.7 billion. This is a change from last month, when the deficit narrowed on rising exports and falling oil imports, as government stimulus measures around the world along with the weak US dollar helped to stoke foreign demand. Later in the morning, the preliminary reading of the University of Michigan’s consumer confidence index is forecasted to improve slightly in November by rising to 71.0 from 70.6. That said, it’ll be interesting to see if the index can hold at such robust levels after the latest US labor market report showed that the unemployment situation continues to worsen. A major issue we want to point out with this report is that the official time of release is 10:00 ET, but it typically hits the wires at 9:55 ET, which can exacerbate any surprise factor from the actual results.

All told, risk trends will likely be the greater factor to keep in mind, and from a technical perspective, the confluence of a falling trendline drawn from the July highs and the 50 SMA at 76.50 serves as a solid “line in the sand” for the US dollar index. Until we see a break above there, the currency’s trend remains bearish. – TB

Demand for safety rose towards the end of this week’s session as U.S. payrolls were cut beyond analysts expectations, suggesting that the economic recovery in North America will take longer than previously imagined by economists.

U.K. manufacturing unexpectedly rose in October to 53.7 versus forecasts of 50, which was the fastest expansion in two years. The gauge for new orders surged from 52.7 to 59.5 which may be a signal that current growth is sustainable .
Fundamental Headlines• Fed's Rate-Boost Cycle Comes Into Focus – Wall Street Journal• Ford Swung to 3rd-Quarter Profit – Wall Street Journal• US Senate to introduce draft financial bill – Financial Times• U.S. Stock Futures Gain Before Manufacturing Data; Ford, Alcoa, GE Advance – Bloomberg• CIT's Bankruptcy May Help Bondholders, Erase Taxpayer, Shareholder Stakes -Bloomberg
USD/CHF – Swiss manufacturing activity slowed to 54.0 from 54.3 according to the SVME-PMI reading. Output and backlogged orders slipped leading to the indicator missing economists’ forecasts for an improvement to 54.8. Regardless, it was the third straight month that the sector expanded adding to signs that the recession is ending. A slight improvement in employment to 42.4 from 42.1 is a sign that optimism is growing.
GBP/USD – U.K. manufacturing unexpectedly rose in October to 53.7 versus forecasts of 50, which was the fastest expansion in two years. The gauge for new orders surged from 52.7 to 59.5 which may be a signal that current growth is sustainable . The expansion in the manufacturing sector presents the BoE with a difficult decision. The central bank's concerns over tight credit markets and its impact on consumer spending has increased speculation that they will add to their asset purchase program. However, if the economy continues to show signs of growth the threat of inflation may give policy makers a second thought. To discuss this and other ideas, visit the EUR/USD Forum.

been undergoing for several years before this release.
The main objective of FX Nemesis is to help forex beginners or advanced traders to make money on on autopilot, especially for 9-5er’s with little capital and little time. Any trading decision on your part with Forex Nemesis is totally eliminated.
It uses 15minute timeframe to trade. The traded currency is GBPUSD.
Some of the returns include $116,911 over the period of 1 year and 8 months.
Visit Forex Nemesis Homepage

Forex Infinity Pro Gone Live Here's how Forex Infinity Pro would do Forex Infinity Pro can avoid such catastrophes for its members, here's how: * You can install the software, which takes a matter of minutes (and is clearly explained in the manuals) it's as easy as A, B, C * The software trades for you - on COMPLETE AUTOPILOT. All you have to do is turn it on.
*You can start with a demo account so as not to risk any real capital (whilst building up your confidence) * The software finds trades for you and sits on them before leaving them precisely at the right time. It eliminates the emotion and decision making from your Forex trading - there's no room for human error/ indecision.
>>> Read the Entire News & Reviews

In a nutshell, Forex Infinity Pro is the most professional, powerful, and reliably profitable Forex trading robot on the market today... It is now proving this on a large scale, in the hands of real people, many of whom are completely new to Forex. Grab fast while stock lasts. Forex Infinity Pro Selling Fast ********** Spots for this are very limited, and these limited copies are selling FAST. People like yourself looking to make money on Forex have been snapping them up. Go here NOW and find out what all the talk is about:
>>> Read the Entire News & Reviews

Forex Infinity Pro is specially created to trade EURUSD automatically 24 hours around the clock.
This forex trading robot is designed to help members to make a minimum of few hundred percent from their investment capital.
Forex Infinity Pro trades on the 30 Minutes time frame and can operate with all forex brokers’ platform.
It aims to make at least 100 pips per trade and cut loss at 60 pips. The risk/reward ratio is up to 1.83 or near 2 pips gain for 1 pip loss.
However, the expert advisor do uses a trailing stoploss which means the priority is to breakeven and capture as much profits as possible.
The default lot size trading is set at maximum of 2% of your total account.
You are able to modify all the above settings.
Visit Forex Infinity Pro Homepage

Best Training Video This is probably one of the best training video I've seen. It left me speechless because it's too REAL and too GOOD. Forex Ultimatum Training Gift If you're still losing money trading Forex, then you need to see this brand new, complimentary training video fresh from two successful, secret traders. Reason why you lose
In this video, they reveal the REAL REASON most traders just like you keep on losing... and then shows you, step-by-step, how you can be on the right track and become a real successful trader. Forex Ultimatum The important trading elements Once you see this video, you will find that these elements are very important and must come together in order to find success. I was very surprise while I watched this video. Although these elements are sometime apparent but most of traders have never found all of them because they didn't take time to study their success and failure.
Forex Ultimatum : blog wordpress forex killer, have you ever wondered why forex robot,forex trader, by invition only dean davis money makers.
Forex Ultimatum Review : money makers blog wordpress, have you evered wondered why forex trader by invition only, forex robot dean davis penny stock.
>>> Read the Entire News & Reviews

FREE Forex Trend Tracer System We want to give you one of the best trend trading systems ever developed. This system alone helps us rake in huge profit during last few years..and today you can get it without paying anything. Forex Ultimatum Trend Tracer With this system, you can have trades exactly as our trades and raise your trading profit to next high level. The Features
Here's what you'll get when you download our Forex Trend Tracer System * A completely Mechanical, Rule-based trading system... * A deadly effective trend trading tool * A completely setup program that automates the whole process. Within 1 minute, you are ready to go
>>> Read the Entire News & Reviews

Over the last few days, I have sent you two valuable trading bonus from two "underground" traders: "The Element of Successful Trading" training video and "Forex Trend Tracer" system. More than 15000 downloads of the Trend Tracer System Thousands hours of the training video have been watched
These two killer bonuses from Forex Ultimatum have send the shockwave across the whole community and traders around the globe are extremly excited. But it doesn't end yet. 3 more Forex Ultimatum Free Trading Tools for you There are Three more amazing trading tools coming today.
>>> Read the Entire News & Reviews

They have just put up an info page where you can see the indisputable PROOF... And trust me, it doesn't get any better than this: What you will discover You will discover how the system raked in * 3543 pips in a few months * 534 pips with within a few days * Over 1100 pips in only a week * Nearly 3500 pips within 3 months starting with small amount of money... all in cold, hard cash account..Forex Ultimatum Results You wanted PROOF and it doesn't get any more RAW than that.
>>> Read the Entire News & Reviews

Forex Ultimatum is a forex trading system releasing on 26 Oct ‘09.
It is designed for people with little time for chart monitoring. All you need is 5 minutes every day to find the best trades using Forex Ultimatum trading system.
The trading system includes softwares which will help you determine trends and then calculate optimum entry points that align with the trend.
The system has been used and improved for a period of over 8 years.
Some of the trading results on the homepage include:
* Over 1800 pips were generated with less than 10 minutes of work* 3543 pips in a few months* 534 pips with within a few days* Over 1100 pips in only a week* Nearly 3500 pips within 3 months starting with small amount of money…
Trading results are available at homepage.
Visit Forex Ultimatum Homepage

FXstreet.com (Barcelona) - European markets are going through gains on Wednesday, although investors remain cautious ahead of the Fed's Monetary Policy Meeting. The Pound rallies to intra-week highs while the Euro advances after having bottomed on Tuesday.Eurostoxx 50 Index advances 1.3%, while German DAX Index rises 1.4% and the same accounts for the French CAC Index. In the UK, the FTSE index trades advances 0.7% in the first hours of trading.Today's session's focus is set on the Federal Reserve's monetary policy statement, due at 19.15 GMT, to assess the Bank's attitude about monetary tightening once U.S. economy seems to be coming out of recession.Euro and Pound rallying from Tuesday's lowsEUR/USD bounced at 1.4625 low on Tuesday, and the pair has advanced up to resistance area at 1.4770 during European session. At the moment, the Euro remains trading in a narrow range right below 1.4770.GBP/USD rally from 1.6250 low on Tuesday has extended above 1.6500 on the back of better than expected UK Services PMI data, and the Pound has reached an intra-week high at 1.6545.USD/JPY has rallied from session low at 90.00, breaking above 90.70 resistance to hit a fresh intra-week high at 91.05, althpough the pair has not been able to hold above 91.00 anfd trades around 90.85 at the mpoment of trading.
FXStreet.require('registerajaxCAGTabulat.js');
FXStreet.require("Tabs.js");
EUR/USD
GBP/USD

Brazil Fipe's Index Up 0.25% In Oct Vs 0.16% In Sept SAO PAULO (Dow Jones)--The pace of consumer inflation in Brazil's largest city, Sao Paulo, picked up in October as housing and transports prices accelerated in the period, the Fipe research foundation said Wednesday. Fipe, which is affiliated with the University of Sao Paulo, said its consumer price index rose 0.25% in the period, compared with a rise of 0.16% seen in September. The figure was in line with market forecasts for an increase of between 0.15% and 0.26%. Housing prices picked up 0.53% in October, compared with an increase of 0.47% seen in September. In addition, transports prices accelerated 0.83% in the period, compared with a rise of 0.25% seen in the previous period. Brazil's central bank kept the Selic base interest rate at 8.75% last month with recent figures indicating that inflation is under control. The Selic base rate is now at its lowest level ever. -By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@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=Qbya3brx0WJJJn5dIJcL1g%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresNovember 04, 2009 06:12 ET (11:12 GMT)Copyright 2009 Dow Jones & Company, Inc.

The global financial markets are interconnected and depend greatly on the financial and macroeconomic statistics. The Forex market is not an exception. Currency rates — the basic instruments of the foreign exchange market — are affected by the by major financial news, fundamental statistical reports and important geopolitical events. But nothing compares to seeing the actual effects of the news on the Forex market. Here you will find three major examples of such influence.
Monetary Actions
Such news as monetary policy decisions by the major central banks have an immediate impact on the currency pairs. If the interest rate is changed too fast or too slow, or an unexpected comment is made about the future interest rate changes, the currency pairs rally or fall with a speed of light. When the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve announced its first rate cut from 5.25% to 4.75% on September 18th, 2007, after a long series of the rate hikes, it pushed EUR/USD up. On the EUR/USD hourly chart below you can see a jump in the rate as the dollar lost a part of its attractiveness with the lower interest rate and the euro advanced. The reaction has been instant and a strong bullish trend has followed afterwards:
Macroeconomic Releases
Another important type of Forex news that has a strong and immediate impact on the currency rates is the macroeconomic releases and reports. One of the most noticeable effect belongs to the U.S. quarterly GDP data releases. If the reported quarterly change differs from the expected value or is simply significantly above/below the previous quarter, currency market react with unpredictable fluctuations. When the Bureau of Economic Analysis (U.S. Department of Commerce) released its advance GDP report for Q2 2008 on July 31st, 2008, a sharp spike appeared on all dollar-related pairs. The reported change was +1.9%, which was below the expected +2.3% value. The presented chart shows EUR/USD hourly price movement with a strong spike-like candle exactly after the GDP report has been published:
Geopolitical Events
Some global geopolitical events have a considerable influence on the Forex market. Wars, political scandals, elections, peace treaties, nuclear bomb tests and terrorist attacks usually result in a lot of consequences and expectations regarding those consequences. And the currency rates respond to such events with the fluctuations that end up in termination of the old trends and setting up of the new long-term trends. September 11th attacks upon the United States was a major global event that was followed by unprecedented geopolitical consequences — war in Afghanistan and Iraq, higher spending on U.S. war budget and a higher U.S. fiscal debt. It can be seen on the EUR/USD monthly chart below that the September was one of the pivotal points in trend reversal from a bearish one to a bullish one. The dollar has been falling since then:

As you see, the impact of the news on the Forex market can’t be ignored. Whether you trade intraday or long-term, your currency positions will be affected by the Forex news. That’s why it’s important for the currency traders to monitor all the related news and make the market decisions in relation to them.

The Mexican peso had a negative day losing versus most of 16 main traded currencies as the national congress approved new tax regulations that may affect Mexican assets attractiveness, shunning investors from the Latin American nation.
Posted in Mexican Peso No Comments »

After posting the sharpest fall in 8 months in the beginning of this week, Brazilian stocks rebounded this Tuesday, providing support for the real to gain versus most of the 16 main traded currencies in foreign-exchange markets.
Posted in Brazilian Real No Comments »

ISM Manufacuring assesses the state of US industry by surveying executives on expectations for future production, new orders, inventories, employment and deliveries. Though manufacturing accounts for a relatively small portion of GDP, fluctuations in manufacturing tend to bear the most responsibility for changes in GDP. Consequently, developments in manufacturing often front run trends in the overall economy, making the ISM Manufacturing figure a leading indicator of economic turnarounds. A pickup in demand for manufactured products after a period of recession, reflected by a higher ISM figure, strongly suggests a reversal upward. Conversely a slowdown in manufacturing orders and production during a boom suggests a slowing of the economy.
The ISM Manufacturing Survey is valued for its timeliness, and indeed, during waning boom cycles analyst point out that ISM tends to be one of the biggest market moving economic releases. The reasoning lies within the ISM's Prices Paid and Employment subcomponents. These components reflect sentiment towards inflation and labor conditions - two of the market's most significant health indicators. Given that the ISM's timeliness, the information gleaned from such components precedes other market data (like Non-Farm Payrolls or CPI), making the ISM a significant indicator.
The headline figure is expressed as a diffusion index based on survey responses. For each category (production, new orders etc.), the index is calculated by adding the percentage of executive responding "higher" with half the percentage of "no change" responses, and subtracting the percentage of "lower" responses. The ISM manufacturing indicator is the aggregate of the results for all categories.
Values over 50 generally indicate an expansion, while values below 50 indicate contraction.
ISM Prices Paid
The ISM report contains a price index, the ISM Prices Paid figure. It represents business sentiment regarding future inflation, where a higher figure indicates stronger expectations of inflation.

ISM Manufacuring assesses the state of US industry by surveying executives on expectations for future production, new orders, inventories, employment and deliveries. Though manufacturing accounts for a relatively small portion of GDP, fluctuations in manufacturing tend to bear the most responsibility for changes in GDP. Consequently, developments in manufacturing often front run trends in the overall economy, making the ISM Manufacturing figure a leading indicator of economic turnarounds. A pickup in demand for manufactured products after a period of recession, reflected by a higher ISM figure, strongly suggests a reversal upward. Conversely a slowdown in manufacturing orders and production during a boom suggests a slowing of the economy.
The ISM Manufacturing Survey is valued for its timeliness, and indeed, during waning boom cycles analyst point out that ISM tends to be one of the biggest market moving economic releases. The reasoning lies within the ISM's Prices Paid and Employment subcomponents. These components reflect sentiment towards inflation and labor conditions - two of the market's most significant health indicators. Given that the ISM's timeliness, the information gleaned from such components precedes other market data (like Non-Farm Payrolls or CPI), making the ISM a significant indicator.
The headline figure is expressed as a diffusion index based on survey responses. For each category (production, new orders etc.), the index is calculated by adding the percentage of executive responding "higher" with half the percentage of "no change" responses, and subtracting the percentage of "lower" responses. The ISM manufacturing indicator is the aggregate of the results for all categories.
Values over 50 generally indicate an expansion, while values below 50 indicate contraction.
ISM Prices Paid
The ISM report contains a price index, the ISM Prices Paid figure. It represents business sentiment regarding future inflation, where a higher figure indicates stronger expectations of inflation.

A monthly guage of manufacturing activity and future outlook. The CIPS PMI is comparable to the US ISM survey, similarly based on the opinions of executives in manufacturing companies. Purchasing managers are tasked with gauging future demand, and adjusting orders for materials accordingly. The PMI summarizes the opinions of these executives to give a picture of the future of the manufacturing sector. A higher PMI indicates that materials purchases are increasing and that the economic outlook is positive. Alternately, a lower PMI means orders for materials are down and the future outlook is less favorable. By nature, the figure is very sensitive to the business cycle and tends to match growth or decline in the economy as a whole.
The PMI is presented as an index with a value between 1-100.

Manufacturing Purchasing Manager Index (survey) - German
Gauge for overall performance of the German manufacturing sector. Through asking executives about sales and employment outlook, the survey strives to provide useful information about the business climate that can lead to developments in employment, output and consumption. The PMI survey results are the result of interviews with business executives. Manufacturing is an important sector in Germany , which is why changes in Manufacturing PMI can provide a good indicator to the overall economic condition in Germany as well as Euro-zone. However, despite the timeliness of the report, Manufacturing PMI is not a big market mover.
The survey results are quantified into

The average amount of pre-tax earnings per regular employee, including overtime pay and bonuses. Though the report does not take into account all sources of household income (accumulated wealth and capital gains from financial assets are omitted), Labor Cash Earnings accurately reflects the spending ability of domestic consumers, one of the driving forces behind economic growth. Because growth in wages fuels higher consumption, rising Labor Cash Earnings generally lead to higher inflation.
Source of Report: http://www.fxwords.com/l/labor-cash-earnings-japan.html

A monthly estimate of inflation in the Australian economy. The report replicates the methodology used by the Australian Bureau of Statistics to calculate quarterly CPI, striving to correspond closely with official government numbers. The figure is important because it acts as a timelier indicator of inflation, coming out monthly instead of the quarterly CPI figures. Released one day before interest rate decisions are made, the figure may influence RBA considerations for rate hikes or reductions.
As with any gauge of inflation in Australia , a high value in the figure is bullish for the Australian dollar, since real inflationary pressures are usually met by the Reserve Bank of Australia with bullish rate hikes. The headline figure is the month-over-month or annualized inflation rate.

A monthly estimate of inflation in the Australian economy. The report replicates the methodology used by the Australian Bureau of Statistics to calculate quarterly CPI, striving to correspond closely with official government numbers. The figure is important because it acts as a timelier indicator of inflation, coming out monthly instead of the quarterly CPI figures. Released one day before interest rate decisions are made, the figure may influence RBA considerations for rate hikes or reductions.
As with any gauge of inflation in Australia , a high value in the figure is bullish for the Australian dollar, since real inflationary pressures are usually met by the Reserve Bank of Australia with bullish rate hikes. The headline figure is the month-over-month or annualized inflation rate.

The market has now entered a period of consolidation which we contend to be a bearish consolidation in light of the reversal on the weekly chart. Any rallies should now be very well capped ahead of 1.4860, with a downside break now favored towards initial support by 1.4480.
... read more
Full Article
More Articles

The Euro may see renewed selling pressure in European hours as Euro Zone producer prices fall for the ninth consecutive month, hinting that continued deflation may undermine the fragile economic recovery in the currency bloc.
Key Overnight Developments
• Australian Retail Sales Unexpectedly Fall on Ebbing Stimulus• Euro Consolidates, British Pound Declines in Overnight Trading
Critical LevelsThe Euro consolidated near familiar levels in overnight trading, oscillating in a well-defined 30-pip range above 1.47 to the US Dollar. The British Pound tipped slightly lower, trading down as much as -0.2% against the greenback.
Asia Session HighlightsAustralian Retail Sales unexpectedly fell in September, slipping -0.2%. Adjusted for inflation, sales fell -0.4% through the third quarter, the most in nearly five years. Spending at department stores led the metric lower, down -2.9% from the previous month. Consumers have turned timid as the effects of the A$20 billion in government handouts that supported spending through the first part of the year begin to fade. The central bank noted as much yesterday, with Governor Glenn Stevens saying that “demand may soften” as the effects of various policy initiatives are now diminishing. The RBA may keep rates on hold in December as economic data begins to turn increasingly mixed to soften the impact of the withdrawal of fiscal stimulus. The big question to be answered now is whether or not the economy will be ready to stand on its own feet after expansionary policy is unwound.The remainder of the Australian data docket looked broadly optimistic: the AiG Performance of Service Index (PSI) surged to 54.8 in October, showing the sector was expanded at the fastest pace since March 2008. AiG Chief Executive Heather Ridout said “improved demand for services [is] driven by a marked lift in consumer confidence,” which amounted to a counterbalance to the Retail Sales release. Indeed, the New Orders and Sales components the broader PSI index led the metric higher. Separately, Building Approvals rose 2.7% in September as the government continued to provide grants of as much as A$12,000 to encourage first-time homebuyers.Euro Session: What to ExpectThe Euro Zone Producer Price Index is set to drop -7.7% in the year to September, reversing some of the previous month’s upswing from the record low at -8.4% recorded in July. The release will mark the ninth consecutive month that wholesale prices has contracted, hinting at continued downward pressure on overall inflation as shops pass on lower costs on to consumers. An early estimate showed that CPI declined for the fifth consecutive month in October. It seems increasingly inevitable that continued losses will bleed into future inflation expectations, encouraging consumers and businesses to wait for the best possible bargain and delay spending and investment, threatening the fragile economic recovery and hinting that the European Central Bank may find itself with no choice but to (at the very least) delay raising interest rates for longer than is currently projected.