The U.S. currency may be headed for a quarterly decline against 14 of 16 major counterparts before report this week forecast to show American employers cut fewer jobs, boosting demand for higher-yielding assets. Although the greenback posted small gains against major rivals Tuesday, edging higher on the Japanese currency, the currency may reverse its earlier gains on speculation a Federal Reserve official will reiterate today that record-low Interest Rates will be unchanged for an extended period.
Wednesday, September 30, 2009
Friday, September 25, 2009
Forex News Trading
Traders on the Foreign Exchange market, Forex market for short, can potentially make thousands of dollars based on the volatility and fluctuations of a country’s currency. To better themselves and have a leading advantage over other traders, some Forex traders and investors participate in a practice known as news trading. The risks are very high, but the potential gains can be worth thousands of dollars and many traders and investors use this technique.The technique of news trading is quite simple. It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement. For example, if the U. S. Federal Reserve announces another increase of the interest rate, many traders might invest in the U.S. dollar as it is expected that its value will appreciate. The main advantage of news trading is the potential for a country’s currency to make huge gains or losses in very little time. Within minutes of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly. The potential of huge profits attracts Foreign Exchange traders and investors, however there are various risks associated with news trading.
Like any investment, there is always a risk, and news trading on the Forex market is no different. Though the potential profits are huge, the losses are also equally as large. The dangers of news trading come from the fact that a trade must be made quickly or else you are going to lose. If you are caught on the bad side of a trade, your money will be gone quicker than you can blink your eye. You will lose money so fast that there won’t even be time for you to manually close your trades, leaving you with nothing. Stop-loss orders are also potentially dangerous as there is a high probability of slippage because of the sudden price fluctuation.
Though some investors and traders might get lucky trading news, there is only a small probability that you will make a profit. Even if you are an expert news trader, you should still be very, very cautious when participating in this practice. Successful news trading depends solely on how you get your news. The most successful news traders are the ones with the fastest news feeds and those that are able to quickly place their trades immediately after an announcement has been made. Even using other forms of news trading, such as placing orders above or below the market price is still a guessing game, and those traders in the market who base their trades on guesses, won’t have much money after a short time.
Canadian Dollar Declines on National Bank Statement
Canada has been one of the fastest economies to recover from the recession that impacted the world last year, but the Bank of Canada is stressing on the fact that strong currency may delay the economic rebound in the country, affecting traders’ sentiment towards the loonie.
According to Bank of Canada officials, interest rates will be maintained at a record low in Canada until 2010, suggesting that even if the country is recovering from the biggest crisis in decades, economic conditions are not so improved to the point interest rates can be hiked, shunning investors from loonie-priced assets.
USD/CAD traded at 1.0753 as of 21:22 GMT from a previous rate of 1.0677 yesterday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
According to Bank of Canada officials, interest rates will be maintained at a record low in Canada until 2010, suggesting that even if the country is recovering from the biggest crisis in decades, economic conditions are not so improved to the point interest rates can be hiked, shunning investors from loonie-priced assets.
USD/CAD traded at 1.0753 as of 21:22 GMT from a previous rate of 1.0677 yesterday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Australian Dollar Climbs on Banks’ Resilience
The Australian dollar climbed today versus most of the 16 main traded currencies as the national central bank affirmed that the largest financial institutions in the country showed themselves resilient from the crisis and are helping the country to recover from the worst recession in decades.
The Reserve Bank of Australia provided support for the Aussie to climb against virtually all main traded currencies today as it declared that banks in the country are weathering the country’s economic difficulties, spurring demand for the Australian currency which has been one of the biggest winners this year so far in trading markets. Other reports also improved attractiveness for the Aussie, as new home sales jumped to the highest level in four years, creating a perfect pattern for traders to search high-yielding opportunities in the South Pacific region, as New Zealand is also recovering faster than other wealthy nations from the global slump.
The optimism towards Australia can be explained by several reasons according to JR Crooks, director of research at Black Swan Capital:
With the potential for China to recover and pump the globe with growth, Australia benefits as they supply much of the natural resources et al. that China uses to produce goods.
Australia also was not so much affected by the credit crunch last year, fact which is providing a better outlook towards the South Pacific than other economic regions:
Australia hasn’t had to tackle the banking/financial fiasco to anywhere near the same degree as have the U.S., Europe, U.K. and others.
The forecast for the Aussie remains bullish, as long as the world economy continues to revive.
AUD/USD rose at 0.8741 as of 11:51 GMT after being traded at 0.8653 hours earlier.
If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
The Reserve Bank of Australia provided support for the Aussie to climb against virtually all main traded currencies today as it declared that banks in the country are weathering the country’s economic difficulties, spurring demand for the Australian currency which has been one of the biggest winners this year so far in trading markets. Other reports also improved attractiveness for the Aussie, as new home sales jumped to the highest level in four years, creating a perfect pattern for traders to search high-yielding opportunities in the South Pacific region, as New Zealand is also recovering faster than other wealthy nations from the global slump.
The optimism towards Australia can be explained by several reasons according to JR Crooks, director of research at Black Swan Capital:
With the potential for China to recover and pump the globe with growth, Australia benefits as they supply much of the natural resources et al. that China uses to produce goods.
Australia also was not so much affected by the credit crunch last year, fact which is providing a better outlook towards the South Pacific than other economic regions:
Australia hasn’t had to tackle the banking/financial fiasco to anywhere near the same degree as have the U.S., Europe, U.K. and others.
The forecast for the Aussie remains bullish, as long as the world economy continues to revive.
AUD/USD rose at 0.8741 as of 11:51 GMT after being traded at 0.8653 hours earlier.
If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Faltering Oil Affects Canadian Dollar Performance
The Canadian dollar along as other high-yielding currencies, witnessed a fall today in trading markets as the crude oil price, one of the main nation’s exports, declined sharply, affecting the loonie’s performance in foreign-exchanges markets towards the end of this Thursday.
Stocks and commodities play a significant role in the Canadian dollar performance, and today, as risk aversion rebound slightly, a down market in equities impacted negatively the loonie, which fell versus most of the 16 main traded currencies towards the end of this Thursday as the crude oil traded near $66 dollar a barrel in New York.
USD/CAD traded at 1.0895 as of 22:49 GMT from a previous rate of 1.0751 yesterday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Stocks and commodities play a significant role in the Canadian dollar performance, and today, as risk aversion rebound slightly, a down market in equities impacted negatively the loonie, which fell versus most of the 16 main traded currencies towards the end of this Thursday as the crude oil traded near $66 dollar a barrel in New York.
USD/CAD traded at 1.0895 as of 22:49 GMT from a previous rate of 1.0751 yesterday.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Pound Touches Record Low on G-20 Meeting
The British currency was once again affected by the international economic scenario reaching the lowest rate versus the euro in six-months, as the G-20 announced that banking institutions will be better regulated in order to avoid future credit crunches, reflecting negatively in the already weakened British financial system.
The pound is losing versus virtually all of the 16 main traded currencies towards the end of this week as the Group of 20 is likely to present a new set of regulations for financial institutions, as an attempt to predict future credit crunches like the one which led the world economy to the biggest slump since the Second World War. The pound traded below $1.60 for the first time since June, and lost versus the euro as well, fueling speculations that it may trade at one-to-one against the Eurozone currency in the mid-term future.
The Banking system in the British Isles has been one of the most fragile as the credit crunch shook the world last year, with several institutions having to be rescued by the U.K. government. The new regulations presented by the G-20 are likely to restrict, to some extent, bank profits, which is certainly negatively for the U.K.’s agonizing financial system, setting the already weak sentiment towards the pound, to even lower levels.
GBP/USD traded at 1.5995 as of 11:53 GMT from a previous rate of 1.6090 yesterday. EUR/GBP touched 0.9177 from 0.9112.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.
The pound is losing versus virtually all of the 16 main traded currencies towards the end of this week as the Group of 20 is likely to present a new set of regulations for financial institutions, as an attempt to predict future credit crunches like the one which led the world economy to the biggest slump since the Second World War. The pound traded below $1.60 for the first time since June, and lost versus the euro as well, fueling speculations that it may trade at one-to-one against the Eurozone currency in the mid-term future.
The Banking system in the British Isles has been one of the most fragile as the credit crunch shook the world last year, with several institutions having to be rescued by the U.K. government. The new regulations presented by the G-20 are likely to restrict, to some extent, bank profits, which is certainly negatively for the U.K.’s agonizing financial system, setting the already weak sentiment towards the pound, to even lower levels.
GBP/USD traded at 1.5995 as of 11:53 GMT from a previous rate of 1.6090 yesterday. EUR/GBP touched 0.9177 from 0.9112.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.
Brazilian Real Declines Again on Slow Economic Recover
The Brazilian Real had an extreme volatile week, declining again towards the end of this week’s session after hitting the highest rate in 2009 versus the greenback days earlier.
A rather bearish tone in commodities and equities markets towards the end of this week’s session affected negatively the performance of the emergent-market Brazilian currency, as traders opted for safety considering statements made in the G-20 meeting and a drop in U.S. durable good orders.
USD/BRL traded at 1.8003 as of 18:19 GMT from an opening rate of 1.7870 this Friday.
If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.
A rather bearish tone in commodities and equities markets towards the end of this week’s session affected negatively the performance of the emergent-market Brazilian currency, as traders opted for safety considering statements made in the G-20 meeting and a drop in U.S. durable good orders.
USD/BRL traded at 1.8003 as of 18:19 GMT from an opening rate of 1.7870 this Friday.
If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.
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