GAs we wrote last week, the direction of the Dollar may be influenced more by external economic events rather than by internal activity. Accordingly, it would behoove forex traders to direct their attention away from the Fed and towards the Bank of England and the European Central Bank, both of which face important monetary policy decisions later in the month. With regard to the Bank of England, futures markets have priced in a 2/3 chance that rates will be cut by 25 basis points. In the case of the ECB, the markets are expecting rates to be maintained at current levels. However, analysts will be scrutinizing the Banks' respective press releases and monitoring other developments in this area due to the implications for the US-EU-Britain interest rate differential. Reuters reports:
Some analysts think that hawkish comments from Trichet will be brushed aside with weaker economic data leading to the prospect of falling euro zone rates later in the year.
Sunday, March 16, 2008
Gold vs Dollar
Gold has been a poor investment for many years. This is a statement which is almost universally accepted in today's world, but one which is only partially true. The truth is that gold has been a very poor investment when measured in US dollars, but has generally proven to be a sound investment when measured in terms of almost any other national currency. The Indians and the Chinese, the world's largest buyers of gold, have seen the value of their gold investments increase by approximately 200% over the last decade. Due to a collapse in their national currencies, South East Asians and Koreans have also seen the value of owning gold .
The US dollar reached a cyclical low in April 1995, from which it has risen over 50% against the Yen and 30% against the Deutsche Mark . This means that German and Japanese investors who exchanged their national currency for gold in April 95 would now be showing a profit on their investment, despite a 21% decrease in the US dollar gold price over the same period.
What we have witnessed over the past 2.5 years is a massive shift of investment capital into the US dollar from all other currencies, including gold. Investors around the world have placed enormous faith in the US dollar and, therefore, in the US economic, financial and political system which supports the dollar. Gold has been a victim of this flight to the US dollar, although it has fared better than many of the government controlled forms of money
The US dollar reached a cyclical low in April 1995, from which it has risen over 50% against the Yen and 30% against the Deutsche Mark . This means that German and Japanese investors who exchanged their national currency for gold in April 95 would now be showing a profit on their investment, despite a 21% decrease in the US dollar gold price over the same period.
What we have witnessed over the past 2.5 years is a massive shift of investment capital into the US dollar from all other currencies, including gold. Investors around the world have placed enormous faith in the US dollar and, therefore, in the US economic, financial and political system which supports the dollar. Gold has been a victim of this flight to the US dollar, although it has fared better than many of the government controlled forms of money
Thursday, March 6, 2008
Getting started with mini Forex trading
Mini Forex trading requires only about $250 to begin and can provide huge amounts of
leverage in the currency trading world. Unlike traditional forex trading which requires that
you trade in 100,000 units of currency blocks, you can put just 10% of this amount at risk.
Transaction costs are limited to the "spread" between the price you can buy and sell, which
is usually about 3 pips. 1 pip is equal to 0.0001 units of currency. Forex trading involves
trading pairs of two currencies, such as the US Dollar and the Euro. If you wish to go
"long" this contract, then you would buy 100,000 US Dollars and sell short the equivalent of
100,000$ of Euros. Forex trading is fascinating and can lead to huge windfalls or
disappoinment. Trade carefully.
leverage in the currency trading world. Unlike traditional forex trading which requires that
you trade in 100,000 units of currency blocks, you can put just 10% of this amount at risk.
Transaction costs are limited to the "spread" between the price you can buy and sell, which
is usually about 3 pips. 1 pip is equal to 0.0001 units of currency. Forex trading involves
trading pairs of two currencies, such as the US Dollar and the Euro. If you wish to go
"long" this contract, then you would buy 100,000 US Dollars and sell short the equivalent of
100,000$ of Euros. Forex trading is fascinating and can lead to huge windfalls or
disappoinment. Trade carefully.
There Are Mini Forex Trading Rules That Can Increase in Your Chances Of Stock Market Success
To operate effectively in any mini forex trading environment, you need rules and boundaries
to guide your behaviour. No matter what mini forex trading “system” you’ve developed, the
potential exists to do financial damage to yourself - damage that can be greater than you
think is possible. There are many types of trades in which the risk of loss is unlimited.
To prevent this kind of mini forex trading loss, you need to create an internal structure in
the form of guidelines that determine your mini forex trading behaviour so you always act in
your own best interest. This structure has to be internal because the mini forex trading
market won’t provide it for you. The markets provide structure in the form of behaviour
patterns that indicate when an opportunity to buy or sell exists. But that's where the
structure ends - with a simple indication. Nothing happens until you decide to start mini
forex trading; you continue to trade as long as you want; and there is no end until you
decide to stop.
to guide your behaviour. No matter what mini forex trading “system” you’ve developed, the
potential exists to do financial damage to yourself - damage that can be greater than you
think is possible. There are many types of trades in which the risk of loss is unlimited.
To prevent this kind of mini forex trading loss, you need to create an internal structure in
the form of guidelines that determine your mini forex trading behaviour so you always act in
your own best interest. This structure has to be internal because the mini forex trading
market won’t provide it for you. The markets provide structure in the form of behaviour
patterns that indicate when an opportunity to buy or sell exists. But that's where the
structure ends - with a simple indication. Nothing happens until you decide to start mini
forex trading; you continue to trade as long as you want; and there is no end until you
decide to stop.
Friday, February 29, 2008
Iran has Forex Reserves
Every month seems to witness the induction of a new country into the pantheon of those with burgeoning forex reserves. The new member for the month of February is...Iran? Most of the attention Iran receives is political rather than economic, but with oil prices recently topping $100 a barrel for the second time, you can bet that Iran will start appearing on the radar screens of more and more analysts. Iran's reserves currently total $76 Billion, which is unimpressive in itself, but represents a 30% year-over-year increase. Of more significance, perhaps, is that Iran is leading the charge against the Dollar by actively diversifying its reserves into Euros. It remains to be seen whether any "non-rogue" countries will follow suit. The Economic Times reports:
"Iran, the world's fourth largest oil exporter and the second ranking in OPEC, has benefited from record crude prices which have helped it to weather domestic economic problems. "So there should be a good amount of work to be done in this business.
"Iran, the world's fourth largest oil exporter and the second ranking in OPEC, has benefited from record crude prices which have helped it to weather domestic economic problems. "So there should be a good amount of work to be done in this business.
Forex Auto Trading
ProSignal delivers an Automated Forex Trading System and Forex Charting Software/Alert package that makes trading the foreign currency market a reality for everyone. A simple automated trading system you can implement within hours. A subscription to ProSignal includes the following 2 software programs: AutoTrader Platform (Auto-Trade 100+ Forex Strategies): Diversify your portfolio between 100+ strategies with automated trade execution. ProSignal's AutoTrader platform allows you to automatically execute trades 24 hrs/day following strategies from multiple signal providers, saving you thousands per month in Alert subscription fees. It's like having a staff of professional traders working for you 24 hrs a day and you only pay $1 per 10k round-turn lot. Includes FREE forex charts with ProSignal's automated alerts .
Forex Trading sharpness
Forex Trading like all trading can be a great way to earn a living, either, doing it full time or just to earn some extra money. Like all trading most people who attempt to trade loose money. Forex just like all trading is very hard, it takes a lot of work and you need to be very disciplined. One of the nice things about Forex trading, is it trades 24 hours a day, so even if you have a full time job you can trade before or after work. There is also a lot of liquidity in Forex Trading so you don't have to worry about not getting filled. One of the big down sides to Forex Trading is you can get up to 200 times leverage on your money; don't do it. If you are going to trade make sure you have enough capital to trade with just a small amount of leverage.
Saturday, January 19, 2008
Forex increases your weallth.
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment.
Gold , dollar and cruide oil relation for a nepali blog
If Gold prices are directly related to Crude and Dollar value.
1. Basically, Gold is an inflation Hedge. If inflation of any country ( Mostly Look at developed economies) increases, investors buys gold to balance their port folio. So, Gold will move up.
Ex: Now every one says US economy is in Stagflation. You can see what Gold is trading at?
2. Crude prices directly affects the oil import bill of any country. Increase in Imports Bill will increase the Trade Defict ( Export - Imports) of countries (Mainly watch out US Trade Deficit Data). Higher Trade deficit would hit the value of currency of the country. This will affect the money circulation in the economy there by leading inflation ( Here applies the logic of " Too much money chasing too few goods). So, If Crude price rises, Gold will also move Up.
3. As you know most of the countries has got Foriegn Reserves. And these reserves are in form of Dollars. For example, India boasts about 140 Billion Dollars of reserves. If the dollar looses value, the entire basket looses value. So, countries will look for safe heaven i.e.GOLD. If Dollar looses value, Gold will mpove Up.
1. Basically, Gold is an inflation Hedge. If inflation of any country ( Mostly Look at developed economies) increases, investors buys gold to balance their port folio. So, Gold will move up.
Ex: Now every one says US economy is in Stagflation. You can see what Gold is trading at?
2. Crude prices directly affects the oil import bill of any country. Increase in Imports Bill will increase the Trade Defict ( Export - Imports) of countries (Mainly watch out US Trade Deficit Data). Higher Trade deficit would hit the value of currency of the country. This will affect the money circulation in the economy there by leading inflation ( Here applies the logic of " Too much money chasing too few goods). So, If Crude price rises, Gold will also move Up.
3. As you know most of the countries has got Foriegn Reserves. And these reserves are in form of Dollars. For example, India boasts about 140 Billion Dollars of reserves. If the dollar looses value, the entire basket looses value. So, countries will look for safe heaven i.e.GOLD. If Dollar looses value, Gold will mpove Up.
Rise And Fall in forex nepal?
What moves the currency rates in ?
A lot of reasons can have their hands behind the fluctuating market and currency rates, and not one or two can be blamed for any sort of rise or fall in them. Although it would not be entirely wrong to say that the Forex market business is more or less based on these fluctuations only. Traders trade in this market, purchase and sell various currencies with the expectation of making gains if the value of the exchange moves in their favor. Now this sudden movement in the market can be caused by either market news or current events all over the world, which have an effect on the demand and supply of these currencies.
A lot of reasons can have their hands behind the fluctuating market and currency rates, and not one or two can be blamed for any sort of rise or fall in them. Although it would not be entirely wrong to say that the Forex market business is more or less based on these fluctuations only. Traders trade in this market, purchase and sell various currencies with the expectation of making gains if the value of the exchange moves in their favor. Now this sudden movement in the market can be caused by either market news or current events all over the world, which have an effect on the demand and supply of these currencies.
Thursday, January 17, 2008
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