Shocking Video- Reveals 2011 Stock Market Forecast

We have published a new Video that reveals a shocking 2011 Stock Market Forecast forecast.

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Shocking Video-2011 Stock Market Forecast

Online Forex Trading Strategy - How to Make Currency Trading Systems Work For You

It is our continuous effort to bring best of forex education to our readers. Currency trading is a very lucrative now a days & many people are getting attracted to Forex trading. Many of us don't even think twice before starting forex trading. 

We have always insisted that you should get a good understanding of the forex trading mechanism before you start any trading in forex.

We have reproduced below a good article by Matthew Bonseas on Forex Trading Strategies.

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Euro Gains Due to Positive Global Data

The Euro gained against most of its major counterpart currencies due to encouraging global economic conditions.

EUR/USD
The EUR/USD pair went up by over 100 pips reaching at 1.274 levels during early trading hours. The pair closed at around the 1.268 level.
The Euro soared by about 100 pips against the Great British pound and it gained about 50 pips against the Japanese yen.

The Euro strengthened yesterday as economic indicators published from the U.S. and the Euro-Zone have put down to rest the concerns about the global economic slowdown.

Home Prices in United States

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US Dollar Dropped Due to Increased Risk

The US dollar slides against most of its major counterparts, as gains in stocks and commodities prompted investors out of riskier currency trades. The USD stumbled down against the Swiss Frank, pushing the exchange rate to 1.024. The dollar dropped against EUR and closed at 1.272.

A fall in new US home sales and fragile orders for durable goods has again unearthed prevailing weakness in the US economy. As per analysts such data has failed to fuel demand for the dollar. US dollar is losing its value as safe heaven investment.

US unemployment claims although improved as compared to last week could not make much difference as the investors are still waiting for more important data to be released today that is Prelim GDP .

Traders are closely monitoring the announcement as a stronger than expected result may boost the USD in the short-term. Traders are also advised to follow Fed Chairman Bernanke's speech at 14:00 GMT. This speech is very likely to impact dollar volatility. Traders are advised to watch closely, as this is likely to set the pace of the dollar going into next week's trading.

Advance Retail Sales - United States

Advance Retail Sales US calculates the monthly retail sales nominal value of the retail purchases by the consumers in the United States.
The total retail sales are calculated by gathering all the sales receipts from selected retailers on a monthly basis. The sales nominal values are adjusted for the taxes, sales return etc.
The Advance Retail Sales facilitates the determination of consumer demand on a monthly basis as against the GDP figures which are calculated only annually.
The Advance Retail Sales measure provides the information about the consumer activity on a timely basis which makes the timely decision making possible.

Introduction to Bollinger Bands

The name Bollinger Bands has its origin in the name of the person who has created it. John Bollinger has created this technical trading tool in early 1980s. The Bollinger Bands are basically lines of a chart which shows the movement of Prices for a particular stock.


The Bollinger Bands consist of three lines first is the central line the second one is High line (the line above the central line on the chart) & third the Low line (the line below the central line on the chart).

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U.S. Non Farm Employment Data – The Hope for US Dollar

After the Economic Data released in US the analysts are awaiting the Non Farm Employment Data to be released 12:30 GMT today. This is going to be the biggest news in the United States as the current economic & unemployment data released is not impressive. 

 

This week turned out to be very bad for US dollar & the analysts are not expecting any positive recovery in next week for the US dollar. The unemployment in US rose by 13000 people this week.

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US Economic Data Released- USD Falls

The USD depreciated against all its counterparts after the release of economic data as it was disappointing in the sense that it shows that the economic recovery has been slowed in the United States.
Today the US economic data was released & was not very good for investors. The data shows negative points raising concerns over the economic recovery in United States. As the data suggests the economic recovery is slowing in United States. The manufacturing growth in US has also been slowed as can be seen from the manufacturing index as published by The Institute for Supply Management. The manufacturing index dropped to 56.2 in the month of June from 59.7 in the month of May 2010. The home sales in US tumbled by almost 30 percent in the month of May.

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Japanese Yen Appreciates against US Dollar as Economic Recovery in US becomes Uncertain

Today Japanese Yen appreciates against USD after the Federal Reserve announces in its policy meeting that the economic conditions are not much supportive for economic recovery. This has increased the demand for Japanese Yen as it seems to be safer.

The Japanese Yen gained to 89.62 per dollar from 89.84 per dollar.

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United States Politicizing Yuan Revaluation – China Says

The Chinese Foreign Ministry Spoke person Qin Gang said that politicizing the issue of Yuan revaluation would not help to solve US economic distress.

The statement came as there is continuous pressure being put on President Barack  Obama by the Law Makers in US to keep pressurizing China to revalue its currency. As per US Law makers the Chinese currency is undervalued & is giving undue benefit to Chinese Producers due to weak currency & there should be additional tarrif levied on imports to even out this advantage. 

Downtrend in Euro Against USD Continued due to Concerns over Europe Spending Cuts

The downtrend in Euro against US Dollar continued today due to projected cuts in spending & high amount of write downs by the European banks. The Euro fell to $1.2240 from $1.2306 against Dollar. It is feared that due to increasing losses will obstruct the economic recovery of European region. According to analyst in long run EUR may be very valuable but the short term market sentiment is very negative. Rising unemployment rate in Italy is the major contributor to the negative sentiment towards Euro. Italy is one of the biggest economies in Europe. The debt crisis in Europe has kept the underlying sentiment bearish.

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What is Carry Trading?

The term Carry trading unless otherwise specified denotes currency carry trading. Carry trading is one of the Currency trading strategies which is the most popular strategy currently being used by professional currency traders as well as less seasoned traders. The main reason why carry trading is gaining a pace is the interest rates differences existing in different countries. 

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Euro Improved Slightly as ECB, IMF Meets

Yesterday Euro recovered slightly against USD after the highest ever fall.

Markets are expecting some positive news from Jean-Claude Trichet, the President, European Central Bank & Dominique Strauss-Kahn the Managing Director of International Monetary Fund as they would address German Parliament today.

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South Korean Won drops on Reports that Finance Ministry to Intervene

South Korean won went down from a 19- month high against the dollar after the Government sources said that the gains were disproportionate and indicated that it may intervene. 

It is not clear whether the Bank of Korea would resort to buying or selling currencies on behalf of the Government as a part of intervention. 

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Greek Debt Crisis, New Zealand, Australian Dollars Fall

The New Zealand and Australian dollars plunged against the Japanese Yen due to concerns over European Union aid package for Greece. 

 

The New Zealand Dollar dropped against all major counterpart currencies post the reported news of German Chancellor Angela Merkel saying that she won’t release Greek rescue funds until the country shows protractible & convincing plan to cut its deficit. The Australian dollar also moved back from an 18-month high against the yen as majority of Asian stocks dropped. As per sources decision on aid for Greece would not be finalized till the time the International Monetary Fund works out a plan of cuts with the Government in Athens.

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Great Britain Pound Rises Against U.S. Dollar: An Effect of Rising Home Prices in U.K.

The pound appreciated against the U.S. dollar today due to continuous increase in U.K. home prices for consecutive ninth month, reinforcing the signs the economic recovery.
 

GBP advanced versus almost all of its most-traded counterpart currencies after Home track Ltd. said the average cost of a home has been increased from March.

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South Korean Won Rises to 19-Month High

South Korea’s won surges to a 19-month high as a result of funds poured in by global investors into the nation’s shares to profit from speeding economic growth and increasing exports.

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US Dollar Strengthen due to Reduction in Carry Trades

 The profits from carry trades have been reducing as the interest rate differences among Central Banks are disappearing. Falling demand for swing trades would help the dollar which is a favorite for funding the trades due to record low U.S. rates to continue the rally that resulted into 12 percent up than Euro in recent past.

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Japanese Yen (JPY) Depreciates Aganist USD

Today the US dollar appreciated against JPY due to signs of global economic recovery.The gush in U. S. housing market is also one of the reasons for the rise.

The JPY depreciated against most of the currencies as central banks indicate that they will increase interest rates to control rising inflation. In recent past most of the global currencies were not able to attract the attention due to unfavorable economic conditions & that was acting as a stimuli for JPY as comparatively it was an attractive currency. But as the U.S. & global economies are showing signs of recovery the JPY is bound to fall.

An Introduction to FX Options

FX or Currency Option is a financial derivative instrument under which the owner of the instrument gets the right but not the obligation to exchange one currency against another at a particular point of time in future at a predetermined exchange rate.

This predetermined rate is called as strike price or exercise price.

The market for FX Options is the largest & most liquid option market in the world. Most of the trading in FX Option happens in OTC (Over the Counter) markets & less regulated. A portion of the FX Option trading also happens on regulated exchanges like Philadelphia Stock Exchange, Chicago Mercantile Exchange and International Securities Exchange.

Example of FX Option:

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Japanese Yen (JPY) Rises due to Speculation about Goldman Sachs Case

The Yen rose against Euro for a second day due to the speculating investors buying move to protect against possible outcomes of the Goldman Sachs investigations. If the results of investigations go against Goldman Sachs this may cut off the Greece state aid package to Goldman Sachs.

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