Friday, August 27, 2010

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.

Monday, August 23, 2010

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).