The Daily Forex training Megablog

Thursday, April 10, 2008

Today's Forex News

Forex News Article Of The Month

Quick Forex Ideas

forex signals

Increasingly, investors are turning to forex trading brokers to get in on some foreign currency trading. Unfortunately, not only is this branch of financial trading the one with the biggest profits and risks, but it is also most fraught with scams and shysters.

forex trading signals

PIP is nothing special but Price Interest Points. In the forex market, currencies are always priced in pairs. The quoted price is the level where we, acting as the market maker, are willing to buy/sell the currency pair. In the wholesale market, currencies are quoted out to four decimal places, with the last placeholder called a point or a pip. A pip in most currencies is one /10,000th of an exchange rate (in USD/JPY, it is one /100th, likewise you can find for others).

Forex News Stories

US Dollar May Gain as US Import Prices Likely to Signal Accelerating Inflation

Thu, 10 Apr 2008 21:52:42 -0400
With the US Dollar still relatively weak against the majors, there are concerns that import price inflation will rise significantly. The prospect of increased...


Forex And Forex Trading Related News

Our Featured Forex System Writer

forex trading machine

Online Forex Trading is Quickly Becoming a Booming Business

by Matthew Bass

Transactions in the Forex are traded very rapidly. The Forex is open around the clock on every business day of the year. Trading begins every morning in Sydney, Australia and as the business day in each country begins, the Forex online trading opens around the world. Online Forex trading allows banks, financial institutions, brokers and speculators to trade their currency rapidly and with ease. Online Forex trading is also a popular way to change foreign currency because it happens in real time with no delay.

Because online Forex trading makes exchanging foreign currency so easy and accessible to millions of people, many are trying to learn the ins and outs of the Forex. Brokers and financial institutions can offer advice on investing in the Forex. Brokers will also do the actual trading for the consumer. However, many are willing to learn to trade on the Forex on their own. When learning about online Forex trading it is imperative to understand everything there is to know about the Forex. Many online websites can offer potential traders tutorials and demos on how to get started in online Forex trading. Practicing on the demos helps speculators learn the basics of online Forex trading. Also, another tip to learning online Forex trading is to study the news, including international news and news relating to politics, economics and finances. Inflation, changes in government and taxes just to name a few all affect the Forex on a daily basis. It is crucial to understand how these changes affect trading and the value of currency. - The Internets Ulitmate Forex Resource!

Some Forex Ideas

foreign exchange converter

In the currency market, exchange rates are often predicated on the health of a country's economy. If the economy is robust and growing, the exchange rates for their currency reflect that in higher value. If the economy is faltering, the exchange rate for their currency against most other currencies also stumbles. Knowing that, the following makes sense:
- The currency of countries that produce and export oil will rise in value.
- The currency of countries that import most of their oil and depend on it for their exports will drop in relative value.
- The most profitable trades will involve a country that exports oil vs. a country that depends on oil.
Based on those three points, the experts are keeping their eye on the CADJPY pairing for the most profitable trades, and here's why.
More info on Forex software

forex software

Economic factors and indicators are released by the government or by private organizations that can look in depth at economic performances. These indicators can be used to analyse economic performances from any country. The economic reports measure a country's economic health, in addition to government policies and current events.

forex capital markets

Another reliable economic indicator in the foreign exchange market is the industrial production report. This report shows the fluctuation in productions in industries such as factories, and utilities. The report looks at actual production in relation to what the production capacity potential is over a period of time. When a country is producing at a maximum capacity it positively affects the Forex and is considered ideal conditions for traders.
More info on Forex software

The Latest Forex System News

European Morning Update 8th April 2008

Tue, 08 Apr 2008 01:44:32 -0400
Dollar soft but off lows in Asian trading

Releases from Australia:

Prior Current
March NAB Business Confidence - 2.0 - 4.0
March NAB Business Conditions 11.0 7.0

Following on from yesterday’s softer data from Australia the NAB business confidence survey confirmed a deterioration in conditions over March. Confidence is now at its lowest level since September 2001. Sales dropped to its lowest level since October 2005 and the employment index to its lowest level since November 2006.

NAB forecast interest rates to remain unchanged until early next year when they anticipate a reversal of the up cycle.

Releases from Japan:

Prior Current
March Bankruptcies (YoY) +8.3% +23.0%

Bankruptcies rise in Japan once again, from +8.3% in February to 23.0% in March, the highest level since the survey began 3 years ago. The rise in oil prices has had a major impact while construction companies have also been losers following Japan’s own housing pullback.

With the global slowdown expected to hit Japanese exporters the number bankruptcies is expected to remain high and this does risk further erosion of the employment market that could consequently hit consumer spending numbers even further.

Ahead of the G7 meeting Nukaga has been voicing his concern over the global problems which are impacting Japan on two fronts. With the U.S. as a major importer of Japanese products the export economy is taking a pounding while the high flying Yen is doubling the problem.

He made no specific comment on FX intervention but has been vocal on this issue in the past. However, there is little appetite for such action by the States and Europe and it may be difficult to intervene unilaterally.

The BOJ begin its two-day meeting today but is expected to retain an unchanged policy although there are growing calls and forecasts of a cut in rates over the next 3 months. The big problem they have right now is that there is no governor since Fukui stepped down last month and the government parties have failed to agree on a successor.

However, following the disastrous Q1 Tankan Report the CB’s assessment of the economy can only be downgraded.

The following economic releases are due today:
Japanese March Eco Watchers Survey: Current 33.6
Japanese March Eco Watchers Survey: Outlook 39.5

U.S. February Pending Home Sales (MoM) - 1.0%

The minutes of the March 18th FOMC meeting are due to be published

I can’t say that yesterday totally went the way I had imagined but the movement seen yesterday does overall provide a more Dollar bearish impression. I do still hold some short term concern over the Yen and Pound which have less about their respective structures to imply Dollar losses so we should still retain a fairly cautious approach.

Concentrating first on the Euro and Swissie the support in the Euro held quite well and although the Swissie pushed up higher than expected I still feel the best fit is a bearish one. Any reversal above yesterday’s Dollar peaks here would prove me wrong and I’ll have to re-adjust the outlook.

Now assuming this Dollar bearish view is correct then we should find little progress above the 1.5788 high seen already in the Euro and the 1.0044-70 Swissie support. Both these should produce corrections but we should find some better Dollar selling levels later on today.

Dollar–Yen has support between 101.88-102.06 and this should be used as the break level for any bullish thoughts. If it holds then the 103.57-104.00 area seems possible. On the Pound I’d prefer to work on breaks – this is very confusing right now.

To cover the Yen from the Euro-Yen point of view I do feel that we are close to a peak – and this is another reason why I am slightly concerned about a bullish stance in Dollar-Yen. While the hourly chart has no bearish divergence there is one building in the 4-hour chart. Thus there does seem to room for one final high but while this holds below the 161.92-162.40 area I would still prefer an eventual break lower.

Note important support and resistance areas:

Res: 103.86-00 1.5887-01 1.0171-17 2.0000-45
Res: 102.84-93 1.5804-10 1.0115-20 1.9925-45

Spt: 101.88-06 1.5682-98 1.0044-65 1.9811-32
Spt: 100.87-22 1.5510-20 0.9950-80 1.9755-86

See Also

Understanding Forex
Forex Currency Trading
Understanding Forex