Forex Trading

Currency Trading : Currency Trading Systems

2009-07-04T01:09:00.000-07:00

Currency Trading Systems - 4 Tips for Choosing the Best
Using a currency trading system to make profits from the online Forex markets is now more popular than ever. Powerful personal computers and the Internet have made online currency trading systems an attractive option for all traders.

The money making concept is appealing - buy a system, plug it in and start making profits.
There are some good systems that you can buy, that can generate enough profit to pay for themselves many times over. However, the vast majority of systems are simply not worth paying for - and they’ll actually ensure that you lose money.

There are two main reasons why most currency trading systems lose:

1. Black-Box Systems
These are systems where the logic is not revealed to the buyer.
Even if the system is based on sound logic, the trader must have confidence in it - and for that he needs to understand exactly how and why it works.
If you don’t know the logic of the system, you won’t have the confidence and discipline to continue to follow it when it suffers a period of losses. If you don’t have the discipline to follow it, then you don’t have a system at all!

2. Curve Fitting and Optimization
Another factor to look for in a currency trading system is curve fitting - or optimization.
Whenever you see a hypothetical track record, you need to look and see if it has been curve fitted or optimized - and chances are it has been. These systems always give extraordinary performance in back testing - because the rules have been made to fit the data, and produce profits.
This is similar to shooting at a barn door, and then drawing circles around every hole after the event, to make sure that each shot scored a bull’s-eye.

We can all make a track record look good if we know the past data, but the problem is we don’t have the luxury of trading in the past. This is why most hypothetical track records NEVER show the same results in real time trading, as they did in their hypothetical simulations.
Avoid any system that offers different rules and parameters for trading different markets or different contracts. If the system is based on sound logic, then it should work in any trading market, without optimization or curve fitting.

3. Simple Systems Beat Complicated Systems
There is no correlation between how complicated a system is, and its profit potential. In fact, simple systems tend to work best - as they tend to be more robust in the real world of trading, with fewer elements to break.
Simple systems tend be easy to understand, easy to apply, and more profitable than complicated systems.

4. The Vendor Guarantee
You should research how much support the vendor offers - and a bit about their background. See if the person behind the system is real - and a trader.
Many systems are simply sold by marketing people, who use hypothetical track records – which as we’ve already seen, doesn’t guarantee profits.
Also look for a money back guarantee – this will give you confidence, as you know that the vendor himself has total confidence in his system.

Finally
Choosing a currency trading system requires common sense - and the time to do the research. If you do your homework, it’ll be time well spent - and it could help you build long term capital gains with your ideal currency trading system.

Recession Effects on Forex Trading

2009-07-04T01:00:00.000-07:00

Our objective as currency traders on the forex market focuses on which nations are struggling with recession, and which nations will prosper from that struggle. If a nation's economy enters a recession - sales recede, profits decline, jobs decline and price of goods decline. This also adversely affects national trade balances, research investment levels and venture capital, all of which are vital to economic expansion. When this happens, governments and financial institutions must free up credit and monetary supply by reducing interest rates; making the currency less attractive to investors. This switching from low interest currencies to higher interest currencies on the Forex market is also known as the carry trade. In carry trades, investors borrow currencies whose countries have lower interest rates, such as Japan and Switzerland, to buy higher-yielding assets.

On the opposite side of the situation will be countries benefiting from the situation. Their lower priced products see a surge in sales and exports which increase profits. Eventually prices will begin to climb to keep the high profit margins intact. In these countries interest rates will come under pressure and begin to climb in order to check inflation. The currencies higher rates are attractive to investors and become heavy with buy orders.

This is when the Forex market does it job in the global economy. If a countries currency becomes so attractive that it actually causes it to spike too high, that countries own population will spend their valuable currency in other countries due to the favorable exchange rate. We saw this in the US during this last holiday season. Many Europeans spent their currencies in the US because the exchange rate was so favorable for the Euro, Pound and Swiss Franc. This market reaction will eventually begin to balance everything out by causing opposite economic reactions.
While "global recession" does not appear to be looming around the corner in any sense; the US, as well as other nations could experience what is called a growth recession. Not true recession where the economies actually decline, but one where only the "growth rate" or "rate of expansion" of their economy declines or completely stagnates. Careful evaluation will be necessary to determine which currencies will benefit by monitoring not only interest rate moves, but also trade, manufacturing, commodity and unemployment figures as well.

While no one wants to see a recession on any level, it is an economic must for global balance. As retail Forex traders we learn to keep our emotions in check to survive the volatility of the market swings. We should also keep our loyalties in check as to our currency preferences. Remembering always that any economic recession is merely a trading opportunity in two directions - up for one currency, and down for the other. Our trading activity will actually benefit the struggling nation's recovery from the forces causing their economic contraction.
Good Luck and Good Trading.

The recession will be over sooner than you think

2009-07-04T00:55:00.000-07:00

Good news: Great Depression II avoided and growth resumes mid-2009

Much like today, the Great Depression began with a stock-market crash and a melt-down of the financial system. Banks withdrew credit lines and the inter bank lending market froze-up. What turned this from a financial crisis into an economic disaster, however, was the compounding effect of terrible policy. The infamous Smoot-Hawley Tariff Act of 1930 was introduced by desperate US policymakers as a way of blocking imports to protect domestic jobs. Instead of helping workers, this worsened the situation by freezing world trade. At the same time policymakers were encouraging firms to collude to keep prices up and encouraging workers to unionize to protect wages, exacerbating the situation by strangling free markets.
In fact economic uncertainty is now dropping so rapidly that we believe growth will resume by mid-2009.

Uncertainty is now fallingIt now appears that the global policy response to the credit crunch has avoided repeating those mistakes. Instead, it has focused on delivering a massive dose of tax and interest rate cuts, and spending increases. Policies restricting free-markets have largely been avoided. This has calmed stock markets as the fears of an economic Armageddon have subsided. At the same time political uncertainty has dropped as world leaders have clarified their stimulus plans.

how to boost invester confidence

2009-07-04T00:50:00.000-07:00

$5b to boost investor confidence

SWISS bank UBS is planning to raise 3.8 billion Swiss francs ($5 billion), by selling 293 million shares to a few institutional investors for 13 Swiss francs per share, the troubled company said on Thursday.Existing shareholder, the Government of Singapore Investment Corp (GIC), "did not participate in the capital-raising exercise as we are already a large investor". GIC injected 11 billion Swiss francs into the bank last year and now holds a stake of about 6 per cent."The capital-raising helps strengthen confidence in UBS and the Swiss financial centre,'' UBS said in a statement.
"UBS is taking this action now in order to take advantage of current market opportunities. This is not related to any particular event.''Still, its extra capital-raising may spark fresh fears about the state of bank balance sheets, months after the shocks in the global banking system seemed to have ended. Last week, the Swiss National Bank said it was still not comfortable with the leverage of the country's big banks.
UBS also said on Thursday that it expected to post a net loss of an undisclosed amount for its second quarter during its results announcement on Aug 4. "The majority of the expected loss is attributable to own credit and the restructuring charges that have already been announced," it said.The bank added that the operating result for the quarter would likely represent an improvement compared with the first quarter of 2009, largely attributable to better market conditions affecting its investment bank and a reduction in losses and writedowns on legacy risk positions.

American Eagle Gold Proof Coins

2009-07-04T00:47:00.000-07:00

Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

Danger: Stock Market Crash - Recession - Depression Ahead

2009-07-04T00:45:00.000-07:00

In the summer of 2007 concerns were rising regarding mortgages and other toxic paper. The concerns were causing drops in the Dow and NASDAQ. Ironically, George Bush called the American economy “the envy of the world,” noting that its fundamentals were “strong… Job creation is strong. Real after-tax wages are on the rise. Inflation is low.”
Now compare this to Herbert Hoover in 1928 on the eve of the Depresson, who stated “We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us.

Comparing these two statements makes one think or maybe better said… Worry…
Where are we really in this cycle. Are we in a Recession? Have we entered a Depression? Everyone seems to have an opinion. However only in retrospect will we really know. We have not had any waterfall declines such as 1987 or even 1929. It seems things are just dragging down or grinding us down. The anxiety is not just in the stock market but seems to be encompassing our entire lives. It seems to many the world has changed.

Who would have really believed interest rates would be virtually zero. Who would have believed that Citi (C) would be $2.51. Surely not the Abu Dhabi investment authority or Bin Alaweed. It seems more money was lost trying to catch the bottom. Seems everyone wants to call a bottom. Not to be negative but all one has to do is look at Japan. Their economy, stock market and real estate market has been in the dumpster close to 20 years. Why can that not happen in the Western economies?

I have never met anyone who has been long time successful predicting anything... not alone the stock market. One needs not to have an opinion and simply follow the market where it wants to go in order to be successful.

There is more to this though. I am not just thinking from a trading perspective but rather a main street USA perspective. The sale of antidepressants and anti-anxiety drugs are rising. People are losing their homes. Businesses are firing employees. Some companies that have existed for years, actually longer than memory are shutting their doors. Gun sales are increasing. I even read an article that there were shortages of bullets in some locals. People are taking cash out of the bank in preparation for a long-haul bad time. They have no confidence in the banks… or for that fact, much of anything. More worrisome is the fact if someone wants Gold Eagle Coins they cannot obtain them from the US mint.

Is the recession over?

2009-07-04T00:41:00.000-07:00

The recession began in December 2007. Did it end sometime this spring?

It's a provocative question that's tough to answer. It's tempting to say the recession is over when that seems to be what the stock market is telling us.

But Wall Street hardly has a perfect track record: There were numerous bear market rallies during the Great Depression, for example.

Stocks also enjoyed a nice run last spring after Bear Stearns almost imploded, even though the collapses of Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500), Lehman Brothers and AIG (AIG, Fortune 500) were still yet to come.

Gold Bull Market Projects to $2,300 by end of 2010

2009-07-04T00:38:00.000-07:00

The cup and handle pattern is one of the most prevalent and reliable technical patterns. It occurs often and in short, medium and super long-term time frames. Technical analysis is not an exact science. In fact it is more an art than science. The formation of a technical pattern doesn't imply infallibly, that the pattern will complete itself according to textbook manner. However, I find that the cup and handle pattern completes itself far more often than any other technical pattern. Its record is very good.

In this update I want to take a look at the pattern in the context of the Gold market. Our first chart contains two examples of the pattern. Note the three stages of the pattern, which follow the formation of the cup. The first example occurred from 1996 to 2004, while the second example occurred inside of the larger pattern, from 1999 to 2002. Notice how both patterns completed the three phases? (Initial pullback, breakout, retest and blastoff).

The rule on price targets is first and foremost arithmetic and then logarithmic. In the first example, the price targets would be $363 and $398 for the logarithmic. In the second, the targets are $593 and $702. As you can see even the logarithmic price targets played out in both cases.
Now let's focus on the big picture and what is about to happen in this gold market. Take a look at the Gold chart below (from bigcharts.com). Gold is just starting to emerge from this nearly 30-year cup and handle pattern, which has a massive base at $700 to $730.

Remember the three stages? Initial pullback, breakout, retest and blastoff. The market is now at the blastoff phase. In terms of the targets I come up with $1,205 and $2,087. I should also mention that the next strongest Fibonacci targets are $1,500 and $2,300. I neglected to mention that in the cases seen on the last page, the targets were hit in less than a year (after the pullback to support). I would be surprised if our target of $2,087 wasn't hit within two years. As we mentioned, technical analysis is not an exact science. It should be utilized in tandem with fundamentals and sentiment. Most readers of this website are well aware of the bullish fundamentals of Gold. We don't need to tell what you already know. In terms of sentiment, I believe we are fast approaching the point of recognition. I have been writing about this for several years and prematurely expected the point to be imminent

U.S. Recession Over by End of Summer 2009

2009-07-04T00:26:00.000-07:00

The American economy will begin growing again in the third quarter, but the rebound will be meek as a battered housing sector and ailing banks stem any progress in other areas, according to a Reuters poll.

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U.S. gross domestic product will shrink an annualized 2 percent in the second quarter, officially making this recession the longest since World War Two. That is deeper than the 1.8 percent predicted in the Reuters poll last month.

GDP will then inch up 0.4 percent in the third quarter, before picking up to 1.6 percent in the fourth in consensus results that are barely changed from a similar sample of economists in last month's poll.

The worst of severe American recession likely over”
This rather lackluster performance will allow the Federal Reserve to leave benchmark interest rates at the current rock-bottom range of zero to 0.25 percent well into next year even as long-term bond yields have risen rapidly.

"Current policy rates look set to remain appropriate for some time to come," said Bruce Kasman, chief economist at JP Morgan.

A separate question put to economists showed that Fed Chairman Ben Bernanke gets a high grade for his handling of the worst financial crisis and downturn since the Great Depression, earning 8 out of a possible 10 marks, Reuters reports.

Encouraging economic signs, or so-called green shoots, include steadying consumer spending in the first half of 2009.

"The improvement in financial market conditions is broad-based and includes narrowing credit spreads, rising equity prices and increased issuance of corporate bonds and securitized debt," the ABA said.

The group forecast that inflation-adjusted GDP will rebound in the third quarter after three straight quarterly declines, reaching a 3% growth pace by the second half of 2010. It also sees a bottom in the decimated housing market.
"Lower prices and low mortgage rates have greatly improved the affordability of homes," Kasman said. "A recovery in the housing sector will be an important contributor to economic growth."

Still, the bankers' association said that credit conditions "remain tight" and that the economy will continue to lose jobs, with unemployment peaking at 10%. Meanwhile, growth will be hampered by budget deficits well above
Still, the bankers' association said that credit conditions "remain tight" and that the economy will continue to lose jobs, with unemployment peaking at 10%. Meanwhile, growth will be hampered by budget deficits well above $1 trillion this year and in 2010 as the government ramps up spending to combat the financial crisis.

Blue Chip Economic Indicators recently said the consensus has grown more optimistic that the economy will emerge from the recession in the second half of this year.

Gold, platinum hit record on supply, rate cut hopes

2009-07-03T23:54:00.000-07:00

Singapore: Gold and platinum hit historic highs for a third straight day on Tuesday and silver rallied to its highest in 27 years on expectations of more US interest rate cuts and fears about output in South Africa.But gold’s rally sent jitters through the physical market, with jewellers complaining that high prices were turning away consumers.Gold rose as high as $929.40 an ounce, up from $927.50/928.20 late in New York on Monday, driven by technical buying and purchases from Japanese speculators ahead of a U.S. Federal Reserve meeting on interest rates this week.Spot platinum hit a high of $1,735 an ounce, up from $1,720/1,725 late in New York on Monday, as speculative buying from investors as well as auto makers accelerated after a power crisis forced miners in South Africa to stop operations.

“There may be a chance for platinum to visit $2,000 because of a supply and demand imbalance,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.“There’s demand in platinum and supply is not enough.”South African mining companies said on Monday they hoped to resume production later this week, but there was no sign of an end to power shortages that have put jobs and economic growth at risk.The world’s biggest platinum producer, Anglo Platinum, and top gold miners Anglogold Ashanti, Gold Fields and Harmony had stopped mining after they were told by the state-owned power utility it could not guarantee supplies to their operations.Expectations the Fed will cut key US interest rates by up to 0.5 percentage point at the end of a two-day policy meeting on Wednesday after last week’s 75 basis points cut also underpinned sentiment in precious markets.

Comex gold futures sustained gains, with the most active February contract hitting another record high at $930 an ounce.“A lot of stops were being triggered when the price broke $925. Tomorrow night, the Fed will announce the rate cut decision, that’s why there might be some buying ahead,” said William Kwan, a dealer at Phillip Futures in Singapore.

The global economy is likely to shrink this year for the first time since World War II.

2009-07-03T23:05:00.000-07:00

The International Monetary Fund projected the 1.3 percent drop in a dour forecast released Wednesday. That could leave at least 10 million more people around the world jobless, some private economists said.

People Who Read This Also ReadIMF's Top Economist: Recession and High Unemployment Likely to Persist 24225958 Unemployment Rate Climbs to 8.9 Percent 24385918 Why the Government's Ability to Protect Against Online Attacks Is Limited 24046648 Is the Worst Over for the Economy? Looking for Signs in the Numbers 23998198 The Taxes You Don't Realize You're Paying 23946808 "By any measure, this downturn represents by far the deepest global recession since the Great Depression," the IMF said in its latest World Economic Outlook. "All corners of the globe are being affected."

The new forecast of a decline in global economic activity for 2009 is much weaker than the 0.5 percent growth the IMF had estimated in January.

Big factors in the gloomier outlook: It's expected to take longer than previously thought to stabilize world financial markets and get credit flowing freely again to consumers and businesses. Doing so will be necessary to lift the U.S., and the global economy, out of recession.
The report comes in advance of Friday's meetings between the United States and other major economic powers, and weekend sessions of the IMF and World Bank. The talks will seek to flesh out the commitments made at a G-20 leaders summit in London last month, when President Barack Obama and the others pledged to boost financial support for the IMF and other international lending institutions by $1.1 trillion.

The IMF's outlook for the U.S. is bleaker than for the world as a whole: It predicts the U.S. economy will shrink 2.8 percent this year. That would mark the biggest such decline since 1946.
Among the major industrialized nations studied, Japan is expected to suffer the sharpest contraction this year: 6.2 percent. Russia's economy would shrink 6 percent, Germany 5.6 percent and Britain 4.1 percent. Mexico's economic activity would contract 3.7 percent and Canada's 2.5 percent.

Global powerhouse China, meanwhile, is expected to see its growth slow to 6.5 percent this year. India's growth is likely to slow to 4.5 percent.

All told, the lost output could be as high as $4 trillion this year alone, U.S. Treasury Secretary Timothy Geithner estimated.

Besides trillions in lost business, a sinking world economy means fewer trade opportunities and higher unemployment. It raises the odds more people will fall into poverty, go hungry or lose their homes. And while keeping a lid on interest rates and consumer prices, the global recession increases the risk of deflation, which would drag down prices and wages, making it harder for people to make payments on their debt.

Gold 2020: The Long-Term View

2009-07-03T22:56:00.000-07:00

ALL PAPER MONEY throughout history has proved defective when compared to Gold Bullion in terms of one of the classic functions of money.

The supply position of gold is favorable to further rises in the Gold Price. Despite the rise in the price that has taken place already, there is no sign on the production side of the creation of excess supply, though of course, stocks are high relative to industrial and jewelry outtake. Because it acts as a reserve currency, gold stocks are always large.

There is also a link between the price of oil and the price of gold. In the 1970s, during which the OPEC oil cartel raised the price of its oil exports dramatically, gold rose with oil and also along with the general increase in world inflation. For some years I have been forecasting an oil price of $100 a barrel – which has now been reached, if ever so briefly – and a Gold Price of $1,000 an ounce. It would only take another 10% for the second target to be reached.

The oil price has traditionally been volatile. A short-term surplus could see a short-term fall in the oil price just as a war with Iran could force the price up to $150 or even $200 a barrel. However, the long term problem of oil supply, and the insatiable growth of Asian demand, suggests that the long term price of oil will continue to rise.

The same, in my view, is likely to be true of the price of gold. The great democracies of the West will find it difficult to make the sacrifices necessary to deal with the growing shortage of fundamental resources – most notably energy, including oil, gas and uranium. Our excessive levels of debt are likely at some point to lead to inflation in the cost of living, and that will wipe out the real value of debt.

In these conditions, the underlying economic pressures are for a still higher Gold Price. In the last decade, the price of gold has been doubling every five or six years. My own guess would be that gold will hit $2,000 an ounce in the early 2020s, but some analysts think that will happen much earlier.

Daily London Gold Market Report - Gold Forecast $1400 by 2015

2009-07-03T22:54:00.000-07:00

SPOT GOLD PRICES rose steadily throughout the Asian session on Wednesday, hitting a new high for the week above $669.90 before slipping to $667.75 per ounce at the AM Fix in London – the highest Fix since June 7th.
Global stock markets fell sharply, meantime, knocking 1.1% off the Nikkei in Tokyo and shaving 0.7% off the FTSE in London .

Wall Street had closed Tuesday at new all-time highs, with the Dow breaking above 14,000 for the first time in its history. But stock futures pointed lower ahead of the Wednesday open after Bear Stearns – the fifth largest securities in the US – said that its two ailing mortgage-bond hedge funds may return "little if any money" to their investors.
The news from Bear Stearns helped send US Treasury bonds lower, pushing the 10-year yield one point higher to 5.03%. Ahead of today's semi-annual testimony from Ben Bernanke, chairman of the Federal Reserve, before Congress – and despite yesterday's report of record US asset purchases by foreign investors – the US Dollar sank to a fresh quarter-century low against the Pound this morning, while the Euro broke new record highs above $1.3830.
That capped the Sterling price of gold just above £328 per ounce. For French and German investors, one ounce of gold traded at €484.30 while crude oil prices ticked sideways above $75 per barrel. The Japanese Yen rose against all 16 of the world's most-actively traded currencies, according to Bloomberg data, as carry trade players unwound positions in response to the Bear Stearns news.
"The gold market is generally long with a positive outlook," says David Holmes, metals analyst at Dresdner Kleinwort, "but the trouble is that there is no new money flowing into the market to help us make the next leg of the move on the upside.
"It's partly related to the fact that we are entering into the summer period. Gold would find it easier to move higher in the fourth quarter of this year, but in the interim it's going to be relatively range-bound, with good interest to buy gold on dips and profit-taking is going to limit moves on the upside."
On the supply side, China 's National Development and Reform Commission (NDRC) said overnight that gold production rose to 122.2 tonnes between Jan. and June, up more than 15% from the first-half of 2006. Annual production has now risen by one-third from 2001, and the NDRC said Chinese gold output would hit 260 tonnes this year after reporting a find of 162 tonnes in the Yangshan gold mine in Gansu .
That could make China the world's No.2 gold producer ahead of the United States and only just behind South Africa, which has seen its output sink from above 1,000 tonnes per year in 1970 to just 297 tonnes in 2006.
"Over the long term the outlook for gold, supply and demand will feature significantly going forward," says David Davis, gold analyst at Credit Suisse, in an interview with MXMining.com.
Based on the gold mining industry's current 17% inflation rate, Davis forecasts a possible gold price of $1,400 per ounce by 2015 if today's profit margins are maintained.
"Limited mine supply growth and limited if any growth in central bank sales should ensure a long-term average real price of $575/oz for gold," reckons Steve Shepherd at J.P.Morgan. "More near-term we expect gold to average $678/oz this year and $725/oz in 2008, as the combination of the above industry factors and trends in the US Dollar combine to give gold an ongoing lift while its base metal peers enter a decline."
Elsewhere in the gold mining sector, Yamana Gold Inc. reported lower gold production for the second quarter of this year, down 3.5% to 116,000 ounces, while DRDGold South Africa announced yesterday that it had increased the resources it believes can be mined at its East Rand sites near Johannesburg by 150%.
DRDGold's operation at the Tolukuma mine in Papua New Guinea , however, is currently running at 50% power following a failure in the site's hydroelectric generator.
Meantime in the official sector, the European Central Bank said Tuesday that sales by its members totaled just 5.7 tonnes last week. With only 9 weeks remaining for this current year of the Central Bank Gold Agreement, notes Jon Nones for ResourceInvestor.com, "signatories would end nearly 130 tonnes shy of the 500-tonne quota at this rate.
In 2006, central bank gold sales under the CBGA came in 104 tonnes below the agreed ceiling of 500 tonnes. The current Agreement runs until Sept. 2009

financial standing of the world July 2009

2009-07-03T22:44:00.000-07:00

New Listing

EXTENSIONS AND OTHER CHANGES:

-- German carrier Deutsche Lufthansa AG seeks to acquire counterpart Austrian Airlines (notified May 8/ deadline June 17/extended on June 11/new deadline July 1/in-depth probe opened on July 1/new deadline Nov. 6)
-- Britain's Barclays Bank Plc and Royal Bank of Scotland Group Plc acquire joint control of Hillary S.a.r.l, a Luxembourg provider of medical assistance services that indirectly controls Spain's USP Hospitales S.L.U, a provider of similar services (notified June 4/deadline July 9/changed from simplified to non-simplified on July 2)
FIRST-STAGE REVIEWS BY DEADLINE:
JULY 1
-- U.S. firm Safran USA, controlled by French aerospace company Safran SA, to acquire joint control of U.S. detection products company General Electric Homeland Protection, currently controlled by U.S. company General Electric (notified May 26/deadline July 1/simplified)
JULY 7
-- Luxembourg-based steelmaker ArcelorMittal to acquire sole control of Noble European Holdings BV, a Dutch subsidiary of U.S. tailor-welded blanks maker Noble International Ltd (notified June 2/deadline July 7)
JULY 8
-- UK oil and gas company BP and U.S. chemical products company Dupont to acquire joint control of U.S. company Biobutanol LLC, which develops and licenses technology related to the commercial production of biobutanol (notified June 3/deadline July 8)
-- German healthcare and pharmaceutical group Celesio AG , controlled by Franz Haniel & Cie GmbH, to take sole control of Pharmexx GmbH, which provides temporary employment services to pharmaceutical companies (notified June 3/deadline July 8/simplified)
JULY 9
-- British leisure travel company TUI Travel Holdings and Cypriot diversified asset holding company Oscrivia Ltd acquire joint control of leisure travel firms Voyage Kiev of Ukraine and VKO Moscow of Russia (notified June 4/deadline July 9/simplified)
JULY 13
-- French asset management company BNP Paribas Investment Partners SA, belonging to BNP Paribas, and peer Credit Agricole Asset Management Luxembourg SA (CAAM), belonging to Credit Agricole, acquire joint control of Luxembourg's Fund Channel, a logistic platform for distribution of UCITS products that was previously owned exclusively by CAAM (notified June 8/deadline July 13/simplified)
JULY 15
-- German energy supplier Energie Baden-Wuerttemberg AG (EnBW) and Turkish conglomerate Borusan Holding take joint control of electricity producer Borusan Enerji, currently controlled solely by Borusan Holding (notified June 10/deadline July 15/simplified)
JULY 17
-- German Bosch Thermotechnik GmbH, controlled by industrial conglomerate Robert Bosch GmbH, acquires Loos Deutschland GmbH, a family-owned supplier of commercial and industrial boiler systems (notified June 12/deadline July 17)
-- Kazakh oil company Cooperatieve KazMunaiGaz PKI U.A., controlled by Kazakh national oil and gas company JSC National Company KazMunaiGaz; and Austria's Euraisian Energy Holdings GmbH, controlled by China's largest oil and gas producer, China National Petroleum Corp (CNPC), to take joint control of Kazakh oil and gas company JSC Mangistaumunaigaz (notified June 12/deadline July 17/simplified)
-- Dutch electronics manufacturer Philips to acquire sole control of Italian espresso machine maker Saeco International Group S.p.A (notified June 12/deadline July 17/simplified)
JULY 20
-- British drugmaker GlaxoSmithKline PLC to acquire U.S. skincare company Stiefel Laboratories Inc (notified June 15/deadline July 20)
-- U.S. biomedical and pharmaceutical company Pfizer to acquire U.S. pharmaceutical and healthcare company Wyeth (notified May 29/deadline July 6/extended on June 30/new deadline July 20)
JULY 24
-- Spanish renewable energy and construction firm Acciona Energia Internacional S.A.U., belonging to conglomerate Acciona Group, and Japanese trading house Mitsubishi Corp acquire joint control of Amper Central Solar SA, a Portuguese wholesale supplier of electricity (notified June 18/deadline July 24/simplified)
JULY 27
-- Italian transport and logistics company BLG Automobile Logistics Italia, belonging to the German BLG Logistics Group; and Belgian car terminal operator International Car Operators (Benelux) NV, belonging to Japan's NYK Group, acquire joint control of Italian venture ICO BLG Automobile Logistics Italia, which operates a car terminal in the port of Gioia Tauro (notified June 19/deadline July 27/simplified)
JULY 28
-- Dutch private equity firm Fortis Private Equity, a subsidiary of Fortis Bank Nederland (Holding) NV, to acquire sole control of Kuiken NV, a Dutch holding group active in the distribution of heavy equipment (notified June 23/deadline July 28/simplified)
JULY 29
-- Italian mutual investment fund F2i Fondi Italiani per le Infrastrutture SGR SpA and Luxembourg private equity fund Finavias Sarl, indirectly owned by French insurer AXA Group , acquire joint control of the majority shareholding of Italian gas distributor Enel Rete Gas SpA (notified June 23/deadline July 29/simplified)
-- Italian automaker Fiat SpA to acquire U.S. counterpart Chrysler LLC (notified June 23/deadline July 29)
JULY 30
-- France's Veolia Eau, a subsidiary of utility group Veolia Environnement, takes sole control of three French water distribution companies currently controlled jointly by Veolia Eau and Lyonnaise des Eaux, a subsidiary of French energy giant GDF Suez unit Suez Environnement (notified June 23/deadline July 30)
JULY 31
-- Dutch holding company SHV Holdings NV, involved in energy, consumer goods and private equity, acquires control of Eriks NV, a Dutch holding company whose operations include the distribution of mechanical engineering components (notified June 25/deadline July 31/simplified)

Gold vs. Platinum

2009-06-03T01:01:00.000-07:00

Au” and “Pt” may be dull chemical elements, but gold and platinum have certainly played their respective parts during the unfolding of the financial crisis. Revisiting the metals’ movements, it is clear from the table below that gold’s decline was much smaller than that of platinum - as platinum suffered from the deterioration in the auto industry - but the recovery of gold has also been lesser than that of platinum.

The red line shows the platinum price, having peaked in March 2008 at $2,251 and topped out relative to gold in May at a premium of 140%. Technical analysis-orientated readers will also notice the blue MACD histograms moving into positive territory, indicating a buy signal for platinum in relative terms.
Although gold may experience a further pull-back in the short term , the longer-term outlook seems fairly positive as a result of a solid supply/demand situation, a likely waning appetite for U.S. dollars and store-of-value considerations. According to the Telegraph, Merrill Lynch predicted that gold would soon break through its all time-high of $1,030 an ounce, and would hit $1,150 by June. Paul Walker, CEO of GFMS, said gold could rise to $1,100 by the end of 2009 as a result of the monetization of government debt. However, based on the relative chart above, platinum should have more upside potential than the yellow metal over the next few months.

Foreign exchange inflows to Pakistan highest in history

2009-06-03T00:58:00.000-07:00

FY ‘07-08 has been closed out and we now know how well the country fared in attracting foreign inflows. In short, the numbers look very good. The Business Recorder reports that Pakistan attracted $6.45BN in foreign remittances. This represents growth of almost 18% over FY 2006-07. Not too shabby! In terms of the countries from where these remittances were sent, the US tops the list with about $1.76BN, next come Saudi Arabia and the UAE at $1.25BN and $1.1BN respectively. Fourth on the list are the GCC countries . This distribution makes it apparent how integral inflows from the middle east are in the overall equation.

Jewellery

2009-06-03T00:54:00.000-07:00

While industry and bullion coinage were major consumers of platinum in the 19th century, platinum jewellery remained rare until high-temperature jewellers' torches were developed later. Once this development was made, jewellery makers were quick to take advantage of platinum. Before the first decade of this century, the whiteness of diamonds had long been highlighted by setting them in silver. However, silver's relative softness meant that these settings had to be relatively heavy -- taking away some of the brilliance of the stone. Thus, as jewellers became more adept at using "the other white metal," platinum quickly took over the role of the diamond setting of choice.

Platinum Coins

2009-06-03T00:39:00.000-07:00

In November of 1983, platinum investing entered a new era when, for the first time, a nation began to issue platinum legal tender coins that derived its value almost entirely from the platinum it contained: The Isle of Man, a British Crown Possession, issued a one ounce Noble. Legal tender bullion coins are viewed by many as the most secure way to own platinum. Most importantly, they are not subject to assay because their weight and purity are backed by the issuing nation. They are also portable, liquid and often quite beautiful.

The Isle of Man's highly successful Noble enticed other mints to issue their own platinum coins. During the second half of 1988, Australia (the Koala) and Canada (the Maple Leaf) introduced platinum legal tender bullion coins within three months of each other. Despite the proximity of the launches, both introductions were enormously successful, bringing the level of investment demand to new highs.

For nearly ten years, Australia's Koala and Canada's Maple Leaf were among the leading platinum coins in annual sales. In addition to these programs, the 1990s witnessed the release of dozens of limited edition platinum proof coins to satisfy numismatic demand. These products derive their value from both the price of the platinum they contain and from collector demand for the individual issues. China, for example, issued a coin in a number of different weights called the Panda. While the Panda is popular with collectors, its beautiful design has also made it the centre of many jewellery pieces. Another recent introduction was Russia's Ballerina proof coin. In fact, during the past decade, Russia (and the former USSR) released at least 18 different platinum legal tender coin designs. The Isle of Man has also been active in the platinum numismatic market. Besides its bullion coin, The Isle of Man has minted roughly three dozen unique platinum coin designs since 1979.

Platinum Bullion

2009-06-03T00:38:00.000-07:00

In 1975, after the Arab Oil Embargo and collapse of the Bretton-Woods agreement sparked increases in precious metals prices, Tanaka Kikinzouku Kogyo KK, the leading bullion house in Japan, introduced platinum bars that were small enough for the individual investor to buy. With platinum close to $180 per ounce, Tanaka's five gram and ten gram bars could be bought by investors for well under $100. That platinum bullion investments were first introduced in Japan made perfect sense because platinum jewellery was already highly popular there.

With platinum's huge price changes during the late 1970's and early 1980's interest in platinum bullion investing spread to Europe and the United States. Two platinum fabricators began to produce one and ten ounce platinum bars. Soon thereafter, the variety of platinum bullion bars rose as JM, Engelhard and Tanaka expanded their lines and firms like Degussa jumped into the market.

Platinum Futures

2009-06-03T00:34:00.000-07:00

In 1956, the New York Mercantile Exchange introduced platinum futures as a way to diversify from its exclusively agricultural offerings. While futures offered a standard and liquid outlet, the highly leveraged nature of futures trading meant that individual investors faced a high risk of losing a large share of their investment due to small changes in the price of the underlying commodity. As a consequence, most platinum futures contracts are today held by industrial hedgers or major speculators.

MARKET CLOSE: Shares fall with global dip

2009-06-03T00:29:00.000-07:00

Shares fell as a ripple of concern about earnings pushed down equities in Europe, the U.S. and Asia. Nuplex Industries slipped as shareholders prepared to cough up for their rights.The NZX 50 Index fell 43.56, or 1.7%, to 2568.9, its second daily decline. Within the index, 27 stocks fell, 10 rose and 13 were unchanged. Turnover was $115.7 million, one of the highest this year.
Telecom, the biggest company on the NZX 50, fell 4.8% to $2.37. This year it has gained 8.7%. Contact Energy, the next biggest stock, declined 4.2% to $5.70.

The Dow Jones Industrial Average fell 3.2% yesterday. In Asia today, the Hang Seng Index has dropped 4.2% to 14324.75 and the Nikkei 225 Index is down 2.7% to 8595.01.
Alcoa, the first company on the Dow to report for the first quarter, posted a net loss of US$497 million, blaming weak prices. The aluminium producer supplies industries ranging from autos to appliances.

"There's pressure on earnings which we expect to continue in the next couple of quarters," said Guy Elliffe, head of equities at AMP Capital Investors in Wellington. "But the market is pretty aware of it and valuations are pretty compelling."

Gainers today included Fisher & Paykel Healthcare, up 6% to $2.99, Kiwi Income Property Trust, which rose 2.3% to 91 cents and Hallenstein Glasson Holdings, up 2% to $2.40.
Nuplex fell 3.2% to 30 cents and sank as low as a record 27 cents during trading today. Shareholders must take up their 7-for-one entitlement at 23 cents a share or see their holding diluted by a crushing 87.5%. Since trading at $2.30 on October 3, the company has shed $165 million of market value. The company has urged investors to take or sell their rights before their due dates this month.

"Shareholders have got the letters with the rights entitlements," AMP Capital's Elliffe said. They're "realizing how much they have to stump up."

Nuplex published a letter exchange with the Shareholders Association in which it defended terms of top-up arrangements in its placement as part of its placement.

History of Gold Trading

2009-06-03T00:24:00.000-07:00

Gold trading has a long history. Discovered in ancient times, gold has been a sign of wealth and social position in many societies since it was first used as currency. Today gold is still an important material of trade and business. Countries value gold as a measure of wealth and a base of exchange. Individuals value gold as insurance because paper money is not always certain. Gold continues to have effects on world financial markets today and will into the future.

The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. Under the gold standard, currency issuers guarantee to redeem notes, upon demand, in that amount of gold. Governments that employ such a fixed unit of account, and which will redeem their notes to other governments in gold, share a fixed-currency relationship. Supporters of the gold standard claim it is more resistant to credit and debt expansion. Unlike a fiat currency, the money backed by gold cannot be created arbitrarily by government action.

This restraint prevents artificial inflation by the devaluation of currency. This is supposed to remove “currency uncertainty,” keep the credit of the issuing monetary authority sound, and encourage lending. Nevertheless, countries under a not truly 100% gold standard, like countries simultaneously using manipulated paper currencies, underwent debt crises and depressions throughout the history of its use with the central bank manipulation and inflation of the currency. The U.S. experienced this in its Panic of 1819 after its Second National Bank was chartered in 1816. The gold standard is no longer used in any nation, having been replaced completely by fiat currency. It still is in use by private institutions in the supply of digital gold currency, which uses accounted gold grams as money”

Karachi Stock Exchange activities remain dull!

2009-06-03T00:21:00.000-07:00

Karachi: The trading activity at the Karachi Stock exchange lacked luster on the forth straight day. With the trading volume remaining marginally over 4.5 million shares the KSE-100 index remained stagnant at 9,183 points on the forth day of the trading at the Karachi stock exchange.
The investors preferred to stay at sideline at the floor freeze remained in place.
The adviser to the PM on finance Mr. Shaukat Tareen is due to arrive at the Karachi Stock Exchange on Friday on invitation of the Karachi Stock Exchange board of directors. The investors and traders at the stock exchange expect some important measures to be announced and a decision on the date of removal of the floor freeze is also excepted.
Shaukat Tareen had previously spoken against the decision of floor freeze. The advisor to the Prime Minister on finance, has favored restriction free trading at the stock exchanges of the country. Mr. Tareen had previously announced creation of Rs.20 billion market stabilization fund which is to be funded by National Bank of Pakistan, National Investment Trust, State Life and EOBI in equal proportion.
Additionally a cushion fund of Rs.30 billion was also announced by Mr. Shaukat Tareen to encourage foreign investors who were ready to take away with investment worth $450 million and are waiting for the moment the floor freeze is removed.

Futures Market Frozen, US Markets Frozen

2009-06-03T00:15:00.000-07:00

NEW YORK — Wall Street joined stock markets around the world in a huge selloff Friday, sending major market indexes to their lowest levels in more than five years on the belief that a punishing economic recession is at hand. A grim outlook from electronics maker Sony helped trigger the selling, and another bleak forecast from the automaker Daimler added momentum to the drop.
U.S. trading was dramatic and fractious, with the Dow Jones industrials falling more than 500 points soon after the opening bell. The blue chips followed the pattern of recent sessions, recovering ground only to fall sharply again, before ending the day with a loss of 312. All the major indexes fell more than 3 percent.
The pullback on Wall Street, while steep, wasn't as bad as some observers had feared after stocks plunged overseas in response to another round of grim corporate news. Sony's profit warning sent its shares tumbling in Japan and offered only the latest example that companies are girding for a slowing economy and a pullback among consumers worried about falling home prices and losses on their investments.

World Stock History

2009-06-03T00:13:00.000-07:00

The World Stock Exchange (WSE) upgrade continues to make progress. Inactive accounts prior to August 2008 have now been removed from the system. All former listings for virtual businesses have been removed and consolidated into the WSE Traders Fund which owns a majority share of the World Stock Exchange within the role playing game.

We are pleased to announce that the World Stock Exchange application has now been admitted into the Facebook Application Directory, thereby allowing all Facebook users immediate access to add the application and join the World Stock Exchange.

In just over 5 years Facebook has become the world's leading Internet based social utility empowering over 150 million people around the world with the ability to communicate more efficiently with their friends, family, coworkers and associates. More than 50% of Facebook users are outside of college and the fastest growing demographic of Facebook users is those 30 years old and above.

The site has been translated in more than 35 languages with many more in development making Facebook a truly multilingual and global platform. More than 70% of Facebook users live outside the United States.

The above growth and achievements by Facebook highlight the importance and positive impacts that it will have in our world becoming a more open and integrated society.
If ever there was a single global platform providing immediate access to the global market and with it an opportunity for our society to create a global securities exchange and banking platform comprised mostly of the general public then Facebook is that platform. I intend to see the World Stock Exchange evolve over time from a role playing game into a fully operational and registered global securities exchange aimed at bringing the corporation and the investor closer together for a more rewarding and mutually beneficial relationship towards the common good.

CHINA STOCK MARKET IN A GLOBAL PERSPECTIVE

2009-06-03T00:04:00.000-07:00

Executive Summary

China’s stock market has experienced amazing growth since establishing its twoexchanges in 1990, although the growth has been uneven and irregular, and themarket remains in the early stages of its development. This report seeks to identifythe key characteristics of China’s market and how they combine to form the mostdynamic and intriguing developing market in the world.The current structure of China’s market is one of its key obstacles to further development.There are very few stocks that would fit the definition of “blue-chip” tradingon China’s mainland exchanges. Whereas most developed markets are dominatedby a limited number of large-cap stocks, China’s market is cramped by amultitude of small-cap stocks. This feature allows for increased speculation andhigher turnover for both investors and indexes, among other problems.A related matter is the reliance of China’s market on external expansion, that is,expansion through the issuance of new shares rather than the appreciation invalue of existing stocks. Since these shares generally do not experience sustainedgrowth, often because of market manipulation, they contribute to the dominanceof smaller size stocks in China’s market.

Ultimately, the current structure is amajor obstacle to the creation of viable index-related products in China.Another issue is the fact that, despite the tremendous growth of the stock market,China’s companies are not operating at a high level of profitability. They areplagued by poor earnings and low dividend yields. China’s companies need toincrease their profitability if they are to compete in global markets.Finally, government seems to have too much influence on the market. It keeps a tightcontrol on the issuance of IPOs, and, as a result of widespread government holdings,many listed companies in China have very low free-float ratios.

Meanwhile,due at least in part to the unusual market structure, market manipulation andspeculation are common. The solution is simply a matter of strengthening controlsin certain areas while relaxing them in others in order to foster an environment inwhich China’s stock market can continue to thrive.

Karachi Stock Exchange (KSE)

2009-06-02T23:56:00.000-07:00

Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan with the average daily turnover of 525.15 million shares and market capitalization of US $ 54.28 billion. The international magazine 'Business Week' announced the KSE as the best performing world stock market in 2002. Since then the KSE continuously maintains the reputation as one of the best performing markets in the world.
Since 1991, foreign investors have an equal opportunity together with local investors to operate in the secondary capital market on the Karachi Stock Exchange. The establishment of the new policy for foreign investors and initiated privatization in Pakistan has accelerated the development of the KSE, which had even 663 companies listed in 2006. In addition, companies have a choice to be listed on one of the two markets - the ready market and the over-the-counter (OTC) market, which has lesser listing requirements. While the ready market requires listing companies to have minimum paid up capital of Rs 200 million (about UK ? 1.8 m), the companies with minimum of Rs 100 million can be listed on the OTC market.
The Karachi Stock Exchange trades the KSE-100 Index. It is a highly-diversified index of 100 largest capitalization companies' stocks from all sectors of Pakistan economy. A constantly revised index is a good indicator of the overall Exchange performance over a period of time. In 2005, 88% of the KSE total market capitalization was represented by the KSE-100 Index.
The membership in the Karachi Stock Exchange is limited. Only 200 individual and corporate entities can register as members in the KSE. In 2005, 162 members traded actively on the Exchange. In addition, foreign corporate entities may also become the members of the KSE with the condition that the nominee member of the company is a citizen of Pakistan.

NASDAQ

2009-06-02T23:53:00.000-07:00

While the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) represent the history of stock markets in the United States, the NASDAQ, which stands for "National Association of Securities Dealers Automated Quotations," represents the future, or, perhaps, the present, depending on one's point of view.
Unlike the NYSE or AMEX, which trace their histories back to the 19th centuries and before when stocks were traded on a New York street corner, NASDAQ does not have, and never has had, a real trading floor. It is a "virtual" stock market, meaning all trades are done electronically. While its main exchange is in the United States, it also has exchange branches in Canada and Japan and associations with exchanges in Hong Kong and Europe, making it a global stock market.
Dawn of the Information Age
Saying that NASDAQ is an electronic, computer-driven stock market seems perfectly normal these days, but, when it was founded in 1971, it was an incredibly advanced concept. Run by the National Association of Securities Dealers (NASD), it was founded in a day when there was no internet and computers were huge machines that filled entire floors of office buildings but had less computing power than a state-of-the-art laptop does these days.
It also is a market of rapid advances. Even the name is in flux. Traditionally (if one can speak of "tradition" for a market less than 50 years old) the name always has been written in capital letters as an acronym, but the more accepted version now is to refer to "Nasdaq" (without capital letters) as a proper noun. Anyone doing research into the market will find multiple references to both versions.
While NASDAQ is not the only electronic stock market (it has at least two other main rivals) it is by far the largest. In fact, in 1999, it passed the NYSE in volume to become the largest stock market in the world.
OTC
NASDAQ operates by buying and selling what are called over-the-counter (OTC) stocks. Those are stocks bought and sold outside of the organized stock markets. Over-the-counter trading is the single largest securities market in the United States today, including almost all government securities and municipal and corporate bonds.
NASDAQ provides price quotations on approximately 5,000 of the more actively traded OTC stocks. The exchange includes all types of companies, but is traditionally home to many high-tech stocks. The big ones include Microsoft, Intel, Dell, and Cisco.

New York Stock Exchange

2009-06-02T23:50:00.000-07:00

For many people the name New York Stock Exchange (NYSE) means "the" stock market. For all intents and purposes, that can be viewed as an accurate statement. The NYSE is the first and oldest stock exchange in the United States, tracing its beginnings back to 1792.
In those days, stock and security traders met on the corner of Wall Street and Broad Street in New York, first to buy and sell government debt securities and later expanding into other stocks and bonds. At the time, New York served as the nation's capital and Congress met in Federal Hall, also on Wall Street.
Buttonwood Agreement
The process became somewhat more organized in 1792 when 24 New York City stockbrokers and merchants signed the Buttonwood Agreement, establishing the New York Stock & Securities Board, the entity now known as the NYSE. A seat on the exchange originally cost $25. With the agreement, trading moved off the street into a rented room in a building at 40 Wall Street. Today the building that stands on the spot is a 71-story skyscraper known as the Trump Building.
Although the exchange was founded in 1792, the date usually given for the beginning of the organization is 1817, the year the exchange adopted its first constitution. The exchange operated in that way until 1971 when it became a not-for-profit corporation. During its history, the cost of a membership to be included in exchange trading has risen from a low of $2,750 in 1871 to a record high of $2.65 million in 1999.
Volume Dealers
Much has changed on the exchange over the past 200 years. It was only in the 20th century that rapid advances and declines hit the market and the most massive swings in volume have come on the dawn of the 21st century. The exchange hit the 1 million mark in shares traded in one day in 1886. Daily volume first hit 2 billion shares in 2001 and the record high of 2.8 billion shares was traded on July 24, 2002. The record low for shares traded in one day was 31 in 1830.
It was not until 1906 that the Dow Jones Industrial Average (DJIA), commonly referred to as the "Dow," hit the 100 mark. The Dow topped 500 in 1956 and that doubled in 1971. During administrations of Presidents Richard Nixon and Gerald Ford, in an age of high inflation and a lagging economy, the Dow first hit the 1,000 mark and the nightly news carried reports if the mark dropped under that benchmark. On an average day today, 1.46 billion shares, valued at $46.1 billion, are traded on the NYSE.
Explosion
That might seem like ancient history to those working "the street" (as Wall Street is called) in an era when the Dow topped 10,000 in 1999. Those were heady days as the market rose and analysts predicted "10K by 2K," meaning they expected the Dow to reach 10,000 by the year 2000. The market beat the prediction by a year.
The last year of the 20th century saw the most volatility on the market as 2000 marked the largest one-day jump in the Dow (499.19 points on March 16) and its biggest one-day drop (617.78 points on April 2000). That year began with the Dow hitting a record high of 11,722.98 on January 14. With the bust of the so-called "internet bubble" and the fall of high technology stocks to more reasonable levels, the market has seen less dramatic ups and downs in the days since.

Dollar sinks to multimonth lows vs euro, pound

2009-06-02T23:39:00.000-07:00

The dollar continued its plunge to multimonth lows against the euro and the pound Monday as better-than-expected readings on manufacturing, consumer spending and construction spending drove investors to riskier assets.
The economic data suggested the economy's decline is moderating, but did not yet show a rebound. Personal spending was down slightly in April, personal incomes were flat and U.S. manufacturing activity contracted for the 16th straight month in May, although at a slower pace.
Hope of an economic recovery has pushed the dollar down as investors trade it in for foreign equities and bonds. Further, continued worries over U.S. deficits and debt loads added to investors' wariness on the greenback.
"There's an ongoing belief that the economy is past its worst point and is set to improve," said David Gilmore of Foreign Exchange Analytics in Essex, Conn. "Risk is back in fashion, and we're seeing money moving from the safety of government paper like the dollar and Treasury bills into things like equities, commodities, emerging markets, real estate - everything that got the snot knocked out of it last year is now being purchased with a vengeance."
The 16-nation euro jumped to $1.4171 from $1.4132 late Friday, earlier trading at a five-month high of $1.4246. Meanwhile, the British pound surged to $1.6446 from $1.6140 and reached $1.6497 earlier in the session, its highest point since November.
Also Monday, General Motors Corp.'s filed for Chapter 11 bankruptcy protection, the fourth-largest in U.S. history. The filing was not shocking, but served as a reminder of the government's heavy involvement in corporate America following last year's market crash and economic tumble.

Technical analysis stocks

2009-06-02T23:29:00.000-07:00

While fundamental analysis may tell you when you’ve found a solid company, its weakness is getting you into that stock on a timely basis as far as when to enter and exit the stock. This is where technical analysis comes in. Its great asset is that it’s a better timing tool. So the fundamentals tell you “what” to buy and technical analysis tells you “when” it might be a higher probable time to buy and sell that stock. As you can see from this, they both can be complimentary to one another. After all, if you can trade a stock with horrible earnings or a stock with favorable earnings projections, of course you should trade the one that’s more fundamentally sound. Someone who strictly uses fundamental analysis may need to hold on to that stock for 3-10 years for the true valuations to be reflected in the stock. These tend to be long term investors. The trader, on the other hand, tends to lean more heavily on technical analysis because the trader has to be right within hours to weeks, not 3 to 10 years. To the technician, timing is of the essence.

Gold Trading Update

2009-06-02T23:19:00.000-07:00

The price of Gold has been very volatile since the start of the current financial crisis that the world is experiencing. So far today, the commodity has dropped by $7 or 0.75% to $919 an ounce. This comes about as signs of global economic recovery led by the U.S. lead the news wires. At 12:30 GMT, the U.S. released some very impressive economic data. Firstly, Durable Goods Orders increased by 3.4%, far better than the forecasted -2.3%. This is the biggest gain in over a year. Secondly, Core Durable Goods Orders increased by 3.9%, far better than forecasted too.
These positive figures do indicate that there is a fair possibility that we are at a crossroads. With demand for Crude Oil increasing, positive housing figures from the U.S. last week, and these figures today, the economic crisis in the U.S. seems to have bottomed out. On the one hand Gold prices have dived nearly $40 in the past week, as demand for safe-haven assets ahs declined. On the other hand, Gold prices have likely reached near their minimum for the next 6 months as consumer demand for Gold has increased over 20%. Additionally, the bailout plan in the U.S. is likely to put upward pressure on the price of Gold, as inflation kicks

EURO / USD Forex Trading Tips and Analysis for Day Traders

2009-06-02T23:16:00.000-07:00

The EUR/USD has started higher once again after bouncing off of the1.4100 level. Resistance is currently at 1.4160. A break above this level would signal a move to 1.4220-1.4240. Beyond this there is little resistance till 1.4350.
With the daily average range sitting just below 150 pips the pair is not likely to move beyond 1.4300 unless there is a significant surprise in economic news due out of the US today.
A sustained move below 1.4100 will likely trigger stops down to the1.4070 level and would target 1.4040 if rates continue lower. Beyond this 1.4400 should slow further falls.
The trend is up and a rise is more likely than a decline

USD / JPY Technical Forex Analysis for Forex Traders

2009-06-02T23:08:00.000-07:00

The pair has been moving sideways after a strong run yesterday. This has formed a flag pattern which indicates a continuation of the rise. Yet a breakout can be traded in both directions.
A break above 96.60 would provide early signals of continuation in yesterdays rise. Confirmation would come from a break above 96.80 with profit targets at 97.00 and resistance is expected at 97.20.
A push below 96.20-96.10 points to at least a partial retracement of yesterdays surge. The initial target is 95.70 with 95.40 expected to hold beyond that.