• Trade Now
Forex Daily News | Forex Articles | Forex Information
Wednesday, 10 November 2010 06:59

Yen Under Pressure and on Verge of Major Reversal

Contributed By: DailyFx

 A break above the 20-Day SMA at 81.19 triggered a long USD/JPY position which we continue to hold. A failed test of the 50-Day SMA at 82.77 could lead to taking partial profits as we are also seeing a five month descending trend line also converging. However, broader weakness and breakouts in other crosses like the CADJPY which we also remain long is firming our bullish conviction. If you are not already in a bullish position then wait for a break above the level as we could see a retracement before a larger reversal begins. We will build into our position as there remains significant upside potential to 100-Day SMA at 84.72.

Published in Forex News
Wednesday, 10 November 2010 06:59

Canadian Dollar Cross Pick 10/11/2010

Contributed By: DailyFx

 As the USD/CAD struggles to hold below parity, the pair should retrace the sharp decline from the end of October as price action continues to trade within the downward trending channel from the previous year. The dollar-loonie appears to have carved a double-bottom after we saw the pair test the 10/14 low at 0.9979 during the previous day, and we are likely to see a small reversal in the pair as price action steadily holds above parity on Wednesday. As a result, I will look to buy the USD/CAD at 1.0088, the 10-Day SMA, and will look for a test of the 200-Day SMA at 1.0315, with a stop at parity.

Published in Forex News

Contributed By: DailyFx

 The CADJPY extended yesterday’s advance during the overnight trade to reach an intraday high of 81.597. Indeed, I am long from 80.86, and will look to maintain my position as technical indicators continue to point to further gains. The parabolic SAR signaled for gains on November 5th, and has yet to reverse course, while the downside risks remain capped by the 10-day SMA. On a fundamental basis, Japan continues to fight deflation. At the same time, households face a weak labor market, and employment conditions are likely to remain under pressure as domestic demand and a slow global recovery adds weight onto hiring. On the other hand, full time positions in Canada continue to gather momentum as employers become more optimistic about growth. All in all, remain long CADJPY, with a soft target of 82.00 and a stop at 80.00. Nonetheless, I am still long the GBPCHF and the GBPJPY. Indeed, I am currently in the money as the BoE said that the recovery will continue, while also noting that inflation will remain above target through 2011.

Meanwhile, I will look to enter into a short EURCAD on a break and close below the 50-day moving average. This level is of particular importance in that it has served as a line of support since September 17th. The euro has been coming under pressure recently as debt concerns resurface. In the coming months, governments in the bloc will implement tough austerity measures, which will weight on growth. Thus, entering a short position upon confirmation may lead to a potential long term short EURCAD trade. Nevertheless, currency traders will place the AUDNZD in the spotlight ahead of the Australian employment report. The RBA recently hiked rates twenty five basis points to 4.75 percent. In turn, a dismal labor force report will lower interest rates expectations, and may lead the AUDNZD to test 1.2750. I may look to trade the event and hold onto the position for a couple of days as downside risks remain.

Published in Forex News
Wednesday, 10 November 2010 07:00

Short EURUSD 10/11/2010

Contributed By: DailyFx

 I've been a bit discouraged after getting stopped out of EURUSD more than once, only to see the pair see a 500-point reversal in under a week. But I'm increasingly confident that this is the EURUSD I've been calling for, as FX Options Sentiment clearly shows many are gearing up for further losses. I'd like to go short EURUSD from 1.3800, stop on an hourly close above 1.3972

Published in Forex News
Wednesday, 10 November 2010 06:58

Markets Rebound After Steep Losses

Contributed By: DailyFx

U.S. Session Key Developments

* Jobless Claims Fall More than Expected
* European Debt Concerns Continue to Hold Market Back

Markets Rebound After Steep Losses
U.S. Markets erased their early losses as the Energy and Financial sector led the rebound. Stocks fell early in the day as global concerns about debt levels across European nations continued to weigh on sentiment ahead of the G-20 meeting. European fears flared as investors dumped Irish, Portuguese and Greek bonds, making relatively safer issues by German more attractive. Markets climbed back as investors grew optimistic about the fact that interest rates are going to stay low and that earnings have been substantially outpacing expectations across the board. US benchmark indexes were also buoyed by the latest jobs report. U.S. workers filing new claims for jobless benefits last week fell by a greater-than-expected 24,000 to 435,000, the lowest level in four months. The four week moving average fell to its lowest point since immediately before the Lehman Brothers collapse. The jobs report, coupled with a better than expected trade deficit number, allowed all three US gauges to remain in the black on Wednesday.

DJIA 30 / 11,356.21 / +9.46 / +0.08%
The DJIA closed relatively flat at the end of the trading session as investors reacted to mixed data. Markets were lifted higher by the jobs and trade deficit reports but refused to surge because of continued European fiscal solvency issues. Energy stocks helped lead the recovery as oil jumped to nearly $88 a barrel. Chevron rose steadily throughout the day to add 1.7 percent. Exxon Mobil also added 0.5 percent. Bank of America and JPMorgan Chase & Co. both advanced over 1.5 percent as financial stocks were extremely strong throughout the day. Boeing led the fall among Dow components, tumbling 3 percent after a Boeing 787 Dreamliner made an emergency landing in Texas after the crew reported smoke in the cabin

S&P 500 / 1,218.73 / +5.33 / +0.44%
The S&P 500 advanced slightly as Financials & Energy led the small gain. Macy’s kicked off a wave of earnings news from retailers, falling 1.3 percent despite a return to profitability. Polo Ralph Lauren gained 6 percent after announcing a 16 percent increase in quarterly earnings, outpacing analysts’ consensus estimates. Campbell Soup declined 3.6 percent after slashing its full year earnings forecast as its soup sales stayed weak in the U.S. despite efforts to draw consumers with more promotions on store shelves. Ford Motor got a 3.3 percent boost after BM announced 2 billion dollars in third quarter profit. ING Group advanced 3.6 percent, even after reporting a 26 percent drop in profits, as the firm said it is going to prepare for a base case of two IPOs for its insurance business.

NASDAQ / 2,578.78 / +15.80 / +0.62%
All 10 sectors closed in the black for the NASDAQ at the end of the trading session on Wednesday. The index was led higher by Basic Materials and Financials, with 1.54 and 1.38 percent gains, respectively. The US benchmark gauge experienced the steepest advance among the three major indexes on Wednesday. Google Inc. fell 0.3 percent as the company announced that they would raise salaries by 10 percent in order to retain talent. Investors became worried about whether the tech giant would be able to maintain margins with this increased expense.

Published in Forex News
Wednesday, 10 November 2010 09:22

UFXBank Forex Outlook: Pound Drops on Poor Data

USD Dollar (USD) – The Dollar rose against most of the major currencies in Forex trading after U.S. stocks fell for a second day and Treasuries slid. This sent the 30 year yield to a five month high, which causes a positive momentum for the Dollar. The NASDAQ and Dow Jones decreased by 0.66% and 0.53% respectively. Crude oil weakened by 0.4%, closing at $86.72 a barrel, and Gold (XAU) rose by 0.5% to close at $1410.10 an ounce, a new historic record. Today, the Trade Balance is expected to decline from -46.30B to -45.0B, Unemployment Claims are expected at 450K vs. 457K prior, and the Federal Budget Balance is expected at -153.80B vs. -34.50B prior.

Euro (EUR) – The Euro weakened for a third day against the Dollar as yields on 30 year Treasury bonds rose to a five month high, which bolstered demand for the currency from risk aversive investors.  The EUR/USD has a very strong support level at 1.3700. If the price breaks below this rate, the Dollar will continue with its positive trend and as long as the price is below this level, a short position is preferred. Overall, EUR/USD traded with a low of 1.3751 and with a high of 1.3974. Today, ECB President Trichet will speak.

EUR/USD – Last: 1.3766







British Pound (GBP) – The Pound fell against the Dollar, after worse than expected data from UK was released yesterday. One example was the Manufacturing Production, which came at 0.1% vs. 0.3% forecast. Also, the Trade Balance that came out at -8.2B vs. -7.9B forecast, supported a weaker pound versus other major currencies. As long as the GBP/USD is trading below 1.6050, the momentum is bearish and a short position is preferred. Overall, GBP/USD traded with a low of 1.5951 and with a high of 1.6184. Today, the BOE Inflation Report will be released and the BOE Gov King Speaks.

GBP/USD - Last: 1.5999







Japanese Yen (JPY) –The Yen rose against almost every currency except the US Dollar after China said that European countries will struggle with budget deficits, which fueled demand for the yen as a refuge. The USD/JPY is trading around the 81.00 and 81.50 area, and the main resistance line on the daily chart is located at 82.50. If the pair trades above this level, a long position is preferred. Overall, USD/JPY traded with a low of 80.53 and with a high of 81.96. No economic data is expected today.

USD/JPY-Last: 81.77







Canadian dollar (CAD) – The Canadian Dollar continued to weaken versus the Dollar as crude oil, Canada’s biggest export fell after touching a two year high. Canadian stocks also declined, which succeeded to drift the Canadian currency as well. The resistance level of the USD/CAD on the four-hour chart is located at 1.0180. If the USD/CAD crosses this level, a long position is preferred and the momentum will be be positive for the US Dollar .Overall, USD/CAD traded with a low of 0.9980 and with a high of 1.0094. Today, the Trade Balance is expected at -1.4B vs. -1.3B prior.

USD/CAD - Last: 1.0058











Published in Forex Articles

Contributed By: DailyFx

 North American Commodity Update

Commodities - Energy

A Sixth Consecutive Rally for US Oil Ushers in a Notable Two-Year High

Crude Oil (LS Nymex) - $86.72 // -$0.34 // -0.39%

Shortly after setting an unconvincing two-year high above $87 through Monday’s close, US oil would show its reservations in accelerating its recent upswing into the next phase of a major bull trend. Following Monday’s ‘hanging man’ pattern (a technical pattern that suggests conviction is stalling but a reversal will develop immediately), this past session’s performance would mark the first actual decline for the market in seven days. Notably, this negative close would break the longest series of advances since April. On the other hand, the 0.4 percent loss was hardly the kind of performance that would threaten a meaningful reversal. Instead, it is perhaps more accurate to suggest that crude has opened this week with the intention of establishing congestion. That said, consolidation near the extreme of a multi-year range is far from a stable scenario. This market remains highly prone to breakouts. The question remains whether the resultant drive will be bullish for trend continuation or bearish for a reversal.

Looking to our fundamental Doppler, there are two fronts which could decide the next trend for oil: macroeconomic concerns or risk appetite trends. Through traditional supply-and-demand channels, we see that the docket was relatively light these past 24 hours and it will remain so through the rest of the week. Through Tuesday’s session, the most meaningful data to clarify energy consumption was the UK industrial production and US small business confidence figures. British manufacturing activity rose for a fifth month to its highest overall level in nearly two years. Perhaps a little more indirect, but far more influential for underlying economic activity; sentiment amongst small US business (responsible for the greatest segment of job creation in the United States) rose to its second highest level in two-years with a notable improvement in economic expectations, an increase in sales expectations and positive reading in hiring plans. Altogether, this data is too nuanced to elicit a dramatic reaction from energy traders. And, with US trade figures and a Bank of England quarterly inflation report standing as top even risk tomorrow; there is only a modest threat of seeing volatility developing through calendar events.

In the absence of a fundamental catalyst, risk appetite trends will prevail. Looking at the benchmark S&P 500 Tuesday, there is evidence that the bull run of the past two months is starting to stagger under its own weight. On this front, there is a ready-made list of concerns for traders to jump on as long as sentiment is already under pressure. Recently, the concern has turned from the positive influences of stimulus to the negative implications of revived European financial troubles. What’s more, the 7.4 million barrel drop in the API crude inventory report (biggest since September 2008) and the six-week low in US gasoline demand read in the MasterCard gives us something to think about.

Crude Futures Chart (Daily)


Commodities - Metals

Panicked Silver Selling on Margin Changes Spills Over to Gold

Spot Gold - $1,392.90 // -$16.65 // -1.18%

Though not as consistent as its run this past Thursday, gold’s activity level over the previous active session was exceptionally high. Through the early morning hours of the trading day Tuesday, the precious metal was steadily climbing to fresh record highs. However, not long after developing temporary congestion at an intraday high of $1,424.60; the market would see an explosion in activity price action with a deep reversal that pulled the market as far down as 2.9 percent or $41.80. On a close-by-close basis, this was the largest decline since October 21st; but on an intraday basis, it was the biggest decline the market has see in months.

While it would be easy to ascribe responsibility for the metal’s tumble to a variety of fundamental drivers; the true accelerate wouldn’t come through the normal channels of supply-and-demand concerns or even through traditional risk appetite schema. Instead, gold traders would respond to a structural market change: a change in margin requirements to trade silver on the Chicago Mercantile Exchange. This may seem an indirect driver; but the aim of this change is significant enough to raise concern that policy officials are willing and ready to curb unruly speculative drives in order to stabilize an important commodity market. This threat was significant enough to spread through the precious and industrial metals – and even spill over to the S&P 500 and FX markets. This kind of market-wide response to an otherwise periphery market gives us some sense of just how influential speculative interests are in this market.

For more in-depth fundamental concerns, a withdrawal of speculative participation could be exacerbated by growing concerns surrounding European financial conditions. Greek and Portuguese bond yields hit a fresh record high Tuesday as concerns over the economic impact of deficit cutting were increased. That said, fear in financial shocks and another destabilized currency actually works in gold’s favor as an alternative asset. That said, the ICE’s announcement that it would accept gold holdings as collateral for initial margin on energy and CDS trades as well as comments by a PBoC advisor that the dollar’s positive as a reserve currency certainly works in gold’s favor. However, as some point, alternative asset appeal will be offset by speculative fears.

For trading activity, volume on the December Comex futures contract surged 68 percent over Monday’s turnover to a record 296,485 contracts. At the same time, the two-year contango has widened a third day to $29 – a sharp increase in premium.

Spot Silver - $26.92 // -$0.83 // -2.97
Silver was arguably the most volatile market on the day Tuesday. The 3 percent tumble was the biggest on a close basis since October 21st; but the tumble from the intraday high of $29.36 to its low would end up measuring 9.7 percent. The instigation for this remarkable plunge was an announcement by the CME that it would raise margin to trade the metal by 30 percent to $6,500 per contract – supposedly to curb distorting speculative activity. On this price move volume surged 91 percent to a record high.

Spot Gold Chart (Daily)


Published in Forex News
Wednesday, 10 November 2010 06:41

Chinese Trade Surplus Grows Ahead of G-20

Contributed By: DailyFx

 China’s Trade Balance surplus grew to $27.15 billion in October, above both the $25 billion expectation and the $16.88 billion in September. The number came out higher than anticipated due to the import side of the equation; China’s Imports in October rose 25.3%, below the 28.3% expectation. Exports, on the other hand, rose 22.9% from a year ago, close to the 23% analyst consensus. These figures will do little to dampen the frustration of China’s trading partners, and more calls for China to let the value of its currency rise are likely. Indeed, ahead of the G-20 meeting we see that China has allowed the Yuan rise to the highest level since 1993.

Published in Forex News

Contributed By: DailyFx

* Dollar Finds Backing for an Advance in Faltering Risk, European Troubles, Margin Increase for Silver
* Euro Quickly Returning to the Top Headlines as Yields for Sovereign Debt Soar, Auctions Materialize Concern
* British Pound Tempers its Response to Data as Focus turns to Wednesday’s BoE Quarterly Inflation Report
* New Zealand Dollar Overvalued According to RBNZ Governor Bollard
* Australian Dollar Gains Weight as Investor Optimism Retreats, Consumer Confidence Tumbles
* Japanese Yen Slides against the Dollar Even as Risk Falls Back

Dollar Finds Backing for an Advance in Faltering Risk, European Troubles, Margin Increase for Silver

Despite the dollar’s recovery from 11-month lows after the significant advances made this past Friday and Monday, confidence that this was a lasting move was still shaky. Though the currency was showing obvious strength with aggressive and broad gains, it was highly likely at that point the gains were simply a natural correction from extremes. After a significant drive in any market, a rebalancing eventually becomes necessary. Just how aggressive and prevalent this curative move proves to be is where timing enters the picture. Generally, a correction is by its very definition limited. On the other hand, if the retracement can last long enough; it could eventually shift the underlying assessment of the currency’s bearings or keep the market in a holding pattern until a more permanent driver can take up the responsibility. We may be seeing the dollar following the path in the latter scenario. Adding to the dollar’s stand-alone strength these past few days, we have seen risk aversion start to catch. As a benchmark for speculative interest, the S&P 500 fell 0.8 percent through Tuesday’s close, crude had stalled in its most consistent advance since April and the manipulated 10-year Treasury note has suffered its biggest decline in two months. However, this is still a preliminary move. There is still a critical need for fundamental support of risk aversion and the US dollar.

Shaping risk appetite trends through Tuesday, concern was roused starting early in the trading day. In the Asian hours, rumors were circulating that China would raise its reserve rates; but concrete means for slowing speculative turnover in the investment hub were introduced via the State Administration of Foreign Exchange. The group said that it would increase auditing of overseas fund raising. This is a clear reaction to the Fed’s stimulus efforts and diminishes the easy flow of ‘hot’ capital to a ready-made carry. Heading into the London session, investor sentiment would further deteriorate through the wear in the European Union’s financial health. Reminiscent of the crisis fear that developed between March of June, we have seen yield differentials on ten-year sovereign debt between peripheral EU economies (Portugal, Ireland) and Germany’s bund balloon to record highs. Not only does this shake confidence in the stability of global financial markets; but it also reverses a prominent flow of capital between the dollar and euro over the past months. This has the potential to be a major catalyst for the dollar over the coming days and weeks depending on how much coverage the region’s trouble receive. Finally, heading into the US session, we would see risk aversion really take root with capital markets facing real losses. Interestingly enough, news that the Chicago Mercantile Exchange was raising its margin requirements on silver by 30 percent – presumably to curb very blatant speculative activity – would further carry over to other asset classes. Why? This is yet another clear effort by authorities to check speculative activity. How far will they go? Will the effort extend to exchange rates?

And, while risk appetite is taking the initiative in guiding the dollar’s movements for the time being; it is worthwhile to highlight the long-term implications of a few extreme headlines. Earlier, the World Bank President issued a statement in which he suggested the world adopt a modified exchange rate regime which would reference gold as a benchmark for value. It is unlikely that officials will take this proposal seriously; but it won’t be the last time we hear it in the coming years. The same initial skepticism surrounded Chinese credit rating agency Dagong’s downgrade of the US sovereign debt rating. However, capacity to repay debt and problems arising from stimulus efforts are not exactly outlandish concerns.

Euro Quickly Returning to the Top Headlines as Yields for Sovereign Debt Soar, Auctions Materialize Concern
There was economic data for euro traders to work with Tuesday; but its influence was modest. Between the final readings of German CPI data and business sentiment statistics; there was little to truly garner a sense of regional growth and inflation. Far more interesting is the fiscal picture of the entire European Union. Irish bond prices dropped an 11th day as EU Commissioner Rehn said the country couldn’t remain a low tax economy – another blow to its ability to attract capital. In Greece, the Finance Minister voiced concerns that budget cuts could chock growth; but he did see a successful 52-week bond auction. We’ll see if Portugal is as lucky with a 1.25 billion euro debt sale Wednesday morning.

British Pound Tempers its Response to Data as Focus turns to Wednesday’s BoE Quarterly Inflation Report

Economic data was questionable for the British pound Tuesday. The deficit improved slightly from a record low; the NIESR GDP estimate was still positive but is falling quickly and factory activity is quickly standing in as the last bastion of support with a fifth consecutive improvement. The upcoming BoE quarterly inflation report will have more influence with updated inflation and growth forecasts to guide stimulus speculation.

New Zealand Dollar Overvalued According to RBNZ Governor Bollard

Lamenting the high level of his currency and the impact it is having on the New Zealand economy, RBNZ Governor Alan Bollard suggested the kiwi was overvalued. Furthermore, in his dovish commentary, the policy official said the currency is being driven by the Fed’s stimulus pump and domestic activity and credit demand remain weak. The market will decide whether it is willing to believe these comments.

Australian Dollar Gains Weight as Investor Optimism Retreats, Consumer Confidence Tumbles

Risk appetite trends are the primary source of strength/weakness for most asset classes out there; but it is especially influential for the Australian dollar as the FX market’s favored yield currency. Adding a further unfavorable slant to the general appetite for risk, the Aussie dollar’s standing as a faultless high-yielder was diminished by a 5.3 percent drop in the Westpac consumer confidence survey. High rates have their impact.

Japanese Yen Slides against the Dollar Even as Risk Falls Back

Fundamental roles and correlations change over time. For the dollar, the appeal of a safe haven is growing more and more dubious. The same can be said of the yen. However, where the dollar is already under significant pressure; the Japanese currency is near multi-year and record highs. Is reality catching up to the low yield, deflationary and stimulus-friendly currency? With USDJPY rising as risk slides, we could be.

Published in Forex News

Contributed By: DailyFx

* Dollar Extends Favorable Correction Indifferent to Stalled Risk Trends, Talk of a Gold Standard
* Euro may See the Next Fundamental Wave as Financial Troubles Return to the Headlines
* British Pound Offers Selective Strength as Housing and Retail Sales Data Conflicts with Policy Efforts
* Australian Dollar Tempers its Response to 15-Month Low in Business Sentiment, RBA Report Ahead
* Canadian Dollar Stumbles with Housing Activity Sliding, BoC Governor Speaks Tuesday
* New Zealand Dollar Little Encouraged by Policy Officials Withdrawal of Stimulus

Dollar Extends Favorable Correction Indifferent to Stalled Risk Trends, Talk of a Gold Standard
We were skeptical of the dollar’s tentative recovery this past Friday as the advance would develop after a series of significantly losses and a move below very important support (what can be reasonably argued to be a technical breakout). Yet, the currency’s perceived strength has been boosted significantly through Monday’s close with a follow up rally that establishes the first back-to-back gain for the greenback since October 27th. And, while this move is still far from overtaking significant technical milestones that can procure a more meaningfully shift in the underlying trend; the fact that it has developed while risk appetite was otherwise anchored is encouraging. In fact, the S&P 500 would close the day little changed in a 0.2 percent loss. The most likely explanation for this unique dollar performance is that it reflects a natural correction from an extreme level while the underlying fundamental driver (risk appetite) was otherwise stalled. If that is in fact the case, a revival of sentiment trends would quickly take the reins on the currency should the winds pick up. On the other hand, if the dollar can maintain this trend of self-sustained development; we may find a rebalancing from stimulus speculation that could keep its advance in place for some time.

In the market’s initial reaction to the Fed’s expansive policy step last week, it would seem that the outcome was significantly off the market – hence the rally in capital markets and subsequent dive for the currency. However, the total program actually matches what the unofficial forecast had established beforehand. That said, a reaction one way or the other would be warranted on this event despite its outcome given its confirmation. Now, with the actual event far enough behind us, we can better evaluate its effectiveness in boosting economic activity and leveraging speculative appetites. Already sowing the seeds of a more conservative policy approach after falling over the QE2 precipice last week, we saw a round of Fed commentary that rising as a voice of dissension. St. Louis Fed President Bullard was the meekest of the commentators with his suggestion that he would have preferred not to have announced the $600 billion figure upfront. Dallas President Fisher took it a step further in suggesting that the program was the “wrong medicine” for the US as it came along with costs that include a weaker dollar and the a possible label of “monetizing” government debt. Most ambitious though was Kevin Warsh. The Fed Governor said the central bank was at risk of losing its credibility and that meaningful changes would be best made in regulatory, fiscal and trade policy. A highlight to FX traders particularly, Warsh went on to suggest that the Fed should reconsider its purchasing program should the dollar continue to drop. We’ll watch to see just how prevalent the stimulus argument is over price action going forward.

In the meantime, the dollar could find additional strength through the euro’s troubles. With stimulus speculation moving off the financial headlines, the sharp increase European sovereign yields casts a meaningful concerning contrast against a currency that is at very rich levels against its benchmark counterpart. If the media ramps up coverage, this could very well turn into the top driver. In the meantime, schedule event risk was light Monday with just the FOMC’s senior loan survey for the quarter (which showed an improvement in credit standards but drop in demand). Tomorrow’s NFIB Small Business Optimism survey is notable for the sector’s influence in job creation.

Euro may See the Next Fundamental Wave as Financial Troubles Return to the Headlines
Perception is the dominant force in pricing currencies just as it is with any other asset. That is why financial media can be so influential in defining underlying fundamental drivers for the FX market. Up until last week, the primary concern was the fallout from a second wave of stimulus by the Fed. Moving up from the background as that story passes; we now see increased reference to the record 10-year yield spreads on Irish debt. EU Commissioner Olli Rehn arrived in Ireland Monday to evaluate the country’s efforts to cut its deficit. Will they receive continued support? Inevitably. Yet, with Greece, Portugal and Spain suffering from fading confidence; the need for funds may simply be too great.

British Pound Offers Selective Strength as Housing and Retail Sales Data Conflicts with Policy Efforts
The pound is still riding strong off the BoE’s decision to pass on an opportunity to boost its bond purchasing program. However, data has started to chip away at this strength. Early in Monday’s session, Rightmove reported a pickup in first-time homebuyers’ plans to buy; but expectations for prices to fall also grew. Add to that an 18-month low in the RICS house figures and drop in retail sales, and the balance is tipped.

Australian Dollar Tempers its Response to 15-Month Low in Business Sentiment, RBA Report Ahead
Though risk appetite trends were relatively stable Monday, the effort made by the dollar to gain ground drew an unwanted contrast to the Australian dollar’s remarkable highs. Risk trends are the dominant force for this currency; but the 15-month low in business sentiment adds a tangible concern to the mix. Looking ahead to tomorrow’ the RBA’s financial stability report could give us something else to chew on.

Canadian Dollar Stumbles with Housing Activity Sliding, BoC Governor Speaks Tuesday
Just as the franc appreciates when the euro falls, the Canadian dollar would ease with the strength of its larger trade partner. For intrinsic fundamental guidance, the loonie would see an uncharacteristic slip in its perceived solid growth scheme with the weakest reading of housing starts in 14-months in October (167,900). Tomorrow, the top fundamental concern is BoC Governor Carney’s discussion on financial reform.

New Zealand Dollar Little Encouraged by Policy Officials Withdrawal of Stimulus
It received little attention; but the RBNZ announced Monday that it would end the last of its temporary liquidity facilities due to a lack of use. This relieves a token hurdle to the eventual acceleration of the central bank’s hawkish policy regime; but it also reminds us that the kiwi does not have the fundamental backdrop of the Aussie dollar. Further confirmation of this fact comes through the weak housing and spending data.

Published in Forex News
Page 18 of 33

Currency converter


Which is the Best Forex Broker you have traded with?

Interview with Matthew Sheppard

Senior Forex Advisor at XForex

1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?

We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?

Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?

Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
  • Invest smartly and calculate your risks.
  • Always know when to get out of a trade.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXBank have become the web’s premier online forex trader.