Forex Trading House

Forex Trading The Mindset to Win

2009-01-25T00:32:00.000-08:00

Today in there have been so many sites which will indicate recommendation upon subsequent in a Forex marketplace as well as a little will have a little unequivocally confidant statements, how to have a billion dollars traffic Forex etc. Will indicate out to we which a greatest rivalry we face is not a marketplace itself, though rsther than your own emotions. Emotions have been still mostly a disproportion in between success as well as failure. One critical statistic is which 95% of traders will go broke, as well as this has a lot to do with a romantic psychology of those traders. This is loyal in only about any wake up which involves monetary risk. It is unequivocally not all which opposite from personification a elementary diversion of poker. If we begin out being fearful of losing afterwards it is some-more expected we have been starting to lose. People which have a many appropriate gin rummy face lend towards to win poker.
It is flattering many supposed which many tellurian beings have an inherited enterprise to prosper. This enterprise is what creates disaster so damn frightening. In many cases it doesn’t have a difference how we have your last preference regularly ensue with certainty gradual with caution.
Whether we have use of technical research or elemental research or flip a coin. It unequivocally doesn’t have a difference as many as building your own investment strategy. Just ensue with it until we have been certain it is operative or failing.
Never let your fears take over, as well as rebound around with no pattern. Overreacting to each reversal will never work it will in conclusion means difficulty as well as difficulty will lead to a remove of money. However we should never get arrogant as well as let a tiny proxy success lead we in to foolishness, a single winning traffic doesn’t have we a traffic guru. Remain consistent as well as hang with your plan- devise a traffic as well as traffic a plan.
When we have been traffic with a Forex marketplace it has a little bizarre romantic landmines which we need to be wakeful of, as well as need to avoid, recollect step with caution. You have been traffic with a banking of unfamiliar countries as well as how they have been starting to be valued opposite a banking of alternative countries, a single of which is your own country.
Emotion additionally plays an critical partial when find a Forex Broker, don’t go indispensably with a attorney since we privately similar to them, find a Best Forex Broker since they have been great. If we have been uncertain who to traffic by a CFD FX REPORT has not long ago researched all a brokers as well as have finished this though tension if we would similar to to see who a experts indicate afterwards revisit there website. This may be a many appropriate traffic which we have is anticipating a Best Forex Broker .
It is critical to keep things in perspective. If we find yourself entertaining for Australian dollar as well as booing a US Dollar similar to they have been your a one preferred football group as well as a greatest rival, afterwards we should not be investing in this market, though saving for tickets to a subsequent Football match.
Investment of any kind takes self control, as well as romantic stability, as well as Forex is no exception.
Trading in many cases is a mindset as well as we have certain which we regularly have a transparent thoughts prior to fixation any trades. If we have any doubt, either it is something in your thoughts which doesn’t supplement up or a tummy feeling afterwards don’t place a traffic as there is regularly some-more traffic opportunites.

National Bank of Ukraine sells our $65 m on interbank market

2009-01-21T08:03:00.000-08:00

National Bank of Ukraine sold $65 million on the interbank forex market on January 20 at UAH 7.90 per U.S. dollar, whereas sales on January 19 amounted to about $111 million at the rate of UAH 7.98 per U.S. dollar, an NBU official said. The NBU is helping the market return to a market rate of less than UAH 8 per U.S. dollar," said Valeriy Lytvytsky, the head of the group of advisors to the NBU's governor. Today, the NBU sold $65 million: the average weighted rate on transactions with the U.S. dollar is expected at a level no more than UAH 7.95 per U.S. dollar.

He said the average weighted forex rate on all operations with the U.S. dollar on the interbank market on January 20 was UAH 7.93 per U.S. dollar, and the overall amount of trade in dollars on Tuesday was $241 million, whereas on Monday it was $205 million. He also noted that the NBU had not used yet International Monetary Fund assets to make forex interventions aimed at propping up the hryvnia. I believe that the current talks with an IMF mission (the arrival of the IMF mission to Kyiv was put off from January 20 until January 21 for technical reasons) will be a success. The central bank feels confident, as our forex reserves are in a good state. He stressed the need for an immediate review of the 2009 budget, as it "cannot stand any criticism of the macroeconomic indicators.

Forex Trading Oil prices and Canadian dollar

2009-01-11T13:05:00.000-08:00

Canada doesn't rank at the top of oil producing countries. Many others are bigger. Saudi Arabia, Russia, Kuwait and others. Nonetheless, Canada has been an exporter of crude for a long time and being a neighbor of USA, the biggest oil consumer, raises Canada's stature in the field of this important commodity. There are huge oil reserves locked in the “black sands” of Alberta.

Until recently exploitation of these deposits has not been economically viable. Now, however, with oil embargoed press release around 80 US dollars per barrel, production can go on in earnest. Conventional wisdom among Forex traders was that it could be used in their decision making process. Only how? Conventional wisdom has been to go long CAD/JPY if one anticipated media releases oil prices.

In theory it makes sense. Japan is an importer and Canada an exporter of oil. It should work, right?

If one has an outlook for many months or even years to come, this particular notion might make sense. Not on any shorter time scale, though. Recent developments are perfect example. Oil has just reached an all time high of 80 dollars while CAD/JPY is still about 700 pips from writing press release recent high. Besides, despite much research and many tries, nobody has demonstrated that either one of these financial instrument is a leading indicator for another. So there is no clear way to take advantage of this correlation on regular bases. There are prices of many other commodities , like metals and agricultural products. There is the government spending, unemployment, taxes and interest rates.

Entire spectrum of factors. Besides, there are better ways to play oil market. Futures and stocks of oil producers can deliver better returns if one is correct on crude price direction.
United States is a consumer of virtually all of Canadian oil surplus. These two countries are their respective biggest trade partners.

What's more important, price of oil is better correlated to USD/CAD than any other liquid currency pair. USD/CAD followed crude prices to levels no seen in 30 years. We are sitting at 1.0300 as of of this writing, just a step away from parity. With oil hitting all time high and USD/CAD on a threshold of this critical level, we will press realease see just how useful is oil price analysis when applied to Forex, or more precisely, CAD. Next few weeks can give us that answer.

China's finances:- Face tough 2009 -minister

2009-01-05T09:38:00.000-08:00

The year ahead will be difficult for China's fiscal picture as revenues fall and spending surges, the country's Minister of Finance Xie Xuren said on state television. Xie said an abrupt economic slowdown and shrinking corporate profits as well as tax cuts had contributed to a drop in revenues, just as the government has pledged to ramp up spending to support domestic demand.
The problem of unbalanced income and expenditures will be prominent in 2009,' Xie said at a government conference. China has declared that it will implement a 'proactive fiscal policy,' its code for expansionary spending, with the central government already pledging to usher in a stimulus package totalling 4 trillion yuan $585.7 billion. Faltering corporate earnings have started to whittle away at government revenues.

Fiscal revenues declined 3.1 percent in November from a year ago, a sharp reversal from strong gains made earlier in 2008. Xie said China's whole-year fiscal revenue in 2008 would be above 6 trillion yuan, implying an increase of at least 17 percent over 2007. State radio cited Xie as saying that China would continue to cut corporate and personal taxes in 2009, and that it wwould increase tax rebates for exporters, especially those in labour-intensive sectors.

Benefits of Online Forex Trading

2008-12-28T03:25:00.000-08:00

Online forex trading has become very popular due to the ability of the computers to make complex charts which was not possible in the past as people could not afford to access the internet and high powered computers in their homes.

Benefits of online forex trading

This is very important in contributing to the growth of the forex trading industry to the extent that the daily transactions have been increased to two trillion USD.
Opening of an online forex trading account is very easy as there are many people who can offer this kind service to the trader. But they need to be very sure that they too deal with the same kind of currencies which the trader is interested in. There accounting online course free practice accounts allowing to test the skills of the trader offered by the provider with the usage of funny money before making transaction with real cash. The traders can trade in different markets with different currencies at the same time without any problems.

This is only possible online interior design course of online forex trading. This has brought in lot of flexibility and liquidity in online forex trading. The trader is able to trade and access quotes in real time with online forex transactions. Another important benefit of online forex trading is that, it has eliminated the bulls and bears of the trade.

We can say that the only trade market without the bulls and bears is the online forex trading market.
The most prominent feature of online forex trading is the way it is being operated transparently. There is no hide and seek involved in the process. It makes it easy online education course and spot trends making the decision to buy or sell at the right time with ease. This is only possible due to availability of the information instantly to everyone all over the globe.

Online forex trading does not involve any commission, or exchange fees, or hidden costs etc. The trade is done in a very fast pace as there is no online interior design course of any delay involved in it. It takes only seconds to execute the trade, fill or confirm the same. Also it provides greater leverage to the small traders than any other market could offer them.
Although there is lot of benefits involved in the online forex trading, there is also a flip side to it. Not everyone who had invested their money in online online interior design course trading has become rich. The reason for that is online forex trading is very risky. The trader has to take a decision within a transaction of the second which can end up with a profit or with a loss.

Chinese banks:-Help finance Taiwan investors

2008-12-21T01:18:00.000-08:00

China pledged on Sunday to make available to Taiwanese investors in the mainland 130 billion yuan ($18.99 billion) in financing over the next three years, in Beijing's latest effort to reach out to political rival Taiwan. Ties between China and Taiwan, separated since the end of the Chinese civil war in 1949, have warmed since Taiwanese president Ma Ying-jeou took office in May. On Monday the two sides opened direct daily passenger flights, new shipping routes and postal links for the first time in six decades. [ID:nTP350629]

Wang Yi, head of China's Taiwan Affairs Office, made the financing pledge at a meeting with Taiwanese politicians in Shanghai.

Three banks would provide the money, he said. Industrial and Commercial Bank of China and Bank of China would provide 50 billion yuan each.

Policy bank China Development Bank would provide 30 billion yuan, in addition to another 30 billion yuan pledged previously, Wang said. He provided no other details of the financing.

His remarks were part of a flurry of economic diplomacy by China, which has so far suffered less from the global economic crisis than its neighbours and is presenting itself as a stabilising force in the region. ($1=6.844 Yuan) (Reporting by Ben Blanchard; Editing by Tomasz Janowski)

Forex Dollar:- Jumps vs euro biggest daily gain in 2 months

2008-12-21T00:44:00.000-08:00

The U.S. dollar jumped against the euro on Friday, posting its biggest daily gain in almost two months, after traders said the greenback's slump earlier this week may have been overdone.

The dollar also gained ground after the U.S. government said it will provide loans to Detroit carmakers crippled by the economic downturn. The Bank of Japan's interest rate cut to nearly zero also lent support to the greenback.

"We've seen an extraordinary amount of volatility over the last few sessions and part of that is due to the fact that it's year-end and month-end for a lot of banks and institutions," said Steven Butler, director of foreign exchange trading at Scotia Capital in Toronto. What this ECB move did was, for all intents and purposes, it knocked down the euro's interest rate advantage versus the U.S. So it made it less attractive to hold euros," said Ronald Simpson, managing director of global currency analysis at Action Economics, in Tampa, Florida.

In late afternoon trading in New York, the euro was down 2.8 percent at $1.3887 after hitting a low of $1.3826, according to Reuters data. The euro hit $1.4720 on electronic trading platform EBS on Thursday, its strongest since late September.

Despite Friday's pullback, the euro is on track post a weekly gain of more than 3 percent against the dollar.

The euro fell 3.1 percent to 123.79 yen .

Analysts said once the year-end flows are out of the way and investors return to their allocation for the coming year, the worsening economic backdrop in the eurozone should come back to weigh on the region's currency.

"The European Central Bank is not done lowering rates yet," said Greg Salvaggio, a vice president for trading at Tempus Consulting in Washington D.C. "That in itself is a negative for the currency."

Salvaggio added he expects the euro to trade in a range of $1.35-$1.37 until the end of the year.

Central Bank of Brazil Sells $1.2 bln In Forex Swaps

2008-12-12T05:24:00.000-08:00

Brazil's central bank sold about $1.2 billion in dollar swaps in an auction on Thursday, rolling over a similar batch of paper coming due on Jan. 2.

The bank sold 24,400 of 69,500 contracts on offer.

Brazil's currency, the real BRBY, extended gains after the auction, surging almost 4 percent to 2.336 per dollar.

In addition to selling swaps, the central bank has also sold dollars and dollar repurchase agreements in recent months to add liquidity and reduce volatility in the foreign exchange market.

Forex:-Dollar little changed, traders await US jobs data

2008-12-05T04:10:00.000-08:00

The dollar was little changed against the euro and the yen on Friday, as investors awaited U.S. jobs data which is expected to show that the U.S. economy is deteriorating further and may need more interest rate cuts. The euro held slight gains made the previous day, when the European Central Bank delivered its biggest interest rate cut ever, slicing 75 basis points off its key lending rate to 2.75 percent to support its economy in the face of a global recession.

Traders awaited U.S. non-farm payrolls for November, which are forecast to show a loss of 340,000 jobs. Such a reading would mark the biggest monthly drop in more than two decades.

Analysts said that speculation was growing that the figure could be even worse, and currencies were likely to take a cue from how equity markets react to the announcement at 1330 GMT. Markets are prepared for quite a big negative number," said Ian Stannard, senior foreign exchange strategist at BNP Paribas in London.

A big negative figure would add to the view that the U.S. economy is slowing down sharply, warranting a weaker dollar. But he pointed out that indications that the global recession is deepening could heighten risk aversion and possibly boost the dollar. "If we do see equity markets coming off sharply and it turns into a global equity markets sell off, then we could well see currencies coming back under pressure against the dollar, so it could actually be a dollar-positive."

At 0841 GMT, the euro was little changed at $1.2760, after inching up to a session high of $1.2795 early in the London session. Against a basket of currencies, .DXY, the U.S. currency was flat at 86.632, while hovering around 92.18 yen, roughly 0.2 percent lower on the day. The dollar and the yen have benefited from risk aversion as an increasingly grim global economic outlook has battered stock markets and other asset classes.

Yen Advances vs Dollar and European Euro Stocks Eyed for Direction

2008-11-19T12:18:00.000-08:00

* U.S. data shows record consumer price slide in Oct

* Sterling rises, shakes off BoE minutes

* Anxiety abounds about future of US automakers

On 19th Nov, New York:- The dollar fell against the euro and sterling on Wednesday as U.S. stocks stabilized and big buy orders for the European currencies pushed them through key technical levels. A U.S. economic report showing a record slide in consumer prices last month also added to pressure on the dollar as it suggested the Federal Reserve may have to cut benchmark interest rates from an already low 1 percent.

Analysts, however, said investors remained skittish about the health of the world economy and were likely to take future cues from Wall Street's next move higher or lower.

"We saw euro and the sterling break through key trend lines and momentum traders jumped in and followed the moves to push them higher," said Brian Dolan, head of research at Forex.com in Bedminster, New Jersey.

But I think this is a false break because we're likely to see stocks relapse into negative territory, as there's no reason for them to rally in this environment.

Sterling added 1.5 percent to $1.5200 after breaking above the the $1.51 area, which Dolan said was a key trend line in a steady decline that began when it traded around $1.66. Traders shrugged off minutes from this month's Bank of England policy meeting that showed policymakers unanimously agreed to cut interest rates by 150 basis points and even discussed a bigger cut. The yen rises along with risk aversion because investors unwind trades in higher-yielding assets and currencies that had been financed with cheaply borrowed yen. Also of particular concern was the fate of the struggling U.S. auto industry, which some investors fear may fail to win emergency government loans.

Michael Woolfolk, senior currency strategist at The Bank of New York-Mellon, said bankruptcy for General Motors, Ford or Chrysler "could prove to be the next Lehman Brothers because of the systematic risk their failure would create."Markets tumbled in September when U.S. investment bank Lehman Brothers failed. Equities moved dramatically lower in October and the dollar and yen rallied, and most people still fear moves in that direction will reassert themselves," said David Watt, currency strategist at RBC Capital Markets in Toronto. Economic data on Wednesday showed U.S. consumer prices plunged 1 percent in October, while core prices that remove food and energy costs fell 0.1 percent.

Kathy Lien, head of currency research at GFT Forex in New York, said "less price pressure will give the Federal Reserve more room to cut interest rates," adding she expects the federal funds rate to drop to 0.5 percent from its current 1 percent next month.

Reserve bank Of India offers banks forex swaps

2008-11-12T04:43:00.000-08:00

The exports market worsened even more in October. As per the latest ABN Amro India Manufacturing PMI, the new export orders index slipped below 50, indicating that external demand shrunk as a number of India’s key export destinations are on the verge of recession. While an easing of commodity prices, especially crude oil, will reduce the imports bill, a sharp slowdown in exports could still keep the trade deficit close to $10 billion a month.

This week, the rupee may continue to hold on to its gains, on the back of some support from the equity market and the latest move by the RBI on dollar liquidity. The market will closely watch the Index of Industrial Production (IIP) data release for September on Wednesday. In August, the y-o-y percentage growth in the IIP had slipped to a decade low of 1.3%. However, performance in September could have been better, as suggested by a relatively better growth in output of the six infrastructure sectors during that month.

free i-pod

2008-11-08T14:37:00.000-08:00

Free I-phone:- Click On Image and fill your address and got i-pod sample i-pod in your home dont miss.

Simple Way to Dramatically Improve Your Forex Trading Profits

2008-11-01T10:54:00.000-07:00

Forex markets for any period of time you will probably by now have developed your own unique trading system.
However the vast majority of systems could be improved upon and made a lot more profitable just by doing one simple thing. All you want to do is to simply weed out the riskier set-ups that are triggered by your system and only trade the ones most likely to make a profit.

This sounds obvious but let me explain this in more detail. Successful forex trading is all about finding high-probability trading set-ups. Most traders determine whether a particular trade is likely to be a winning one by using a variety of different technical indicators.

If they all agree and suggest that a currency pair is highly likely to go either up or down, then this is a high probability trade. Now if you go over every single one of your trades in the last few weeks you will probably be able to identify those positions which you were not very confident about when you placed the trade. Some of these may have turned out to have been winning positions but some will inevitably have turned out to losing ones.

In fact for a lot of people most losing positions will be those that were taken rashly on instinct or were trades that deviated from the strict rules of the system, so it's important to categorise every set-up to try and weed out these potential losers. You can do this quite easily. All you do is you give each potential trade a ranking out of 10 based on how confident you are the resulting trade will be a winning one. This could be based on your technical indicators, for example, or your past success rate trading similar set-ups.

Then it's simply a case of only trading the high probability set-ups, ie those which you've rated highly. You will probably never rate a potential position 10 out of 10 because no-one can be absolutely sure their position will be a winning one, but you should be able to find lots of 8's and 9's out of 10. These are the ones you should be trading. The other set-ups should be ignored. This simple step, which is extremely easy to do, can be enough to turn an unprofitable trading system into a profitable one so it's well worth your while to quickly analyse each set-up before you press the buy or sell button.

Dollar climbs two-year peaks, risk stays in focus

2008-10-23T11:51:00.000-07:00

Forex dollar scales two-year peak versus basket of currencies, Euro slumps to two-year low against dollar.

The dollar climbed to a fresh two-year high versus the euro and a basket of currencies in choppy trade on Thursday as investors nervous of a severe global recession kept their faith in reserve currencies.

A brief rise in stocks on Wall Street and aggressive dollar selling by the Brazilian central bank helped to lend some stability to emerging market currencies, limiting the dollar's upward momentum, analysts said.

Emerging market currencies have borne the brunt of the global financial crisis as U.S.-based investors offloaded assets in developing markets and repatriated the money.

Analysts were skeptical that the calm would be sustainable, with investors remaining wary of a sharp global economic downturn and a poor profit outlook for corporations.

"The Brazilian central bank intervened materially and bought reals against the dollar ... that seems to have calmed the price action, not only in the G10, but global currencies as well,

Dollar gains vs yen, falls vs euro as risk edges up

2008-10-16T11:46:00.000-07:00

Euro, dollar rise vs yen as modest risk-taking resumes

U.S. jobless claims fall, easing some economic worries

Global stocks tumble but Wall St points at higher open (Updates prices, adds comment, detail, byline)

New York, Oct 16 (Reuters) - The dollar rose against the yen on Thursday but slipped against the euro as investors hoped government moves to inject cash into troubled banks would get credit flowing and help stabilize world financial markets.

Trading was choppy, though, as worries persisted that fallout from the credit crisis that began more than a year ago will eventually plunge the world economy into recession.

Asian stock markets plunged on Thursday, led by a 11.5 percent decline in Japan's Nikkei average .N225, taking their cue from U.S. stocks, which on Wednesday posted their biggest one-day slide since October 1987.

That prompted investors to seek shelter in dollar assets, but that move faded a bit on Thursday as data showed the number of Americans filing for first-time jobless benefits fell last week and U.S. stocks opened on a steady note.

USDCHF-Forex Trading Signals Buy the USDCHF on SSI-based Forecasts

2008-10-02T12:02:00.000-07:00

USDCHF – Our contrarian positioning indicator accurately forecast that the US Dollar would rally against the Swiss franc through recent trade, and our SSI-based forex trading signals on DailyFX+ actually bought the USDCHF at 1.0887, 1.1016, and 1.1038. We see that the SSI continues to forecast USDCHF rallies, as the ratio of long to short positions in the pair currently stands at -1.64; 62 percent of traders are currently short the pair. We likewise see that forex trading crowds scaled back long positions, as USDCHF-buy orders fell 10.5 percent overnight. The SSI is a contrarian indicator and signals more USDCHF gains.

Forex US dollar deepens losses vs euro, falls 2 percent

2008-09-22T12:57:00.000-07:00

NEW YORK, Sept 22 (Reuters) - The U.S. dollar extended losses on Monday, falling 2 percent against the euro to a fresh three-week low, weighed down by worries about the fiscal impact of the U.S. government's $700-billion bailout plan aimed at addressing the global credit crisis.

The euro rose as high as $1.4775 versus the dollar, the highest since late August, according to Reuters Dealing, and down 2.1 percent on the day. That was the largest one-day rise since January 2001.

Also accelerating the euro's rise were stops taken out above $1.4728, traders said.

FOREX-US dollar trims rise vs yen as stocks clip gains

2008-09-19T02:52:00.000-07:00

The U.S. dollar trimmed gains against the yen on Thursday, after Wall Street shares surrendered some of their gains led by financial stocks.

The dollar cut gains to 104.78, coming off session peaks at 105.57 yen . The euro has also come off about 200 points from its highs of the session. It last traded at $1.4377 , still up though by half a percent from late on Wednesday.

Shares of Morgan Stanley tumbled on Thursday, dragging overall U.S. equities lower and weighing on the dollar.

Reserve Bank Cautions On Forex Fraud

2008-09-14T06:17:00.000-07:00

The Reserve Bank of India (RBI) has advised the people not to fall in the traps of fly-by-night operators. These operators are offering fraudulent offers to the people through e-mails, posts and couriers. The all also engaged in providing fictitious offers of winnings in lottery and money in the stock market. The bank has received number of complaints from various organizations, schools, exchange entities and individuals.

In a usual practice, such fraudulent operators’ demands account details of the individuals. They generally inform internet users and mailed them in their inbox. They also provide them some proofs of legal documents and account details.

The apex bank has already banned participation in lottery schemes under the Foreign Exchange Management Act, 1999. The bank has also scrapped the price of printing paper for currency notes. The per-unit printing cost is likely to fall significantly following the decision of the apex bank.

Asia's forex intervention may be a losing game

2008-09-06T01:47:00.000-07:00

Asian central banks have sold U.S. dollars in recent sessions in an attempt to rescue their battered currencies, but their efforts may prove futile against a resurgent greenback that has caught fire after a seven-year decline.

Many Asian currencies, which enjoyed a good run last year, have been hammered since late July, as the dollar soared amid concerns over capital outflows and slower economic growth in the region.Authorities in Thailand, Malaysia, Indonesia, India and the Philippines were spotted selling dollars in the foreign exchange market this week. South Korea intervened on Friday for a third day to defend the struggling won,

But so far, these attempts have been unsuccessful as the dollar's surge is just too strong to overcome, analysts say.

"At this point, they're (central banks) not trying to reverse it," said Win Thin, senior currency strategist at Brown Brothers Harriman in New York. "There is no way they can do it. The dollar is gaining across the board, But they are trying to sort of slow the move," Thin said. "They just want to make sure the market remains orderly."

Plunging oil prices, worsening global prospects, and expectations of eventual U.S. interest rate increases have underpinned a month-long recovery in the dollar.

Forex Battered sterling helps

2008-09-01T06:50:00.000-07:00

Sterling dropped to its lowest level against the dollar in more than two years on Monday after the UK's finance minister issued a pessimistic view of the economy, helping the dollar to extend broader gains.
The dollar index crept towards an eight-month high, but broad falls on global stock markets capped gains, allowing the Japanese currency to rise on cooling demand for risky carry trades that involve selling the low-yielding yen, Markets also braced for the onslaught of a strong hurricane on the Gulf of Mexico, which has shut down activities at oil companies in the region and pushed oil prices more than a percent higher.
Sterling dropped to its lowest level against the dollar since late April 2006 and hit a record low against the euro on comments from UK Chancellor of the Exchequer Alistair Darling that the economy was facing its worst downturn in 60 years.
In the case of cable, the dollar was at extreme undervaluation levels ... so from a longer term view the pair could be in for more adjustment," said Ian Stannard, senior currency strategist at BNP Paribas. Given that U.S. markets are closed for a national holiday on Monday, market participants said that the UK currency could be in for more losses when New York traders return to work on Tuesday.Gains against the UK currency helped to push the dollar index .DXY up 0.3 percent to 77.428, approaching 77.619 touched last week for the first time since late December.

Forex reserves dip below $300 bn

2008-08-26T09:14:00.000-07:00

On August 15, forex reserves fell by $3.8 billion to $296.21 billion mainly on account of an appreciation of the dollar against other currencies. Foreign exchange reserves went above the $300-billion mark in February this year and touched an all-time high of $316.17 billion in the week ended May 23, Reserves have, however, declined for the last six weeks. Even during the previous week, foreign exchange reserves fell by $5.6 billion and the decrease was attributed to selling by foreign institutional investors due to volatility in the Indian stock markets.

Forex Trading Strategy: Japanese Yen

2008-08-23T09:12:00.000-07:00

Yen rallies in currency tradingForex trading strategy should consider that the Japanese yen is on the rise right now. The yen is rallying in currency trading on the FX market as risk aversion sets in.

Most of the worries have to do with the U.S. financial markets. Concerns stemming from the financial sector are creating a situation in which investors are concerened about taking risks. This means that the yen carry trade is unwinding.

Dollar rally takes a breather as commodities rise

2008-08-18T12:58:00.000-07:00

U.S. dollar slipped against the yen and a basket of currencies on Monday, weighed down by a recovery in oil prices which gave investors the opportunity to take profits on the greenback's recent sharp rally.

But the dollar's losses were limited by the rise in U.S. stock futures as oil prices slipped and geopolitical tensions eased after Pakistan's beleaguered President Pervez Musharraf announced his resignation on Monday. The uncertainty over Musharraf had earlier raised concern in the United States and among its other allies that the issue was distracting from efforts to control violent militants in the nuclear-armed nation.

The dollar has come off because investors have realized that it has moved too far, too fast. At some point you would expect a pause," said David Watt, senior currency strategist, at RBC Capital Markets in Toronto.

Bombay Stock Exchange launch currency futures on September

2008-08-10T07:41:00.000-07:00

BSE Board of India (SEBI) will come next week to inspect our system, which is already in place, and we hope to launch the future contracts in currency by end of August or early September," the outgoing BSE managing director and CEO Rajnikant Patel said. Currency futures segment will be managed by a separate division of the exchange under a different structure and regulatory set-up. It will also have separate settlement from stock futures and cash segment as well as fresh set of members to participate in the currency futures market," Patel said.
SEBI for setting up the currency derivatives segment and is in line with the recommendations made by RBI-SEBI Standing Technical Committee report on currency futures which was released in May, It was also exploring strategic arrangements with entities in the forex market to gather domain expertise.