Money Making Lounge

Forex, the euro is not helped by the firewall

2012-04-06T22:51:00.001-03:00

After you stop looking only to Greece, since after the last aid the country could breathe a sigh of relief now that wobbles dangerously Spain, with Portugal and Italy could still follow the Iberian country.

The firewall of the euro area has been strengthened to a sum of 700 billion euros, but it is still not nearly enough if the major Eurozone economies, like Italy and Spain, should you need to be saved.

This is a difficult balancing act, given that increasing too much the bailout fund would send a clear message that there are serious doubts about Spain and Italy on economic survival.

The calming effect of the firewall market was short-lived. In Forex, the euro has had a beginning of the week is not too interesting, and has lost ground. Unfortunately, the eurozone is suffering from rising unemployment and inflation stubbornly high.

The other problem is the origin of the money that strengthens the bailout fund, given that international bodies are already showing signs of exasperation at the inability of the euro area to give an order. The key question is whether this approach will be enough to appease the international community and all those who think that Europe must do more to help themselves, even before asking for additional support from other parties.

The International Monetary Fund effectively continues to be an important lifeline, but in any case must do more.

According to many, it is unlikely to see a dramatic fall in the value of the euro in the short and medium term.

To date there is still a strong possibility that one or more countries may be forced to leave the euro area over the next two years, unless you can actually do something to help out all those who are looking for a solution concrete and definite.

Japan New Minister

2011-10-03T21:00:00.000-03:00

Japan has appointed a new Prime Minister, the sixth in five years. Already, the former finance minister, Yoshihiko Noda, could formally get the job. The challenges are enormous and Noda faces include primarily the help Japan recover from devastating natural disasters related to nuclear power. The problem is that in Japan there is no leadership, no consistency to follow. According to the final solution could be Noda.

The most important issues are the recovery from the tsunami and a too strong yen, which affects the power of the nation and the strength of the Nipponese companies. The politicians up to now have not been able to show any clear direction on what to take in the coming months on. For Japan is at stake in these days could not be higher.

Almost six months after the tsunami that devastated the country, the government has yet to begin rebuilding in earnest and continues to leak radiation. The opposition strategy is to tie the legislation, Japan is in a political deadlock that discredits the government. Noda for his part promised to work with the opposition.

Another serious problem is the yen, as strong as ever in recent decades, which is damaging the competitiveness of exports. Noda is the finance minister, knows everything about the situation of the Japanese currency, then the markets would be likely to welcome his election. Luna fundamental part of the work of Noda will be to raise taxes to finance reconstruction after the tsunami. Obviously this will not improve the economy of Japan, but for many it is essential.

Noda will replace the former Prime Minister Naoto Kan, even after 15 months in office, which has been criticized for his handling of the disaster of March. We'll see what happens.

Bernanke's speech in Jackson Hole

2011-10-02T20:58:00.001-03:00

Those whose expectations were low relative to the speech by Federal Reserve chairman, Ben Bernanke, held in Jackson Hole, were not disappointed. Those who sought a recovery in the words of Bernanke are disappointed, as when the same Fed chairman last year has provided the basis for further purchases by the Fed, what became the QE2, which led to 600 billion dollars purchases of Treasury securities.

This year, the Fed chief said in essence that the temporary problems are less to blame than previously thought. The structural problems, particularly in the area of housing, preventing monetary policy to have its usual effect on the economy.

Bernanke mentioned the word "tax" 15 times as much "money". The Fed chief said that most of the economic policies that sustain robust economic growth in the long run are beyond the powers of the central bank. But the Fed chief did not specify other economic initiatives, which should be revealed next month. The proposals could include a cut in taxes and spending for public works.

Meanwhile, the FOMC will consider all options available to him in a meeting of the expanded two-day, on 20 and 21 September in order to give full practical implementation issues still outstanding.

In reality there is much to talk about, including the idea of a lengthening of maturities of the securities portfolio of the Fed, in an attempt to bring down interest rates in the long term. What the Fed is planning to do does not depend on the length of the next FOMC meeting, but the current economy. Bernanke admitted that growth has remained significantly behind the expectations that the Fed did itself.

Summary currencies

2011-09-10T20:17:00.001-03:00

We see in what way the currencies most famous and known market have moved in the week just ended. Among the events of a fundamental nature that we must consider is Bernanke's speech in Jackson Hill, held yesterday, when the Fed chairman, as usual every year, highlights the situation of markets and transactions that the central bank the United States can accomplish in the coming months to help the market recover.

The currency pair euro / dollar moved in a rather side with a high volatility. Next week we might consider opening a position in favor of the euro, since the situation is critical in the U.S. and the Fed, it is understood, does not know how to move without "hurting" or preventing the transactions carried can help one side and other damage.

The pound has rather lost ground steadily against the U.S. dollar, for the next week we could instead think of a trend in favor of the British currency. Aware of the strong resistance level at 1.6600 share, to consider if this currency pair should arrive in the vicinity of the value.

The exchange rate between U.S. dollar and Japanese yen has seen a move sideways until mid-week, then a peak in favor of the dollar recedes completely yesterday. For the next week of trading could still expect a trend in favor of the yen, but we await confirmation before entering the market.

The euro has gained much ground against the British pound, reaching almost a height of 0.8900, a value that could be broken during the next week. We'll see the economic news arriving from Europe and how the euro area will be able to handle the economic crisis that is gripping.

FED, the effects of a QE3

2011-09-10T20:14:00.002-03:00

The situation is critical in the U.S., so that the Fed could think of a new measure of quantitative easing, the QE3. The moment, however, the central bank of the United States had considered the QE2, the last year these days, it was believed that the 862 billion dollar stimulus program would have to create 3.5 million jobs. Something that has not happened. Why?

In principle, there are three ways in which a quantitative easing could help the economy. The first is to stop the classic liquidity crisis, the second is to give a stop to the crisis of confidence, stopping those who want to take their investments from the market, then by increasing aggregate demand. Of course, there is also the possibility that a QE could damage the economy, by reducing the value of the dollar, rising inflation and inflationary expectations.

Just a crisis of confidence was probably due to concerns about the financial situation of European banks, which hold large amounts of defaulted sovereign debt of countries. This crisis of confidence is evidenced by the incredibly low market rates of interest on Treasury securities.

Most people believe that an inverted yield curve heralds a recession, we are now in a time when we have an inverted yield curve at the point where it is assumed that new money should go into the economy. Not surprisingly, therefore, see the economic indicators that signal a recession. With inflation accelerating, the specter of stagflation again looms over the country.

America does not need a QE3, needs a complete reversal of policy the Fed should announce an upper limit for the price of gold and use open market operations to the reserves as necessary to enforce this maximum price. To do this, the Fed should leave interest rates are set by markets.

The ultimate solution for a stable U.S. dollar, the stable economy and stable financial markets require that the Fed can keep the dollar stable.

FED thinks about a QE3, but the QE2 as it went?

2011-09-02T23:08:00.000-03:00

This week the Federal Reserve is holding its annual conference in Jackson Hole, Wyoming. Speculations abound regarding the concern and the question of whether the Fed will launch another round of "quantitative easing", the QE3, in order to shore up the economy and its failures. Many people think that if the QE2 has not worked, not even the QE3 work.
The quantitative easing is when the Fed buys a specific volume of Treasury securities. Technically, the QE is no different from the normal operations of the Fed's Open Market, since it involves the purchase of bonds on behalf of the Fed, paying with newly created bank reserves.
The QE2 was carried out for eight months, from November 2010 to June 2011. During this period, the Fed has purchased about 566 billion dollars of securities. The QE2 was a bold initiative and a spectacular failure.
During the first 8 months of the QE2, total employment had increased by 420,000 jobs. In the 8 months of QE2 total employment increased by 273,000 jobs. During the 3 quarters of the QE2, real GDP grew at an annual rate of 1.33%, while during the 3 quarters prior to the QE2 was increased by 3.41% per annum.
However, if the Fed's target was to increase inflation, then the QE2 has been a great success. During the first 8 months of the QE2, the figure was an increase of 0.6%, while during the 8 months of the QE2 has increased by 2.3%. If the purpose of the QE2 has been to increase stock prices, again failed. During the 8 months of the QE2, the Dow Jones Industrial Average rose by 9.2%. However, since the price of gold has increased by 20.3% over the same period, the Real Dow or the Dow divided by the price of gold fell by 9.2%. The movements of the Real Dow reflected the relative cost to invest in jobs in the production of goods, like factories or in containers of inflation, like gold.

Bernanke Speaks on Friday, Great Expectations

2011-09-02T19:26:00.000-03:00

When the Federal Reserve chairman will speak at its annual meeting in Jackson Hole, Friday, the markets will be looking for something that would indicate if there are any new stimulus measures being created. Only a year ago, after all, the economy was almost exactly the same position: slow job growth, slow growth of output, fears of falling into another financial shock in relation to the debt crisis in Europe, warning of a double-dip recession . And a year ago in this same conference, the Fed chairman, Ben Bernanke, had acutely described all the weapons that the Fed had at his disposal to save the economy.

Several months later, the Fed has opened its "arsenal" and started to put together a major program of asset purchases aimed at stimulating growth.

Given the reluctance of Congress to engage in a major fiscal stimulus, and is planned to decrease spending, analysts and investors are wondering if history does not repeat itself, especially if the economy deteriorates further. Equity markets have experienced a rise in the week, partly on hopes that Bernanke might be a sign of more monetary stimulus on the road, or at least that would indicate such stimulus conditions would most likely put in place.

Among the options that Bernanke and can tell the public this Friday, there is another round of major asset purchases, or another quantitative easing, which aims to reduce long-term interest rates, lowering the rate of interest that the Fed pays banks for their reserves, or extending the average maturity of the Fed's current portfolio analysts are eagerly awaiting this action and the decision that will follow.

Guide to Build a Trading Strategy Part III

2011-09-02T17:01:00.000-03:00

Many people make the mistake of adding or decreasing the size of a position simply because they feel that something is going to happen good or bad thing. These two actions, if they have been carefully planned ahead of time, can be very useful as part of a trading strategy. The essential condition is that the trading rules to be written before it is inserted into a position.

Making trading on an emotional way, however, lead to disaster. It 'amazingly easy to be misled by their emotions, even without realizing it. We must be able to be aware of what a trading system does and how to trade as he says the system could keep us away from emotions and make you able to earn money.

If emotions are able to affect the system in the least degree, the whole strategy could be invalidated. With the creation of a specific trading plan, which includes when to enter a location, get out when and how much leverage must be used, you will be free to run its own position without the fear of emotions.

The benefits of this way of trading are far reaching and once you've learned to respect the plan, you are free to start experiencing the emotions that come with being a successful trader, but without entering them in the same trading

Emotions are not an enemy per se, but they can become when you allow them to influence its strategy. The objective should be pursued is not to turn into machines or to remove emotions from the human spirit, but to create a lifestyle that can promote a sense of inner fulfillment. Only then will you be able to operate in order to be successful in this market and you will have the opportunity to earn money.

Guide to Build a Trading Strategy Part II

2011-08-28T20:19:00.000-03:00

The second important step in building a trading strategy is to calculate in an exact way the exit from the market. After entering a position, you should already have an exit strategy. The decision to exit a position may include variables such as duration, or if you do not want to stay in one position for more than 2 days regardless of whether you are in a position of profit or loss.

Their exit strategy may also be the basic price, ie the decision to close a position when you reach a certain level of profit or loss. But you can also use a combination of the two criteria mentioned above. And 'possible to implement other exit strategies, including those based on the use of technical and fundamental indicators, but the important thing to keep in mind is that an exit strategy should always be considered before entering a position .

In forex you can not put into practice improvisation, the goal is not to constantly invent and reinvent the role of traders and positions. If the goal is to become an expert trader in the currency market, you need to make a precise operational plan before entering the market and devote to it, according to what the plan says. In this way you will be on track to achieve the goal of profit.

When does Forex is also important to establish the right to use leverage. The lever is undoubtedly a fundamental part of any successful trading system. Knowing how to use leverage can make the difference between the gain or loss. The level of leverage that you want to use must always be predetermined before entering the position, it is essential to know better what to do at any time.

Guide to Build a Trading Strategy Part I

2011-08-25T02:58:00.001-03:00

To trade the foreign exchange market is an important thing if you want to earn money. Credibility is undoubtedly the most precious resource of a market, but how do you ensure the credibility and success in the Forex market? With the development of a winning strategy el'attenersi to it. Let's see how we can accomplish this task going to explore 3 easy steps in this and future articles.

A trading system is a simple way to say how does a trader to decide when to enter or exit the market when, how much leverage should be used for each exchange, and as it does take a whole series of decisions that are related to the exchange. There are 3 elements that are part of a successful business. The lever is a key component, as we are also the timing of entry and exit from the market. These three elements are those that must be considered when looking at the quality of a trading system.

The quality system must also be reflected by the amount of time a professional trader is willing to commit themselves to your operating system. For example, if you are usually available from 08:00 to 16:00, then it is logical to develop a system that makes you enter the market from 02:00 to 6:00. We must therefore choose carefully the time you are willing to engage in the market, as this will affect the quality of exchanges.

Needless to say, there are many traders who spend almost 24 hours a day at the computer for fear of losing a great movement of currencies. This is not what it means to be a successful trader. If you have so much time at the computer, you may lose concentration and do not go well in the market, with consequent loss of money.

We are on the brink of another recession?

2011-08-19T19:38:00.000-03:00

Europe and America are on the brink of recession, according to the bank Morgan Stanley. In a research note titled, rather disturbing, the investment bank means that next year the global growth forecasts are still for almost all major economies, not only in the Eurozone or the U.S. but also China and 'India.

In a sense, this analysis is absolutely right, because the world economy is facing the prospect of a new downturn, perhaps it could be worse than the first. And 'know that the crisis is not over in 2008, given that bank loans have been transferred over time, leading a much larger crisis. It 'also known that the major economies of the world can slow down again.

But we must consider that the prospects for growth around the world are far from equal with each other. To understand why, we need to look at the data of growth of money. These statistics measure the amount of money that revolves around an economy. The Bank of England checks these statistics and economic theory says that there is a direct relationship between monetary growth and the increase in GDP. So if you look at the rate of monetary growth, the study shows that the real problem is not in Europe, but in the U.S..

Yet, despite the economic crisis, the European Central Bank has decided to raise interest rates twice in the 2011, putting new pressure on people. The decision to raise rates this year was, according to many, one of the most egregious errors of monetary policy in recent decades.

Britain will face further phases of the storm, but so far, remains the country that is better than anyone. Borrowing costs remain low, the economy is expanding, albeit slowly, and it is believed that Britain is one of the few countries not on the brink of recession.

Currency Analysis for August 19, 2011

2011-08-19T07:55:00.001-03:00

EUR / USD

This currency pair has so far registered a decline for the day today we see the opening of a new long position if the price were to break the rising share of 1.4350, with the primary objective, and 1,437 share as a second objective part 1439. If the price falls to 1.4245 share to break downward, then we could open a short position with the first goal at a height of 1.4230 and 1.4210 share for the second goal.

EUR / GBP

Long route for this cross currency, the pound is gaining more strength. For this meeting as we open a position in the purchase if the value of the exchange rate should break the rising share of 0.8750, setting a first target share and 0.8770 share of 0.8780 as the second goal. If the price of this exchange ratio of 0.8650 share should break downward, we could open a short position with the first goal at a height of 0.8630 and 0.8620 share for the second goal.

USD / JPY

For today's session about this exchange ratio could open a new long position if the value of the exchange ratio would exceed the quota of 76.85 upwards, with the first goal at a height of 76.90 and 77.00 seconds at an altitude goal. If the price had yet to descend downward to break the share of 76.45 could then open a new sales position by setting the first target share of 76.30 seconds and the goal is reached at an altitude of 76.20.

GBP / USD

For today's session we open a long position in case the value should go up to break up the rising share of 1.6530, setting a first target share and 1.6550 share of 1.6570 as the second goal. If the price falls to the bottom and break the share of 1.6430, then we could open a short position with the first goal at a height of 1.6420 and 1.6410 share for the second goal.

The price of gold continues to rise

2011-08-18T21:58:00.000-03:00

The price of gold futures rose to a record high for the second consecutive day after the costs of the wholesale sector of the United States rose more than expected in July, boosting demand for precious metals as a hedge against inflation.

The index of producer prices gained 0.2 percent last month, according to the Labor Department said. Economists predicted an increase of 0.1 percent. From the standpoint of currencies, instead, the dollar fell to 0.8 percent against a basket of six currencies. From all this it earns gold, which also yesterday reported a rise in its value, for a total of 26 percent this year, reaching an intraday high of 1,817.60 dollars an ounce on 11 August.

According to the history of inflation is returning, with the weak dollar which helps increase the value of gold.

Remaining currencies on the speech, but moving in Europe, German Chancellor Angela Merkel and French President Nicolas Sarkozy has rejected an extension of the rescue fund Poer the euro area, while the Swiss central bank said it will take further measures if necessary to counter the strength of the Swiss currency.

Here, among all these statements, the gold remains the most attractive assets in the short term, considering that the uncertainty about the future of the euro zone will not end anytime soon.

And 'historically known fact that when the currencies go wrong the price of gold rises, as the yellow metal is seen as a safe haven, so the only way to save their capital in case things turn start to go wrong. If the dollar and the euro should therefore continue to have difficulties in the coming weeks and months to come, it is very likely that the price of the yellow metal rises again.

Currency Analysis for August 18, 2011

2011-08-18T14:56:00.000-03:00

EUR / USD

For today's the day we might consider opening a location in buying if the exchange ratio would go up and exceed the rising share of 1.4450, with the first goal at a height of 1.4470 and 1.4490 share for the second goal. If the price of this cross should continue to go down to break down the share of 1.4350, we could open a new sales position by fixing the first goal at a height of 1.4330 and 1.4310 share for the second goal.

EUR / GBP

For today's session we could open a new long position, in the purchase, if the value of the exchange rate should break the rising share of 0.8780, setting the first goal to achieve the price target at 0.8790 and the second value is reached 0.8800. If the exchange ratio of 0.8690 should break the price, we could open a new sales position by fixing the first goal at a height of 0.8680 and 0.8670 share for the second goal.

USD / JPY

For today's session we open a long position if the price of the exchange rate between U.S. dollar and Japanese yen were to overcome the rising share of 76.80, placing the first goal at a height of 76.90 and 77.00 seconds at an altitude goal. If the price of this break exchange ratio would fall below the quota of 76.35, we could open a new short position with the first goal at a height of 76.20 and the second target at an altitude of 76.10.

GBP / USD

With regard to this relationship of currencies, for the session today we open a long position if the price were to break the rising share of 1.65950, setting the first goal at a height of 1.6620 and 1.6640 share for the second goal. If the price were to fall below the break of 1.6395 share, we open a position for sale by fixing the first goal at a height of 1.6380 as the second goal and the share of 1.6360.

Technical Currency Analysis With Fibonacci

2011-08-17T23:25:00.002-03:00

Fibonacci tools special relationships that occur naturally in nature to help predict the points of support or resistance. Fibonacci numbers are 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. The order is determined by adding the previous two numbers (ie 1 +1 = 2 produced, 2 +3 = 5) The primary relationship used in 0618, this is by a Fibonacci number in the next number in the Fibonacci sequence (55/89 = 0.618) scores. The logic used by traders Fibonacci base, such as the Fibonacci numbers are the creations of nature and nature in stocks, futures and foreign exchange markets - people. Therefore, the Fibonacci sequence to the financial markets will be applied. Fibonacci There are many tools used by traders, including fibonacci retracement, fibonacci Arcs, fibonacci fans,fibonacci time extensions.

Undoubtedly the most frequently used instrument is the Fibonacci retracement. To calculate the Fibonacci retracement levels, a significant decrease, and maximum is important. From there, the prices on the original dispute (low to high or too low) in a ratio of the Fibonacci sequence, typically 23.6%, 38.2%, 50%, 61 back, 8% and 76 , falling 4%.

The examples in this section, the S & P 500 Depository Receipts (SPY) according to the logic of the S & P 500 is a measure of human nature is to be used should also be applied to the Fibonacci sequence very well. However, the Fibonacci sequence on individual stocks, commodities and foreign exchange currency pairs are used quite regularly. The table above shows the decline of 38.2%, which acts as a support to prices.

Note that a trend line is a significant decline (of trend) lead to a significantly high (end of the trend), trading software calculates the retracement levels.

Note down in the S & P 500, the price retracement level of 23.6% was recovered and then rotated quickly. Later, after the break of the resistance a few months, the decline was from 23.6% to support. Price to the level of 50% retracement, when met with resistance. Price remains between retracement level of 38.2% (which serves as a carrier) and the level of 50% retracement (which acts as resistance) vary.

Fitch affirms the ranking U.S. AAA

2011-08-17T16:01:00.006-03:00

Fitch Ratings, one of the best known rating agencies in the world, has confirmed the AAA rating for the United States, saying that the outlook is stable, citing the role that the nation has the global financial system. Standard & Poor's, however, on Aug. 5 had cut the credit rating of the United States, from AAA to AA +, citing the fact that legislators have failed to cut spending in an important enough to reduce the record deficits.

Since S & P has downgraded the U.S., the yield on the 10-year benchmark for everything from mortgages to auto loans, fell to its lowest ever, 2.03 percent, up from of 3.77 percent reached this year.

According to Fitch, however, the United States could be assigned a negative outlook, indicating more than 50 percent chance the nation will be downgraded in the next two years. In order for this to happen, though, you should have a weak economic growth, or there should be the failure of Congress to launch the plan in denominations of 1,200 billion U.S. dollars of which the Congress itself had already granted.

U.S. government debt is outstanding, rose to 9.4 trillion dollars from 4.34 trillion dollars in mid 2007, when the government borrowed money to save the banking system and bring the economy out of recession. The United States has gone from having the average budget surplus of 139.7 billion dollars, from 1998 to 2001, to a deficit of 1,290 billion dollars last year, according to figures that were shown.

Fitch also expects that public ownership of federal debt will stabilize at 85 percent of gross domestic product and gross public debt will be by 105 percent, more than any other country that has a AAA ranking.

Analysis of the Currency August 17, 2011

2011-08-17T13:59:00.009-03:00

EUR / USD

Continues to move sideways for this exchange ratio, for the session today we might consider opening a location in the same purchase if the value exceeds the rising price of 1.4440, 1.4460, and share with the first goal with a second objective part 1.4480. If the price of the exchange ratio should break down the value of 1.4360, then we could open a short position with the first target 1.4340 and 1.4330 second goal.

EUR / GBP

For the trading day today we open a new long position if the price were to break the rising share of 0.8780, setting the first goal at a height of 0.8810 and 0.8830 share for the second goal. If the price of this exchange ratio would rather break the downward the share of 0.8740, then we could open a new short position by placing the primary objective of the share as 0.8720 and 0.8700 share of the second objective.

USD / JPY

Regarding the value of this currency could open a long position if you go up to break the rising share of 76.80, with the first goal at a height of 76.70 and 76.80 seconds at an altitude goal. If the price of this break exchange ratio would fall below the quota of 76.60, then we could open a new location for sale with the first goal and second goal share 76.50 76.40 fee.

GBP / USD

For this exchange ratio could predict the opening of a new long position if the price were to break the rising share of 1.6480, 1.6490, and share with the first goal with a second objective part 1.6500. If the price were to break downward the value of 1.6385, then we could open a short position with the first goal and second goal share 1.6360 1.6340 share.

European Central Bank continues buying, but until when?

2011-08-17T11:58:00.006-03:00

The last count of the cost to be incurred to save the euro area has come from the immediate collapse, 22 billion euros. This is what the European Central Bank has spent the week ended August 9 last year for the purchase of government securities of euro area countries. The ECB has succeeded in its primary aim of calming the market, but the biggest question is whether and when the ECB will stop buying.

The ECB has so far purchased a lot. The Italian and Spanish titles in 10 years have yields that are about 5%, below the rate of 6% threat that sparked panic in early August. But the stakes are higher than before. The previous purchases were aimed at relatively small markets such as Greece, Ireland and Portugal. The ECB will need to spend more money to buy the Spanish and Italian titles.

It is not clear how the ECB can spend. In the worst case, the estimates of some analysts suggest several hundred billion euros. The real test for the European Central Bank could take place when Spain and Italy were to resume the sale of their debt in late August and early September. While the ECB is trying to finance purchases with the European Financial Stability Fund, may still be forced to support the market for longer and with greater quantities than they had expected.

Meanwhile, the clamor of bonds linked to euro area as a way out of this crisis is growing. Rescue operation for the ECB shows the need to find a solution that is permanent. Accumulate a growing number of bonds at the ECB will only el'EFSF that investors still lack confidence in the finances of the eurozone.

China aims to stabilize inflation

2011-08-16T13:37:00.005-03:00

China has recently returned to the forefront of the news for having invited both the U.S. and Europe to review and correct their own debt. The People's Bank of China also stated that it will continue with its policy of price stabilization, as this is a top priority. Also one of the things that the Chinese central bank set as a goal in the coming months is to support the country's economic growth. Based on the national economic situation and international, the Chinese central bank will work to make its monetary policy more focused, flexible and forward looking.

The Chinese central bank will use various monetary instruments, including the management of interest rate, exchange rates and open market operations to control liquidity and to maintain the country's finance office, to a reasonable level. To manage inflationary expectations, the bank will aim to use the correct monetary policy, namely the rate of interest, with which you can control the demand for capital investment and savings.

Meanwhile, China said it would increase efforts to promote the country's credit facility, including a strengthening of the agricultural sector and small and medium-sized enterprises, which are the basis of the country. In addition there will be some very strong guidance to the market, with the exchange rate reform and improve the formation mechanism of the yuan in order to add flexibility.

The country is still going well, as the index of consumer prices, which is an indicator of inflation, was 6.5 percent in July, well above the government target, fixed at 4 percent. The situation seems to favor the growth of the Chinese economy.

Why so much on Forex Scalping

2011-08-16T09:32:00.002-03:00

Making the foreign exchange market scalping is a tactic that most traders try, sooner or later. This mode of operation leads to small gains, typically up to a maximum of 3 times the spread, in a short period of time, which could be several minutes or less. It is often seen as a risky strategy. Other times it is described as one of the strategies by which more difficult to earn money. But is it true?

One problem with scalping is that many brokers do not like, for two reasons. The first is that according to their business model may not be able to cover the position on the market before the scalpers close the transaction, leaving the broker with a loss. The second reason is that many traders in the past have developed strategies for scalping within the spread, which prevent the broker to earn the full amount of the spread the same on every single transaction.

One of the reasons why a broker can close the accounts of traders scalping is when they do, especially if you are making a profit. So, first thing, be sure that your broker will allow you to scalping. Otherwise, you may need to find a new broker with which to operate. In addition, other problems are inherent to the characteristics of short-term scalping.

The scalping strategy is attractive to novice traders, because of the speed with which transactions are made. Most novice forex are anxious if they leave a position open for an extended period. I do not usually like to leave a position open for more than a few minutes or even overnight. They feel they have more control on the market if you close the positions very quickly. Instead, you must make decisions very quickly, but do not sit all day in front of the computer to control them.

Another reason why scalping is attractive to traders is the ability to make instant profits. Attention to the risks, however, given that the scalper uses leverage to the maximum, and this is risky.

Briefly About Currencies

2011-08-15T21:30:00.000-03:00

Major currencies during the week just ended, they went out for a gain of refuge currency status by the British pound. With the economic situation in the U.S. and Europe is in crisis, the British currency is considered the safest among the other two, although to be fair it must be said that the economic situation in the United Kingdom is not of the most peaceful.

Regarding the exchange rate EUR USD, we have seen high volatility, which has pulled this currency peaks and lows of 1.4420 1.4120, 300 pips difference well. During the next week we expect a more volatile performance, since markets have not yet made a precise definition. For those who want to invest money in this exchange ratio, you must wait before confirmation.

The British pound has lost significantly against the U.S. dollar, breaking even decreasing the proportion of 1.6100. For the next week our graphs tell us that this exchange ratio may continue in this direction, even if at the end of the week we saw a partial recovery of the British currency. In any case wait for confirmation before acting.

Instead the dollar has lost ground against the Japanese yen, reaching an altitude of below 76.00, a clear sign that the Japanese government's intervention in an attempt to lose its strength to its currency has not yielded the desired results. For the next week we could see, however, a slight recovery of the U.S. dollar.

The exchange rate between the euro and British pound has seen our share of currency touched 0.8870, before falling again. Next week we might even see a trend in favor of the British pound, but before opening of the new positions are waiting for confirmation. But the fact that the situation in the euro zone's scary to investors could favor the exchange ratio to a decline.

USA, the super committee is ready

2011-08-12T14:18:00.002-03:00

The representative of the U.S. House, Nancy Pelosi, has appointed three people to join the "supercommittee" wanted by Obama, who has the task of finding at least 1,200 billion dollars in ten years. Democrat Pelosi appointed as a representative James Clyburn, Xavier Becerra and Chris Van Hollen.

The task of the Committee shall be to raise the prosperity of the country, which will then reflecting the prosperity of all Americans will enjoy. Pelosi said in a statement which called for a focus on economic growth and the creation of new jobs in order to reduce the deficit.

Inltre that this Committee should make decisions on investment, spending cuts and revenue increases in the reeds so as to stimulate growth while reducing the deficit. The Republicans have vowed to reject any tax increase and said that any increase in revenues resulting from revisions to the tax code should be offset by other cuts, while Democratic leaders have pushed to increase taxes on the rich and government-backed companies. The goal is to make a grand bargain that would reduce the frightening deficits when the country is in these moments, while strengthening Medicare, Medicaid and Social Security. The goal is really important, and we must work hard.

The United States is still in a critical situation, having lost the Triple A for the first time in their history. The key thing, to ensure the welfare in the long run, it is economic growth. This necessarily entails also an increase in jobs and a reduction in expenditure. But the question is one that keeps unemployment in check, according to economists and industry experts, the country.

Analysis of the Currency August 12, 2011

2011-08-12T12:04:00.001-03:00

EUR / USD

For the day today in relation to this cross currencies might consider opening a new long position if the price of the exchange ratio should break upward 1.4275, with the first goal at a height of 1.4290 and 1.4300 share for the second goal. Should the price rather than decreasing the share of 1.4130, then we could open a short position with the first goal at a height of 1.4120 and 1.4110 second goal.

EUR / GBP

For today's session we might consider opening a location where the purchase value of the exchange ratio of 0.8780 should break upward, staring as the first objective the achievement of quota and 0.8810 as the second objective, the share of 0.8830. If the price of this exchange ratio would fall below the value of 0.8720, then we could open a short position by setting a first target 0.8710 and 0.8700 as the second goal.

USD / JPY

For the trading day today we open a position in the purchase if the value of the exchange ratio would exceed the rise in the share of 77.05, setting the first target value of 77.15 and the second objective value of 77.30. If the price of this exchange ratio should break the downward part 76.50, we could open a downward position by placing first goal as a share of 76.40 and 76.20 second objective part.

GBP / USD

In today's session we could open a new long position if the value of the exchange ratio should break upward the value of 1.6245, with our first goal at a height of 1.6260 and 1.6280 share for the second goal. If the price of this exchange ratio would rather break the downward the share of 1.6195, then we could open a position in sales as our first goal by setting the share of 1.6180 and as our second objective, the share of 1.6160.

The price of gold rises, the EU area is scary

2011-08-11T17:18:00.000-03:00

The Gold Rush marked the movement of the whole community of global investors, with prices of yellow metal, which rose to just under $ 1,800 for ounce on fears that France could lose its rating level. Gold is regarded as a safe haven, since it is a hedge against the economic and political risks because it tends to retain its value better than stocks or other assets.

French President Nicolas Sarkozy has interrupted a vacation to hold a cabinet meeting unscheduled where the government has said it would consider tax increases, spending cuts and other fiscal measures to support the country's fiscal position.

But concerns remain that the European financial system. If he will still have other problems of sovereign debt, which are initiated by small economies such as Greece and Ireland, the same could also spread in the major economies such as Spain, Italy and France.

Greece is smaller than Italy, Spain and France. The main reason why there is an increase in the gold price is because of the nervousness caused by Europe. People are trying to preserve their wealth and do not see many other options except gold.

Gold was also a record during the last week, before and after the U.S. reached an agreement last minute to increase their debt ceiling, then even after the unprecedented decision taken by Standard & Poor's of to downgrade the U.S. debt. However, while gold prices are rising fast, the risk of a sharp pullback is increasing. For this reason, should be careful who wants to invest in yellow metal in the coming weeks, as you might find to buy at the wrong time.

Analysis of the Currency August 10, 2011

2011-08-11T15:03:00.001-03:00

EUR / USD

For today's the day we might consider opening a new long position if the price were to break the rising share of 1.4410, with the primary objective of reaching an altitude of 1.4430 as the second goal and the achievement of 1.4450 share. If the price of this exchange ratio would have to overcome the downward the share of 1.4205, then we could open a new short position with the first goal at a height of 1.4180 and 1.4160 share for the second goal.

EUR / GBP

For today's session for this exchange ratio could open a long position if the price were to break upward 0.8850 share, setting a first target share and 0.8870 share of 0.8890 as the second goal. If the price of this exchange ratio exceeds 0.8750 share down, then we could open a short position as the first goal setting and how to share 0.8730 0.8710 share of the second goal.

USD / JPY

For today's the day we might consider opening a new long position if the price exceeds the exchange ratio up 77.20 share, with the first goal at a height of 77.40 and 77.60 seconds at an altitude goal. If the price exceeds this cross down 76.50 fee, we could open a short position with the first goal and second goal share 76.30 76.10 fee.

GBP / USD

The pound is gaining in the beginning of this week, for this meeting as we might think of opening a long position if the price were to break upward the value of 1.6380, setting a first target share and 1.6400 share of 1.6420 as the second goal. Should the price instead of breaking the support level at 1.6180 share, then we could open a new short position with the first target 1.6170 and 1.6160 second goal.