Forex Currency Trading Systems

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

2012-01-29T15:14:00.000-08:00

Today#8217;s support: - 1.2949 and 1.2874(main), where correction is possible. Break would give 1.2846, where correction also may be. Then follows 1.2822. Break of the latter would result in 1.2777. If a strong impulse, we would see 1.2758. ......

KBC: Market no longer bets on rate cuts in Poland in 2012. Polish economy grew by 4.3 % in 2011

2012-01-29T07:14:00.000-08:00

Central European currencies firmed again on Thursday. The Polish zloty extended its winning streak and strengthened against the single currency in a fourth consecutive session. The zloty posted gains in 15 of 19 sessions so far this year and the EUR/PLN c...

European Market Update: EU's Rehn expresses optimism of a Greek PSI at some point before the weekend is over

2012-01-28T23:14:00.000-08:00

***Economic Data*** - (EU) ECB: #8364; borrowed in overnight loan facility v #8364;3.5B prior; #8364; parked in deposit facility vs. #8364;484.1B prior - (RU) Russia Narrow Money Supply w/e Jan 23rd (RUB) 6.80T v 6.83T prior - (IN) India ......

The IG Index Insight Feature - A Useful Tool Or Not?

2012-01-28T15:14:00.000-08:00

Asian Market Update: Markets tumble on EU downgrades, Australia home loans climb for the 8th month

2012-01-28T07:14:00.000-08:00

Asian equity markets traded to the downside after the SP cut several EU sovereign ratings on Friday. On renewed risk aversion saw the the dollar gain against all the majors, seeing the biggest gains against the A$. Euro held steady down 0.3% to the $1.26...

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

2012-01-27T23:14:00.000-08:00

Today#8217;s support: - 1.2600(main), where correction is possible. Break would give 1.2585, where correction also may be. Then follows 1.2556. Break of the latter would result in 1.2528. If a strong impulse, we would see 1.2509. Continuation will ......

KBC: CEE currencies reverse gains after series of rating cuts acrross eurozone Hungarian

2012-01-27T15:14:00.000-08:00

Hungarian talks with the IMF and EU reached stalemate as international lenders seem to keep a firm stance towards Budapest. According to comments after the meeting of Tamas Fellegi, Hungarian negotiator, and Christine Lagarde, IMF chief, there are several...

US Market Update: US equity Markets closed for Federal holiday

2012-01-27T07:14:00.000-08:00

- (PE) Peru Dec Unemployment Rate: 7.0% v 7.0% prior - (PE) Peru Nov GDP Y/Y: 5.0% v 4.7%e - (BE) Belgium Nov Trade Balance: -#8364;679.5M v #8364;207.4M prior......

DAILY FOREX AND DOW JONES RECOMMENDED LEVELS

2012-01-26T23:14:00.000-08:00

KBC: EC set to unveil details of infringement action against Hungary

2012-01-26T15:14:00.000-08:00

The Polish zloty outperformed its peers on Monday and slightly strengthened whereas the forint and the koruna posted some losses. Jerzy Hausner, the NBP#8217;s Monetary Policy Council member, said in the morning that the central bank should leave ......

European Market Update: Risk appetite finds footing aided by China GDP data and German ZEW survey

2012-01-26T07:14:00.000-08:00

European shares recovered their losses taking cue from Asian trading even after China's data showed economic slowing. As expected, SP downgraded EFSF rating to AA+, an action which did not move markets. However, German ZEW data was the highest ......

Why You Should Stop Trading The USD/JPY Pair In 2012

2012-01-25T23:14:00.000-08:00

I stopped trading the USD/JPY last year because it was proving to be very difficult and the big price swings were becoming less and less frequent. Well the bad news is that it seems to have got even worse in 2012, and the USD/JPY pair looks as if it is on a life support machine at the moment.
For this reason I don't think anyone should be trading the USD/JPY pair at the moment. The price movements are just too small to make any real money from.
To demonstrate this point, just look at the weekly chart of the average true range (as indicated by the ATR indicator) of the USD/JPY pair since 2009.

You can see that the average weekly range was around 430 points just prior to 2009, and since then it has fallen lower and lower, and now stands at a pitiful 117 points. Remember this is not 117 points a day, this is 117 points a week!
Furthermore on a daily basis, the story is equally as bleak. The average daily trading range has often been in the 50-60 points region, and sometimes more, but it has dropped off sharply to what must be close to an all-time low of just 31 points. Day trading is hard at the best of times, but trying to squeeze out a decent profit when the USD/JPY pair only moves within a 31 point range every day is near on impossible.
So as I say, I really don't believe it is worth trading the USD/JPY pair at the moment. Unless the daily ATR indicator returns to 50 or 60 points, it is probably best to concentrate on the other major currency pairs instead, such as the GBP/USD and EUR/USD pairs for example.

Filed under Blog by JamesW
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Permalink• Print• Email• CommentRelated EntriesThe Current Trading Range Of The GBP/USD And EUR/USD PairsA Review Of The Forex Markets In 20113 Ways You Can Use The Average True Range (ATR) IndicatorThe Average True Range (ATR) Technical IndicatorThe Average Daily Range Of The Major Forex Currency Pairs2 Comments on »January 11, 2012FXRebates@ 7:36 pm:
I was already avoiding this pair in the end of 2011 and stopped trading it completely at the end of the year.
Permalink• Reply January 12, 2012frank page@ 3:02 am:
Hi James!
Happy New Year! The usd/jpy is just one of many pairs not suitable for trading right now. I monitor the 8 major currencies which gives me 28 currency pairs. Using my currency strength meter (as a filter) shows the the usd.jpy to be wkly +2, daily +3 right now. I will not trade any pair with a reading less than 8 (actually prefer +10!). So yes the usd.jpy is out for now. Tip: try eur/nzd (dly 14), nzd/chf, eur/aud (all above 10!. Trading as above is a very safe way to trade but requires some practise.

U.S. Trade Deficit Widens To $47.8 Billion In November

2012-01-25T15:14:00.000-08:00

" /> 01/13/2012 08:34
Reversing a drop in October, the U.S. trade deficit increased notably in November, according to figures released Friday by the Commerce Department.
U.S. exports fell by 0.9 percent to a level of $177.8 billion while imports were up 1.3 percent to a level of $225.6 billion, according to the report.
That put the trade deficit at $47.8 billion, a 10.4 percent increase from October's revised level of $43.3 billion - little changed from the $43.5 billion initially reported.
Most economists had predicted that October's narrowing of the deficit would be reversed but had generally forecast that the deficit would come in lower, at roughly $45 billion.
Reversing a drop in October, the U.S. trade deficit increased notably in November, according to figures released Friday by the Commerce Department.U.S. exports fell by 0.9 percent to a level of $177.8 billion while imports were up 1.3 percent to a level of $225.6 billion, according to the report. (Market News Provided by RTTNews)

U.S. Import Prices Edge Down Amid Drop In Fuel Import Prices

2012-01-25T07:14:00.000-08:00

" /> 01/13/2012 08:41
With prices for U.S. fuel imports pulling back in December after showing a sharp increase in the previous month, the Labor Department released a report on Friday showing a modest drop in overall import prices. Export prices also fell during the month due to a notable decrease in prices for agricultural exports.
The Labor Department said imports prices edged down by 0.1 percent in December after rising by an upwardly revised 0.8 percent in November. The drop was largely due to a 0.5 percent decrease in prices for fuel imports.
Additionally, the report showed that export prices fell by 0.5 percent in December following a 0.1 percent increase in November.
With prices for U.S. fuel imports pulling back in December after showing a sharp increase in the previous month, the Labor Department released a report on Friday showing a modest drop in overall import prices. Export prices also fell during the month due to a notable decrease in prices for agricultural exports. (Market

Canada Records Surprise Trade Surplus As Exports Surge

2012-01-24T23:14:00.000-08:00

" /> 01/13/2012 08:42
Surging exports helped Canada record an unexpected trade surplus in November, official data showed Friday morning.
The value of Canada's merchandise exports increased 3.2 percent on higher prices and volumes, while imports declined 0.8 percent, according to Statistics Canada.
As a result, Canada's trade balance with the world went from a deficit of C$487 million in October to a surplus of C$1.1 billion in November.
Exports rose to C$40.1 billion, as car manufacturers shipped out more automobiles and higher prices were paid for energy products.
Exports of energy products increased 6.4 percent to C$10.0 billion in November, as prices increased 6.3 percent.
Conversely, imports declined to C$39.0 billion, as both volumes and prices fell. Imports of automotive products declined 4.4 percent to C$5.7 billion in November, as volumes fell 4.0 percent.
Exports to the United States rose 1.9 percent to C$28.6 billion, on the strength of energy products. Perhaps most surprisingly, Canadian shipments to the European Union were strong despite the region's sovereign debt crisis.
(

Poland Dec. Inflation Slightly Below Expectations

2012-01-24T15:14:00.000-08:00

" /> 01/13/2012 08:45
Poland's consumer price inflation came in slightly below economists' expectations in December, data released by the statistical office showed Friday.
The consumer price index increased 4.6 percent on an annual basis in December, slower than the 4.7 percent growth economists expected.
Consumer prices of food and soft drinks rose 4.7 percent annually, while housing costs moved up 6 percent. There was a 9 percent annual growth in transportation costs, and a 2.1 percent decrease in clothing and footwear prices in December.
Month-on-month, consumer prices moved up 0.4 percent in December, faster than the 0.3 percent rise economists expected. Inflation in the whole of 2011 was 4.3 percent.

U.S. Trade Deficit Widens Much More Than Expected In November

2012-01-24T07:14:00.000-08:00

" /> 01/13/2012 09:20
Reversing a drop in October, the U.S. trade deficit saw a notable increase in November, according to figures released Friday by the Commerce Department.
U.S. exports fell by 0.9 percent to a level of $177.8 billion, while imports rose by 1.3 percent to a level of $225.6 billion, according to the report.
That put the trade deficit at $47.8 billion, a 10.4 percent increase from October's revised level of $43.3 billion - little changed from the $43.5 billion initially reported.
Most economists had predicted that October's narrowing of the deficit would be reversed but had generally forecast that the deficit would come in lower, at roughly $45 billion.
Paul Dales, Senior U.S. Economist at Capital Economics, said the notably wider deficit is "perhaps the first real sign that the crisis in Europe and the more general global slowdown is starting to take its toll on the U.S."
"The combination of a fairly deep euro-zone recession and a slowdown in activity in Asia means U.S. exports will grow only modestly this year and the trade deficit will probably continue to widen," he added.
The widening trade gap was largely driven by a $4.6 billion increase in the deficit between imports and exports of goods but slightly offset by a $100 million increase in the services surplus.
The November figures showed slowing exports of industrial supplies, capital goods, automotive supplies and agricultural goods, while imports of industrial supplies, autos and capital goods increased.
Those figures were somewhat offset by an increase in exports of consumer goods and a decrease in imports of foods, feeds and beverages.
The trade deficit with China fell somewhat in November to $26.9 billion from the October level of $28.1 billion. The decrease was driven in part by U.S. exports to China, which at $9.9 billion, were the highest since December of 2010.
The deficit in trade between the U.S. and the European Union increased to $9.7 billion from the October level of $8 billion, with the deficit with Germany of $4.7 billion marking the highest level since October of 2005.
The November increase in the average price of crude oil, the first increase after five months of falling prices, likely contributed to the increase in the deficit between the U.S. and OPEC nations, which rose to $9.1 billion in November from $8.3 billion in October.
The U.S. continued to post trade surpluses with Hong Kong, Australia, Singapore and Egypt, though the surpluses with Australia and Egypt were somewhat smaller in November than in October.
U.S. trade deficits also grew with Mexico and Nigeria.
The U.S. economy also recorded a slowdown in exports of advanced technology, resulting in a $10.7 billion deficit, the highest on record for that sector, according to the Commerce Department.
Reversing a drop in October, the U.S. trade deficit saw a notable increase in November, according to figures released Friday by the Commerce Department.U.S. exports fell by 0.9 percent to a level of $177.8 billion, while imports rose by 1.3 percent to a level of $225.6 billion, according to the report.That put the trade deficit at $47.8 billion, a 10.4 percent increase from October's revised level of $43.3 billion

U.S. Import Prices Edge Down 0.1% In December

2012-01-23T23:14:00.000-08:00

" /> 01/13/2012 09:25
With prices for U.S. fuel imports pulling back in December after showing a sharp increase in the previous month, the Labor Department released a report on Friday showing a modest drop in overall import prices. Export prices also fell during the month due in part to a notable decrease in prices for agricultural exports.
The Labor Department said imports prices edged down by 0.1 percent in December after rising by an upwardly revised 0.8 percent in November.
The drop was largely due to a 0.5 percent decrease in prices for fuel imports, which moved back to the downside after jumping by 3.7 percent in the previous month.
Excluding the decrease in prices for fuel imports, import prices inched up by 0.1 percent in December compared to a 0.2 percent drop in November.
The modest increase in prices for non-fuel imports reflected higher prices for each of the major finished goods categories.
Additionally, the report showed that export prices fell by 0.5 percent in December following a 0.1 percent increase in November.
Prices for agricultural exports showed a significant decrease during the month, falling by 2.6 percent after climbing by 1.7 percent in the previous month.
Non-agricultural exports prices fell by 0.2 percent in December, matching the decrease seen in November. The drop reflected lower prices for non-agricultural supplies and materials.
Compared to the same month a year ago, import prices were up by 8.5 percent in December, while export prices were up by 3.6 percent.
With prices for U.S. fuel imports pulling back in December after showing a sharp increase in the previous month, the Labor Department released a report on Friday showing a modest drop in overall import prices. Export prices also fell during the month due in part to a notable decrease in prices for agricultural exports.The Labor Department said imports prices edged down by 0.1 percent in December after rising by an upwardly revised 0.8 percent in November.

Euro Tumbles Below $1.27 On Talk Of Imminent Downgrades

2012-01-23T15:14:00.000-08:00

" /> 01/13/2012 10:03
The euro was under renewed pressure on Friday, amid reports suggesting that ratings agency S&P will downgrade a number of euro zone nations, including France and Germany.
Multiple sources say that the ratings agency will make the move later today, ahead of the three-day weekend in the U.S.
In December, S&P put 15 countries in the single currency bloc on negative creditwatch, citing concerns about "deepening political, financial and monetary problems with the European economic and monetary union."
In the meantime, Italy successfully sold EUR 4.75 billion of debt in its first bond auction of the year on Friday, meeting the maximum target set for the sale and at a lower cost.
The euro slipped below $1.27 versus the buck, nearing Tuesday's 16-month low of $1.2661.
Reversing a drop in October, the U.S. trade deficit saw a notable increase in November, according to figures released Friday by the Commerce Department.
U.S. exports fell by 0.9 percent to a level of $177.8 billion, while imports rose by 1.3 percent to a level of $225.6 billion, according to the report.
That put the trade deficit at $47.8 billion, a 10.4 percent increase from October's revised level of $43.3 billion.
The euro slid back below GBP 0.83 versus the sterling, and dropped to Y97.80 from near Y99 versus the yen.
Eurozone's merchandise trade surplus increased significantly in November, data released by statistical office Eurostat showed Friday.
The trade surplus increased to EUR6.9 billion in November from EUR1 billion in October. In November 2010, the trade balance was a deficit of EUR2.3 billion.

U.S. Consumer Sentiment Jumps To Eight-Month High In January

2012-01-23T07:14:00.000-08:00

" /> 01/13/2012 10:39
Consumer sentiment in the U.S. has seen a significant improvement in the month of January, according to a report released by Reuters and the University of Michigan on Friday, with the consumer sentiment index rising by much more than anticipated.
The report showed that the consumer sentiment index jumped to 74.0 in January from the final December reading of 69.9. Economists had been expecting the index to edge up to a reading of 71.5.
With the much bigger than expected increase, the consumer sentiment index reached its highest level since coming in at 74.3 last May.
Jennifer Lee, senior economist with BMO Capital Markets, said, "The University of Michigan's consumer sentiment index showed that American consumers walked with their heads held up a little higher at the start of 2012."
"It certainly helps that U.S. equity markets are (were) at 5-month highs, buoyed by better news on the U.S. economic front (that is, until yesterday)," she added. "But uncertainty and volatility do not help and there is still lots of that going around."
The notable increase by the headline index reflected solid gains by both the current economic conditions index and the consumer expectations index.
The current conditions index rose to 82.6 in January from 79.6 in December, while the expectations index climbed to 68.4 from 63.6.
The current conditions index advanced to its highest level since last February and the expectations index reached its best level since last May
The report also showed that one-year inflation expectations edged up to 3.2 percent from 3.1 percent, while the five-year inflation outlook inched up to 2.8 percent from 2.7 percent.
Consumer sentiment in the U.S. has seen a significant improvement in the month of January, according to a report released by Reuters and the University of Michigan on Friday, with the consumer sentiment index rising by much more than anticipated.The report showed that the consumer sentiment index jumped to 74.0 in January from the final December reading of 69.9. Economists had been expecting the index to edge up to a reading of 71.5.

Dollar Rockets To Fresh 16-Month High Versus Euro; Euro Zone Downgrades Coming

2012-01-22T23:14:00.000-08:00

" /> 01/13/2012 02:22
The dollar surged to a fresh 16-month high versus the euro on Friday, amid numerous reports suggesting that S&P will downgrade 15 euro zone nations due to exposure to Italian, Greek, and Spanish debt.
France's finance minister just confirmed that the ratings agency is lowering the French credit rating by one notch.
In December, S&P put most of the single currency bloc on negative creditwatch, citing concerns about "deepening political, financial and monetary problems with the European economic and monetary union."
"There is talk now that Italy, Spain and Portugal will get a 2 notch downgrade. If so, Italy's credit rating will be BBB+, two notches below Moody's and 3 below Fitch. Spain's would be A, one notch below Moody's and two below Fitch," said Peter Boockvar, Managing Direct at Miller Tabak. "Portugal's rating would go to BB, junk and that would put them in line with Moody's and one notch below Fitch."
The news overshadowed a slew of economic data from the U.S., including a strong reading on consumer sentiment.
The dollar rose two cents to $1.2625 versus the euro, its highest since September 2010. A successful Italian debt auction gave the euro an early boost.
The buck hit an 18-month peak of $1.5232 versus the sterling, and edged up to C$1.0240 versus Canada's loonie.
Consumer sentiment in the U.S. has seen a significant improvement in the month of January, according to a report released by Reuters and the University of Michigan on Friday, with the consumer sentiment index rising by much more than anticipated.
The report showed that the consumer sentiment index jumped to 74.0 in January from the final December reading of 69.9. Economists had been expecting the index to edge up to a reading of 71.5.
With prices for U.S. fuel imports pulling back in December after showing a sharp increase in the previous month, the Labor Department released a report on Friday showing a modest drop in overall import prices.
Export prices also fell during the month due in part to a notable decrease in prices for agricultural exports. The Labor Department said imports prices edged down by 0.1 percent in December after rising by an upwardly revised 0.8 percent in November.
Reversing a drop in October, the U.S. trade deficit saw a notable increase in November, according to figures released Friday by the Commerce Department. U.S. exports fell by 0.9 percent to a level of $177.8 billion, while imports rose by 1.3 percent to a level of $225.6 billion, according to the report.
That put the trade deficit at $47.8 billion, a 10.4 percent increase from October's revised level of $43.3 billion.
(

Italy Budget Deficit Drops To 2.7% Of GDP In Q3

2012-01-22T15:14:00.000-08:00

" /> 01/11/2012 04:28
Italy's public spending deficit decreased from last year in the third quarter, data released by statistical office Istat showed Wednesday.
Net borrowing fell to 2.7 percent of gross domestic product (GDP) in the third quarter form 3.5 percent a year earlier. In the second quarter, the public spending deficit was 3.4 percent of GDP.
Primary balance, which is debt net of interest expense, was positive and and had a 1.7 percent impact on GDP, the agency said.
In the first nine months of the year, total public spending decreased 0.3 percentage points from last year to 4.3 percent of GDP.

German Economic Growth Slows In 2011

2012-01-22T07:14:00.000-08:00

" /> 01/11/2012 04:31
German economic growth slowed in 2011 as the ongoing debt turmoil that almost pushed Eurozone to the brink of collapse last year damped exports.
The price adjusted gross domestic product, or GDP, rose 3 percent in 2011, slower than the 3.7 percent growth in 2010. This was the second consecutive expansion in national output since the economy suffered a 5.1 percent contraction in 2009 due to global financial meltdown.
Meanwhile, Destatis officials were quoted by reports as saying that the fourth quarter GDP may have dropped by around 0.25 percent. The 2011 growth estimate matched economists' forecast.
The price and calendar-adjusted GDP also recorded an annual rate of growth of 3 percent last year compared to 3.6 percent in 2010.
The contribution from foreign trade reduced in 2011 compared to the previous year. Export growth eased to 8.2 percent in 2011 from 13.7 percent in 2010, while import growth also weakened to 7.2 percent from 11.7 percent. Despite the slowdown in exports, net trade contributed 0.8 percentage points to growth.
At the same time, domestic demand, particularly household spending, contributed positively to overall output. The growth in consumer spending accelerated to 1.5 percent in 2011 from 0.6 percent the year before. Public spending grew 1.2 percent.
The GDP growth also reflected a strong upward momentum in capital formation. Gross fixed capital formation in machinery and equipment grew 8.3 percent in price-adjusted terms and in construction, it was 5.4 percent higher than a year earlier.
In 2011, the country's net borrowing amounted to EUR 26.7 billion or 1 percent of the GDP. The ratio fell below the 3 percent reference value set by the Maastricht Treaty in 2011 after exceeding it in both 2009 and 2010.
The past year was indeed turbulent for the Eurozone powerhouse, but the fallout was limited compared to other big euro members like Spain and Italy. Germany enjoys low unemployment and a resounding export sector, though weak demand has started to bite recently.
The unemployment rate hit a record low of 6.8 percent in December, according to data from the Federal Labor Agency. The Federal Statistical Office said earlier this month that the number of employed individuals reached an all-time high of 41.04 million in 2011, breaching the previous record of 2010.
Nonetheless, many of the economic indicators signal Germany is nearing a soft patch as European leaders wrestle with the debt crisis.
The growth in factory orders eased more than expected in November due to a sharp contraction in foreign demand, while the latest Purchasing Managers' survey pointed to a contraction in the German factory sector in December.
Retail sales declined in November as consumers remained reluctant to spend amid a gloomy economic outlook. Industrial output slid 0.6 percent from a month earlier during the month.
In its December monthly report, Bundesbank said the economic growth will slow notably in 2012 amid a deteriorating global outlook.
The central bank expects the economy to grow only 0.6 percent in 2012, slower than the 3 percent estimated for 2011. In 2013, the economy is seen expanding 1.8 percent. German exporters are likely to see a significant impact from slowing demand in Europe, according to the bank.
German economic growth slowed in 2011 as the ongoing debt turmoil that almost pushed Eurozone to the brink of collapse last year damped exports.

UK Trade Deficit Rises More Than Expected

2012-01-21T23:14:00.000-08:00

" /> 01/11/2012 04:44
The U.K's visible trade deficit rose more than expected in November, data from the Office for National Statistics showed Wednesday.
The deficit on seasonally adjusted trade in goods amounted to GBP 8.6 billion in November. Economists expected the deficit to rise to GBP 8.4 billion from October's GBP 7.9 billion.
Compared to October, exports of goods fell 0.4 percent and imports dropped 0.2 percent.
The UK's deficit on seasonally adjusted trade in goods and services was GBP 2.6 billion in November, compared with the deficit of GBP 1.9 billion in October.

Portuguese Inflation Eases In December

2012-01-21T15:14:00.000-08:00

" /> 01/11/2012 05:18
Portugal's annual inflation, measured under the EU methodology, slowed in December, data released by Statistics Portugal showed Wednesday.
The harmonized index of consumer prices (HICP) increased 3.5 percent year-on-year in December, in line with economists' expectations. In November, the inflation rate was 3.8 percent.
On a monthly basis, the HICP edged up 0.1 percent in December, and matched economists forecast. In November, the HICP recorded a 0.1 percent decline month-on-month.
The consumer price inflation eased to 3.62 percent in December from 3.95 percent in November. Month-on-month, consumer prices remained flat during the month, after edging down 0.1 percent in the previous month.