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UK PM Cameron warns of further consequences for Putin

2014-08-28 14:59:28 – Best Cash Back Forex Rebates : UK PM Cameron warns of further consequences for Putin
Daily Report:

Cameron also called for an immediate halt to Russian tanks crossing into Ukraine.
Separately, Ukraine says two columns of Russian military vehicles have been destroyed near Ilovaysk.

Risks of Trading Forex :
Like any trading or investment vehicle, there is a high level of financial risk in trading Forex. In particular, the increased amount of leverage offered in the Forex market means that a trader can lose all, or a large portion, of his trading capital if the market makes a significant move against the trader’s position.

Successful traders are aware of this risk, and carefully plan their trades in order to minimize the risks to their trading capital. Even with implementing risk management tools, the risks of trading Forex remain substantial.

There are also specific steps that a trader can take to minimize the risks involved in Forex trading, particularly involving safe ways to use the margin. Calculating the Risk-Reward Ratio is one of the most effective risk management tools in Forex trading. But be aware that Forex trading involves a substantial risk of losses.
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Link:

http://www.forexfactory.com/news.php?do=news&id=501789

Dollar Slips, while Bond Market Rally Continues

2014-08-27 12:40:25 – Best Cash Back Forex Rebates : Dollar Slips, while Bond Market Rally Continues
Short News Excerpts:

The dollar is trading a little below levels seen in late North American session yesterday, but that is after it initially extended its gains in Asia. The news stream is light, and unlike yesterday, there is no US economic data outside of the MBA’s mortgage application report.

Despite the minor …

Risks of Trading Forex :
Like any trading or investment vehicle, there is a high level of financial risk in trading Forex. In particular, the increased amount of leverage offered in the Forex market means that a trader can lose all, or a large portion, of his trading capital if the market makes a significant move against the trader’s position.

Successful traders are aware of this risk, and carefully plan their trades in order to minimize the risks to their trading capital. Even with implementing risk management tools, the risks of trading Forex remain substantial.

There are also specific steps that a trader can take to minimize the risks involved in Forex trading, particularly involving safe ways to use the margin. Calculating the Risk-Reward Ratio is one of the most effective risk management tools in Forex trading. But be aware that Forex trading involves a substantial risk of losses.
:

Original article:

http://www.forexfactory.com/news.php?do=news&id=501572

British competition watchdog probes foreign exchange market

2014-08-27 11:42:33 – Best Cash Back Forex Rebates : British competition watchdog probes foreign exchange market
Cabafx.com Reporting:

The UK Competition and Markets Authority (CMA) has become the latest regulator to investigate the global foreign exchange market following allegations of rigging, the Wall Street Journal reported on Tuesday, citing two people familiar with the matter.

The antitrust watchdog recently shared infor…

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View original:

http://www.forexfactory.com/news.php?do=news&id=501578

EUR Shorts Hanging Tough For Now

2014-08-27 10:22:03 – Best Cash Back Forex Rebates : EUR Shorts Hanging Tough For Now
Business News:

marketpulse

With the U.K. markets back online today after a holiday long weekend, playing catch-up is the order of the day. European credit markets are trading firmer this morning despite the non-rapturous applause in Asia that saw the Nikkei, Shanghai Composite Index, and Hang Seng Index close in the red after some quick profit-taking on the back of a strong rally over the past few weeks.

When it comes to forex trading these days everyone should know the rules by now: the central banks dictate market direction. Last week’s Economic Symposium in Jackson Hole, Wyo., will be regarded as a watershed moment for the eurozone’s survival. Despite Federal Reserve Chair Janet Yellen’s “neutral or less dovish” tone, it was “super” Mario Draghi’s assertion that the European Central Bank (ECB) stands ready to act again that has quickened the pulse of capital markets. Specifically, it was the ECB chief’s comment that plans for initiating asset-backed securities buying are moving forward quickly — potentially shifting the mix of the ECB’s austerity-driven plan to quantitative easing (QE). Draghi’s sense of conviction has incited many to call for the introduction of QE at the ECB’s next meet in September, and it’s the main reason for the ongoing current credit tightening after the indices were more or less closed in-line with the U.K.’s timeout. 270814gBanker Chatter Reverberates
Smooth-talking central bankers have managed to reverse the hefty U.S. August correction in the markets, especially equities. Stock records continue to fall (S&P’s mythical 2,000 print, the Dow knocking on record highs), while U.S. 10′s rally to +2.37%. In Europe, the moves have been more pronounced. Draghi’s QE battle cry will naturally favor equities and bonds, and hopefully in the longer term manage to keep the EUR (€1.3199) on its knees in aiding regional growth prospects. It’s natural that a dovish shift in tone by any central bank official probably justifies some market optimism; nevertheless, it’s also important not to get too far ahead, especially in reference to the ECB’s QE idea. Structurally, the ECB is nowhere near ready for it to be introduced, and such plans are usually heavily data dependent. Before Europe can achieve its utopia, various positional squeezes will occur. 270814hPositional Plays Influenced by Month-End
Draghi’s dovish comments on inflation, weak German Ifo data, and eurozone yields trading at record lows (10-year Bunds at +0.94%) will favor the EUR and maintain its allure as a funding currency. Nevertheless, the market’s weaker EUR short positions will be squeezed and eventually forced to exit from time-to-time; the single unit’s demise is not exactly linear. It’s been reported that influential reserve names continue to want to fade any EUR/USD upticks (€1.3225-35). The recent month-end dynamics (spot day this Friday) has seen U.S. corporations being better USD buyers to close out the month. The mighty buck seems to be consolidating some of its post-Jackson Hole pow-wow gains ahead of the release of U.S. Durable Goods Orders this morning. Even the techies note that the dollar may have drifted into ‘overbought’ territory — a possible reason for the lack of movement. Mind you, the appearance of a plethora of option barriers usually handcuffs a market until they come off.

The significant rate divergence rhetoric, coupled with U.S.-German two-year spreads climbing (+2bp to a new +54.5bp high) has encouraged the growth of EUR short positions on the international monetary market. Intraday sellers continue to be camped on the topside with €1.3245 providing strong resistance while €1.3150 barriers remain the focus for the next support. Some real-money buyers remain attracted to this area. However, EUR bears remain very much in control of the broader tone. 270814iFollow the Yield Interest
It’s not a surprise to see U.K. gilts open sharply higher — they need to play catch-up after yesterday’s summer bank holiday. The whiff of implementing QE by the ECB will favor U.K. debt products and the pound (both a yield grab). Despite data and events remaining thin on the ground, the market will be looking for any evidence to favor owning sterling over euros. Sterling’s bounce from Monday’s five-month low (£1.6542) is threatening to force a break above the psychological £1.66 handle. A momentum breakthrough at this level certainly opens the way for further gains to £1.6635-50. Nevertheless, without sustainable harder evidence, Monday’s low will remain vulnerable.

Light buying from international and domestic interest continues to power the bid in the eurozone’s peripheral debt markets. Supporting the QE story is the significant outperformance of Spanish bonds over Italian bonds. The Bund-Italian spread has tightened -4bp to Bunds, which suggests that intraday dealers are bidding the market up as they grab the most liquid of instruments. Spanish bonds are doing even better: the 10-year benchmark to Bunds are -5bp tighter, probably reflecting investors’ greater comfort level for Spanish debt, and the fact that Italy does have midweek supply to contend with. Investors are factoring in ECB QE pricing. Now, all they need is the EUR to comply.270814jAbout Dean Popplewell

PopplewellDirector of Currency Analysis and Research, Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders. Follow on Twitter and on his Google+ profile.

The post EUR Shorts Hanging Tough For Now appeared first on ForexNews.com.

Every effort is made to provide accurate and complete information. However, with the thousands of documents available, often uploaded within short deadlines, we cannot guarantee that there will be no errors. Any republication or redistribution of Cabafx.com content is expressly prohibited without the prior written consent of Cabafx.com.Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any
doubts.Any opinions, news, research, analyses, prices or other information contained on this story, by Cabafx.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Cabafx.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.:

Source:

http://www.forexnews.com/blog/2014/08/27/eur-shorts-hanging-tough-now/

Gold – Sellers Placing Great Pressure on Support at $1275

2014-08-27 10:07:41 – Best Cash Back Forex Rebates : Gold – Sellers Placing Great Pressure on Support at $1275
Cabafx.com News:

marketpulse

Gold for Wednesday, August 27, 2014
Over the last week now Gold has been falling lower back towards the medium term support level at $1290 however to finish out last week it fell sharply down to the previous key level at $1275.

Intraday Outlooks For EUR/USD, AUD/NZD, USD/CAD, NZD/USD

2014-08-27 07:26:35 – Best Cash Back Forex Rebates : Intraday Outlooks For EUR/USD, AUD/NZD, USD/CAD, NZD/USD
Short News Excerpts:

The following are the intraday outlooks for EUR/USD, AUD/NZD, USD/CAD, and NZD/USD as provided by the technical strategy team at SEB Group.

EUR/USD: Targeting 1.31221/04 next. There ain’t no rest for the wicked and there ain’t no rest for the euro…A short term 261.8% Fibo projection ref is cu…

Risks of Trading Forex :
Like any trading or investment vehicle, there is a high level of financial risk in trading Forex. In particular, the increased amount of leverage offered in the Forex market means that a trader can lose all, or a large portion, of his trading capital if the market makes a significant move against the trader’s position.:

Link:

http://www.forexfactory.com/news.php?do=news&id=501479

Forex Currencies

Forex Currencies: Introduction

By Brian Perry

The currency markets are the largest and most actively traded financial markets in the world with a daily trading volume of more than $3 trillion (Triennial Central Bank Survey 2007). The majority of this trading is concentrated in the world’s major financial centers such as London, New York and Tokyo. Large institutional investors such as banks, multinational corporations, hedge funds and central banks constitute the majority of the market activity. To kn owledgeably compete in this overwhelmingly institutional marketplace, individual investors need to assimilate as much information as possible. This tutorial provides an overview of basic foreign currency (forex/FX) trading strategies, the markets for those strategies, and an examination of some of the most popular currencies traded.

Each transaction in the currency market involves two different trades: the sale of one currency and the purchase of another. The two currencies involved in the trade are known as a pair. While it is possible to swap virtually any currency for another, the majority of trading occurs among a handful of popular currency pairs.

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The chart shows the most heavily traded currencies and their market share. Total market share adds up to 200% because each transaction involves two currencies (ECB: BIS Triennial Survey 2004).

As the world’s reserve currency, the U.S. dollar is the most actively traded currency, and pairs involving the dollar make up the majority of transactions. Therefore, this tutorial examines the trading relationships between the U.S. dollar and several of its chief counterparts, including the euro, the Japanese yen, the British pound, and the Swiss franc. The tutorial also examines other popular trading pairs involving the U.S. dollar and the commodity currencies – those of Canada, Australia, and New Zealand.

Although the average trader will likely participate only in trades involving the U.S. dollar, this tutorial includes a discussion of cross rate pairs – pairs of significant international currencies that are not the U.S. dollar. Additionally, because emerging markets form an important part of the global financial system, this tutorial also examines the unique challenges facing individuals interested in trading emerging market currencies.(For more information, read The Foreign Exchange Interbank Market.)

Before the discussion of popular trading pairs, a brief analysis describes some of the instruments, concepts and strategies that should be familiar to investors trading in the currency markets.


Source:  investopedia.com

Investopedia Forex Outlook For April 2012

Investopedia Forex Outlook For April 2012 – Macro Highlights

The market has become cautiously optimistic in March, with bullish U.S. employment figures and a Greek debt deal improving the situation in Europe. Meanwhile, the MSCI global shares index is up around 10% since the beginning of the year and remains more than 20% off of its lows reached during the fourth quarter of last year. SEE: Forex Outlook For March 2012

Still, there are many risks that threaten to derail the global economic recovery, including continued turmoil in Greece, higher oil prices due to the situation in Iran, and any signs of a more severe slowdown in China. The global economy is expected to be slower this year than it was in 2011, amid less-than-spectacular emerging markets and troubles in Europe.

Macroeconomic Highlights

  •     U.S. Recovery Picks Up Steam – February was the third consecutive month of U.S. job growth over 200,000. Retail sales and consumer spending were also on the rise that month. But signs of trouble started emerging in March data, where consumer confidence fell unexpectedly as higher gasoline prices put pressure on consumers. (For related reading, see Consumer Spending As A Market Indicator.)
  •     Europe Shows Signs of Hope – The situation in the European Union (E.U.) was temporarily defused after Greece reached a restructuring agreement with bond holders that opened the doors to more bailout funds. But economists remain skeptical that the country can reach its austerity targets, given failures in the past, while additional bailout funds are likely to be required, and other countries remain in danger.
  •     Signs of Strength in Japan – Japan’s economy showed signs of strength this month, after reporting a disappointing fourth quarter gross domestic product (GDP) last month. The bullish signals led the Bank of Japan (BOJ) to avoid any additional stimulus measures for the time being, but interest rates are to be kept at near zero. The move has helped the Japanese yen recover some ground after a spectacular fall.
  •     Britain Faces Headwinds – Britain’s economy continues to struggle with a so-called “productivity puzzle,” in that its workers are failing to become more efficient during the downturn, unlike the U.S. and other countries. But Britain’s austerity efforts led to a large surplus last quarter, boosting hopes that it would opt for more economic stimulus packages that could jumpstart its economy. (For related reading, see Austerity: When The Government Tightens Its Belt.)
  •     Switzerland Recovers Alongside Europe – The Swiss economy has shown signs of recovery amid improvements in the Eurozone. Traders had been using the currency as a safe-haven investment throughout the Eurozone crisis. While the Swiss franc remains overvalued, according to the government, the Swiss National Bank (SNB) is expected to leave interest rates near zero and maintain its current monetary policy.


Source:  investopedia.com