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Forex Defined Individuals new in investment may get shocked by the way Forex has become the biggest market globally. FOREX simply means Foreign Exchange, or legal tender. Foreign exchange signifies the monetary value of a country using the largest single-value denomination versus the unit of legal tender utilized by the country of the investor.
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FAPTurbo Hey,
I review Forex products and time to time I share with everyone on the forum my findings. So here is the latest!
By now, I am sure that you have heard about FAPTurbo, the first real money forex trading robot. There has been a lot of hype around it in the forex market.
It is a system which trades in the forex market for you automatically (you don't have to leave your computer on or do anything...it does it all), and so far the results have been phenomenal. The ROIs have been great as well. It can double your deposit in 30 days.
I can guarantee you that this robot is revolutionary. Nothing comes close! It will change how you look at forex. Just have a look at their videos and their live trading statements on their site : http://www.FAPTurbo.co.in
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Thoughts for the Intra-day traders out there… A couple of days a week it seems like there are low momtenum days in the market. Today appears to be one of those days.
If you’re a swing trader or a long term carry trader, then this would not matter.
However, if you are into short term trades, then you need momentum type moves NOW and not days from now. There’s not one major currency pair up or down even 1% today. So to me, that constitutes a lack of momentum for the day unless that suddenly picks up.
For the short term trader, momentum (strong, quick trending moves) are your friend…and a lack of momentum (creeping trends or dull ranges) can be your enemy.
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Two Long Term Potential Breakouts About to Happen! Two potential long term breakouts are emerging in the most unlikely spots…the yen carry trade: EUR/JPY and NZD/JPY
Everyone has been used to yen strength this year and everyone has been accustomed to the idea of the “carry trade” selling off for even longer.
So if this breakout occurs in the upcoming days to weeks as I suspect it will, it will catch many traders off guard. There are still a ton of traders “short” on this trade that will be caught on the wrong side of the trade and will have to reverse their positions.
Also, there will be many former “carry traders” that have given up on the concept and will have written it off by now as a strategy. It’s about that time when these new, fresh breakouts occur.
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State of the Economy, Dollar & Gold & How Main Street can Benefit As you all know, I recently published an article that talked about the state of the U.S. economy and that it may be in the “beginning’ stage of an economic recovery.
I talked about the valuable indicator of copper and why it leads the way and tells you that the economy will recover long before the “nightly news” or even analysts tell you.
Today, another site that I highly regard, also talked about the importance of copper in leading the way to an economic recovery. Daily Wealth gave this checklist for an economic recovery.
TheTrue WealthScript for Economic Recovery
• Investment-grade corporate bonds rally first,
• then stocks rally. Around the same time,
• the price of copper recovers.
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Explanation of an Online Forex/Currency Trading Station See how easy it is to execute forex trades through this latest video: http://www.youtube.com/watch?v=WhLChCWtw9M
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120 Billion Reasons to Sell the Yen! This past year, one of the few financial instruments in the world was headed to the moon. Which one was that? The yen!
Yeah, the carry trade unwound which caused money to flow away from high yielding currencies and back into low yielding currencies like the yen.
Investors became risk adverse with their money. They poured it into things that had been beaten down for years because it seemed to be a safe place to run to. Thus the yen was a huge beneficiary during this ultimate “fear factor”.
However, recently I started talking to you about a possible turn coming in the yen and that the yen party was about to come to an end soon.
Things go from “Bad to Worse” in Japan
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USD Draws Support from Abroad
2008 is still in its infancy, which means the self-proclaimed forex experts can be excused for offering their projections on what the year has in store for the Dollar. If currencies were traded in a vaccum, the Dollar would probably trend upward, since many technical factors suggest it is oversold. From a fundamental standpoint, however, it is probably overvalued, per the laws of interest rate parity and purchasing power parity. Relative to other countries, though, it may be undervalued. From this standpoint, argue some analysts, the biggest impetus for a Dollar upsw
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Central Banks in the News
As we wrote last week, the direction of the Dollar may be influenced more by external economic events rather than by internal activity. Accordingly, it would behoove forex traders to direct their attention away from the Fed and towards the Bank of England and the European Central Bank, both of which face important monetary policy decisions later in the month. With regard to the Bank of England, futures markets have priced in a 2/3 chance that rates will be cut by 25 basis points. In the case of the ECB, the markets are expecting rates to be maintained at current levels.
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Risk Aversion Lifts Carry Trade
Since July, the Japanese Yen has notched a stellar performance in climbing 15% against the Dollar, without garnering much attention. Within the last week, however, analysts have begun to take notice, as the carry trade temporarily collapsed and the Yen appreciated by another 3%. 'But Japan's Central Bank is no hurry to raise interest rates,' you are probably wondering. 'What on earth is all the fuss about?' Volatility, the sworn enemy of carry traders has exploded. Global capital markets, including the US stock market, are in a state of turmoil.
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China's Forex Reserves Roar Past $1.5 Trillion
On January 24 last year, the Forex Blog reported with great fanfare that China's forex reserves had breached the epic milestone of $1 Trillion. [In hindsight, it turns out that the psychologically important barrier was broken several months earlier, but that is beside the point]. Less than one year later, China's forex reserves reached another important threshold, soaring past $1.5 Trillion. It appears that new reserves are being accumulated at an exponential rate, having increased $460 Billion last year and over $30 Billion in the month of December alone.
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Economist: Fed Should Prop Up Dollar
In a recent editorial published in the Wall Street Journal, the Chief Economist for Bear Stearns (an American investment bank) advocated intervention by America's Federal Reserve Bank on behalf of the Dollar. He reasons that the best way both to fight and inflation and alleviate the possibility of recession is to strengthen the USD. Current measures, which include lowering the discount rate and manipulating the money supply, are actually worsening inflation. As a result, institutional investors are moving their capital en masse outside the US in order to prevent the declin
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Chinese Yuan Accelerates Upwards
When Henry Paulson was appointed Secretary of the US Treasury last year, he made China and its purportedly undervalued currency a cornerstone of his economic plan. Lo and behold, several months ago, the Yuan suddenly accelerated in its upward path against the Dollar, rising at an annualized rate of 14%.
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Volatility Drives Yen
As Asian capital markets crash in unison, the Japanese Yen is rising at its fastest pace in years. Taken out of context, that sounds like a contradiction, since a positive correlation typically obtains between the strength of a nation's economy, capital markets, and currency. However, the Yen is unique, as most forex traders are doubtlessly aware. The Yen rises and falls with the whims of the carry trade, which in turn is tied closely to volatility. And in case you haven't noticed, global capital markets are seesawing to such an extent that by some measures, volatili
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Fed Dramatically Lowers Interest Rates
Last week, the New York Times published an article with the byline "Is the Federal Reserve’s chairman, Ben Bernanke too nice for the job?" Apparently, talk had been building on Wall Street that Bernanke was not tough enough to deal with the growing problems faced by the world's largest economy. Bernanke responded publicly in a speech in which he promised that the Fed would act quickly and decisively to confront such problems. Then on Tuesday, the critics were silenced peremptorily by a Fed rate cut of 75 basis points, the largest single cut in two decades.
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Foreign Investors Target US
So-called 'Sovereign Wealth Funds' are the talk of the town, stealing headlines as part of a multi-billion dollar buying spree. Anecdotally, stories of these funds and other institutional foreign investors have made a big splash, epitomized by a few high-profile investments in struggling American investment banks. It no longer appears these stories were isolated, as suggested by some pretty compelling economic data. In 2007, total foreign direct investment into the United States totaled $400 Billion, which represents a 90% increase over 2006. In addition, the first f
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South African Rand Resumes Trend
The South African Rand is not the subject of much analysis in the forex community, which typically confines itself to the majors and the BRIC currencies - Brazil, Russia, India, and China. But recently, the Rand found itself on the radar screen of at least one analyst, who pondered the implications of a growing trend towards risk aversion.
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BOC Cuts Rates
Last week, the Bank of Canada cut interest rates by 25 basis points, bringing its benchmark lending rate down to 4%. Fortunately for the Canadian Dollar, the rate cut paled in comparison to the 75 basis point move effected by America's Federal Reserve Bank. While the Bank of Canada offered a hackneyed rationale of "keeping aggregate supply and demand in balance" for the change in monetary policy, there is still some surrounding haze since Canadian inflation is rising and economic growth is strong.
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ECB to Avoid Rate Cuts
When America's dot-com bubble collapsed in 2001, the Federal Reserve Bank moved quickly to quell the panic by slashing interest rates. The European Central Bank (ECB), on the other hand, was adamant that it would not have to follow suit since the European and American economies were no longer so intertwined. Several months later, it became increasingly clear that the ECB was wrong, and it was ultimately forced to lower rates. Now, some analysts fear that history is repeating itself, as America's housing crisis threatens to run a similar course as the collapse of the stock
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Why a Strong Dollar is Good for the US Economy
For at least the duration of the current administration, the official US stance towards its currency has been a "strong dollar" policy. In hindsight, it appears that this policy was entirely baseless, since its was directly undermined by the simultaneous easy monetary policy, and thus it stands to reason that US policymakers did not actually believe that a strong Dollar policy was necessary to pursue. In a recent op-ed piece published in the Wall Street Journal, one analyst outlines the case for a strong dollar, and by extension, why the depreciating Dollar is bad for
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Fed Lowers Rates...Again
Today, the Federal Reserve Bank lowered interest rates for the second time in as many weeks, bringing its benchmark federal funds rate down to 3.00%. The Fed has now lowered rates by 2.25% since August. The move came as a relief to investors, who now see that the Fed is serious about preventing the economy from slipping into a full-scale recession. However, it remains to be seen whether the rate cuts will provide the necessary boost to the economy or instead prove too little too late.
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Yen as Proxy for Risk Aversion
The US stock market has lost over 10% of its capitalization since reaching an all-time high in October of last year. Meanwhile, the Japanese Yen has climbed at least as much in proportional terms since bottoming out around the same time. Coincidence? At least one analyst doesn't think so. Because of the steadfast popularity of the carry trade, the Japanese Yen appears to have developed an inverse correlation with the US stock markets. The reasoning is actually quite simple.
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USD May Bottom Out As far as Dollar bulls are concerned, all news is bad news. An economic recession seems inevitable.
Interest rates are already negative in real terms, and are now the
lowest in the industrialized world, save Japan. It's still unclear
how much subprime debt will be written down by financial companies
before all is said and done. But analysts from Brown Brothers
Harriman, an investment bank, think the Dollar's multi-year decline
is coming to an end. There are two main reasons underlying their
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