Monday, August 31, 2009

Software Review: Gallant VPS for Metatrader 4

Innovation is the key to advancing technologies. Practical innovation is the engine of economic growth. Necessary innovation is the lifeblood of markets. If markets are not innovative, products and services become stale and lack attraction. In today’s world of trading platforms, innovation is lacking, but with the release of Gallant VPS for Metatrader 4, Gallant FX has stepped forward and provided the necessary innovation to jumpstart a new generation of products and services in the trading platform arena. Gallant FX has taken one of the more popular trading platforms on the market and improved it to such a degree that a new standard now guides those that will follow.
The Gallant VPS for Metatrader 4 is robust, efficient, and effective. The difference in this version of Metatrader from others on the market is how Gallant FX improved the “Expert Advisor” (EA) feature. The EA has been the developers’ doorway to innovation in trading platforms. This is still the case, but now, developers have new opportunities to create efficiencies in the software because Gallant FX has moved Metatrader 4 to a UNIX-based Virtual Private Server (VPS), which eliminates many dysfunctions inherent in a Windows-based operating environment. The UNIX environment and the VPS together provide new possibilities for module development that will enhance future versions of Metatrader as well as other trading platforms.
Security and reliability are also improved with Metatrader 4 because the VPS resides on the Rackspace Network. Rackspace, itself an innovator in the hosting arena, has partnered with Cisco, and nine other network providers, to put together a service that gives “100% Network Uptime Guarantee.” Because of the inter-operability methodology utilized, and the “Proactive Network Management,” Rackspace maximizes bandwidth through routing efficiency, enhancing end-user, real-time performance. And because Rackspace does not share its network with telecom services or Cable television, and all the fiber carriers must enter data centers at different points, security, along with reliability, is improved.
Product Overview
The EA feature of Metatrader 4 now allows for automated trading. A trader can now close out all positions at once, and with a grab and hold cursor movement, a trader can move all stops on a chart. This enhanced EA feature lifts this version to the top of the chart in terms of efficiency and effective trade management.
Sometimes more is less, but not in this case. Along with better trade management, trading strategy development is enhanced because the “Custom Indicators” feature gives the opportunity to create new and different technical indicators. Combine this with the already strong features of Metatrader 4, and you have a platform that really delivers.
Platform Features
Expert Advisors (EA) Automated Scripting
Market and pending orders
E-mail alerts
Supports various timeframes (from minutes up to months)
Provides a large variety of standard technical indicators and line studies
Multi-language program interface
Signals of systems and trading history
Real-time news from the financial markets
Printing charts and completed trading transaction statements
Over 100 FX brokerage firms offer this advanced software to their clients
Scriptwriters have more opportunity to advance the platform to higher levels
The VPS helps protect the intellectual property of the scriptwriters
End-users trade with more efficiency, effectiveness, and security
Reasonable price

Daily Forex Technicals

The Greenback ended the past week mixed against major currencies trading in a range bound, lower against the Aussie, Kiwi and Yen but higher against Lonnie and Cable which was the weakest currency versus majors loosing 1.4% against the dollar, while Euro & Swiss franc was almost unchanged , falling 0.1% and 0.2% respectively. Crude Oil remained trading above $70 per barrel after reaching $75 earlier in the week, meanwhile U.S. stocks closed at its highest levels in 2009 with Standard and Poor’s 500 Index advancing 0.3% to 1,028.93. The Dow Jones Industrial Average added 0.4% to 9,544.20, and Nasdaq increased by 0.4% to 2,028.77.
Economic data released last week is giving more evidence of economic recovery. From the Euro Zone, Confidence rose in economic, consumer, services and industrial sectors. In Germany the biggest economy in the Euro Zone IFO business climate rose to 90.5, Gfk consumer confidence rose to 3.7. Meanwhile UK second quarter GDP was revised slightly upwards QoQ to shrink by 0.7%. Japanese unemployment rose more the expected to 5.7%. The better news came from the U.S. with second quarter GDP left unrevised at -1.0% where expectations were to contract further by 1.4%. Durable goods rose 4.9% in July which was much higher than expected, and new home sales rose to 433,000 in July.
This week is expected to be more exiting and probably a break out from the recent ranges could be seen. The main event risk for the US Dollar is on Wednesday, where the Fed’s last meeting minutes will be released. On Thursday the ISM non-manufacturing is expected to rise to 11 months high of 48.0 in Aug and Friday could be volatile with the release of the Non Farm Payrolls which is expected to have its smallest drop in a year.
Away from the US, we have two central banks meetings, the ECB and RBA. Both banks are expected to keep rates unchanged at 1% and 3%. From ECB focus will be on Trichet’s comments on recent economic data and ECB’s covered bond purchase program. RBA Focus will be on any affirmation on markets view that the easing cycle is already over and RBA could be the first to remove policy accommodations.

Saturday, August 29, 2009

Your Trader “Training Wheels

As I mentioned yesterday, there are really only a handful of rules you need to learn so you can use charts in your Forex trading. Or in other words, start “technical trading.”

Why do you want to trade technically? Well, in my opinion, studying a currency’s fundamentals will only get you so far. Once you narrow down the 60 or so tradable currency pairs by evaluating their fundamentals, then you have to start looking at these currencies from a technical perspective.

In other words, you need to compare their charts to see emerging trends. Otherwise, you may never be able to narrow down the choices far enough to choose the absolute best currency pair to trade.

1. The trend’s direction is THE most important indicator out there.
As such, you want to follow the trend until it ends (with the simple-day moving average). Today, I want to introduce you to the second rule…

2. EVERY indicator that you use needs to be interpreted in light of that trend’s direction. This means you only ever enter a trade that’s going in the direction of the trend, and ignore counter signals altogether.

How to Use These Two Rules to Your Advantage
As I said yesterday, to use rule number 1, you should always follow a currency’s trend with the 50-day moving average.

So today, let’s look at how to interpret one other indicator in light of the trend’s direction (rule #2 from above).

Pay attention to the moving average’s direction/slope FIRST and only act on signals that are going in the favor of that trend (sell signals in a downtrend and buy signals in an uptrend).
Check out the chart below. I’ve added in the Slow Stochastics indicator to the chart so you can tell when it may be a better time to sell short (overbought signals) and when may be the best time to buy (oversold signals).

Sharks trade with Canucks adds fuel to Heatley fire

The Dany Heatley to San Jose Sharks speculation picked up steam in a hurry yesterday.
After Sharks general manager Doug Wilson dumped US$4.66-million in salary by trading defencemen Christian Erhoff and Brad Lukowich to the Vancouver Canucks for prospects Patrick White and Daniel Rahimi, he suggested the door was open for more trades.
"It also creates some flexibility in our team payroll for potential future transactions as the season progresses," Wilson said.
Heatley has been linked to the Sharks in trade talks all summer, but they could not take on his salary because they were too close to the salary cap of US$56.7-million.
After yesterday's trade, the Sharks have committed about US$51.5-million in cap space for next season. Heatley's hit of US$7.5-million would still put San Jose over the limit, but it would be easier to send the difference of US$2.3-million in salary back to Ottawa in a trade.
The Sharks are also believed to have an interest in forward Phil Kessel, who has yet to resign with the Boston Bruins after becoming a restricted free agent.
After the trade was announced, the Canucks then signed veteran free-agent defenceman Mathieu Schneider.
"We are pleased to be adding Christian and Brad to our defensive group," Canucks general manager Mike Gillis said in a statement. "Defence has been an area we wanted to add skill and depth to and this trade has strengthened our group considerably."

Can money buy you happiness?

A conversation I recently had with a brilliant professor of a certain business school gave me an impression that he believed money cannot buy happiness.
Economists have always argued on these lines. But there seems more to happiness than what the classical economists argue. It is called consuming memories. What is it?
Two professors in the US coined the term “conceptual consumption” to refer to the fact that we buy concepts, not just the physical goods.
Take the new car that was launched last week. You may have bought it as a mode of transport. Or, perhaps, more as a status symbol — a concept. It is the same reason why people buy a Rolex and not just another cheap watch.Enduring happiness
Economists may be right about these physical objects not getting us enduring happiness. After a while, even the designer car that you bought becomes another piece of steel transporting you across the city.
But that cannot be said of consuming memories. Suppose you take your friend out for an exotic lunch or treat your spouse to a memorable evening. The memory lingers on, for two reasons.
One, you can talk about it when you meet your friend the next time. Or you can re-live the moments with your spouse. You cannot always do that with your physical objects — even your prized car.
And, two, physical objects can be compared. Experiences cannot be. If your neighbour buys a costlier vehicle, your car may not be a status symbol anymore. Your neighbour’s exotic vacation at Aruba, however, does not make your experience of having lunch with your friend or an evening with your spouse any less memorable.
Indeed, behavioural economists argue that they could be linkages between money and happiness.
Their research shows that we are happier when we donate to charity, spend on our friends or loved ones.
Our happiness is, however, short-lived when we splurge on physical objects for ourselves. Can we then say that money used for consuming memories buys us happiness?(The author is founder of Navera Consulting.)

Exchange traded currency futures — Transparency, a major draw

Can you tell us briefly about Alpari group’s operations world-wide; and how you can draw on your global experience to help the Indian investor?
Alpari Group is one of the fast-growing providers of foreign exchange (Forex, FX) online trading services, serving retail and institutional investors. We have operations in London, New York, Shanghai, Dubai, Mumbai, Kiev and Moscow. We have 27 offices in eight countries, more than 1,30,000 live accounts and a monthly trading volume in excess of $104 billion.
Alpari (UK) is regulated by Financial Services Authority. We are one of the leading market makers in Russia as well as the UK and have over 11 years of global experience in the currency market.
We are also dedicated towards currency education. We conduct Webinars, seminars and all other forms of tutorials to impart currency trading education across the globe and this is what we are planning to ride on in India.
Would an investor have to open a separate trading account to trade in currency futures? What is the initial outlay (margins) that an investor would have to make to trade in currency derivatives?
Yes, investors have to open separate accounts to trade in currency futures, according to the exchange compliance norms. The margins are set by the exchanges and provided to the broker on a daily basis.
To trade in currency derivative, the investor requires relatively less margins compared to equities and commodities. The margins are usually in the range of 2 per cent to 5 per cent during normal market conditions.

Savvy trader in the making

'To achieve consistency, one must be willing to stick by the rules within the trading plan, especially cutting losses when the market turns against one's trades. Over time, one manages the downside by taking small losses in some trades and allowing most winners to ride the trend as long as the market decides. In other words, keep in mind that taking care of the downside is our job; and the upside is the market's job.'
Mr Lee has designed a proprietary trading system to track the price movements of stocks and derivatives. The system generates buy and sell signals.
This brings us to the issue of risk control, a discipline that often falls by the wayside when emotions run high. Sticking to a trading plan is itself a form of risk control.
Adam Sprague, director of OptionsXpress says: 'Traders use strategies that limit their risks, while taking advantage of price volatility. A successful trader needs a good trading plan to identify and limit the risks with each trade. The key benefit of the plan is that it helps to take any emotion out of trading. Even before entering a trade, the trader must know what their exit points are for both the profit and loss.'
He adds: 'Problems for traders often arise when they have a plan, but they start to bend their own rules, such as adjusting the profit and stop levels.'
OptionsXpress offers a self-directed trading platform and free online education on products including stocks, options and futures

How to avoid troubles in long term and short term forex trading

If you are more akin to the long term strategy, you should consider using a trading robot to automate your trading as it is physically impossible to always monitor your positions like you can with the short-term strategy. You will be able to take a step back and make more level-headed decisions. Personally, I find the long-term more attractive, but by all means use the short-term strategy if you crave a more exciting trading arena.

Forex Trading Software: Profit Machines or Losers

Most of the bots on sale focus on one aspect, whether it is trading, arbing, hedging or dutching, but there are a small number that focus on them all, and compared to the single function bots, are much better value for money. These multi-function bots allow you to find your niche in a competitive market, without emptying your bank balance.It is also a misconception that you will start making a lot of money instantly. Even if the bot produced profits on a daily basis (which by the way, will never happen), you still have to limit trades to a fixed percentage of your betting bank, otherwise you will find yourself having no control over trading stakes. It is always best to start small, get the mistakes out of the way while it is cheap to do so, and when your stakes increase, you will have learnt enough from your mistakes to save money.Some people click with trading straight away, others it can take weeks of staring at the graphs on the screen until the penny drops. Those that stick with it though, usually succeed, and a bot makes life so much easier.So if you have the capabilities to profit from trading, then a betting bot may be for you, if you are looking for a quick buck, forget it.

Lottery players have plenty of competition for Mega Millions jackpot

That's not a good idea, according to William T. Jourdin, acting executive director of New Jersey Lottery.Because of the feverish pace at which tickets have been selling for this jackpot, the third-highest amount in the state's history, Jourdin advised customers to "buy your tickets early."The Lottery has given away several large cash prizes in the past few years. Recent winnings by Garden State residents include a $216 million win by Chubb employees in the Whitehouse Station section of Readington last March, and a $163 million win by two Morris Knolls High School teachers. Jourdan said that since July 7, the current roll has contributed $25.3 million toward school lunches, construction, community and college support, scholarships, veterans homes, centers for the developmentally disabled, state psychiatric hospitals, and other state programs.

Friday, August 28, 2009

FOREX-U.S. dollar dips vs euro; risk trades still in focus

Euro rises vs dollar but gains tentative
* Risk sentiment choppy but some stocks hold gains
* U.S. data mixed but overall add to evidence of recovery (Recasts, updates prices, adds comment, U.S. data)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 28 (Reuters) - The dollar slipped against the euro on Friday in choppy trading, with investors sticking to riskier currency bets as global stocks held gains despite a report showing U.S. consumer confidence fell to its lowest in four months.
The Dow and S&P 500 index surrendered gains, but European shares .FTEU3 were higher, giving investors conviction to hold positions in currencies sensitive to higher growth, such as sterling and the Australian dollar.
Firmer oil prices, which possibly reflect an increase in global demand, also helped overall risk sentiment, analysts said.
The yen, however, trimmed losses to trade little changed on the day, recovering from Japanese jobless and deflation data.
The dollar and yen are viewed as safe-haven currencies and tend to fall when risk appetite improves.
"This morning's U.S. economic

Forex reserves slip to $12.85 billion

KARACHI: Pakistan’s foreign exchange reserves slipped to $12.855 billion in the week that ended on August 22 compared with 12.963 billion the week before, the State Bank of Pakistan (SBP) said on Thursday.According to the breakup, the SBP’s reserves fell to $9.359 billion from $9.468 billion a week earlier, while reserves held by commercial banks were unchanged at $3.49 billion, the State Bank of Pakistan said.Reserves jumped by $1.11 billion to $12.96 billion in the week that ended on August 15 when a new tranche of an International Monetary Fund loan arrived. Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. staff report

Tuesday, August 25, 2009

Market Wire Update: Cable and Cad Momentum Test

After a relative flat Asian trading session, the major currencies started the European shift looking very bearish, as crude oil and S&P equity futures broke below the intra-day support areas of the last few trading sessions. Crude oil broke free from the $74.00 area, while S&P futures cleared the 1020-1025 range; both areas that has kept them from moving anywhere importantly over the last few sessions. Crude oil and the futures market are known to have a substantial influence over forex valuations, so these declines are likely to be reflected in the price of the major pairs dropping against the dollar.
If the downtrend continues in equity and oil trade, the pairs with the biggest downside potential are the cable (Gbp/Usd) and the cad (Usd/Cad).
The pound’s outlook has shifted to the downside due to the uncertainty stirred by the Bank of England’s indecision on how the economy will stabilize, especially after it unexpectedly increased the size of its asset purchase program. Sentiment shifted to bearish after the Monetary Policy Meeting (MPC) minutes showed that some members were looking for a bigger increase in the quantative easing program that was designed to free up available credit in the U.K. commercial markets.
Following the MPC release last week, the pound is now trading at multi-weeks low against the other two major European currencies, the Eur and Chf, something that adds to the downbeat outlook.
The cad (Usd/Cad) is likely to be pulled higher fundamentally by its high correlation with crude oil, and technically because of being oversold on the higher time-frames, and having a near-term momentum swing change in place. Global equity and commodity markets will have the opportunity to retrace some of the recent gains and shift from the overbought state that has been seen over the last few trading sessions.
Once a pull-back to support is in place the global markets will be able to more easily continue their uptrend once again, as the global recovery theme adds upside pressure to the market’s valuation of risk. However, September is historically a period that has to have equity moves banked and stops pulled up; it is Wall Street’s least productive month of the year, especially in the second half of the month, and has no more than a 50/50 chance of showing gains.

Stocks Gain As Consumers Confidence Rises

Stock Markets in the United States end on a positive note in trade today. The Dow was higher by 30 points while the S&P had a mild gain of 2.43 points and the Nasdaq was up by 6.25 points. The conglomerates and financial sectors were up strongly, by 1.4 percent and 1.0 percent respectively. The energy sector took a hit today; falling 0.78 percent after the price of crude oil fell by $2.52. Bank of America rose 2.31 percent while Siemens increased 4.58 percent.
The Conference Board released their confidence index today for the United States which showed that consumers are becoming less worried about the economy and labor market. The index rose from a revised reading of 47.4 to a 54.1, climbing more than forecasted. “Consumers are seeing more reports that the recession is bottoming out,” stated Trade Team Members. “The combination of seeing better economic data, house prices beginning to firm up, and the equity markets rising are good for the confidence of the consumer.”
The Dow Jones Index gained 30.01 points (0.32%) to 9,539.29, while the S&P 500 index added 2.43 points (0.24%) to 1028.00

Free Training Course Notice:

Understanding the global market trade links to forex will be key to creating stability while at the work station. Sign up for our free training Seminar: Trade Forex With A Global Commodity Plan.
Register for the Wednesday Aug 26 09 session 18:00 EDT
Or register for the Sunday Aug 30 09 session 15:00 EDT
Trader membership information
For a forex proprietary news feed for your site, contact us.
Written by TheLFB Trade Team, © 2007-2009 LFB Services, LLC. All rights reserved.

Low Equity Reaction To U.S. Releases

S&P Case Shiller Housing Price and Consumer Confidence report came out better than expected this morning. Interestingly, equities did not move higher in correlation to the U.S. releases that came out today as traders would have expected. S&P futures slid from its latest 1037 highs to its current spot at 1026. Those reports, however, are another indication that the economy is improving, but the technical bounce to the downside on equities is likely to come as “taking profits” seem to be in play.

“The S&P futures prices are still trading in the 1030-50 resistance zone of the wave five target, which is signaling for a corrective bounce to the down-side,” said the TheLFB Elliott Wave team. This bounce could create a higher U.S. dollar value against the majors, which will improve even more if commodities move to the downside. Currently, oil is trading -3.51% around $72 per barrel, while Gold is just above the zero, so any down-trend continuation on oil will probably create a higher U.S. dollar which will confirm a temporary top on equities. As such, traders with a short bias should pay more attention on commodity currencies such as the Canadian and Australian dollars against the Usd. In TheLFB public area, traders can find important price points for near-term moves on these two currencies.

Dollar mixed as US data sparks oppposite plays

* Dollar down vs yen and euro, but stronger elsewhere
* Report shows improving U.S. housing sector
* U.S. consumer confidence rises in August (Updates prices)
By Steven C. Johnson
NEW YORK, Aug 25 (Reuters) - The dollar slipped against the euro and yen on Tuesday as upbeat U.S. data and Ben Bernanke's nomination for a second term as Federal Reserve chief pushed some investors to buy higher-yielding currencies and assets.
The greenback, however, was well off its session low against the euro and managed to rise in thin trade against other major currencies, including the British pound, as differing views about how to trade strong U.S. economic data caused divergent price action.
Analysts said some saw the strong U.S. economic data as a signal to buy risky assets, while others expected it to lead to a U.S. recovery and higher interest rates, increasing the dollar's appeal.

Monday, August 24, 2009

FOREX-Yen rises as China's data disappoint, US stocks fall

* Yen gains on rising risk aversion
* Aussie, kiwi slide as shares fall
* Dollar holds most gains, traders await FOMC
(Adds comments, details, changes byline)
By Vivianne Rodrigues
NEW YORK, Aug 11 (Reuters) - The Japanese yen rose broadly on Tuesday as investors bought the low-yielding currency as U.S. stocks declined and amid rising risk aversion after disappointing economic data from China.
China reported below-forecast growth in factory output and investment, reminding markets that the world's third-largest economy is not yet back on a solid footing. (For details, see [ID:nPEK328668]).
The news also added to the currency woes of the so-called commodity-bloc countries that supply raw materials to China, such as Australia and Canada.
The dollar traded in a tight range, swinging between gains and losses against a basket of currencies and as investors awaited a policy statement from the Federal Reserve and speculated whether strong U.S. data would support the currency going forward.
U.S. jobs data last week boosted expectations for higher U.S. interest rates by early 2010, but with a Fed announcement scheduled for the conclusion of a two-day meeting Wednesday, some dollar investors are choosing to wait rather than continue to buy.
A drop in U.S. and European stocks also prompted traders to sell currencies seen as higher risk versus the dollar and the yen.
"Chinese economic news is likely playing a part in today's forex market activity," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York. "And with China seen as the global economy's main growth engine during the early stages of recovery, the disappointment (with the data) is weighing on equities and on the commodity-based and emerging currencies."
Wells Fargo expects further weakness in commodity and emerging markets currencies in the near term.
In afternoon trading in New York, the dollar was down 1.3 percent at 95.84 yen JPY=, off an eight-week high of 97.79 yen set last week on electronic trading platform EBS. The euro was down 1.1 percent against the yen at 135.74 yen EURJPY=R.
Technical currency analyst James Chen at FX Solutions in Saddle River, New Jersey, said in a note that the move lower in euro/yen after recent sharp gains may pave the way for a further drop to the 131.00 price region.

How does forex trading work?

Forex trading is the act of trading currencies from different countries against each other. Forex is acronym for foreign exchange.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States, the currency in circulation is called the US Dollar (USD).
An example of a forex trade is to buy the Euro while simultaneously selling the US Dollar. This is called going long on the EUR/USD.
Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you feel is going to change in value and place a trade accordingly.
Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position.
When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen in seconds.
The main enticements of currency dealing for private investors and attraction for short-term forex trading are:
24-hour trading, 5 days a week with non-stop access to global forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
To know if you made a good investment in forex trading, one needs to compare this investment option to alternative investments.
At the very minimum, the return on investment (ROI) should be compared to the return on a 'risk-free' investment. One example of a risk-free investment is long-term US government bonds since there is practically no chance for a default, i.e. the US government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling.
If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit.
An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the forex market is speculative.
In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

Bank of America hires 2 to head forex options unit

"Foreign exchange options are an increasingly common risk management tool, and Chris and Tom are proven trading veterans of the product," Vogel said in a statement. "We fully expect that the combination of their partnership with our talented sales force will pay immediate dividends - both in terms of deepening our client advisory expertise and in broadening our product footprint."

Zuari Forex to consider financial results on Aug 28, 2009

Zuari Forex to consider financial results on Aug 28, 2009
Zuari Forex Ltd has announced that a meeting of the Board of Directors of the Company will be held on August 28, 2009, inter alia, to consider and to take on record Audited Financial Results for the year ended on June 30, 2009.The Board will consider the recommendation of remuneration committee and propose the re-appointment of Mr. Kumar Sekhar, Executive Director.The Board will fix the date, time and place of Annual General Meeting for the year ended June 30, 2009.The stock closed the day at Rs.3.41, down by Rs.0.15 or 4.21%. The stock hit an intraday high of Rs.3.41 and low of Rs.3.41.The total traded quantity was 500 compared to 2 week average of 400.

Forex kitty down by USD 214 mn

Forex reserves decreased by USD 214 million to touch USD 271,025 million as on Aug 14, 2009, mainly due to decline in foreign currency and assets collections on a weekly basis.As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on Aug. 21, 2009, foreign currency assets decreased by USD 209 million to stand at USD 260,010 million.During the same period, the reserve position in the International Monetary Fund (IMF) decreased by USD 4 million to stand at USD 1,344 million. The gold reserves stand unaltered at USD 9,671 million.Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.

NTB CEO, Deputy CEO quit over forex loss

NTB CEO, Deputy CEO quit over forex loss

Nations Trust Bank (NTB) has stopped an ‘inflated’ remuneration scheme for its treasury operations department staff on the back of a massive foreign exchange loss totalling Rs 800 million, which saw two top officials leave the bank. Separately, Securities and Exchange Commission (SEC) officials confirmed that a probe was underway on possible insider dealing into share sales deals by NTB Chairman Ajit Gunewardene, prior to the discovery of the forex loss.
Zulfiqar Zavahir

In June the bank said it has discovered a breach of procedure in its dealing room leading to an exchange loss, but that gains from other treasury operations will offset this loss to a ‘great extent’ and the impact on the bottom line.

The Central Bank, following its own probe after the loss was reported, had found certain irregularities and informed the management. “We pointed out the exorbitant amounts of the remuneration scheme after our investigation and the bank has stopped that bonus scheme immediately,” a CB official said adding that the CB also had wanted some officers held accountable by the mismanagement.

On Friday, the NTB announced that its present Chief Executive Officer (CEO) Zulfiqar Zavahir retired from his position and resigned from the Board with immediate effect. The bank also said that Deputy CEO Iftikar
Iftikar Ahamed

Ahamed resigned with effect from Friday. It said Sarath Piyaratna, NTB Executive Director will act as the CEO till Saliya Rajakaruna, the newly appointed CEO assumes office in September. An NTB source said Dilshan Weerasekera, Manager Treasury has been requested by NTB to show cause for his negligence.

NTB Chairman Ajit Gunewardene told the Sunday Times FT that the Board decided on the appropriate action after a detailed investigation taking into account the findings, and noted the CB didn’t request ‘us to dismiss officers concerned.’

He said while it was an foreign exchange loss, there were no CB regulations that had been breached. Asked about the SEC probe, he said: “I am aware of an SEC investigation in general and a query made today to my brokers with respect to my share transactions of NTB. I certainly haven’ bought or sold any shares of NTB since the date that I was made aware of the issue which was June 12.”

Referring to huge commissions on forex trading, one banking analyst noted that the ‘greed factor’ stimulates some bankers to cut corners and ignore certain ‘gray’ areas. “Due to the exorbitant treasury bonuses, these officials take ‘disproportionate’ risks. This is by no means unique to NTB,” he said.
By Duruthu Edirimuni Chandrasekera
Nations Trust Bank (NTB) has stopped an ‘inflated’ remuneration scheme for its treasury operations department staff on the back of a massive foreign exchange loss totalling Rs 800 million, which saw two top officials leave the bank. Separately, Securities and Exchange Commission (SEC) officials confirmed that a probe was underway on possible insider dealing into share sales deals by NTB Chairman Ajit Gunewardene, prior to the discovery of the forex loss.
Zulfiqar Zavahir

In June the bank said it has discovered a breach of procedure in its dealing room leading to an exchange loss, but that gains from other treasury operations will offset this loss to a ‘great extent’ and the impact on the bottom line.
The Central Bank, following its own probe after the loss was reported, had found certain irregularities and informed the management. “We pointed out the exorbitant amounts of the remuneration scheme after our investigation and the bank has stopped that bonus scheme immediately,” a CB official said adding that the CB also had wanted some officers held accountable by the mismanagement.

On Friday, the NTB announced that its present Chief Executive Officer (CEO) Zulfiqar Zavahir retired from his position and resigned from the Board with immediate effect. The bank also said that Deputy CEO Iftikar
Iftikar Ahamed

Ahamed resigned with effect from Friday. It said Sarath Piyaratna, NTB Executive Director will act as the CEO till Saliya Rajakaruna, the newly appointed CEO assumes office in September. An NTB source said Dilshan Weerasekera, Manager Treasury has been requested by NTB to show cause for his negligence.

NTB Chairman Ajit Gunewardene told the Sunday Times FT that the Board decided on the appropriate action after a detailed investigation taking into account the findings, and noted the CB didn’t request ‘us to dismiss officers concerned.’

He said while it was an foreign exchange loss, there were no CB regulations that had been breached. Asked about the SEC probe, he said: “I am aware of an SEC investigation in general and a query made today to my brokers with respect to my share transactions of NTB. I certainly haven’ bought or sold any shares of NTB since the date that I was made aware of the issue which was June 12.”

Referring to huge commissions on forex trading, one banking analyst noted that the ‘greed factor’ stimulates some bankers to cut corners and ignore certain ‘gray’ areas. “Due to the exorbitant treasury bonuses, these officials take ‘disproportionate’ risks. This is by no means unique to NTB,” he said.

FIA wants to investigate all 23 forex companies

* Addl DG says inquiries will help stop ‘white collar’ crime * Senate body says FIA can launch investigation after obtaining proofBy Sajid ChaudhryISLAMABAD: The Federal Investigation Agency (FIA) on Tuesday demanded the State Bank of Pakistan (SBP) allow investigation of all 23 foreign exchange companies in the country to discourage them from engaging in illegal practices.During a meeting of the Senate Standing Committee on Finance chaired by Senator Ahmed Ali, Federal Investigation Agency (FIA) Economic Crime Wing Additional Director General (ADG) Irfan Nadeem Syed requested SBP Governor Syed Salim Raza to allow the FIA to proceed with the investigation. He said the investigation would ensure that the exchange companies refrained from indulging in “white collar” crime.Discussing the investigation into the Khanani and Kalia Exchange Company, Syed informed the committee that a detailed challan, comprising 250 pages of the FIA’s findings, had been submitted to court. He said the evidence had been sufficient for the court to reject the bail pleas of the accused. He claimed it was clear the company had been involved in organised crime and had indulged in affairs that were outside its purview and in violation of law. He said the investigation had taken seven months and had covered all aspects of the activities carried out by the company.Syed said the FIA was committed to curbing organised crime from society and would fulfil the country’s expectations. He also informed the committee that an interim challan of the investigation into the affairs of the Sahara Exchange Company had been submitted in court, adding another investigation was underway to examine the ZARCO Exchange Company.The ADG informed the committee that the preliminary investigation had revealed the owner of ZARCO owned property worth billions in the US. He said the FIA was also examining the company’s tax payments, adding it would determine if complete taxes had been paid on funds transferred abroad.Only with proof: In response, the committee said the FIA should not be allowed to investigate companies without sufficient proof. However, FIA officials maintained there was sufficient evidence of the exchange companies involvement in unfair practices for an investigation to be required. Meanwhile, an SBP official told the committee that prior to the investigations, the exchange companies had propelled the rupee-to-dollar exchange rate to Rs 85. He said this rate had come down once appropriate action had been taken.Regarding the suspension of the foreign exchange companies’ licences, the committee directed the SBP and the FIA to make coordinated efforts to ensure the elimination of all illegal practices.

Forex reserves increase to $12.963bn

The country’s foreign exchange reserves witnessed a steep increase during the last week to reach $12.963 billion. The State Bank of Pakistan’s (SBP) statistics showed on Thursday that overall reserves recorded a gain of $1.118 billion to reach $12.963 billion on August 15, 2009, as compared with $11.845 billion last week. According the figures released by the SBP, reserves held by SBP witnessed a major increase of $1.111 billion to reach $9.468 billion, as compared with $8.357 billion last week. The reserves held by the banks (other than SBP) witnessed an increase of $6 million to reach $3.494 billion as compared with $3.488 billion last week. Foreign reserves hit a record high of $16.5 billion in October 2007, but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill. Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. The fund last week increased the loan to $11.3 billion. The IMF had released a third tranche of $1.2 billion last week that was reflected in the recent data by SBP. staff report

Market expectation

Currency dealers will keep paying attention to equity markets in Europe and the U.S. later in the day in the absence of other significant trading cues such as economic data.
Pound currently pulled lower by euro-dollar's retreat. The rate easing toward reported support at USD1.6450. A break here may open a deeper pullback toward USD1.6410/00. Move seen as euro-sterling holds tight around stg0.8690.
EURUSD grinds its way down to USD1.4306, but reported demand place toward USD1.4300 so able to cushion the early pressure. Stops suggested on a break of USD1.4290, which if triggered to expose Friday's NY pullback lows at USD1.4276 (seen after rate rallied to highs of USD1.4377). A break here may expose USD1.4250. Resistance remains at USD1.4350/60, a break to open a move back toward Friday's rally highs at USD1.4377, with offers noted from here through to USD1.4400. USD1.3950/1.4450 structure remains in play and expected to draw protective action if either side is threatened.
European stocks are expected to open sharply higher Monday, gaining momentum from positive U.S. housing data last week, a bright start in Asia and a surge in commodities.
The dollar and euro may rise against the yen for the next few days, but since investors are reacting to volatile share markets, any short-term moves are unlikely to turn into a long-lasting trend, dealers said.

Saturday, August 8, 2009

Malawi court orders Chinese to pay MK500,000 fine in forex trial

The Blantyre magistrate court has ordered a Chinese national who was earlier convicted after pleading guilty on money laundering counts to pay a fine of half million Kwacha or in default serve a prison sentence of three months with hard labor.
Shen Chong, 39, was arrested at the Chileka International Airport for being found in illegal possession of foreign currency amounting to $39 151 (about MK5.5 million).
And in passing his 30 minute sentence, Magistrate Mzondi Mvula observed that the trial borders on technical law infringement and that the state did not give strong grounds regarding why the convict should be handed a custodial sentence.
He further added that it had become apparently known that the money in question belongs to the accused.
On state prosecutors plea to have the money forfeited, Mvula said doing so would scare away investors as they would not be interested in investing in the country for fear of having their money snatched by the authorities.
“It has to be understood that the convict was arrested during the period of trade fair and when he was arrested he even said that he brought the money to invest here but changed his mind upon learning that things are expensive here so he decided to take his money back…..that to me sounds ok, but the problem is how he wanted to transfer the money that’s the offence he (Shong) is here for.
“This is a technical infringement of law and it does not make the convict a worst offender…regarding the nature of the offence on first point I order you to pay a fine of MK5 00 000 00 or in default serve a custodial sentence of three months imprisonment with hard labor.
“The second point is that you have to sell the money at any commercial bank in the country approved by the government of Malawi then it will be up to you on what you wish to do with your money…..that’s my judgment you are free to appeal the sentence,” concluded the magistrate who received a smiling face from the convict.
Earlier in the morning, the Chinese admitted to the money laundering charges which the police had slapped him with.
However, through lawyer Ralph Kasambara he told Senior Resident Magistrate Mvula that he came with the money from China and wanted to do investments in Malawi but he changed his mind after realizing that materials he were looking for are far much expensive here in Malawi than in his native country.
Chong also said he failed to declare at the Mchinji border that he was travelling with huge sums of money as required by law because of what he called language barrier between him and the immigration officials.
“I understand the offence and I’m pleading guilty. But your worship it has to be understood here that I brought the money with me from China and I was foolish enough not to understand the laws of Malawi on foreign money transactions. My plan was to invest the money here in the country but materials here are expensive that’s why I decided to take the money back to China,” Chong told the court through an interpreter.
After the accused pleaded guilty the state prayed for stiffer punishment.
However, Kasambara told the jam packed court that by taking guilty plea the Chinese national has shown remorse hence the need to give him a lenient sentence of a minimum of fine.
Inside the court, there were pockets of laughter and mumbling after a court clerk who was couting the money told the magistrate that there is $35 000 and not initial $39 151. This forced Mvula to lash out at the state prosecution for the missing money.
He is yet to make a decision on what course of action will be taken. The money was being kept at the fiscal police.
Chong’s arrest came just days after President Bingu Mutharika issued a crackdown on illegal forex dealers following scarcity of foreign exchange in the country.
Meanwhile Malawi is operating without forex bureaus following an order by the Reserve Bank to shut all of them down.

Trade Desk Thoughts: A Break In Forex Market Mechanics

The S&P cash market finally breaking 995 support triggered sell orders on oil, gold, and the major pairs against the dollar in Wall Street trade on Thursday, with a move in forex that came after multiple attempts by the major pairs to break the session highs and lows, that just would not follow through until the S&P gave up 995 and oil gave up 72.50.
It now leaves the market at a stage in trade that, ahead of the European close, is hard to expect too much more momentum. We have been calling for the major pairs to let off some steam and reverse the recent dollar losses, and were very much aware that the Bank of England and ECB rate decisions would have to be absorbed before things stood any chance of breaking and holding. It looks as if that is now able to happen, the only issue is the timing of the break.
The 30 minute pivot point charts are running sideways overall, with very little in the way of sustainable breaks outside of seven or eight 30 minute candles over the last seven days of trade, that have put the dollar under pressure. We will be looking for confirmation from the oil markets that 72.50 will be insurmountable resistance from here, and from the S&P to signal that 1000 is a road-block that was hit only on the momentum of earnings reports.
If those two markets refrain from further gains we can start to plot a course that takes 4-5% off the value of the major pairs in the near-term, with the entries very likely to be seen as the NYMEX closes, or the Japanese and Chinese equity markets get started. For now, in the middle of the U.S. session that has little follow through historically, it is a case of waiting and planning the breaks. The rules of the forex games include not opening new positions unless they are backed by regional equity market open and closes, or are lifted and backed by a market-wide momentum wave that carries all forward as one. Right now, we have neither, and as such we will wait, and plot the 14:30 EDT NYMEX oil market close.

Sales of goods rise

The Chairman of Traders Action Committee Karachi, Siddiq Memon has said there has been a brisk rise in sales as people go on a buying spree for Eid-ul-Fitr. This came despite a 35 per cent increase in prices of goods this year, he said. In a press release on Thursday, he said that the rise in prices of goods was due to a surge in the value of the US dollar and customs duties. He added that sales may increase further if the government controls the poor law and order situation in the city.

Millions of Italians in grip of poverty

ore than a million Italian families languish in “absolute poverty,” unable to attain minimum standards deemed essential for modern life, the national statistical institute ISTAT said on Thursday. Nearly five per cent of Italy’s population, almost three million people, often in larger families of three or more children and many in the country’s south, are trapped at a level of economic misery considered degrading.

Membership for chambers invited

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has launched membership for the Pakistan-Afghanistan Chamber of Commerce and Industry and India-Pakistan Chamber of Commerce and Industry. These chambers were established after the signing of a Memorandum of Understanding (MoU) with the national chamber of commerce of the respective countries. FPCCI President Sultan Ahmed Chawla said that the activation of the joint chambers with Afghanistan and India would provide a forum to the business community of Pakistan and facilitate them in identifying new areas for possible economic cooperation, market access and making joint ventures.

Salaried class bearing burden of direct taxes

ISLAMABAD: Minister of State for Finance Hina Rabbani Khar told the upper house on Thursday that salaried class bears most of the burden of direct taxes in the country. She said there are 2,527,272 taxpayers in the country, adding, that total number of salaried class taxpayers is 1,817,666 and income tax deducted from their salaries is Rs27,376.6 million.

Gold rises

LONDON: Gold climbed above $935 an ounce on Thursday, tracking hefty gains in oil, as a jump in Wall Street equities boosted interest in assets seen as higher risk and pushed the dollar lower versus a basket of currencies. Spot gold was bid at $935.85 an ounce at 1504 GMT, against $929.00 an ounce late in New York on Wednesday.

Forex Trading Strategies Released by InvestTechFX

Toronto, Canada (PRWEB) August 7, 2009 -- InvestTechFX the leading 1 PIP Forex Corp offering MetaTrader4's analyst commented on the main trading strategy niches, and how the Forex community is working together to find and share winning strategies. InvestTechFX's analyst explained that there are as many ways to approach currency trades as there are traders themselves, however there are a few prevailing strategies that have gained significant popularity.
InvestTechFX the leading 1 PIP Forex Corp supporting scalping accounts reported that there is a growing number of traders who are relying on expert advisor software, also known as trading robots. InvestTechFX's EA specialist noted that there are multiple factors influencing this trend, including the developing industry that has evolved around the production and marketing of Forex expert advisor software. Any internet search engine will return thousands of hits for the "Forex EA" keywords, with hundreds of individual companies making the same claim; "this EA is different- it makes money all the time!" New traders can be overwhelmed with the complexity of currency patterns and the process of trying to predict them. The prospect of a software program that mathematically and unemotionally makes successful trades is obviously alluring, particularly to those who can't make the personal and financial investment necessary to truly learn the Forex trade. InvestTechFX does not condemn the use of expert advisors; it offers special accounts specifically for traders who prefer to use them. However, traders should harden themselves against the pitches made by EA sellers. An EA can be a useful tool in the hands of an experienced trader, but they can be just as destructive if overly trusted or overly relied upon. Most EAs rely on very short term trading strategies that boil down to basic mathematical principals, especially the rule that trends are more likely to continue then to reverse. Scalping in general tends to be a strategy that attempts to function outside of the risks that moderate and long-term traders must navigate; in many ways scalping can be though of a process of beating the trading system itself by exploiting technicalities in the Forex infrastructure. InvestTechFX's analyst argued that scalping can be more risky than ordinary day trading, and certainly more labor intensive.
InvestTechFX the leading 1 PIP Forex Corp commented that the online Forex community has built up a strong network of educational resources and discussion forums that can be a very useful training ground for new traders. That aside, new traders should be aware that much of the online talk surrounding Forex trading, Forex brokers, and Forex strategies is exactly that: talk. Much of the "information" presented online is highly speculative, and based on opinion and anecdote. Truly consistent strategies are usually closely guarded, and the result of years of trading experience. Even the most seasoned traders are not infallible, and must be satisfied with winning a modest majority of their trades. There are steps that any trader can take to increase their chances of success, including mastering the relevant trading software, as well as understanding the fees and policies of a chosen broker as entirely as possible before depositing real funds.
InvestTechFX the leading 1 PIP Forex Corp offering MetaTrader4 reminded traders that utilizing stop-losses, trailing stops, and targeting moderate gains can go a long way toward protecting investments. There are also new ways of freely observing seasoned "top gun" traders, as well as apprentice partnerships that can help new traders learn the ropes without taking any hard falls. InvestTechFX is committed to trader education, and offers information through their website, along with a fee demo account. InvestTechFX explained the value of demo accounts as a safe method to testing strategies with real market data without the risk of real investment. InvestTechFX's market analyst stressed that a large part of consistently successful trading is disciplined risk management and understanding one's own level of patience and tolerance for risk. InvestTechFX's analyst recommended that new traders start with daily charts and conservative daily trades, and focus on understanding the cycles and volatility of the market instead of going straight for speculative short-term trades.
InvestTechFX the leading 1 PIP Forex Corp's representative elaborated on the potential of long-term trading with preset limits. Daily and weekly trends tend to be much more obvious and reliable than minute-by-minute movements, making them a safer investment for beginning traders than putting a lot of faith in a trading robot that may or may not even function properly with live market data. InvestTechFX's representative stated that the company could not endorse or condemn any particular trading strategy, but did recommend that new traders become familiar with manual, daily trading before making the decision to adopt an EA or scalping strategy.
InvestTechFX is a No Dealing Desk Forex Broker and Software Solutions Corp. offering MetaTrader4 and a 1 PIP fixed spread on 6 major currency pairs. As a No Dealing Desk, InvestTechFX has no vested interest or influence in the trades executed by traders, and never takes positions against traders. InvestTechFX provides all its customers with premium MetaTrader4 platform, along with a comprehensive account groups system including interest-free, EA, Micro, and VIP account groups. InvestTechFX does not endorse or condemn any specific Forex trading strategy. InvestTechFX Technologies .

Hong Kong July Forex Reserves Increase

The Hong Kong official foreign currency reserve assets increased to US$ 218.1 billion in July from US$ 207 billion in June, the Hong Kong Monetary Authority or HKMA said on Friday. The international reserves, including unsettled forward contracts stood at US$ 219.8 billion in July, up from US$ 208.2 billion in June. The total foreign currency reserve assets represent about nine times the currency in circulation or 48% of Hong Kong dollar M3, the HKMA said.

FOREX-Dollar edges lower ahead of U.S. jobs data

TOKYO, Aug 7 (Reuters) - The dollar edged lower against a basket of currencies in a subdued market on Friday with investors largely staying on the sidelines ahead of key jobs data in the United States.
The Australian dollar rose briefly after the Reserve Bank of Australia, which raised its growth forecast in a quarterly monetary policy statement, said interest rates could be expected to rise to more normal levels over time should the economy continue to improve. [ID:nSYC000226]
"Among industrial nations Australia has higher interest rates. A view that its economy will benefit from demand from China, whose economy is supported by stimulus measures, is making investors tend to flock to the Aussie," said Ayako Sera, a market strategist at Sumitomo Trust & Banking.
"That said, a full-fledged recovery in the global economy needs a recovery in the United States," she said.
Investors are looking to U.S. July employment figures later on Friday. In a Reuters survey economists forecast 320,000 jobs were lost in July compared with a loss of 467,000 jobs in June.
The unemployment rate is seen at 9.6 percent, which would be the highest since June 1983, compared with 9.5 percent the previous month. [USNFAR=ECI]
Dealers said market sentiment remained upbeat and this would continue unless the employment report held any negative surprises. But the impact of the data could be limited ahead of the Federal Reserve's policy meeting next Tuesday and Wednesday, they said.
Data on Thursday that showed the number of U.S. workers filing for first-time jobless benefits fell sharply in the week to Aug. 1 whetted investors' appetite for more good news on the jobs front. [ID:nN06313199]
The dollar index .DXY, a gauge of its performance against six major currencies, edged down 0.1 percent from late U.S. trade on Thursday to 77.973.
The dollar slipped 0.2 percent to 95.30 yen JPY=.
The Australian dollar fell 0.2 percent to $0.8384 AUD=D4, shedding gains made after the statement by Australia's central bank.

WORLD FOREX: Dollar Up As Caution Returns Ahead Of Jobs Data

NEW YORK (Dow Jones)-- The dollar recovered for the third straight day against major rivals Thursday from its lowest levels this year.
Investors pared riskier bets in higher-yielding currencies on sinking stocks. Caution also set in ahead of the closely-watched U.S. release of the July non-farm payrolls report.
The pound suffered the most Thursday versus the U.S. unit, after the Bank of England surprised currency markets with a plan to expand its bond-buying program by GBP50 billion, on the heels of a string of positive U.K. data.
From a 2009-high Monday of $1.7041 and an intraday high of $1.7028, the pound fell as low as $1.6753.
However, it remains to be seen whether the pound's shift lower will prove to be a knee-jerk reaction or the start of a sustained move.
"The central bank has again shown a willingness to act to ensure the recovery can gain traction and get inflation back on target in the medium term. This, in turn, should make the market more, not less, confident about recovery and ultimately drive sterling higher," said Daragh Maher, a senior currencies analyst at Calyon in London.
"The BOE has simply provided a better level to start buying sterling afresh," he added.
Thursday afternoon in New York, the euro was at $1.4350 from $1.4415 late Wednesday. The dollar was at Y95.44 from Y94.96. The euro was at Y136.91 from Y136.95. The dollar was at CHF1.0651 from CHF1.0609 late Wednesday. The pound was at $1.6775 from $1.7006.
Meanwhile, the European Central Bank offered little in the way of surprises Thursday, leaving its refinancing rate unchanged, at 1.0%.
ECB President Jean-Claude Trichet said the euro-zone economy was on track for recovery next year and reaffirmed that it would continue to allot all bids for funding placed by commercial banks.
Trichet added that deflationary pressures should begin to ease and consumer prices will rise later this year.
His overall tone contrasted with the fears generated by the BOE, and led to some intraday advances for the euro against the dollar.

Forex Trading and CPI - Part 1

Forex trading is often a mix of technical and fundamental analysis. In the case of currencies, these fundamentals are usually economic fundamentals. This lesson is the first in a series on the most important regular fundamental releases. In this lesson I will be discussing the meaning, problems and opportunities of the CPI release.
In part one I will walk through what CPI is and why traders think that it will affect yields and therefore currency values. In a normal (non-crisis) market this relationship is very clear and relatively easy to understand. However, there are some big problems inherent in the measure that helps lead to its breakdown when the market is in crisis-mode.
1. CPI is subjective: The CPI measure looks at a number of different consumer items and calculates their price changes within a basket with different weightings attached to each item. That sounds simple but it is completely subjective and therefore it is usually very misleading.
2. Price shocks are confusing: CPI is usually divided into two components. The first component includes the entire basket of "stuff" which includes food and energy prices. Core CPI, the second component, excludes food and energy from the same basket and for very debatable reasons is often emphasized as more important than the total basket. Clearly the issue with this is that price shocks in the food or energy market will break the normal inflation cycle and the division in the measure makes it very confusing for traders to understand what is going on.
3. Comparison is difficult: CPI in the U.S. is not the same as CPI in the Euro-zone or China or any other economy. This makes comparison very difficult which is problematic for forex traders who obviously trade currency pairs.
In the next part we I begin discussing how forex traders can use CPI in forecasting risk as well as timing a trading strategy. Although CPI has problems, simplifying the analysis and looking at trends, can help understand what is going on in the market and what a trader can do about it.

Forex kitty swells $3.9 bn to $272 bn

MUMBAI: Forex reserves rose $3.9 billion during the week ended July 31, on the back of inflows due to corporate borrowing and investment by FIIs.
Also, the revaluation of non-dollar assets in reserves played their part in shoring up reserves in dollar terms. According to the latest RBI data in WSS, total forex reserves, including gold and SDR rose $3930 million to touch $271.6 billion. While foreign currency assets and reserves with IMF rose $3,974 million and $85 million, the value of gold in reserves dipped $129 million. "Inflows were seen from a variety of sources. Besides FDI and FII inflows during the week, some corporates have also brought in funds borrowed earlier," said Navin Raghuvanshi, associate V-P, Development Credit Bank. In addition to the mop-up by the central bank, reserves were also impacted by the valuation of non-dollar assets in reserves against the dollar. Both central and state governments vacated their WMA account with RBI for yet another week. While borrowings within the limit is at the prevailing repo rate, borrowings above the agreed limit is at 2% higher than the repo rate.

FOREX VIEW: Dollar May Hold Strength From Friday's Rally

TORONTO (Dow Jones)--A full slate of U.S. economic data next week will test the freshly minted view that the dollar is beginning to benefit from signs of economic recovery, reversing a market tendency that has held over the past year of recession.
The dollar and stocks both rallied sharply on Friday when the U.S. employment report for July came in better than expected, igniting a fresh round of investor optimism.
The tide of funds into the dollar was driven by the notion that a reviving U.S. economy may be ready to spearhead a climb out of the global downturn, which would also mean a quicker return to higher U.S. interest rates. This emergent view derailed the previous trend of positive data surprises igniting a thirst for riskier assets at the expense of the safe-haven dollar.
"This was maybe a hint of things to come for the dollar," said currency strategist Sacha Tihanyi of Scotia Capital, even if the greenback's longer-term outlook remains murky at best. "We are eventually going to reach a point where the risk flow won't push things around as much, and we may be closer to that point now."
If so, there will be abundant opportunities to test that proposition in the U.S. data flow next week. It will also help ascertain if Friday's break higher for the dollar was only fleeting or marks a decisive trend reversal.
Key U.S. data include the goods and services trade balance for June on Wednesday, July retail sales and the latest jobless claims figures Thursday, followed by the July consumer price index, industrial production figures for the same month, and a key measure of consumer sentiment on Friday.
Other significant events are the announcement at the end of the Federal Reserve's two-day policy meeting on Wednesday, as well as the market reception given the Treasury's massive $75 billion quarterly refunding effort over the course of the week.
The Fed next week isn't expected to deviate from its commitment to hold its key policy rate at exceptionally low levels for a prolonged period nor to fine tune its $1.75 trillion asset purchase program.
But crucial for currency and other asset markets will be whether the Fed's updated economic prognosis together with next week's data stream advances the likelihood of a U.S.-led global recovery and more favorable yield spreads between U.S. debt instruments and competing foreign assets.
"If the U.S. economy begins to lead the global economy out of recession, the dollar could benefit as it did in the wake of the Southeast Asian crisis of 1997-98," when the greenback was the preferred currency in the subsequent period of recovery, said chief currency strategist Michael Woolfolk of Bank of New York-Mellon.
Currency strategists at Brown Brothers Harriman said a sustained turnaround for the dollar may have to await a more consistent flow of better data and upwardly revised projections for U.S. economic growth, coupled with a rise in short-term Treasury yields above euro-zone counterparts.
More in the near term, Scotia Capital's Tihanyi expects the dollar to at least consolidate at stronger levels against its major rivals next week, suggesting a range of about $1.4000 to $1.4350 against the euro and Y95.80 to Y98.50 against the yen.

Trade currencies at your convenience

A currency trader can pick the most convenient trading hours for him or her, even when the stock market is closed.

Free forex training

One of the main reasons traders fail is because of a lack of knowledge or experience. Free training is an advantage of working with our firm. Join the ranks of new and experienced traders that have been trained by Forex Trading USA. Find out more about our free training. You can also read plenty of free information about the forex market and trading in our FX education section.

Saturday, August 1, 2009

U.S. Department of Education's Direct Loan Program.

Students and parents can explore the site for information about the Direct Loan Program, including helpful publications and tools to help manage their Direct Loans.
Financial aid professionals at schools can find operational communications and guidance, technical documents, and related information as well as tools for administering the program at their school. There is also a special section for schools interested in joining the program.
Click on the boxes below to find the information you want.

College Students: Loan Process

College students should know that their student loan does not start and end at their educational insititute. There are numerous private student loan funds that will help college students get the right loan and/or students consolidate loans.

Disadvantages Of Student Loan Consolidation

Student loan is considered by some to be the solution in getting a college education. But what isn’t generally known is that there are disadvantages involved in getting a student loan consolidation when you need to repay your debts in the future.

Graduate Student Loans

About Student Loans helps graduate students learn how they can get the best student loan, and ensure that the student loan they choose will not bog them down in the future by teaching them how to consolidate loans.

All About Student Loans

Student Loans are easy to accumalate and hard to get rid off. Once your education is over it seems the student loan becomes a burden thats hard to get rid off. Student loan consolidation can help and so can learning about the various student loan processes and interest rates involved. Its not about getting rid of the loan, its about knowing how to minimize your financial burden.

Debt Consolidation Services

The first are the federal student loans that are eligible for federal loan consolidation. If a student has federal Stafford loans, PLUS loans, Perkins loans, HEAL loans, Federal FFELP and Direct loans, he has lending agreements that are eligible under Department of Education guidelines to consolidate school loan expenses into one payment. When a college student first leaves school, federal student loans are due in ten years.
Monthly payments are figured on a ten year pay back schedule. With often very high balances, a payment on a single loan can be high but three or four separate accounts due each month can be breathtaking for a young person. Bill consolidation or debt consolidation services helps you to consolidate of all the accounts allow the student to stretch loan liability out to as far as thirty years, often cutting in half the monthly ten year obligations. But it does mean that by doing the federal loan consolidation over the thirty year time span, a lot more interest will be paid.
There are some guidelines and requirements of debt settlement company for federal student loan consolidation expenses from the federal government and the first is that, consolidation will only occur with federal loans amounting to more than twenty thousand dollars. Additionally, a student must not be in default on any of the loans and must be less than a half time student.

debt consolidation.student loan consolidation company.

There is what they called This takes away student loans like any other bills including outstanding credit card bills and put them into a lump sum. Then, this can be taken to a The company will determine the terms of payment depending on the present budget. And even if the borrower doesn’t have a proper budget, they will go to help make a budget.Because the company will provide the student loan consolidation, the borrower must make one payment to the company every month, or depending on the terms provided according to budget. This will in turn make the payments to the creditors likewise, to the student loans. In this, we can see that it is better to go for a fixed interest rather than floating rate.
If borrower prefer for a fixed interest, it lessen the risk of uncertainty, since borrower have a clear idea regarding the amount of money that they need to repay. Borrower must look for a lender that offers low fixed prices. More importantly, borrower must have fix proper payment periods to avoid any pressures.
For students who have already paid half their debts, it is necessary that they should opt not to take consolidation because this can reset the loan process. And as result, the student might pay more what was preplanned. It is better to contact the source of student loan to be more certain about the consolidation of loan so that the borrower have an idea regarding their current loan and status.Student loan consolidation is sometimes misunderstood as exactly as a loan. But as we can see, student loan consolidation doesn’t give borrower lump sum to pay off their student loans. Student loan consolidation distributes the amount money the borrower’s paid every month in order to make the necessary payments. But, borrower should not miss payments because this might get worse as before.Conclusively, borrower may consider the student loan consolidation program when they are still in college. This will graduate students plan their future without hassle of repaying their loan.

Financial Solutions for Students and Parents

NextStudent, one of the country’s premier providers of student loans, is dedicated to helping students and their families find affordable ways to pay for college, student needs, and life after college. We offer a wide range of education finance products and services, including a free online scholarship search engine, links to a network of student loan providers, and extensive information on federally guaranteed parent and private student loans, and student loan consolidation programs.Besides access to scholarships and college loans, we also offer options for credit cards, student credit cards, prepaid college credit cards, student health insurance, and short-term health insurance for recent grads.

Free Non-Student Loan Debt Consolidation

Do you have more debt outside of student loans? Please request a free debt consultation today. Consolidate your debt into one lower payment, avoid bankruptcy, and be debt free in as little as 12-48 months.

Student Loan Consolidation

Student Loan Consolidation is a practical repayment tool that refinances your school loans into one loan, significantly reducing your monthly payment. Take a look at how much you can save each month with our Student Loan Consolidation calculator.