Currency Market Updates

Pro Trader Advanced Forex Course

Currency Market News on Forexmentor’s New Advanced Forex Course by Chris Lori

8, February 2010

Chris Lori is an associate mentor at Forexmentor. He also is a fund manager and CTA. Chris’ role at Forexmentor includes training advanced traders and fund managers. Chris has trained thousands of traders worldwide via course material and workshops.

The new course is a one-of-a-kind power resource to help traders go beyond the basics.

You will acquire a deeper understanding and a clearer edge over retail traders.  It increases one’s understanding of the market, helps provide for more effective trade management, more consistent profit taking and reduction in trading losses by teaching trade entry techniques you never would have considered, because it is against natural human instinct.

These simple techniques and market knowledge are used only by the pros that you can put to practice immediately.

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

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Markets Remain Nervous

Currency Market News on G7 Meeting, Poor US Non-Farm Payroll Data and Good News from Australia

8, February 2010

The Contagion effect within the EU as a result of the continuing crisis in Greece is getting more and more serious. Both Portugal and Spain are being affected by the fallout from the crisis in Greece with Italy deemed not a long way off the market’s radar.

Comments emanating from participants following the close of the G7 Finance Ministers’ get together in Iqaluit, Canada at the weekend. The message was that there would be a “European” solution to the current problems and no requirement for an IMF bail-out, but that Greece would have a heavy price to pay for consistently breaking the EU’s self imposed rules.

The German finance minister, Wolfgang Schaeuble, stated that he did not see the problem’s undermining the Euro going forward adding that ‘markets always tend to over-react’. Following this, the markets have continued to ‘over-react’ with EUR/USD erring on the soft side once more in early Far East trade. A slight recovery in Asian stock markets, following Wall Street’s 10 point closing gain on Friday, has added a small floor for the euro but it would be a brave trader to be the first one in selling Dollars in the present risk-averse climate.

Following the very disappointing non-farm payrolls figures from the US on Friday afternoon, sterling had held on bravely, in the face of the again rampant USD, and reinforced its recent gains against the euro.

Comments this morning in Sydney from Dr Mohamed Abdulla El-Erian, the CEO of PIMCO, served to undermine the pound however. He stated that the UK is the Sovereign state currently most at risk of losing its AAA rating – a view that echoes a previous comment made by the company’s Head of European portfolio management, Andrew Balls last month. This had the effect of knocking sterling lower and although not new, will serve to re-emphasise the tightrope upon which the UK fiscal position is currently balancing.

The other big gainer on risk aversion positioning has been the Yen which has made steady gains this year against all-comers, even the resplendent Greenback. This can not possibly be maintained so expect a swift correction on any up-tick in risk appetite at all.

Other news over the weekend and for the early part of the morning has been fairly sparse but we have a seen further evidence of the long term recovery taking shape in Australia, on two fronts. Firstly, and more fiscally related, the Treasurer ‘down-under announced that the government was ending, with effect from the end March this year, its guarantee on Australian banks debt issuance. This will have more of an effect on the country’s 2nd tier banks’ ability to raise fresh capital than the BIG 4 banks, but should eventually be seen by the international community as a sign of progress being made in progressing economic repair.

The second positive announcement for the area was news of a agreement between Resourcehouse of Australia and China, for the former to supply coal to Chinese power stations over the next 20-years under a contract worth around AUD 70 billion in total.

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

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PIGS Spread Fear Across The Markets

Currency Market News on How PIGS Breed Fear, the US Non-Farm Payroll Data and Trichet’s Statement

5, February 2010

The volatility in the FX markets over the last 24 hours has been staggering! The main economic events yesterday were related to the UK and European Central Bank decisions. However this was not the driver for the volatility. The main ingredient was fear, the exact location was GPS – Greece, Portugal and Spain.

There was a scramble for safer shores in the USD and the Yen and out of the euro and higher yielders and to some extent the pound, as panic swept the markets. Escalating debt concerns are increasing in these European economies and this drove stocks and commodities lower. Debts spreads between the good eggs and bad eggs widened considerably and could increase further.

The market clearly needs some reassurance in regards to the bad economic apples of Europe and ECB president Trichet did little to reassure the markets yesterday so we await a viable plan from each economy. It seems the simmering problems perceived for some time within Europe are finally coming to the boil and the question is can each economy sort out their own mess? You could also throw Ireland into the equation to formulate the PIGS of Europe. If they cannot reduce their debt, will the ECB and IMF offer a trough for aid?

We are likely to stay in fear mode for this mornings trading and we await the big data today from the US in the form of non-farm payrolls. The markets really need a reassuring good number to stop the rot of fear. The data is due out at 13:30 GMT.

Reflecting on yesterday’s interest rate meetings we saw no great surprises with the Bank of England keeping rates on hold at 0.5% and deciding to hold QE at £200 billion. This did at least help the pound hold firm (aside from against the USD and the JPY) as there was growing fear of a further expansion of QE.

Over to the ECB and they as expected left rates unchanged. In the statement, Trichet tried to defend the fiscal position of Europe as a whole with little impact. It is very clear that the Euro is being driven lower on fear with EUR/USD hitting a low of 1.3646. This is likely to be the foreseeable trend.

Report by Phil McHugh

Currency Market Updates by Tom Nadir

Contact Currencies Direct for Corporate or Private Transactions. Open an account today and save money.

Currencies Direct & Forex trading

Currencies Direct is a leading commercial foreign exchange company with offices in the UK, Australia and Spain and has offices across 5 continents. Currencies Direct’s head office and global trading centre is based in the City of London.

The contents of this report are for information purposes only.

BlogCatalog – Finance

Filed Under Currency Market News, Currency Market Updates | | Leave a Comment

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