FOREX Weekly Report for May 30, 2008

Greetings MTF readers. Here is the weekly FOREX wrap up for the week ending on Friday May 30th 2008. The US dollar continued it’s rise against the euro for the second consecutive month now. It did fall a bit on Friday against the euro as some investors sold the US currency after the string of recent gains. This was the first back to back monthly gain since January 2007 for the dollar. The euro zone common currency headed for a second consecutive month of declines against the greenback.

Demand for the US greenback has increased recently as oil prices eased from record highs and US government data showed only minor inflation. A government report on Friday showed US personal spending rose for the month of April in line with forecasts. Data also revealed that inflation in the Euro zone rose to a historic peak of 3.6 percent in May. German retail sales also fell in April fell for the second month in a row.

The dollar has had two good months of gains versus the euro. It’s gain slowed at bit on Friday as there was some selling off. This may be due to some investors wanting to sell to cash in on gains after a good run for the US currency. The dollar attracted broad support this week from a further retreat in oil prices from last week’s record of $135 per barrel. The personal income and spending report fits well with recent data reflecting a bottom has been reached for the dollar. Many feel that the focus for the greenback is now on oil prices. Overall, this seems to be good news for the dollar. Based on the data, it shows definite signs of a stabilizing economy.

In an interview published on Friday, European Central Bank President Jean-Claude Trichet said that the central bank will do everything it can to preserve price stability and reinforce expectations of low inflation. Whether or not this can be accomplished remains to be seen as the euro is no different than any other currency. It too must overcome slowing growth and rising inflation. The euro/dollar currency pair may settle into a range bound movement as the market is still not certain about the interest rate trend in Europe.

Some feel that higher inflation in the euro zone may lead to a more hawkish monetary policy stance, while others feel that a possible emerging weakness of the economy in the zone may require a rate cut. Inflation may well be likely to remain above the ECB’s target in the near term, but against the backdrop of slowing growth, the ECB may also be unlikely to increase interest rates for the rest of the year.

Against the Japanese yen, the dollar was nearly flat for the day at around 105 yen, but still within sight of a three-month high of 105.87 hit on Thursday. The dollar has strengthened versus the yen on the back of weak economic data out of Japan including a larger than expected rise in unemployment and a drop in industrial production. The US dollar went slightly lower against other major currencies after touching near three-month highs against the Japanese currency overnight. The dollar strengthened in New York trading overnight following data that the US economy grew faster than previously estimated in the first quarter. The GDP data helped ease concerns about the US economy while boosting expectations that the Federal Reserve may raise interest rates this year.

There are now expectations that the Fed has finished with its rate cutting cycle and will most likely start raising rates from abnormally low levels as the US economy starts to benefit from the previous fiscal and monetary measures. Even among fears of inflation, this echos Dallas Federal Reserve President Richard Fisher’s comments that he would expect a change in course for the Fed if inflationary expectations continue to worsen, even in the face of an anaemic economic scenario. These comments helped to boost the dollar.

Rate hikes would be a large change in the Fed’s recent monetary policy stance. Growing sentiment of this expectation seemed to strengthen after the Commerce Department said the US economy grew 0.9 percent in the first quarter based on revised data. This was higher than the government’s previous estimate of 0.6 percent growth, helping to ease worries about a recession. The closely eyed ISM survey on the US manufacturing and service sector is scheduled for release next week. Concerns over inflation are also affecting US Treasury prices, forcing the long end of the yield curve higher and lending support to the dollar. The yield of the 10 year Treasury note, which moves in the opposite direction to its price, rose to 4.08 percent in late trading from 4.01 percent Wednesday.

The more optimistic outlook for Fed expectations may also be helping to fuel a growing view that the euro zone economy may suffer concomitantly with the US economic fallout and beginnings of rebound. And if oil prices continue to ease, the recent euro/dollar currency pair rate move trend could gain momentum.

[tags]aud, australian dollar, cad, canadian dollar, currencies, currency trading, dollar, euro, FOREX, forex trading, FOREX Weekly Report, fx, fx weekly report, gbp, great british pound, japanese yen, jpy, pip, pips, us dollar, usd, yen[/tags]

Easy-FOREX Adds New Visual Trading Machine

Here is another FOREX update for our readers. As a valued MTF reader/partner we would like you to be one of the first to experience the new visual trading machineâ„¢ on the revamped Easy-Forexâ„¢ platform.

According to Easy-FOREX, “The new platform is based on the concept of visual trading, giving traders instant access to unique market information together with a high degree of trading control.” This comes, perhaps in response to the direction of the eToro trading platform. It continues to be an HTML based browser application that makes use of JavaScript and AJAX, but it now has a much improved user interface. Thanks to this new interface, it now offers new levels of superfast performance and execution. It also manages to seemlessly integrate trading, charting, FOREX news, and alerts into one window. It gives FOREX traders the means to calculate risk, calculate position size, and to freeze the currency rates before the trade execution. These features are all built into the new platform. A simple demonstration of Visual Trading Platform now resides on the main page of the site. Just go here to check it out.

[tags]easy-forex, FOREX, forex broker, forex trader, forex trading, forex trading platform, forex trading platforms[/tags]

FOREX Weekly Report for May 23 2008

Well, happy Memorial Day everyone! As you can see this weekly wrapup was delayed a few days, but take a quick look for review anyway. Here is the end of week FOREX update for May 23, 2008 on Money Trading FOREX. The dollar saw its sharpest decline in 2 months today against other major currencies due largely to record high oil prices leaving the U.S. economy vulnerable to slower growth and rising inflation. This exacerbates the fact that the US consumer market is already under stress from the housing crunch. Interest rates will likely remain low in the U.S. for the time being despite rising inflation, and that may be a likely indicator that the dollar will remain weak.

The dollar pared losses against the yen on Friday after slightly better than expected U.S. existing home sales data for April. The U.S. dollar was trading slightly weaker in mid-morning trade in Sydney on Friday. There was an overnight dollar rally on stronger job numbers and falling oil price, but that ran out of steam rather quickly.

The euro barely escaped losing ground and remained mostly stable despite data showing tepid growth in the euro zone’s manufacturing and services sectors. Analysts feel that despite the slowdown, the economy is still strong enough to allow the European Central Bank to focus on restraining price pressures. Euro zone PMI figures counter 1Q GDP and show the slowest rate of growth in five years. While in the United Kingdom there is no revision to headline UK growth figures. Even so, consumer spending has risen to an 8 year high while business investment sunk to a 4 year low.

It’s been a very big week for the British pound, which rallied more than 300 pips against the US dollar. There were some upswing surprises in economic data and some rather hawkish comments from the latest monetary policy meeting which may signal that it could well be months before FOREX traders see another rate cut from the Bank of England.

Rising commodities have been the story of the week helping to take the Australian, New Zealand and Canadian dollars higher. The Australian dollar rose to a 24 year high, setting itself within an arm’s length of hitting parity with the US dollar. On a similar note, rising inflationary pressures and stronger economic data suggests the RBA is much closer to an interest rate hike than any of the other major central banks.

Also as has been the trend lately, FOREX reserves in India have risen by over 1 billion dollars.

[tags]aud, australian dollar, cad, canadian dollar, currency trading, currencies, dollar, euro, forex, forex trading, forex weekly report, fx, fx weekly report, gbp, great british pound, japanese yen, jpy, pip, pips, usd, us dollar, us dollar, yen[/tags]

Welcome to the Money Trading with FOREX Site

Welcome to the amazing world of Money Trading with FOREX. Currency Trading or FOREX is by far the world’s largest market valued at over 3.2 Trillion dollars traded daily. So if you’re looking to tap into this market, you’ve come to the right place. This site is meant to be a resource to help you successfully trade the world’s money currencies with FOREX. You’ll find the latest information and updates here along with the best trading platforms. Feel free to post information, articles, tips, opinions, or comments. All you have to do is register to post. And let us know what you’d like to see here. We’re open to input to make this FOREX site the best around. Please see our About page to see all the latest features we’ve provided to make this site accessible and feature rich for you. And please be patient as we add more functionality and resources.

[tags]currency trading, foreign exchange, foreign exchange trading, forex, forex trading, fx, fx trading[/tags]

FOREX Trading – What is it anyway?

Forex? What is it, anyway?

The market

The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 3.5 trillion dollars, which is well over 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forexâ„¢).

Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. So you are buying and selling money as a commodity for profit. That’s all.

How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say – around 1%, are multiplied by 100! (in general, Easy-Forexâ„¢ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of “your” pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.

Moreover, you cannot lose more than your “margin”! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.

You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa – buy dollar and sell Euro. You don’t have to physically possess certain currencies in order to perform “buy” or “sell” with them.

How do I start?

Register (Easy-Forexâ„¢ offers the simplest and quickest registration process, no obligation); deposit your first trading “margin” amount (credit cards are welcome, only by Easy-Forexâ„¢); start trading.

It can’t be simpler or easier than that. Need help? We’ll provide you with 1-on-1 training and service, as much as necessary (Easy-Forexâ„¢ offers real people service, live, in your own language).

How do I trade Forex?

You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the “margin” (collateral needed to facilitate the deal. Usually only a very small portion of the whole deal, say: 1% or 1:100).

Before you finally activate the deal, you can still “freeze” it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether reject the whole idea. The “freeze” feature is a unique service by Easy-Forexâ„¢.

When your Forex deal is running (you hold an “open position”), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Easy-Forexâ„¢ lets you determine a “take-profit” rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.

Want to know more? Want to get on-line training? Register here (simple, quick, no obligation), we’ll be glad to guide you, every step of the way.

Proitable Forex Trading to you!

[tags]currency, currency trading, FOREX, forex trading, money, trading[/tags]