FX Technical Commentary

August 29, 2010 by  
Filed under Forex News

Euro 1.2750 Initial support at 1.2434 (61.8% retrace of 1.1877-1.3334) followed by 1.2152 (June 29 low). Initial resistance is now located at 1.2933 (Aug 12 low) followed by 1.3000 (Big figure Resistance)

Crude Oil Flat Ahead of Plethora of Data, Gold Slow but Steady

August 29, 2010 by  
Filed under Forex News

Crude oil will attempt to build upon last week’s three-day rally, but a plethora of economic data will pose an obstacle for the commodity. Gold faces an obstacle of its own in the form of overbought conditions.

Weekly Review and Outlook: Oversold Risk Selling Recedes, Dollar and Yen to Remain Soft with …

August 28, 2010 by  
Filed under Forex News

Risk-off trading extended further initially last week but reversed as markets hit important near term levels. DOW had a few attempts on 10000 level and dropped to intraweek low of 9937 but rebounded to close at 164.84. Yield on 10 year notes dropped to as low as 2.41% but defended

Gold May Extend Slow Ascent as Market Uncertainty Prevails

August 28, 2010 by  
Filed under Forex News

Gold_May_Extend_Slow_Ascent_as_Market_Uncertainty_Prevails_description_TOF_08282010_GLD.png, Gold May Extend Slow Ascent as Market Uncertainty Prevails

Weekly Economic and Financial Commentary

August 27, 2010 by  
Filed under Forex News

Economic readjustment continues to dominate any upside momentum the economy may have, and this is especially true for housing. Existing home sales dropped 27.2 percent in July, which was well below expectations. The monthly decline was the largest on record. Payback from the tax credit is largely responsible for the

GDP and Bernanke Disrupt Risk Appetite but New Trends are Left to Next Week’s Heavy Event Risk

August 27, 2010 by  
Filed under Forex News

GBP/USD Remains an Intermediate Term Bull

August 26, 2010 by  
Filed under Forex News

The GBP/USD broke out of the triangle pattern yesterday. Instead of continuing the downtrend, as anticipated in the previous update, the market broke through on the upside. The rally broke above 61.8% and even 78.6% retracement level. This was the threshold for abandoning the bearish outlook, and the market broke

USDJPY Failure To Make a Clear Break Above the Upper Bounds of the Descending Channel May Validate Further Downside Risks

August 26, 2010 by  
Filed under Forex News

The USDJPY may face increased volatility over the next twenty four hours as traders await Japan’s jobless rate and inflation reports, in addition to U.S. GDP and consumer confidence releases.

The Future of the Iraqi Dinar

August 25, 2010 by  
Filed under Iraqi Dinar

The political impasse in Iraq has been frustrating for all parties involved, particularly Iraqi citizens. The Iraqi people have been frustrated by the lack of leadership by all sides to come together to form a unified government that will work for the benefit of Iraq as a country. It has been five months since the March 2010 elections were held, a landmark achievement for Iraq. However, no formal government has been established. The deadlock primarily between Nouri al-Maliki and Ayad Allawi as to who will take over the premiership and have the first chance to form a government has stalled all political progress. In addition, there have been some concerns about the stability of Iraq as U.S. troops withdrawal to a non-combat level by the end of August 2010. As Iraq embarks on a new chapter, the Iraqi dinar has been a widely discussed topic.

Many Iraqi dinar speculators have invested in the dinar to take advantage of its historically low value. Currently, the exchange rate according to the Central Bank of Iraq is 1,170 Iraqi dinars to $1. This is in stark contrast to historically high values before the Gulf War of around 1 Iraqi dinar to $3. However, these low values have made the Iraqi dinar an enticing and exciting opportunity. Dinar speculators are looking forward to Iraq stabilizing as a country and waiting for the Iraqi dinar to be on the open market. Currently, Iraqi dinars can only be purchased from private dealers like Dinar Profits since commercial banks have stopped carrying the dinar. Since the dinar is not listed on a foreign exchange, banks do not have an urgency to carry the dinar. Dinar investors are waiting for the dinar to be publicly traded so that market forces will determine the value of the dinar.

So the question is, when will the Iraqi dinar be publicly traded? No one knows exactly when this will happen, however, there are some key events that one can look as indicators. First of all, a formal, stable government needs to be in place. Part of the reason why commercial banks have stopped transactions with the dinar (dinars were last available at commercial banks around 2004-2005) is because of Iraq’s instability as a country. After the fall of Saddam Hussein in 2003, Iraq has been strife with war, violence and insurgency. The war in Iraq has progressed to a point where U.S. troops are pulling out to non-combat levels by the end of August 2010. However, even after the historic elections in March 2003, no government is in place. Without a formal government in place, the banks view the Iraqi dinar as unstable.

In addition, it is yet to be seen how Iraq’s future will be shaped after the U.S. troops pull out. First, when will a government be formed? The next question, might be the most important question – will Iraq be able to protect and secure its borders and infrastructure after U.S. troops leave? There have been concerns that Iraq does not have the man power, resources and training to protect its country in a region littered with missiles and territorial aggression. Forming a government is the first step, but will Iraq be able to support a safe and stable environment for its people to thrive? The value of the Iraqi dinar is directly tied to the strength of Iraq. It will be up to Iraq and the international community to support Iraq in this critical time to provide infrastructure and basic needs for Iraqi citizens and Iraq as a whole to prosper.

5 Tips On Finding A Forex Broker

July 12, 2010 by  
Filed under Forex

When you decide to start online forex trading, there are some things you need to know first. The most important thing you need to do is find a good broker. This broker will be your market connection and will conduct all trades for you, as well as keep you apprised of all real time pricing.

You’ll most likely have to pay a set fee. This is either by commission or spread based fee. There are literally hundreds of traders available so it may be hard finding one you can trust that’s also reliable and affordable.

Following are 5 tips to aid when searching for a good forex broker:

* Find out what system a broker uses beforehand. This system needs to be reliable so you’ll want to know how much down time it has and how quickly the backup system takes over. Also, check the broker’s website speed at different times during the day.

* The costs involved should be high on the list of factors when deciding on a broker. Commission rates can range from $10 to $40 and over. Generally, the price will indicate the type of service you’ll get. At times, the rates only take care of standard trades and end up costing you more.

* How much it costs to start trading is another consideration. The fee can be anywhere from a few hundred dollars to thousands. Shorting or margin trading will cost you more. New investors are advised not to do this at first but check in case you want to do this later.

* What sort of support or customer service does the broker offer? It’s important to know your broker can be reached if needed. Do a couple of tests via phone and email to see what the response time is.

* Check out the amount of experience the forex broker has that you’re considering. You want to hire one with a good reputation and a good track record. Have a look at online forex trading forums to read some forex broker reviews. These are excellent sources for information.

Keep in mind that the amount of success you have in forex trading depends solely on your forex broker. So be sure to choose a good one.

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