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Archive for September, 2007
Global forex volume surges
The Bank of International Settlements just released the results from its first survey of Central Banks in over three years, and the results were startling. Forex volume rose 71% to $3.2 trillion per day, cementing the status of forex as the world’s largest market. Trading in forex derivatives also surged, to an average of over $2 trillion per day. While the role of the USD has slipped somewhat, it remains the world’s reserve currency as evidenced by the fact that it represents over 40% of all forex volume. FinFacts reports:
"A significant expansion in the activity of investor groups including hedge funds" as well as individual investors also contributed to the increase."
Read More: Global daily turnover in currency markets rises…
Podobne wpisyDaily Market Commentary 27.09.07The euro gave back some recent gains vis-à-vis the U.S. dollar today as the single currency tested …Asian Morning Update 26th September 2007Dollar slips lower again overnight
With the […]
St. Louis plays Reich and Crumb online
The Portrait Concert series, featuring members of the St. Louis Symphony Orchestra, has put a number of resources online, including interviews, information, and recordings of performances.
Listen to their performance of Steve Reich, Different Trains and George Crumb, Black Angels here.
Different Trains by Steve Reich is reminiscent of the train trips he took from the East to West coast with his
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Forex Trading: Significance of Canadian Dollar Parity
Candian dollar parity in currency tradingThis past week, a lot has been said about Canadian dollar parity with the U.S. dollar in currency trading. In forex trading, a currency reaches parity when it very nearly the same value as another currency. In the case of the Canadian dollar, this means that one CAD is roughly equal to one USD.This is significant because this hasn’t happened in three decades. Indeed, the U.S. dollar is usually worth a good deal more than the Canadian dollar. And for a brief time, CAD was even ahead of USD on the FX market. Canadian dollar move to parity in currency trading is a sign that the Canadian economy is doing well, able to support the loonie, while the U.S. economy is floundering, leading to a weak greenback.
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U.S. Dollar Forex Trading Strategy
Count on a weaker dollar against euro in currency tradingWhen planning your U.S. dollar forex trading strategy, it is important to note that the greenback may fall further against the euro in currency trading. Indeed, U.S. economic data indicates that there seems to be a pullback in the U.S. economy, and this means that the dollar could show more weakness. The International Herald Tribune reports on information you should use when planning U.S. dollar forex trading strategy:
U.S. data due later Friday could further weigh on the dollar "if this suggests we’ll see a continued run of rate cuts by the Fed into the New Year," said James Hughes, an analyst at CMC Markets. "The key technical level of 1.4200 is clearly the next one to watch."
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U.S. Dollar Forex TradingCurrency trading on the FX market
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Euro Forex Trading Forecast
Euro zone currency to continue gains on FX marketThe euro forex trading forecast looks positive, with the euro zone currency expected to continue its gains on the FX market. With U.S. economic data indicating that a Fed rate cut may be necessary again before the end of the year (and maybe even next month), the euro is looking strong in forex trading. Reuters reports on the euro zone currency on the FX market:
"I think the euro is going to continue to hit record highs against the dollar. The underlying forces that have driven the euro to these levels such as rate differentials have shown no signs of abating," said Simon Derrick, head of currency research at Bank of New York Mellon.
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The Euro Zone Currency on the FX MarketForex trading with world currencies
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Asian Currencies Gain on FX Market
Emerging market currencies in AsiaAsian currencies are doing well in forex trading on the currency market. In addition to the Japanese yen, which is forecasted to continue to make gains agains the U.S. dollar in currency trading, emerging market currencies in Asia are doing well. Bloomberg reports on the success of Asian currencies on the FX market:
Asian currencies gained this quarter, led by the Philippine peso and the Singapore dollar, on speculation investors increased their holdings of emerging-market stocks and bonds.
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Emerging Market Currencies in AsiaForex trading on the currency market
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Canadian Dollar Maintains Parity with U.S. Dollar in Forex Trading
Volatility low for loonie in currency tradingVolatility is at a very low level in currency trading on the FX market this morning. With Canada’s economic boom underlying the currency, and commodities prices remaining helpful to the economy, the Canadian dollar is maintaining parity with the U.S. dollar in forex trading. Bloomberg reports on the loonie in currency trading:
“The market looks pretty copacetic about the Canadian dollar, and no one feels the need to pay for option protection,” said David Greenwald, a partner at Scalene Capital Management in Newport Beach, California, who helps manage $98 million of foreign exchange funds. “The decline in volatility is showing that there isn’t any type of panic in the market with regard to the move to parity.”
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Canadian Dollar Forex TradingCurrency trading on the FX market
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European Mid Morning Update 28th September 2007
Dollar expected to end the week on a soft note
One bigger shock from Japan was the huge decline in housing starts, a massive -43.3% YoY. Apparently new safety pre-inspection rules were introduced in June and this has increased paper work and thus slowed starts, putting downward pressure on construction orders.
Japan Forecast ActualHousing Starts (YoY) -15.6% -43.3%Annualized Housing Starts 1.086mn 0.631mnConstruction Orders (YoY) -14.2%
Moving on to Europe German Retail Sales were first to be released as Europe sits behind its desks, seeing a shocking -1.4% MoM and -2.2% YoY decline. This compares to forecasts of +0.3% and -1.5% respectively. The small cracks that had been showing up in German numbers appear to be threatening to develop into rather large gouges in the economy and suddenly, while officials still talk about a strong economy there are initial signs of something more serious amiss. Still the numbers overall do still point to a healthy […]
European Morning Update 28th September 2007
Yen makes gains following positive data
In addition to the slew of data from Japan Australia was first on the roster with the TD Securities Inflation index which rose by +0.2% in September and over the past 12 months by 3.0%. After having edged lower the underlying inflation rate appears to be creeping higher to rest just below the RBA’s upper tolerance band of 3.0% and this will cause the CB some concern.
While the RBA will be conducting its monetary policy meeting next week the market is not expecting a hike this time round though if the upward pressure on inflation remains the odds for a rate hike will shorten. The current credit concerns will probably restrain the CB on this occasion.
Japan issued a full economic release schedule as usual at month-end and on the whole the numbers make good reading for a change with just the unemployment rate […]