Forex Forecasts

Possible risks and profits to be made can always be predicted if traders would only have more accurate Forex forecast to base their trade and decisions upon. Forex forecasts are only one way of keeping up with the volatile Forex market. Success will depend the most in knowing what and who will affect the rate changes.

The Forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a Forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.

In Forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a Forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the Forex forecast shows a likely possibility to be true or not.

Staying in touch and up-to-date with the latest news and happenings around the globe and information about the Forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some Forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.

How can one benefit from Forex forecasts?

There are some companies that are offering Forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this Forex forecast information would be their alternative.

No one said that there is a 100% accuracy in these Forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the Forex forecast, you could always find one with the most accurate percentage rate.

You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the Forex market. There are also some sites that send out Forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.

Relying only on one Forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more Forex forecast from sources that are rampant online and offline so you would not stick to just one.

The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your Forex trade into the hands of only person. Try to get several Forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.

Before putting the future of your investments into the hands of those offering Forex forecasts, make it a point to check out the latest that is happening in the Forex trading and see if the trend is likely to go with what the predictions are telling about.

If you think more about it, people doing Forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?

Forex Update: Comparatively Reliable U.S. Dollar, Falling British Pound, And Geithner's Message to Asia

Currency market participants are faced with increasingly diverse options amid the deepening erosion of risk appetite, persistent banking losses and deteriorating measures of corporate and household wealth. While yen-supportive strategies remain most prevalent amid the worsening risk-landscape, broad selling of the British pound and bearish stances in the commodity currencies (CAD, AUD and NZD) has also proven rewarding. The US dollar continues to emerge as a reliable companion to the yen in strengthening by default against the European and commodity currencies. USD-strength by default simply means the increase in value resulting from a slew of negative European issues (UK banking troubles and S&P sovereign downgrades of Eurozone nations). But as I have argued last week, gold's upward trajectory manifests the ongoing fundamental woes in the US economy and currency (last weeks retail sales, falling CPI and todays soaring jobless claims). As retail investors realize gold's ability to hold above its 2-month trend line, their new zeal for the metal via ETFs may help propel the metal back to December's $890s.

Sterling Focus: From Davos to Rome

As French and German officials begin to express concern with the impact of the pound's rapid fall on their already sluggish economies, more swings are expected in the British currency, particularly, the parity-bound EURGBP exchange rate. Chatter is already circulating about a possible mention of the weak GBP in next month's G7 meeting in Rome. Over the last 6 years, G7 summits were a popular venue for policy makers to voice their concerns over a plummeting dollar, an artificially low Chinese yuan or Japanese yen. But with the current GBP plunge already dubbed as a currency crisis (23-year lows vs the USD and record lows vs EUR and JPY), the focus has clearly shifted and the stakes are higher. Consequently, we should expect more GBP volatility ahead of the G7 meeting, especially as the chorus of remarks from German and French officials about GBP intensifies. Currency swings will be especially pronounced as German and French tensions may be further countered by the approving from UK Treasury officials. After all, the weak pound is the only silver lining of the UK recession.

source : seekingalpha.com

Forex Fundamental Trading

Generally people speak about the strategies and the technical commercial systems. The majority of the systems of trade exclusively employ the technical analysis by making commercial decisions. What would you say fundamental analysis? Does it have the potential to create with benefit conformed with time? The fundamental analysis is the study of the forces and the weaknesses of the market. Because of the total environment of the forex, the fundamental analysis more is concentrated on the catalysis of news the 's that the forces and the weaknesses of the currencies themselves. If you were accustomed to the fundamental analysis to trade of stocks you would spend much hour concentrated on the make-up of the company, of its President, earnings per share, and of future product. Same the isn 't that truth with forex, you spend more time concentrated on the change of interest rates than anything else. It is impossible to teach the fundamental analysis in a simple paragraph, but if you wish to explore more far this technical trade my suggestion is to start by throwing a glance with the events of new currents of each day and to spend a certain hour seeing how the market reacts to the fluctuations in prices. Made attention because the price can move on a tenth of dollar with a simple change of word of the news.

When it comes to the news from trade sometimes it is the best to trade pre the news of forex against the line after the news. With each event, there is a certain type of hope. The market will derive gradually with total polarization from the market. Find your installation commercial in this drift and then tighten to the top your line of stop before the great release, or the catch profits before press release. If the news goes your manner, you will count the money all the way towards the bank.

100% Hedging Strategies

Hedging is defined as holding two or more positions at the same time, where the purpose is to offset the losses in the first position by the gains received from the other position.

Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.

However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.

In this page, we will discuss, some of the hedging techniques.

1. 100% Hedging.

This technique is the safest ever, and the most profitable of all hedging techniques while keeping minimal risks. This technique uses the arbitrage of interest rates (roll over rates) between brokers. In this type of hedging you will need to use two brokers. One broker which pays or charges interest at end of day, and the other should not charge or pay interest. However, in such cases the trader should try to maximize your profits, or in other words to benefit the utmost of this type of hedging.

The main idea about this type of hedging is to open a position of currency X at a broker which will pay you a high interest for every night the position is carried, and to open a reverse of that position for the same currency X with the broker that does not charge interest for carrying the trade. This way you will gain the interest or rollover that is credited to your account.

However there are many factors that you should take into consideration.

a. The currency to use. The best pair to use is the GBPJPY, because at the time of writing this article, the interest credited to your account will be 24 usd for every 1 regular long lot you have. However you should check with your broker because each broker credits a different amount. The range can be from $10 to $26.

b. The interest free broker. This is the hardest part. Before you open your account with such a broker, you should check the following: i. Does the broker allow opening the position for an unlimited time? ii. Does the broker charge commissions?

Some brokers charge $5 flat every night for each lot held, this is a good thing, although it seems not. Because, when the broker charges you money for keeping your position, the your broker will likely let you hold your position indefinitely.

c. Equity of your account. Hedging requires lots of money. For example, if you want to use the GBPJPY, you will need 20,000USD in each account. This is very necessary because the max monthly range for GBPJPY in the last few years was 2000 pips. You do not want one of your accounts to get a margin call. Do not forget that when you open your 2 positions at the 2 brokers, you will pay the spread, which is around 16 pips together. If you are using 1 regular lot, then this is around 145 usd. So you will enter the trades, losing 145 usd. So you will need the first 6 days just to cover the spread cost. Thus if you get a margin call again, you will need to close your other position, and then transfer money to your other account, and then re-open the positions. Every time this happens, you will lose 145 usd!

It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.

d. Money management. One of the best ways to manage such an account is to monthly withdraw profits and balancing your positions. This can be done by withdrawing the excess from one account, take out the profits, and depositing the excess into the losing account to balance them. However, this can be costly. You should also check with your broker if he allows withdrawals while your position is still open. One efficient way of doing this is using the brokerage service withdrawals which is provided by third party companies.

source : http://www.myfxreport.com/

Geithner tells Japan: lay off forex intervention

Some Forex news for you. Some Treasury secretary designate Timothy Geithner Wednesday issued a veiled warning to Japan and other US trading partners against meddling in the currency markets.

"I believe that it's very important for the United States and for the global economy that our major trading partners operate with a flexible exchange rate system, in which market forces determine the value of exchange rates," he said.

"I think that's good economic policy," Geithner told the Senate finance committee at his confirmation hearing, when asked about indications that Japan may be poised to launch its first forex intervention in nearly five years.

As the dollar slumps in value, the soaring yen has made Japanese exports less competitive and eroded repatriated earnings.

Taken from google news.

Two weeks ago, Bank of Japan governor Masaaki Shirakawa warned the yen's rise was hurting Asia's largest economy and said he was looking at measures to cope with it.

Japan's government has repeatedly hinted it could order the central bank to intervene on the market to bring down the yen.

How To Find Good Forex Trading Software

There is a certain number of things to consider by seeking the commercial software of goods forex. First of all, you must realize that several of the software outside there which claims that they will return you of the thousands of putting during the night of the dollars usually of phase until their promises. Like the majority of the things in the life, if something seems with the good to be true that it is probably. However, there are some programs outside there which will gain you really the money. The problem is, that the majority of the latter of the automated commercial programs are swindles and if you are not careful, that you could fall into one from these traps. Consequently, it is important that you can identify the programs which will give you what they promise. The commercial software of goods forex can be separate bad software completely easily. Initially of all you can usually say if a program is the true business by there Web site. If the Web site looks at cheap, then the product is probably. Ensure you to seem them of Web site professionals. The second thing is of reading examinations of the product. You ensure that you read reviews of a certain number of various sources. The reviews will usually indicate to you if a product is play or not. If a person obtains a good product they 't put make really a deal above it because they expect. However, if they scammed or obtain a bad product they are fast to complain and write a bad review. The reading of the reviews is the best strategy by seeking the commercial software of goods forex. I have tested a certain number of commercial programs of forex and only one small percentage will gain you really the money. I have found some software commercial of goods forex which will really gain you the money.

FOREX news -Pound plunges to 7-yr low vs dlr; euro falls sharply

Latest forex news The pound plunged to a seven-year low against the dollar on Tuesday on banking sector woes, while the euro dropped to a six-week low against the U.S. currency, weighed by worries about the state of the euro zone economy.

The pound tumbled after UK bank RBS announced the biggest loss in British corporate history on Monday and the UK announced a second series of measures to bail out the banking sector.

Fears about the outlook for the euro zone economy also weighed on the euro, pushing it to a six-week low against the dollar below $1.30 after the European Commission issued a grim 2009 forecast and Standard and Poor's cut Spain's debt ratings

Fears about the outlook for the euro zone economy also weighed on the euro, pushing it to a six-week low against the dollar below $1.30 after the European Commission issued a grim 2009 forecast and Standard and Poor's cut Spain's debt ratings.

European shares .FTEU3 edged lower, helping the yen gain sharply as investors remained wary of taking on risk.

Focus on Tuesday will centre on Barack Obama's inauguration as U.S. president, amid hopes that he will implement swift action that will help the U.S. economy, which has helped to bolster dollar sentiment.

Along with massive falls in the pound and the euro, this has helped pushed the dollar to a six-week high against a basket of currencies.

"The Obama euphoria is dollar positive, and the biggest casualty of this is sterling because by contrast sterling sentiment is really bad," Commerzbank currency strategist Antje Praefcke said.

At 0830 GMT, sterling was 2.7 percent down against the dollar at $1.4076, just above an earlier trough of $1.4057, its weakest level since early 2002, while the euro fell 1.2 percent to $1.2950, having hit a six-week low of $1.2923 .

The trade-weighted dollar index .DXY was up 0.9 percent, hitting a six-week high of 85.993.

The yen also rose, with the dollar down 0.1 percent at 90.57 yen and the euro down 1.4 percent at 117.20 yen.