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Is Social Forex Trading Here To Stay!

Wed, 20 Apr 2011 04:26:46 +0000

Forex vendors of all form and type (brokers, signal providers, blogs, news site et al) have all been marketing themselves aggressively online. However now there seems to be a new social trend in forex as with all other industries. Etoro was among the first to give a serious push in this direction with their social trading platform – which allows new traders to piggyback on the laurels of the more experienced traders. For example there are 10 expert traders who have shown consistent results over a certain time period. Some perform better than others, but have a higher risk profile. As a beginner in forex trading, you need not go through the learning process, but simply choose to copy the trades of one of the 10 experts for a small fee paid to the expert. You make money, the expert makes money and Etoro makes money – everyone is happy. At least that is the vision!

Another early entrant in social forex trading is Currensee. They have a similar system called the Trader Leaders Investment Program. Below is a sample of how the Trade Leaders list looks. There are performance indicators, a risk factor, strategy overview and other useful information based on which a beginner can make his or her decision.

More recently there have been a slew of new players entering the market. These include Myfxbook, Fxstat, Meetfx, Forexdesk and Meetpips. While most of them focus on extensive post trade analysis to improve and refine a traders strategy, fxstat has recently introduced there own form of social forex trading and is running its beta version.

True to history there are other forms of trading such as mirror trading which have been around for longer; their campaigns lacked the community essence at its core. It looks like Facebook has made its mark on the forex market as well.

Is Social Forex Trading Here To Stay! post from Forex Trading Blog

Pound to Euro Which Way Is The Currency Pair Moving

Thu, 23 Dec 2010 22:04:09 +0000

The pound valued via 0.85 pound to euro for the first time in a lot more than six months amid increasing hypothesis that the Bank of England won’t prolong its asset-purchase plan to assist the economic recovery.
The pound to euro strengthened typically for a sixth day, the longest profitable streak after April 8. The key financial institution, led by Governor Mervyn King, yesterday predicted larger inflation for following yr and mentioned it’s “ready to reply in both direction” as price-rises are equally probably to exceed or undershoot the 2 % goal more than two years.
“The pound is nonetheless has tailwinds from the inflation report,” said Geoffrey Yu, a foreign-exchange strategist at UBS AG in London. “There was selective studying; when Mervyn King stated there are strong upside and downside risks, people just go through the first element of the sentence.”
BOE (Bank of England) officers voted to depart their bond- acquire program at 200 billion pounds on Nov. 4th, declining to stick to the U.S. Federal Reserve in building stimulus, as UK persuaded them to not indulge in further assistance. Gross domestic product grew 0.8 % in the third 25%, twice as rapid as analysts had forecast.

Pound to Euro Which Way Is The Currency Pair Moving post from Forex Trading Blog

Forex Rates In Pakistan-A Synopsis

Thu, 23 Dec 2010 04:34:04 +0000

Currency swings are prompting regional governments to introduce insurance policies to gradual money flows. Financial institution Indonesia set a one-month minimal holding time period for traders in its bills yesterday, whilst South Korean regulators cut boundaries on financial institutions’ currency-derivative situations on June 13. United states of America this 1 week proposed a investment gains tax on all stock trades and Pakistan announced a similar evaluate on June 5.
The Financial markets in developing countries such as Pakistan and China are not as matured as that of individuals in developed western nations. The foreign currencies of these countries do not have as much status as those of developed nations for liquidity and therefore these are not considered desirable for creating earnings in currency promotes.
For example, Combined States Greenback is concerned in practically 80% of all the currency dealings that transpire all more than the world every day. Likewise German Tag, British Pound, Swiss franc, Japanese’s Yen among other people is involved in considerable quantity of transactions. One of the common comes equipped with of these currencies is that the economies of the nations they belong to are very well designed and relatively secure over time. In developing nations, inside difficulties similar to inflation, political unrest, decrease in exports may lead to the decline of the worth of its Forex in opposition to those of others.
In 2008, International exchange reserves of Pakistan fell drastically which affected the value of Pakistani rupee and a request for a loan from World-wide Financial Create funding for was approved. The Pakistani rupee appreciated in 2009 although not to its former levels. Such type of international loans and foreign funding within Pakistan impact the transaction charges and there is a scope for profit.
The fluctuations in Forex rates in Pakistan can often be there in any Forex apart from the depreciation. One crucial purpose for low liquidity of a currency is that the country may not be making products that are desired in other countries particularly individuals which develop and produce items needed for Pakistan. The issue in any developing region is similar to those of Pakistan. One need to often just know that very difficult work of analyzing the tendencies as well as collecting facts from right sources is the key to good results in any expense or trade.

Forex Rates In Pakistan-A Synopsis post from Forex Trading Blog

Gain Capital IPO At $9 Per Share – Lower Than Expected Valuation

Fri, 17 Dec 2010 20:53:20 +0000

Gain Capital, which owns one the most sought out domain names (forex.com) in the forex trading industry went public at a lower than expected price. Shares went for $9 though expected to go in the $13 to $15 range. This is the second IPO for the forex industry after FCXM a few weeks ago.

The IPO however is unlike typical reasons. A mere 407,000 shares were sold in the IPO by Gain Capital, the remaining 8.5 million shares of common stock was sold by existing shareholders who were cashing in on the exit. While most shareholders exited, Vantage Point continued to hold on to a near 30% holding in the company.

The $3.6 million raised through the IPO only cover the expenses. The company will trade under the ticker GCAP. The mood set by the first two forex IPOs is not exactly the best. Both are clearly means for investors and existing shareholders to exit. There is not much capital generated for growth opportunities or to accelerate operations.

Gain Capital is an online provider of products and service in forex and other commodities such as gold. The company has customers in 140 countries, with over 50% of the clients being outside the United States. Its total annual customer trading volume grew from $231.9 billion in 2005 to $1.2 trillion in 2009. For the nine months ended Sept. 30, Gain Capital generated $148.1 million in revenue and net income of $18.9 million.

Gain Capital IPO At $9 Per Share – Lower Than Expected Valuation post from Forex Trading Blog

Why the US Dollar Has Not Crashed?

Sat, 04 Dec 2010 22:06:47 +0000

Considering the budgetary deficit and the trade deficit that US is facing the US dollar should have crashed. This was the projection by many analysts. But, would it?

China, the factory of the world runs huge trade surplus with US. What does China do with all the US dollar that it earns? They are investing in US dollar. When they keep buying US dollar, the US dollar maintains its strength because of demand and supply. A strong dollar makes Chinese products cheaper to US consumers and that is why the US market is flooded with Chinese products. Chinese have invested in technology that has enabled it to produce quality products and US consumers have no complaints.

US and China have developed such a synergy between them in trade that Us needs China to stay alive and China needs US to buy what they produce. If one pulls the rug both would crash. The chances are remote.

US dollar is here to stay. Not to worry.

Why the US Dollar Has Not Crashed? post from Forex Trading Blog

Bailouts In Europe Weaken EUR

Sat, 04 Dec 2010 22:03:25 +0000

Last month countries protested the US Central Banks decision to pump $600B into the economy over the next 8 months. As a consequence the dollar dropped against all currencies unanimously. Complaints and pressure would have mounted but for the EMU debt crisis.

EUR/USD has dropped back to mid 1.32 region at the start of the European session. With decision on Portugal still under consideration, European stocks continued to be sluggish. The markets tend to feel a bailout will be necessary.

Ireland’s EUR 85B loan and Portuguese bailout has left visible holes in the European economy. While rest of Europe tries to manage problem, the bond markets responded; with the Spanish-German 10yr bond spread rising 28 basis points to a high of 295. The EUR is continuing on a strong bearish trend

Bailouts In Europe Weaken EUR post from Forex Trading Blog

Euro Session Summarized

Sat, 04 Dec 2010 22:02:26 +0000

UK November manufacturing PMI 58.0, up sharply from 55.4 in October. Much stronger than median forecast of 54.6 and highest read since September 1994
UK Nationwide November house prices -0.3% m/m, +0.4% y/y, little weaker than median forecasts of -0.2%, +0.5% respectively

Portugal sells 500 mln euros of 12-month t-bills (indicative offer was for 500 mln)

China ForMin: Pressing task in Korea dispute is to prevent escalation

German EconMin: I don’t think Portugal and Spain will need to tap rescue mechanism. No decision on extending repayment of Greece’s aid, just a request to examine this

France’s Lagarde: Europeans are determined to defend their single currency
Eurozone November manufacturing PMI (final) revised touch lower to 55.3 from flash 55.5
Swiss November PMI 61.8, better than median forecast of 61.0

German retail sales +2.3% m/m, -0.7% y/y, compared to median forecasts +1.3%, +1.6% respectively
Trees don’t grow to the sky. Finally we’ve seen a thawing in risk aversion and a return of risk appetite. European stocks have performed well; periphery bond yields lower, periphery credit default swaps cheaper; oil up over a buck; gold up; US treasury yields higher etc etc.

EUR/USD up at 1.3100 from early 1.3020 having been as high as 1.3116 so far. Asian central bank, UK clearer, corporates seen notable buyers early.
Stops tripped through 1.3050 and we got up to 1.3090/00 area fairly quickly. Reports of decent sell orders there. Large French bank (said to have sold half a yard), hedge funds, Asian central bank seen notable sellers in said area.
Finally relief Portuguese auction went OK helped euro bulls overwhelm the 1.3090/00 sell interest. Small stops tripped through 1.3105 and we got to the 1.3116 session high. BIS has been a very notable seller (on a few occasions) at and above 1.3110 helping cap gains.

Cable marginally firmer, up at 1.5620 from early 1.5590 having been as high as 1.5647. The pairing got a very decent lift from the much stronger than expected manufacturing PMI data (see above)

USD/JPY up at 83.80 from early 83.40. Better risk appetite and resulting higher US treasury yields have helped support the pairing. Macro hedge fund buying notable. Stops now seen through 84.00.

EUR/CHF has seen sharp rally, up at 1.3150 from early 1.3025. The rally comes as Swiss gives back some of its safe haven gains as the general risk backdrop improves. Such was the speed of the early rally we even heard mutterings of Swiss National Bank buying the cross. This was never confirmed.

Euro Session Summarized post from Forex Trading Blog

USD Ranging eying for possible resistance area

Sat, 04 Dec 2010 22:01:42 +0000

The dollar index is raging this morning, eying a key area of resistance in the 81.55/75 area. Just above that is the 200-day moving average at 81.93. The 50% Fibo of the May, November drop comes in nearby at 82.02.

USD Ranging eying for possible resistance area post from Forex Trading Blog

Fed Report Leads to EUR/USD Daily Highs

Sat, 04 Dec 2010 22:00:34 +0000

The Euro is actually rising against the Dollar after the Federal Reserve releases a massive Loan report about who take what and when from Federal Reserve credit and liquidity facilities. In the last moments the EUR/USD has jumped from 1.3045 to break up 1.3100 level and reach an intraday high at 1.3180 in a reaction movement.

Currently, the pair is trading close to 1.3140, next resistance levels at 1.3180/00 (Nov 29/26 lows) and then 1.3125 (200-day MA). On the downside, support levels lie at support at 1.3065/80 (Intra-day levels), and below here, 1.3045 (previous highs) and 1.2965/70 (Nov 30 low/day low).

Fed Report Leads to EUR/USD Daily Highs post from Forex Trading Blog

Markets Rebound After Successful Portugal Bond Sale

Sat, 04 Dec 2010 21:58:58 +0000

Wall Street rose today as reignited faith in Europe through the Portugal bond sale and positive economic news in Asia and US came out. The Dow followed European and Asian markets and was up 200 pts at close. The question is – “Is this a temporary buy back from speculators who believe a rebound is likely or have investors found renewed faith”.

It could also be that the central banks are buying a lot of it themselves. With concerns over Ireland and now Portugal and Spain, any comment from Europe will help settle nerves.

The latest of positive news came from the US, the jobs data, in addition to better retail sales. Net-net the euro closed at $1.3105 from $1.2983 late Tuesday in NY session.

Markets Rebound After Successful Portugal Bond Sale post from Forex Trading Blog