The Swiss franc dropped today against the euro as the optimism about the possible bailout for Ireland decreased demand for the safe currencies. The franc declined, after it earlier advanced, versus the US dollar on the speculation that the US GDP in the third quarter rose more than previously estimated. The analysts say that the US gross domestic product expanded 2.3 percent in the third quarter of 2010, while according to the previous estimates the growth was by 2.0 … “Swiss Franc Falls on Outlook for US GDP & Ireland’s Bailout”
Month: November 2010
Oanda High Profitability Explained by Interest Rate Payments
Michael Greenberg analyzes the high trader profitability rate that Oanda reported and explains that the difference is made by the fact that Oanda pays interest rate to traders. This may explain that passive accounts are profitable, raising the profitability rate to positive, far off other brokers’ numbers. See it here.
Forex Portfolio – Profits Rise With Differences Between Leaders
After presenting the forex investment portfolio last week, I am happy to report the profits rose. After 143 trades have been executed, it is interesting to see that the most risky trader is leading the pack. Should these trade leaders continue or should changes be made? Lorenzo Farro, the trader which has the highest risk … “Forex Portfolio – Profits Rise With Differences Between Leaders”
Lower US dollar In Coming Week – Elliott Wave Analysis
We can see some important reversal formation from Dollar bulls to Dollar bears with the price action seen in the past few sessions. Five waves up on euro, cable, down on dollar index and almost completed 5-wave structure on Aussie, gold and oil from the lows, definitely confirm a lower US dollar for the near-term … “Lower US dollar In Coming Week – Elliott Wave Analysis”
Aussie Gains on Outlook for Rates & Ireland’s Bailout
The Australia dollar rose today as the speculation about the possible bailout for Ireland increased demand for the higher-yielding assets, increasing the bets on the rates hike by the central bank. Ric Battellino, the Deputy Governor of the Reserve Bank of Australia, said that the inflation pressure will likely persist. He stated that “over the next couple of years as a result of the resources boom, the challenge will be to manage the economy in a way that keeps economic growth on a sustainable path, … “Aussie Gains on Outlook for Rates & Ireland’s Bailout”
Talks About Ireland’s Bailout Improve Sentiment, Supporting Loonie
The Canadian dollar rose today against its US counterpart after two day of losses on the better-than-expected economic reports from Canada and as the speculation that the debt problems of Ireland would be prevented from spreading to other European countries boosted the stocks and crude oil. The euro benefited more from the improving sentiment, outperforming the loonie. Canada’s Leading Indicators rose 0.2 percent in October, following the decline by 0.2 in September. The wholesale sales … “Talks About Ireland’s Bailout Improve Sentiment, Supporting Loonie”
Brazilian Real Gains as Risk Appetite Increases
The Brazilian real rose today as the speculation that Ireland would receive the aid improved the traders’ risk appetite and increased the demand for the higher-yielding markets. Previously the real was declining as the concerns for the European debt problems damped demand for the currencies of the emerging-markets nations. Now, as the concerns somewhat receded the investors, interested in so-called carry trade, may be drawn to Brazil with its high interest rates. Brazilâs benchmark lending rate is 10.75 … “Brazilian Real Gains as Risk Appetite Increases”
Euro Rises as Bailout May Prevent Spreading of Ireland’s Problems
The euro rose today on the hopes that the bailout, provided for Ireland, would prevent Ireland’s debt problems from spreading to other countries of the European Union. The officials from the European Union and the Internationals Monetary Fund are going to meet tomorrow in Dublin to discuss the possible bailout for Ireland. It looks like the confidence in the euro increases as the actual steps to resolve the problem are taken. EUR/USD jumped from 1.3528 to 1.3641 as of 9:58 GMT today. … “Euro Rises as Bailout May Prevent Spreading of Ireland’s Problems”
FXCM Worth $1 Billion?
We’ll soon get an answer to the question above. FXCM filed for an IPO in New York’s stock exchange, for a value of $975 million to 1.1 billion dollars. When the stock will start trading, it may serve as an interesting barometer for the forex industry. The prospectus towards the offering of stocks already reveals … “FXCM Worth $1 Billion?”
AUD/USD: Corrective Recovery From 0.9720
On a 4h chart we can see a nice five waves of decline from the most recent highs, established at 1.0175 region. As such, an upward reaction from the 0.9723 region is actually not a surprise as we know that a corrective pull-back always follows when five wave, impulsive move completes. Guest post by Gregor Horvat … “AUD/USD: Corrective Recovery From 0.9720”