US NFP Deliver Worse Than Expected Data
November 9, 2009 at 8:52 am | In News about Forex | Leave a CommentTags: economy, forex rate, non-farm payrolls, NYSE
The USD headed lower on Friday after the US Nonfarm payrolls figures were released showing that unemployment rate in the USA rose well beyond 10 percent level reaching the mark of 10.2 percent higher than all the expectations.
According to the Department of labor, the US non-farm payrolls, an important market indicator, in October showed that 190,000 Americans lost their jobs last month, well above the reading in September when the level was 9.8 percent. October data appeared to be well worse than expected by economists as 175,000 job losses were forecasted.
Thus, that overall number of people who lost their jobs since the start of global downturn in 2007 hit the level of 8.2 million. The jobless market figures continue delivering signs that recession is not over in the USA and it is not high time to withdraw government stimulus measures as an important psychological level of 10 percent has already been exceeded.
In spite of absence of encouraging data from the US job market, the Dow Jones Industrial Average kept its positive run after stock of financial group General Electric rose 6.2 percent adding to optimism at NYSE. The DJIA inclined 17.46 points, or 0.2 percent closing the week trades 3.2 percent higher.
Find more information on world economy and all latest currency market updates at Forex Trading Website.
ECB and BOE: No Need to Raise Rates
November 6, 2009 at 10:45 am | In News about Forex | Leave a CommentTags: BOE, ECB, Trichet, UK interest rate
Thursday the European Central Bank and the Bank of England voted to keep its interest rates at their current levels showing no surprise.
The ECB made a decision to maintain its refinancing tender rate at its 1 percent, the lowest level. Jean-Claude Trichet the ECB President announced the bank decision to cut next month the program of unlimited 12-month loans to commercial banks which proved to be an efficient instrument in Europe’s economic recovery. The EBC chairman said the Euro-Zone`s economy is showing signs of recovery with significant rise in all major European economic indicators.
Monetary policy decision of the Bank of England was also in line with all analytics expectations. The bank rate is maintained at 0.5 percent level, a clear signal that the recession in the UK is not completely over. However, the BOE officials mentioned that British economy was picking up. House prices inclined in September, manufacturing output performed its fastest pace in last seven years. English policy makers express the idea that recovery will be slow and fragile expecting inflation level to remain low for the next months.
Although the major central banks including Federal Reserve, European Central Bank and Bank of England decide not change their benchmark rates they start steadily withdrawing the emergency measures as BOE voted to slow the pace of bond purchase program and the Fed yesterday announced the possible circumstances in which it may lift the rates.
No Surprise from Federal Reserve
November 5, 2009 at 9:20 am | In News about Forex | Leave a CommentTags: Bernanke, FED, US Feredal Resrve
The Federal Reserve voted on Wednesday to keep its main interest rate at a record low of 0.25 percent for an extended period, th bank also made no significant changes to a mortgage program.
The Federal Reserve officials signalled that the poor economy is still dependent on federal help to go on growing. In its speech the Fed chairman Ben Bernanke assumed that economic activity “continued to pick up” and that the US housing market is strengthening as it remains an important ingredient for recovery. In spite of 3.5 percent growth of the US economy in the third quarter the FED will continue implementing its policy of low rates for an extended period providing further aid to the recovery.
US economic expansion between July and September is explained by a massive stimulus package of $787bn and analysts express fear that when these measures expire the economy may be exposed to threat.
While business activity continues to pick up unemployment rate remains an issue of concern. The jobless rate in September totaled 9.8 percent reaching its 26 year high. Last year in December US interest rates were reduced by FOMC to its current level of between 0 percent and 0.25 percent, where they have remained, according to the forecasts this level till mid 2010. Before then rates had been reduced steadily from its maximum of 5.25 percent in September 2007.
Find more on economic news and currency market updates on Forex Trading Website.
New Level for Australian Rate
November 3, 2009 at 9:07 am | In News about Forex | Leave a CommentTags: interest rate, rba
Today the Reserve Bank of Australia voted to raise its benchmark interest rate for the second straight month to 3.5 percent from 3.25 percent.
This decision met experts` forecasts of the second move in a row as Australian economy remains the single developed country which economy showed signs of expansion in the first quarter. Government stimulus package allowed the national economy to surge 0.4 percent in the first quarter of 2009, 0.6 percent n the second, making a significant rebound from 0.5 decline in GDP in Q4 2008.
The expectations of another cash rate rise strengthened as last week the government released the lowest inflation data for more than 10 years.
Glenn Stevens, the RBA governor pointed out that the threat of serious economic recession in Australia has already passed and the bank is now lessening the degree of stimulating. Mr Stevens also singled out that he expects Australian inflation rate to rise moderately in the upcoming months. He stated that the process of setting Australian monetary policy to its normal level is under way.
Besides, only Norway and Israel central banks voted to increase their rates.
The next monetary policy decision of the RBA board is set on December 1. The bank is predicted to raise rate again, but in small steps.
View the Economic Calendar Page to stay informed about other major events from the world of finance.
Culture Day in Japan
November 2, 2009 at 11:59 am | In News about Forex | Leave a CommentTags: BOJ, culture day, tse
November, 3 Japan celebrates its national holiday known as Culture Day (Bunka no hi).
All the major financial institutions including the Bank of Japan, commercial banks, major exchanges such as Tokyo Commodity Exchange, Tokyo Stock Exchange, Central Japan Commodity Exchange are closed this day. CFD trading in all Japanese stock is suspended for the official holiday.
Japanese Culture Day is held now annually on November 3 aiming at promotion of arts and culture in the country. This day in 1946 the current Constitution of Japan was announced. In two years the government decided to mark this date as the national holiday in order to commemorate official announcement of the Constitution fostering its main ideas such as freedom and love by means of cultural events.
Many cultural activities are held on Culture Day including Order of Culture Awards ceremony held by the emperor of Japan at his Palace in Tokyo. Aslo Culture Day is marked by various festivals targeting at promotion and development of arts, public and private awards ceremonies all around the country.
The complete list of national holidays in Japan, USA and Great Britain is given at Holiday Calendar Page.
BOJ Keeps Rate Unchanged
October 30, 2009 at 8:15 am | In News about Forex | Leave a CommentTags: BOJ, economy, interest rate
Friday, the Bank of Japan unanimously voted to maintain its overnight call rate at a record level of 0.1 percent.
Taking into account some signs of financial system stabilization, BOJ board members made a decision to withdraw some stimulus measures implemented earlier to grapple global recession. The bank officials voted to end the program of corporate debt buying from December. However corporate debt will be accepted as collateral through the whole 2010. The Japan`s national also decided to stop purchasing of corporate bonds and commercial paper from its lenders. The next BOJ monetary policy meeting is set on November, 19.
The BOJ said that it was not high time to lift rates and implement so-called exit strategies. The bank is forecasted to keep the low tare policy at least until the middle of 2010. None of G-7 countries is set to lift rates by the beginning of the next year. According to Bloomberg news agency, the first major central bank to lift rate will be the Bank of England.
View more news about economy and Forex market on Forex trading website.
Norway Lifts Rates in Line with Expectations
October 29, 2009 at 8:24 am | In News about Forex | Leave a CommentTags: BOJ, interest rate, Norges Bank, RBNZ
Norway, one of the world`s leading oil exporters, appeared to be the first European country to lift the level of key interest rate.
After Israel and Australia the monetary policy committee of the Norges Bank raised its sight deposit rate by 0.25 percentage points to the level of 1.50 percent. This step is widely considered to be the first one on the way of tightening of domestic monetary policy. Norwegian banking officials made such a decision as the global financial crisis abates in the country due to its vast profits made by oil export.
Svein Gjedrem, the chairman of the Norges Bank, has mentioned that the domestic economy pick us even better than it was expected. In the near future Gjedrem anticipates gradual hiking of the Norwegian deposit rate towards its normal levels. Financial officials in Norway expect the central bank to lift the interest rate by 0.25 every second monetary policy meeting up to the end of 2010 boosting the Krone to further hikes versus other currencies traded in Forex. The next bank board meeting is due to take place on December 16.
Monetary policy decision made by RBNZ matched all the expectations of the analysts. The New Zealand central bank voted to maintain the current level of its official cash rate at 2.50 percent. According to the RBNZ governor Alan Bollard, the rate will be maintained until the second half of 2010 as signs of recovery in the country remain week.
Looking ahead to today`s economic events, traders` focus should be drawn to Japan where the BOJ is likely to announce its interest rate kept at its current level of 0.1 percent, the lowest rate among world`s major central bank rates.
Norway to Lift Rates, New Zealand to Hold off
October 27, 2009 at 8:04 am | In News about Forex | Leave a CommentTags: forex rates, interest rate, RBNZ
Tomorrow the Norges Bank is holding its monetary policy meeting and according to most experts it will lift the key sight deposit rate.
The Bank of Norway is likely to become the first central bank in Europe to start tightening its monetary policy as the signs of recovery become more evident in the oil-rich economy.
Most of economists expect 0.25 percent rise anticipating the rate to hit 1.5 level. However, some experts are even more optimistic anticipating that the central bank will announce tomorrow a 1.75 level. Nevertheless, it is expected to be the first increase in interest rates for more than a year.
One of the world`s largest oil exporter delivered a series of positive economic signs in the second quarter as emergency measures of 4.7 percent of GDP accompanied with record low borrowing costs brought positive result. Norway is now seeing the lowest unemployment rate in Europe of 2.7 percent.
The Norge Krone has gained 7.8 percent for the last three months, the second best result shown by a currency on the Forex currency market.
Tomorrow at the same time the Reserve Bank of New Zealand is also holding its meeting. But unlike Norway, experts forecast the bank to maintain its current level of the official cash rate. So the RBNZ is not likely to follow an example shown by the RBA in the beginning of October.
Updated and Advanced “Turn-key Trading Strategy” Trading Course
October 20, 2009 at 9:01 am | In News about Forex | Leave a CommentTags: forex, forex training, trading strategy
From October, 1 2009 all the clients are welcomed to sign up for revised and updated edition of the “Turn-Key Trading Strategy” trading course.
Forex Ltd Company within its services offers to its clients a unique trading course, which was specially developed in order to help traders to master professional knowledge and practical skills of Internet trading, to increase your profitability when you work on Forex market.
For more than 2 years the Company has been successfully offering this trading course which is based on unique trading system. In our turn we are grateful to the Clients for long-term successful cooperation and for trusting us.
So, what are the main advantages of “Turn-Key Trading Strategy” trading course?
- easy and informal presentation style;
- method of market analysis allows to work with any Forex financial instrument;
- no more difficult calculations, comparing with operating with usual indicators;
- the trading strategy permits to estimate unequivocally the situation on the market and not to hesitate to open position;
- if you follow clear rules lying upon the basis of the trading technique, you can be sure that all your transactions will be profitable.
However, now we can see that market dynamics and the logic of its movement are always in motion. After the periods of smooth progressive movement, come sharp bounds, rebounds and run-ups. And everybody wants to know the reason of such sharp changes on the market. Especially on the currency one.
What was the reason to update so popular trading course?
It is necessary to mark considerable rise of the number of small speculators that has considerably increased their aggregate capital which can produce influence on movement of currency pairs. On the other hand, such a rise can considerably improve market liquidity and that is a very positive sign for the market. Also, we would like to mark the fact that at present any person from any part of the world has free access to the economic and political information. And there are many other factors that influence directly on market. And it will take a long time to enumerate them. So, let us see the way we will apply such market swings in order to satisfy our mercantile needs (our purposes are market profitability rise and system safety improvement).
Now we can see that the system theory has really proved its profitability. We are not trying to predict future events. We just consider carefully trading signals given by the system and then, basing on these signals we try to analyze the current situation. The above-mentioned approach has become more and more popular. And the events of 2009 summer period showed that this system can be updated and becoming better.
So, what can we propose you right now?
At the end of the first stage of system updating it has been tested. Considering bullish and bearish periods to become shorter and their frequent alteration, we have added to the system the following things:
- Rules of position closing were reworked in order to give possibility to our clients to receive fixed profit.
- Rules for additional positions trading were considerably simplified.
- Some of the most risky signals were removed.
All these changes made the system stronger, safer and it can help you to receive more profits.
For more detailed information, please go to Course Content page and feel free to visit Course Update page to view all the latest updates to the course. To enroll for the training course, please, proceed to registration.
Bank of Japan Votes to Keep Low Rates
October 14, 2009 at 7:17 am | In News about Forex | Leave a CommentTags: Bank of Japan, BOJ, business, interest rate
Today the Bank of Japan Board voted unanimously to maintain its current benchmark interesting rate at a record low level of 0.1 percent, the lowest one among world major central banks.
The decision to keep the current level of Overnight Call Rate Target was in line with all experts` forecasts as the bank is now under high pressure of the government restraining the Bank of Japan from withdrawing its stimulus measures. However, Hirohisa Fujii, the minister of finance said that it is up to BOJ to make final decision. The bank is forecasted to maintain its emergency measures until the end of the year. Some experts mention the period to March 2010.
The BOJ assumes that Japanese economy started picking up with constantly emerging signs of recovery. According to Japan`s central bank, public investment, production, exports have shown signs of improvement. Private consumption remains very weak as jobless market and household incomes have been severely affected by the global crisis. The recovery remains fragile with some risks remain on the downside.
The bank expects that inflation may drop to its lowest levels.
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