Tuesday, September 12, 2006

Forex: Dollar Mixed

DJ Midday Forex: Dollar Mixed, Cross Flows Favor Euro
LONDON (Dow Jones)--The dollar is mixed against other major currencies midday Monday in Europe, with cross-related flows favoring the euro and trimming recent yen gains.
The euro is making steady progress above $1.27 in what traders describe as a cautious market, as Monday marks the fifth anniversary of the 9/11 terrorist attacks.

The yen slipped in Tokyo after Japanese July machinery orders fell an unexpectedly large 16.7%, against an expected decline of 5.3%. The Japanese unit weakened above Y149.00 by midday in Europe, up over 100 sen on the day, while dollar/yen climbed back above $117.00. Sterling came under pressure after subdued producer price index data eased inflation worries and chipped away at the pound's interest rate prop that has supported the unit of late.

U.K. August Output PPI was flat on the month against the Dow Jones Newswires forecast of a 0.2% increase, while input PPI fell 1.2% on the month, the largest monthly fall since December 2004.

Euro/sterling rose to a fresh three-week high of 0.6817 shortly after the data, while cable gave back early gains to trade around the day's lows of $1.8650.

However, despite the overall weaker start for the dollar many technical analysts are expecting the U.S. unit to strengthen in the sessions ahead, with the exception of dollar/yen.

BNP Paribas expects the latter to be kept under pressure as Asian currency flexibility is likely to be addressed as this weekend's Group of Seven meeting in Singapore. The bank has targets of Y114.05 for dollar/yen and Y147.30 for the euro/yen cross.

As for euro/dollar, the bank says the breach of trendline support at 1.2695 seen Friday favors the downside and it would sell upticks to $1.2730 with a stop at $1.2780, targeting $1.2570.

By 1000 GMT, the dollar was at Y117.23, up from Y116.93 late Friday in New York, according to EBS. The euro was at $1.2725, up from $1.2672, and at Y149.05, up from Y148.20. The dollar was trading at CHF1.2400 from CHF1.2475, while sterling was fetching $1.8665 versus $1.8652.

With no major U.S. data scheduled for release Monday, dealers are focusing on a news conference featuring European Central Bank President Jean Claude Trichet at the regular bi-monthly Group of 10 meeting, at around 1100 GMT.

The U.S. session offers speeches from Federal Reserve members Cathy Minehan (1200 GMT), Donald Kohn (1515 GMT) and William Poole (1630 GMT).

Forex Trading guide

Currency Trading guide

By Mansi Gupta

Currency trading or forex (foreign exchange) as the name suggests refers to the act of exchanging the legal tender of one country for another. "In finance the exchange rate between two currencies specifies how much one currency is worth in terms of the other". For instance an exchange of 200 Japanese yen to dollar indicate that 120 yen is worth the same as 1USD. Exchange rate is also called as foreign currency rate.


Currency trading is a very ancient phenomenon. Its existence can be traced back to time before money and Internet were discovered. The custom of currency trading began with the bartering system i.e. our ancestors commenced trading of goods against other goods. This bartering system was quite incompetent and needed lot of negotiation and investigation to be able to strike a deal. In the years that followed the important metals such gold, silver and bronze were standardized and graded to make easy the exchange of merchandise. The grounds for these mediums of exchange were acceptance by the general public and realistic variables such as durability and storage. As the middle age came, a variety of paper exchange started taking place and that became quite popular as an exchange medium.


Time passed by and the simple bartering system evolved into a complex and huge industry of foreign or currency exchange. Though with the use of money and banks the system developed to a large extent but it is still developing with the aid of Internet.


Currency exchange is not a simple task. It requires enormous time, market knowledge, ability to study the current market and predict its future course and also immense self-control. But the currency exchange market is extremely volatile and fast. There is no guarantee either of profit or of loss. To be successful in this market a trader has to take into consideration technical and fundamental data and make an informed decision on behalf of his observation of forex futures trading market sentiment and market expectations. Proper planning in timing a trade correctly is perhaps the most crucial factor in successful currency trading. However yet there are times when a trader misses the mark i.e. when his timing will be off.


Besides timing factor being rightly handled, patience of a trader is also quite essential. Perseverance is one of the essential characteristics of a trader. He or she might not be academically qualified enough but must have the potential to stand for a good time in the market. It is only after spending a good amount of time that you understand the intricacies of the market and start accruing some gains.


You should not hesitate to take the help of an experienced trader whom you know and trust. It is very difficult to survive in this currency trade market without the help of qualified professionals. So in the beginning it is better for any naïve trader to take the help of professionals.


If you are not incurring gains for a long time and do not hope that in near future, stop for sometime. This will give you mental peace and entitles you to get out at certain points on trade.


At the end of the day don't forget that in the market of currency exchange, experience is the biggest teacher of all.


About the Author
Mansi gupta recommends you visit http://www.forexreader.com/trading/index.html for more information on Currency Trading.

Article Source: http://articles.simplysearch4it.com/article/30901.html

Wednesday, September 06, 2006

FOREX: Ringgit Lower Against US Dollar

September 06, 2006

FOREX: Ringgit Lower Against US Dollar

KUALA LUMPUR, Sept 6 (Bernama) -- The ringgit ended lower against the US dollar Wednesday as the greenback regained strength in overseas markets ahead of the release of key US data that will provide direction for the country's economy, analysts said.

Market players were awaiting the data from the Institute for Supply Management's survey on services sector for August and the release of Federal Reserve's Beige Book, they said.

Analysts said the market was relatively quiet as players decided to "wait and see the outcome."

At 5 pm, the ringgit fell to 3.6475/6525 against the greenback from 3.6400/6450 posted Tuesday.

The ringgit was lower against the Singapore dollar at 2.3265/3312 from 2.3249/3279 Tuesday. It was higher against the yen at 3.1328/1376 from 3.1469/1518 previously.

Against the British pound, the local currency strengthened to 6.8920/9036 from 6.9117/9208. It was weaker against the euro at 4.6757/6825 from 4.6747/6813.

Forex news:US dollar mixed

AFX News Limited
Forex - US dollar mixed Sydney morning amid concerns of slowing EU growth
09.05.2006, 10:34 PM




SYDNEY (XFN-ASIA) - The US dollar was trading mixed against major currencies, rising against the euro on concerns about slowing growth in Europe but weaker against the yen, dealers said.

They said the yen is maintaining its strength ahead of the Bank of Japan possibly providing views on inflation on Friday.

At 11.15 am, Sydney (0015 GMT) the US dollar was trading up 1.2819 eur from 1.2812 in late New York trade while the yen was at 116.37 usd from 115.93.

Traders said the market has been largely focusing on what will come next with eurozone and US interest rates.

National Australia Bank currency strategists said higher eurozone rates will tend to bolster the single currency by making certain types of investments more attractive.

Meanwhile, they noted that while the US Federal Reserve paused its two year rate-raising cycle in August the European Central Bank last week appeared to indicate it will raise eurozone rates at its next meeting after leaving them unchanged this month.

'The hurdle for the euro is that a few further ECB rate hikes are already priced in and the speculative community is very long the currency,' the NAB strategists said.

'That's why we remain reluctant to target eur/usd above 1.3000 eur in the absence of say forecasting a hard landing in US growth.'

They noted that overnight St. Louis Fed President William Poole, a non-voting Fed member, played down the risk of a hard landing in the US, led by housing.

'We might have some weakness in certain sections of the country, but I think we're just not going to have a housing crash that's nationwide,' Poole said.



Sydney 11.15 am (0015 GMT)

US dollar

yen 116.37

sfr 1.2340

Euro

usd 1.2819

stg 0.6767

yen 148.89

sfr 1.5816

Sterling

usd 1.8944

yen 220.05

sfr 2.3370

Australian dollar

usd 0.7707

stg 0.4068

yen 89.535

New Zealand dollar

usd 0.6479