Month: October 2010

By James McKee – Tensions over failing measures in Europe to stabilize the economy there have resulted in a series of riots and public demonstrations in which some people have been incarcerated or even killed. Countries such as Greece demonstrate the eventual reality of nations that allow their economy to slide out of control. Aside from the economic consequences upheaval in European countries has the added consequence of undervaluing the Euro. Now that France is experiencing financial upheaval in the form of reduced pensions on the part of the French government French citizens have begun to riot in the streets of Paris. While it might not seem like a big deal overall such behavior is certainly negative when it comes the Euro and Europe at large.

Bearing these things in mind the Euro is certainly looking at some trouble in the weeks ahead. Bearing in mind that the USD is also going to experiencing turbulence due to the DJIA undergoing its losses I think the pair EUR|USD is one to stay away from altogether, instead pair these currencies with something more stable such as the CAD and then watch the fireworks. Any instability with regard to currency is a good thing for a smart trader, know which side is stronger and bet accordingly. While it might sound simple just remember to never fall in love with a trade, especially not one made in such a volatile climate. Rest assured that with all the instability already flying around in the market we have not even come close to seeing the last of what is to come.

A lot of people are wondering what will happen if there is a collapse with regard to a European country and what the effect would be on the Euro. Well, despite what the media would have us believe it is not going to spell out doom for the entire world. Indeed the Forex Currency Exchange is a resilient entity and will continue on past the restoration of old economies and the implementation of new ones. There has been a great deal of talk about the “New World Order” and this and that, do not believe the bulk of it for one moment. There is a reason countries go to war with one another and that reason is differences. Sure, it would be nice if everyone could just set aside his or her differences but the world just is not there yet. Great thing for traders, sad thing for the world at large and on that note, happy trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By CountingPips.com

Economic news out of Canada today showed that retail sales increased unexpectedly and higher energy costs pushed consumer prices higher, according to separate data releases by Statistics Canada. Canadian retail sales increased by 0.5 percent to a C$36.1 billion total in August after a revised increase of 0.1 percent in July.

The rise in retail sales was more than expected as economic forecasts were predicting a 0.1 percent decrease for the month. On an annual basis, August’s retail sales level was 3.5 percent higher than the August 2009 level.

Core retail sales, excluding automobile sales, climbed by 0.4 percent in August following a revised decline of 0.2 percent in July. The rise in core sales just missed the economic forecasts that were expecting a 0.5 percent increase for the month.

Contributing to the gain in the retail sales numbers was an increase in furniture and home furnishing stores by 2.1 percent in August. Also contributing positively to the report were notable gains in gasoline stations (+2.1%), food and beverage stores (+0.8%) and motor vehicle and parts dealers (+0.7%).

Canadian Consumer Prices rise in September

Consumer prices in the Canada increased in September, according to a separate report released today by Statistics Canada. The Consumer Price Index, a measure of inflation, rose by 0.2 percent in September after decreasing by 0.1 percent in August.

On an annual basis, consumer prices registered a 1.9 percent increase over the September 2009 level following a 1.7 percent annual increase in August. September’s data matched economic forecasts that were expecting a 0.2 percent monthly increase and a 1.9 percent annual advancement.

Rising energy prices contributed significantly to the higher cpi levels in September. Gasoline prices increased by 5.6 percent on an annual basis through September following a 5.0 percent increase in August on an annual basis.

Consumer prices, excluding energy prices, increased by 0.2 percent in September and by 1.5 percent on an annual basis following a 1.6 percent gain in August.

The Bank of Canada’s core index, released in the report, showed that core consumer prices rose by 1.5 percent on an annual basis in September compared with an annual rise of 1.6 percent in August. On a monthly basis, the BOC core index saw prices rise by 0.1 percent from January to February.

Canadian Loonie mixed in Forex Trading

The Canadian loonie dollar has been mixed today in the currency markets versus most of the major currencies after the retail sales and inflation data. The Canadian currency has increased versus the Japanese yen, New Zealand kiwi and the British pound while trading relatively unchanged or slightly lower versus the euro, U.S. dollar and Australian dollar, according to currency data from Oanda.

By Kent Lucas, Editor, Safe Haven Investor and Global Income Generator

TaipanPublishingGroup.com

The Chinese real estate markets, particularly in the big cities, are clearly are at bubble levels. There’s no way around it.

But here’s the good news: If the bubble bursts, it’s not enough to cause a collapse in the whole economy. Real estate plus housing-related purchases are only 15% of Chinese GDP, so the economic ripple effect will be contained.

And the better news for us is that bubble-popping expectations are already being reflected in Chinese stocks.

In fact, the Shanghai stock market has been a solid underperformer this year.

That creates investment opportunities for us. Sooner or later, inexpensive valuations will have to catch up with the country’s intrinsic growth rate.

And right now, the appeal of Chinese stocks is at very high levels.

Chinese Stocks Are Clear Long-Term Winners

The Chinese market has underperformed this year but clearly has been a long-term winner. Especially when compared to stock markets in developed countries, like the U.S. S&P 500.

If you look back over the past five years as the country and economy has aggressively opened itself up, you can see the impressive performance.

The chart below shows how well the Chinese market has done, up 124%, along with emerging markets in general (via the iShares MSCI Emerging Market Index ETF in red line) up 56%.

That compares with the S&P 500 (blue line), which is down 10% over the same past five years:

Five-Year Performance of the S&P 500 Index, China’s Shanghai Index and the iShares Emerging Market ETF

Source: Google Finance

For those who think that investing in China isn’t safe… I say, baloney. In fact, I’d go so far as to say that in many cases, investing in China is much safer than investing in the U.S.

After all, the S&P 500 is as “safe” as it gets in many investors’ minds. And look how China trounced that.

(By the way, I’m just contributing to Smart Investing Daily today, but regular editors Sara Nunnally and Jared Levy are constantly providing readers with easy-to-understand investment articles.)

I call China a “tipping point” economy — meaning it is an economy growing at a rapid pace. Now, some will argue that China’s economy has already tipped. But just because China has already experienced massive growth doesn’t mean that it won’t continue to grow. As I mentioned, the country’s intrinsic growth rate is still climbing… and now is the perfect time to get in at these oversold levels.

On the other hand, the U.S. is the exact opposite of a tipping-point economy. It is a very mature economy. It’s not growing at a fast pace anymore.

China is getting a lot of attention these days as the wagging tail of the dog that is the global economy. The size of its economy surpassed Japan to take the No. 2 spot behind the U.S. and its demand for global commodities and energy resources is unmatched and insatiable.

China has been the backbone of global demand for energy, agricultural and metals commodities, such as iron ore, gold, soybeans, cotton, sugar, palladium and oil, to name a few. And the country’s demand for these products will only continue.

“China” and “Safety” Are Not Antonyms!

So if you’re looking for “safe”… what can you conservatively do to protect your money while building wealth?

Well, conservative, blue chip stocks are still the best way to build wealth safely. Let me repeat that: Conservative, blue chip stocks are the BEST place to put your money, bar none.
But instead of American blue chip stocks… the key is to find rock-solid, blue chip companies… outside the United States.

As badly as the U.S. consumer is needed to be the linchpin of a global economic recovery, clearly the sheer number of developing market consumers along with their high level of spending is a very powerful trend that smart investors will happily take advantage of to produce outsized investment returns.

And despite China’s real estate bubble… I still believe China is one of the places you’ll see those amazing returns come to life.

P.S. If safe — but very large — gains from all over the world is what you’re looking for, China is just one place to find them. I just put together a brand-new program that my publisher is calling a “conservative investor’s” dream. This new program shows you exactly which “tipping point economies” are ripe for the picking… and the very best way to play them to your advantage. You can get all the details here.

Don’t forget to follow us on Facebook and Twitter for the latest in financial market news, investment commentary and exclusive special promotions.

About the Author

Kent Lucas is the Editor of Taipan’s Safe Haven Investor and a regular contributor for free financial market e-letter Taipan Daily. He has a Bachelor’s Degree in Economics from Harvard University, his Master’s from Stanford University and over 20 years of financial and business experience. His background includes seven years as a research analyst and portfolio manager for a leading investment management firm. He has also actively managed $1 billion worth of equity assets, with particular attention to multi-industrial companies along with auto, construction and farm equipment-related companies. Kent has also worked in leading financial institutions’ divisions including tax-exempt derivatives, corporate trust, and equities sales and trading.

As the Editor of Taipan’s Safe Haven Investor, Kent uses his stock market investment system and the 13F Disbursement Plan to uncover the most profitable long-term investment opportunities found in the SEC 13F Disclosure Form. Kent extensively combs through thousands of stocks, managed securities, and the total market value of companies listed on Form 13F, and then isolates the one or two stocks that are poised to deliver the best gains with the least risk.

By Anton Eljwizat – The GBP has dropped significantly versus the JPY in the past 2 months, and it is currently traded around 127.40. And now as evident in the data below, the daily chart is giving bullish signals, indicating that GBP/JPY pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal.

• Below is the daily chart of the GBP/JPY currency pair.

• The technical indicators that are used are the William Percent Range, Slow Stochastic and Relative Strength Index (RSI).

• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction.

• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.

• Point 4: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure.

GBP/JPY Daily Chart

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

The dollar clawed back some lost ground during the early part of the Asia session, but risk currencies found a bid on remarks from US Treasury Secretary Geithner. He said that G20 countries should cap their external imbalances at a particular, though unspecified, share of GDP. It appears that the aim of any such measure would be to force export-dependent economies to focus instead on stimulating domestic demand, and this should in theory reduce local objections to currency appreciation. Geithner conceded that countries with large raw material exports could be made exempt from such a rule. This proposed exemption would appear to favour Australia, and should be AUD supportive. EURUSD traded in a range of 1.3889-1.3966, and USDJPY stayed in a range of 81.14-81.37. Asian equities are slightly firmer at the time of writing and US equities earlier closed fractionally ahead. FOMC voter and St. Louis Fed President Bullard said that “we are not here to ratify what the markets think” suggesting there was no pre-commitment on the November 3 FOMC decision. However, Bullard said that if the Fed did go ahead with further quantitative easing, he would favor asset purchases in increments of $100bn. On the data front, initial jobless claims fell from 475k to 452k for the most current reading. The Philadelphia Fed Index rose to 1.0 from -0.7 previously. The growth-related details of the survey were slightly more positive, with improvement in employment and shipments indices. New orders remained soft, albeit less weak than in September. Philadelphia Fed President Plosser is due to speak at a seminar on regulatory reform. The G20 finance ministers and central bank governors are due to convene in Korea.
EUR

Germany’s PMI manufacturing was far stronger than expected in October, coming in at 56.1 vs. 54.6. Services PMI was also strong at 56.6 vs. 54.9 expected. This has managed to lift the corresponding Eurozone figures too, and has provided an extra layer of support for the EUR.
Ahead, the German IFO is due to be released. Our European economists expect the business climate index to weaken slightly to 105.1 (prev. 106.8).
GBP

UK retail sales fell by 0.2% in Sept after a downwardly revised -0.7% decline (-0.5% previously), lower than market expectations of a 0.4% increase. This is the 2nd month retail sales have dropped. The official data stands in contrast to some of the major surveys such as the CBI, BRC and the BoE, which continue to point to retail sales volume growth. We expect retail sales volume growth to strengthen in Q4, ahead of the January VAT hike.
JPY

Finance Minister Noda described as “unrealistic” US Treasury Secretary Geithner’s proposals to limit the size of a country’s current account balance. He added that the G20 meeting is unlikely to discuss the currency policies of any individual country. BoJ Governor Shirakawa said he would not comment on the capital control measures of any individual country. He added that China’s recent rate hike will promote sustainable growth.
CHF

Swiss trade data were much firmer than expected, coming in at CHF1.69bn in surplus vs. CHF1.20bln expected. However, this was largely due to a sharp drop in imports as exports also dipped by 3.8% on the month.
The SNB also announced mass diversification of their assets in Q2, buying over $10bln, ¥1tln, CAD5bln and CHF6bln in other currencies.
CAD

Ahead, Canada CPI readings for September will be released as will retail sales for August.

TECHNICAL OUTLOOK

EURCHF 1.3665 next resistance.
EURUSD BULLISH Need a break below 1.3637/1.3559 support zone to trigger the bear trend. Resistance at 1.4159 ahead of 1.4373.
USDJPY BEARISH While resistance holds at 83.03, expect extension of downleg towards 79.75 ahead of 77.91.
GBPUSD BULLISH Remains constructive above 1.5606 keeping our focus on the upside. Resistance at 1.5942 ahead of 1.6107.
USDCHF BEARISH Rise through 0.9729 exposes 0.9918 breakout low. Next big support below 0.9463 at 0.9225.
AUDUSD BULLISH Upside gains held at 1.0004; move above the level would expose 1.0166. Support defined at 0.9662 ahead of 0.9542 reaction low.
USDCAD BEARISH Tough resistance in 1.0380/1.0407 area. Initial support at 1.0162 ahead of 0.9981.
EURCHF BULLISH Climb through 1.3494 clears the way for a run towards 1.3665 and 1.3924 next. Near-term support at 1.3265 ahead of 1.3072.
EURGBP BULLISH Sudden recovery through 0.8840 and 0.8894 exposes 0.9039 next. Near-term support defined at 0.8773.
EURJPY BULLISH Focus is back on the upside; expect gains to target 115.68 and 116.68 next.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Source: ForexYard

With speculations about further quantitative easing and possible currency agreements dominating this week’s trading, the meeting of G20 central bankers is going to continue to be the focus coming to next week and will likely provide a volatile trading day, particularly for the USD.

Economic News

USD – Dollar Unable to Reverse Downward Trend

The USD seems unable to bounce back from the downward spiral it has been experiencing for the last several weeks. Investor concerns regarding the quantitative easing package likely to be unveiled by the Fed as early as next month, have led to steady losses for the greenback. In addition, disappointing employment and housing figures have caused confidence in the US economy to tumble. It appears that the new norm for the EUR/USD pair is to trade above the $1.4000 level, while the USD/JPY consistently hits fresh 15-year lows.

Despite yesterday’s better than expected unemployment figure, the greenback was unable to capitalize on the positive data. In addition, the Philly Fed Manufacturing data came in well below expectations. Barring any significant positive data from the US economy, the dollar is likely to remain at its current levels.

Today, a lack of significant news means that dollar values will be determined by indicators from Europe and Canada. Traders will want to pay attention to the German Ifo Business Climate figure as well as the Canadian Core CPI, scheduled to be released at 8:00 and 11:00 GMT respectively. Positive results for either indicator will likely lead to a further drop in dollar values.

EUR – Euro Maintains Gains against Most Currency Rivals

Despite significant economic concerns throughout the euro-zone, the 16-nation single currency has been able to capitalize on the investor return to risk taking. Yesterday, positive data from both Germany and China helped boost the currency throughout the day. The euro has made gains against most of its main currency rivals in recent weeks, specifically against the USD. The EUR/USD pair continues to trade around the $1.4000 level.

Ahead of this weekend’s meeting of the G20, investors appear to be fairly certain that recent improvements in the global economy will continue to occur. Analysts are predicting that the euro will largely maintain, if not increase, its recent gains to close out the week. Traders will want to pay attention to today’s German Ifo Business climate figure. As the largest economy in the euro-zone, German data tends to have a large impact on the marketplace. The Ifo figure is a survey of businesses throughout Germany, and is considered to be a leading economic indicator. A figure above the forecasted level of 106.5 may boost the euro in afternoon trading.

JPY – Investors Remain Concerned About Possible BoJ Intervention

A return to risk taking has led to big losses for the Japanese yen against the euro. That being said, the currency is consistently hitting fresh 15 year highs against the US dollar. With the USD/JPY pair trading around the 81.00 level, investors are fairly concerned that the Bank of Japan will once again move in to devalue the yen. Japan, which is largely dependent on its export industry, relies on a weak yen to prop up its economy.

Today, JPY pairs will largely be influenced by data coming out of Europe. Should any of the indicators set to be released today generate more investor risk taking, traders can assume the yen will take more losses against the euro. At the same time, the JPY is considered a much safer bet than the dollar at the moment. Any significant bullish trend for the USD/JPY pair seems unlikely to occur in the near future.

Crude Oil – Crude Oil Continues to Rise as the USD Falls

With the US dollar consistently hitting fresh lows against several of its main currency rivals, crude oil has quickly become a solid alternative for investors looking for a safe investment. The commodity has seen significant gains as of late, and will likely maintain its high levels as long as the greenback remains down.

Today, should positive data from both the euro-zone and Canada cause the greenback to take further losses, traders can anticipate crude oil will increase its recent upward trend. At the same time, negative data may lead to a return to risk aversion in the marketplace. Should this occur, traders may want to go short in their crude oil positions, as a downward correction may take place.

Technical News

EUR/USD

After seeing a very volatile session yesterday, the pair is currently trading near the 1.3960 level. A bullish cross of the 4-hour chart’s Slow Stochastic suggests that the pair might resume its bullish trend today, with potential to reach the 1.4100 level.

GBP/USD

The cable continued with the bearish correction yesterday, and has fallen below the 1.5700 level. It recovered slightly, however, and is currently trading around the $1.5740 level. As the MACD on the daily chart continues to point down, the pair might see further bearishness today. Going short might be the right choice.

USD/JPY

The pair’s bearish trend was halted during the past few days, as the USD/JPY is now trading above the 81.00 level. However, as all the oscillators on the weekly chart are pointing down, the pair might see further drops today. Going short with tight stops might be the right strategy today.

USD/CHF

Over the past few days the pair has corrected some if its losses, and is currently testing the 0.9700 level. If the pair will manage to breach through the resistant level it could reach as high as the 0.9775 level today.

The Wild Card

Crude Oil

Gold saw a significant bearish correction since the last weekend, and is now trading around $1,327 an ounce. At the moment both the 4-hour chart and the daily chart provide bearish indications, suggesting that the bearish move has more steam in it. This might be a great opportunity for forex traders to join a popular trend.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

USD/CHF

Daily graph: http://www.real-forex.com/charts-daily/221010/CHF_DAILY_221010.JPG

3 sessions ago, the trend changed its orientation from down to uptrend. During the third day of the increase, the pair crossed a resistance at 0.9734. This breach, in fact, confirmed the new bullish trend and closed the decreases, creating an opportunity for “Long trade”.

The candles being very strong, according to our analyses, there is a high probability that the pair’s current trend will last for several sessions.

The identification of an increasing configuration on one-hour graph could confirm the uptrend for today.

Potential trade

1H graph: http://www.real-forex.com/charts-daily/221010/CHF_1H_221010.JPG

Once the resistance of 0.9681 crossed, the required configuration should be created, and it could be the best moment to order a transaction. Following, our analysts’ transaction:

• “Limit” order on “Long” position 10 pips above the mentioned resistance, meaning 0.9691.
• “Stop Loss” order on the last low occurred: 0.9611
• “Take Profit” order on the next resistance: 0.9724.

USD/JPY

Daily graph: http://www.real-forex.com/charts-daily/221010/JPY_DAILY_221010.JPG

For the last 7 sessions, there is a clear navigation between 80.89 and 81.92. Once the pair will reach one of those two levels, there are two different ways to act:

• Waiting for a vain breach of the level in question (resistance or support). We suggest looking for a price configuration in the opposed direction and ordering “Take Profit” on the next level.
• The pair is stopped on one of the two levels for at least a session and a half: We suggest waiting for a price configuration in the opposed direction, and once identified run with it until the second level (resistance or support).

Have a profitable day!

Real forex team.

AUDUSD’s uptrend from 0.8771 has completed at 0.9998 already. Range trading between 0.9661 and 0.9890 would more likely be seen later today. Support is at 0.9661, a breakdown below this level could trigger another fall to 0.9500 area. Key resistance is at 0.9998, only break above this level could indicate that the uptrend from 0.8771 has resumed, then further rise to 1.0100-1.0200 could be seen.

Daily Forex Signals

By Corporate-Fx.co.uk

We summarise the most important news stories that occurred in the past week in the world of forex. We start with the week commencing 18/10/2010 as the USD drops in value against its counterparts…

On Monday the biggest news story was the fall of the dollar against the yuan and the euro. Early during the week China announced that they will continue to appreciate the yuan at a moderate pace following the IMF summit where currency was high on the agenda. However, as the talks ended in stalemate policymakers will have to rely on the IMF to address trade imbalances and capital outflows. The central bank was also accused of flooding foreign markets with capital by keeping interest rates at record lows.

Tuesday saw the dollar rise marginally against the euro and a basket of other currencies in global forex, supported by investors covering short positions. Traders said automatic sell orders were beginning to accumulate just below the dollar’s current price of around $1.380-35 against the euro. Traders were cautious of selling the dollar ahead of the Federal Reserve announcement in a month’s time. It was expected that a further stimulus would be announced. Forex traders expected the yuan to rise a further 3.6 per cent within the next 12 months, extending the 1.7 per cent gain seen in September.

Then on Wednesday tensions between the world’s two largest economies threatened to deepen after China’s foreign currency holdings surged to new record levels.

Although the size of China’s currency holdings increased at its lowest pace in 11 years in the second quarter of the year, figures for the following three months show a $194 billion increase, taking total reserves to $2.65 trillion. The dollar slumped in global forex trading during the third quarter, flirting with 15-year lows against the yen while the yuan appreciated at a modest pace that has accelerated in recent weeks. Calls for a more rapid appreciation of the yuan were called as more were blaming China for keeping its currency artificially low.

Meanwhile in the UK Andrew Sentence (BOE) suggested interest rates need to be raised incrementally to avoid routinely missing inflation targets. In a speech delivered in London yesterday (October 13th), the Monetary Policy Committee member said that while the central bank must be careful not to curtail growth during this tentative stage of recovery, it should not be seen to tolerate persistently high inflation.

Then on the Friday the pound rose to an eight-month high against the dollar despite remaining close to a six-month low against the euro. The dollar’s broad losses were attributed to Singapore’s decision to widen the trading band of the Singapore dollar, which put selling pressure on the greenback. The Bank of Japan took the decision to buy dollars in a bid to curb the rise in the yen – many other regional economies were preparing to take similar currency action.

The Canadian dollar was also in the news as it hit parity with the USD for the first time in six months. The Canadian dollar gained 2.3 per cent against the US dollar in the last month, while the USD itself has fallen against all 16 major counterparts.

Hard commodities began to gain traction in the US as investors look for alternatives to currency, with gold at an all-time high and crude oil breaking out of recent range trading above $84 a barrel.

Summary provided by Corporate FX. Registered in 2001 and based on Cornhill in the City of London since 2007, Corporate FX are a market leader in supplying commercial forex trading services and hedging strategies including trading Forex Spot.

About the Author

Article by corporate-fx.co.uk

By CountingPips.com

Economic news releases out of the US showed that the Leading Economic Indicators Index (LEI) published by the Conference Board today increased for a third consecutive month in September. The Leading Indicator Index, which measures future economic activity, rose by 0.3 percent in September following increases of 0.1 percent in August and a 0.2 percent in July.

The September LEI advance matched the market forecasts which were expecting a gain of 0.3 percent for the month.

The coincident index, which is viewed as a gauge of the current economic activity, returned a flat reading for a second month in a row while the lagging index rose by 0.4 percent after advancing by 0.1 percent in August.

An economist at the Conference Board, Ataman Ozyildirim commented in the report saying, “The LEI remains on a general upward trend, but it is growing at its slowest pace since the middle of 2009. There isn’t any indication of a relapse into another downturn through the end of the year.”

Philly Fed Business Survey turns positive

The Philadelphia Manufacturing Business Index released today by the Philadelphia Federal Reserve Bank showed that its survey increased in October and turned into positive territory after a negative reading for two straight months. The Philly general business diffusion index rose to 1.0 in October after September’s score of -0.7. A positive score is consider growth in that business sector while a negative score is considered a contraction.

Contributing to the higher level this month were increases in the indexes for new orders, shipments, delivery times, prices paid, average employee workweek and number of employees.

Jobless Claims fall by 23,000

A release by the U.S. Labor Department showed that weekly U.S. jobless claims declined in the week that ended on October 16th. New jobless claims dropped to a total of 452,000 unemployed workers, a decrease over the prior week by 23,000 workers. The 4-week moving average of unemployed workers fell by 4,250 workers from the prior week to a total of 458,000.

Workers seeking continuing claims for unemployment benefits for the week ending October 9th decreased by 9,000 workers to a total of 4,441,000 unemployed workers. The 4-week moving average of continuing claims declined by 23,250 to 4,478,000.

US Dollar rises as Stock Markets positive

The US dollar has been higher in the forex market trading following today’s US economic news while the US stock markets ended the day in positive territory. The dollar has advanced versus the euro, British pound, Japanese yen, Swiss franc, Australian dollar, New Zealand dollar and the Canadian dollar in today’s forex trading action.

The U.S. stock markets, meanwhile, ended today’s session in positive territory with the Dow gaining 38.60 points, the Nasdaq increasing by 2.28 points while the S&P 500 is higher by 2.09 points. The Dow Jones had briefly gained by over 100 points and touched above its highest closing level of the year at 11,205 (April 26 close) in earlier trading before reversing course lower.

In commodities, oil has traded lower by $1.89 to $80.65 while gold has fallen by $18.10 to trading at the $1325.20 per ounce level.