Month: April 2011

Gold Still Bullish Above Key 1500 Level

Gold and the dollar

Gold has closed above the key 1500 level, on the weekly timeframe, and continued the strong bullish trend that has been in place since 2008.

The weak dollar is playing a major part in this trend and as long as the Fed keeps pushing a huge quantity of dollars into markets the decline in the dollar will likely continue.

Metals, and Gold in particular, are viewed as a fit for purpose alternative to the dollar as it slowly loses its reserve currency status.

Gold Technical Analysis

The recent strong bullish move through 1500 – and the subsequent consolidation that had formed around the key figure – seems to show gold is being driven by fundamentals rather than technicals at present.  Technical traders will no doubt be looking to buy any dips to the lower trend line, as seen on the attached chart.

The upper parallel trend line may provide some kind of resistance as medium term traders scale out of positions. There are few technical resistance points above the current highs but, as always, a sudden change in sentiment could provide a price action reversal signal.  I will not be looking to call a top on this trend for some time to come though.

USDJPY stays in a falling price channel on 4-hour chart, and remains in downtrend from 85.51. Key resistance is now at 82.42, as long as this level holds, downtrend could be expected to continue, and next target would be at 81.00 area. On the other side, a break above 82.42 will indicate that a cycle bottom has been formed at 81.62 level on 4-hour chart, and the fall from 85.51 has completed, then the following upward movement could bring price back to 83.50 zone.

Daily Forex Analysis

Netflix (NFLX) reported Q1 EPS of $1.11 per share, vs. analyst estimates of $1.08 per share. Revenue was $718.5 million, vs. expectations of $704 million. For Q2, the company is guiding for revenue of $762 to $778 million, vs. Street estimates of $763 million. EPS are seen at $0.93 to $1.15 per share. The Street view is $1.19 per share. It’s unclear if these earnings numbers are comparable.

Investors will be digesting corporte earnings reports the entire week for signs of a sustained economic recovery. Good morning, I’m Sayoko Murase, with the Week Ahead Market Report for April 25, 2011.

What Explains the Aussie Dollar’s Rapid Rise?

By Kris Sayce

In this week’s Money Weekend: G7 bailout continues to boost Aussie dollar… Aussie dollar keeps running… Buy gold stocks now… Bullion buying is easy… Risk taking is at a high…

There’s no other way to describe it. The Aussie dollar has gone ballistic.

Since the G7 bailout of the foreign currency markets in March, the Aussie dollar has gained 9%:

Click here to enlarge
Source: Google Finance

Wednesday’s The Age reported:

“After punching through the 106 US-cent mark yesterday the Australian dollar barely stopped for breath on its way to another record early today when it climbed past 107 US cents – and kept going.”

The paper quoted Thomas Averill, managing director at Rochford Capital:

“It’s not just increased risk appetite, it’s a general aversion to holding US dollars at the moment which looks set to continue in the medium term.”

Over at Bloomberg News, Kurt Magnus, executive director at Nomura Holdings said:

“The U.S. dollar is in a new trend lower. Fund managers are actively shifting toward liquid, growth currencies like the euro and Aussie.”

For more thoughts on the Aussie dollar’s latest move, click here to see a free video market update from Murray Dawes over at the Slipstream Trader YouTube channel.

Of course, Diggers & Drillers editor, Dr. Alex Cowie has also given his opinion on the moves in the Aussie dollar. Three weeks ago he wrote:

“So it’s no surprise the Aussie dollar is now on fire. It hit 1.037 against the US last night. My money is on this being the next leg up for the Aussie (time for you to think about that trip to Bali later in the year). It’ll bang its head against 1.055 for a bit and then who knows where it will next consolidate? Somewhere in the $1.08-1.15 region by the second half of the year is my wager. Parity is history.”

With the Aussie hitting $1.07 this week, “the second half of the year” could be a losing bet… try the first half of the year!

Dr. Cowie is bullish on the Aussie dollar because he’s bullish on the Aussie commodities market. They go hand in hand.

Having picked the bull run in the copper and tin markets, and getting in quickly with potash stocks, the Stock Doc has put all his energy into silver.

In fact, the Diggers & Drillers portfolio has contained silver since it was trading at USD$15 per ounce back in 2008. But despite the tripling in price since then, the Stock Doc reckons there’s more to come.

Just today he told me:

“I think we are now officially seeing the market waking up to the fact that silver is still hugely undervalued.

“The price may have gone vertical in the last few months, but really it’s just making up for fifteen years of the price doing very little.

Source: Silverprice.org

“The price is also going vertical because of the insane levels of demand. The fact is that industry is getting through about 55% of mine production, and investors are rushing to take up the rest. Unlike gold however, there’s very little silver bullion sitting around as spare supply. Central banks gave it to industry to use up, as it was worth so little. This now looks like an even more disastrous move than the UK selling half its gold at the bottom of the market!

“Diggers & Drillers has been recommending investing in silver for more than two years, and I hold silver bullion myself. In fact, I bought more this week, and will keep buying as the price goes up as I expect it will go far higher. There’s only one problem my plan – it’s in such short supply that it’s hard to find!”

The Stock Doc is bullish on gold too. So bullish, he’s looking to add another gold stock to the Diggers & Drillers portfolio this month. He’s already got five gold stocks on the books, but given his view he’s keen to add more.

If you’d like to find out Dr. Cowie’s stock picks, including his latest pick when it’s released, click here for more details.

The Stock Doc isn’t the only one tucking into precious metals. Sound Money. Sound Investments editor, Greg Canavan wrote the following in June last year:

“Last week we showed you how silver had become systematically de-monetised by governments over the past 150 years or so. These actions have seen the gold/silver ratio move from its long term historical average of around 15:1 to 66:1 today. In other words, one ounce of gold is now equivalent to 66 ounces of silver.”

He went on to write:

“In this week’s essay, we’ll show you why silver could potentially be one of the cheapest assets in the world right now. The silver market is not at all analysed by mainstream investors and for this reason remains very much overlooked as an investment opportunity.”

That was nine months ago. Today, the gold/silver ratio is 34:1. And the price of silver per troy ounce has increased from about USD$17 to the current price of USD$45.

This week Reuters reported:

“Bullion powered to a lifetime high for a fifth consecutive session on Thursday on a sharply weaker dollar, while lingering tensions in the Arab World, worries about the euro zone crisis and U.S. fiscal health offered additional support.”

But doesn’t all this mean gold and silver are in a bubble?

If you look at the charts, it’s an easy conclusion to come to. Personally, we don’t believe it is. Besides, if you’re investing in gold with just a portion of your portfolio, and you don’t use leverage – which is the case for most bullion buyers – holding gold shouldn’t give you too many sleepless nights.

In fact, like the Stock Doc, your editor bought more bullion this week. We dropped into a bullion dealer in the Melbourne CBD this week to increase our portfolio exposure to about 25% precious metals.

It’s always a nice feeling holding onto the shiny metal before handing it back for them to lock in a secure vault. Although if you’ve got secure facilities to store it at home we’d recommend you do that, the key is to make sure it’s secure.

But here’s the thing. We dropped in there on Wednesday lunchtime… along with three other people. If the length of queues is a guide of anything, it’s certainly not pointing to a gold bubble.

Looking at Greg Canavan’s recommended portfolio weightings, he suggests a big exposure to precious metals and precious metal stocks too. To find out Greg’s ideal weightings and which gold stocks he’s recommending right now, click here for more details.

So, what’s driving the move in gold and the Aussie dollar?

There are a few theories. One of the more wishful theories is that the Aussie dollar is becoming reserve currency as central bankers hedge their exposure to the US dollar.

The reality is the opposite.

Investors are convinced the global economic recovery is in full flow. That consumers worldwide are spending, that the Chinese economy will continue to grow, and therefore the demand for raw materials will increase…

Hence, investors are piling into the Aussie dollar to punt on it going higher, and so they can buy Australian resources stocks.

That tells you investors are happy taking on risky positions… just as they were happy to take risky punts on the resources sector from 2003 to 2008. A five-year period that coincided with one of the biggest resources bull runs in history.

But what happened next?

That’s right, when investors got nervous, and the economy turned south, the Aussie dollar soon lost favour with investors.

You can see the impact on the Aussie dollar on the chart below. The Aussie dollar is the blue line:

Click here to enlarge

As you can see, the Aussie dollar collapsed.

But the chart also shows you why I’m quite happy holding gold. Gold is often seen as a hedge against inflation or political risk.

But you can also say that gold is a hedge against a falling Aussie dollar. You’ll notice on the chart below that when the Aussie fell from late 2008, the price of gold in Aussie dollars increased:

Source: CMC Markets Stockbroking

Then, as the Aussie dollar climbed in 2009, the price of gold in Aussie dollars dropped.

But during the recent move in the Aussie dollar, starting early last year, the price of gold in Aussie dollars has been fairly constant.

In a nutshell – as I’ve written before – don’t expect to make a fortune from gold in the short term. But when the second great modern resources boom ends, and investors lose interest in the Aussie dollar again, holding gold in your portfolio should be a good way to protect your wealth.

Cheers.
Kris.

By Kris Sayce

The Great Aussie Lifeboat

By Dan Denning, Editor & Publisher, Australian Wealth Gameplan

The best way to think of the Australian dollar at the moment is that it’s a transitional currency between the U.S. dollar and the Chinese Yuan. It takes one-hundred-and-five U.S. cents to buy an Australian dollar at the moment. And even though that is a post-float high for the Aussie, it keeps smashing higher through any technical resistance that gets in its path.

There are two conclusions to draw from this. The first is that the Aussie has emerged as what I’ve called a “lifeboat” asset; the kind of place you take your money when you’re getting off a sinking ship. There are other assets that qualify, though. And we should have a look at what they are.

When we do, we arrive at the second point made by a correspondent of mine in a recent email: you should add to your long-term positions on weakness, not chase prices higher. This is especially true for gold and silver.

But first, a few more words on currency developments. Pimco’s bond guru Bill Gross gave a stirring summary for why you should not buy U.S. Treasury bonds and why you should be mortally afraid for the U.S. dollar. You can read his essay here.

The U.S. dollar, as you know, is hampered by the long-term liabilities of the U.S. government (US$65 trillion and counting) and short-term deficits that don’t seem to be getting any smaller ($1.4 trillion in 2009). I don’t know many Australians lining up to buy U.S. bonds. But if you were, Gross’s article would probably change your mind.

If anything, Gross highlights one of the alternatives to the debt problem that I raised in January of this year. There are only three real ways to deal with a massive debt problem: refinance it, restructure it, or default on it.

Australia, for example, is trying to refinance wholesale bank debt (at least in part) with covered bonds. I’ve written about these in the Daily Reckoning, so I won’t elaborate here. But my point is that because there was no public debt crisis in Australia and the GFC wiped out mostly non-bank lenders or the most over-leveraged firms with the worst balance sheets, the remaining banks here can refinance debt, even if it is a bit more expensive than they’d hoped.

That is not the case in Europe. For example, Ireland said its banks would require another $34 billion in capital to shore up its four remaining banks (the other big four?).

Regulators arrived at this number after factoring in the weak Irish economy. Yields on 10-year Portuguese government bonds rose to 8.6% or 530 basis points over German Bunds of the same duration.

Europe is trying to restructure its debt. But it’s not working out very well. The European Central Bank is about the only bank in Europe willing to lend the Irish money. And the ECB does it because it has to and, after all, it’s not real money anyway. In the meantime, the Europeans are busy trying to replace the European Financial Stability Facility (EFSF) with the European Stability Mechanism (ESM).

Aside from being a shorter acronym, the ESM requires unanimous approval by Eurozone nations in order to spend bailout money. That seems like a potential obstacle to its effectiveness. There is also the matter of funding the ESM. How do bankrupt governments manage to top up a collective fund they use to bail each other out?

If enough people thought about the absurdity of the above scenario, they might realise the only way for Europe to keep bailing itself out is for the European Central Bank (ECB) to print money. But the ECB’s current president Jean-Claude Trichet doesn’t want to do that. He said inflation is “now durably above the common definition of price stability in the Euro zone.”

The simple answer to that problem, if you’re a central banker, is to change the common definition of price stability and permit more inflation. Rhetorically, it can work. Practically, people tend to notice when they’re paying higher prices for food and fuel.

This leads me to believe that in order to prevent a wider loss of confidence in the euro and the ECB, Trichet may go beyond saying hawkish things and actually raise interest rates when the ECB meets later this month. For one, the oil price needs containing. But Trichet really is the last central banker on the planet that seems to take his mandate for price stability seriously.

But when you look at Europe and America in any kind of fine grain detail, a default (or de-facto default) seems almost inevitable. The ECB can finance and refinance bailouts for a while, but to the detriment of the Euro’s credibility as a reserve currency. And in America, there is near zero political will to restructure America’s long-term obligations by eliminating entitlements.

The trouble is, for the mercantilist exporting nations of the BRIC’s world, there’s no deep, liquid currency in which you can convert your U.S. dollars into something that’s not going to lose purchasing power over the next five years. This is where the Aussie dollar comes into play.

The Aussie is a high-yielding, China-correlated currency that seems to have beaten its reputation (for now) of being a “risk on” currency play. Of course, maybe this is just the kind of thing people say at the top to justify an over-valued currency. But as a commodity currency of a country with a low public-debt-to-GDP ratio, you can see why the Aussie would be a lot more attractive than a lot of paper money alternatives.

One of the big reasons it remains attractive is that the world’s investors can’t invest in the Chinese Yuan as a reserve currency, at least not yet. In the October issue of Australian Wealth Gameplan I wrote about how China’s central planners have 2015 circled on their calendar. That’s when they need to have ticked all the boxes that make the Yuan usable as a global reserve currency, fit for inclusion in the basket of currencies that make up the Special Drawing Rights (SDRs) issued by the International Monetary Fund.

Jim O’Neill from Goldman Sachs, who’s in Nanjing coincidentally for the meeting of G-20 finance ministers, says that 2015 is too far away and that China’s currency needs to be included in the SDR basket sooner. China’s currency is not fully convertible yet, but O’Neill says that’s not a problem. He says, “By 2015 China will be so big in the world, it will be embarrassing for the international monetary system if it’s not in it.”

This leads me to believe that Goldman is somehow massively long the Yuan and hoping to make a lot of money very quickly by expediting its inclusion into the SDR basket. It also highlights a problem. A problem for which there doesn’t seem to be a solution right now. And a problem that benefits the Aussie dollar (and gives you more time to build your position in gold at lower prices).

The problem is that the Chinese don’t want the Yuan to be convertible because they don’t want it to be stronger. A fully convertible currency is one that international speculators can buy and sell in a deep and liquid market. Right now, a lot of speculative money would flow into Chinese Yuan if it could; creating even more loanable funds in China’s banking system.

Inflation is already bad enough in China. The last thing the regulators and central planners want is a tidal wave of money moving out of U.S. dollars and into the Yuan. So China resists the revaluation of its currency and the full convertibility that would be required for the Yuan to become the next global reserve currency.

Everyone seems to think it’s a dead set certainty that the Yuan WILL become the next global reserve currency. After all, China has the world’s second largest economy. At its current pace of growth, it’s only a matter of time before it overtakes the U.S.  This is what all the speculators would like to bet on now.

But they can’t.

So we’re back to square one. If you can’t bet on China’s currency and you don’t want to bet on the dollar and you can’t bear to bet on the euro and you sure as shooting don’t want to bet on the Japanese yen, then you are left with the next tier of less-liquid but higher-yielding currencies.

One of which is Australia’s own fighting kangaroo, the dollar.

[Ed note: If you’d more advice about how to protect your wealth, you can sign up for a 30-day no-obligation free trial of Australian Wealth Gameplan by clicking here…]

Happy Easter.

Cheers,

Kris Sayce
Money Morning Australia

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

By Russell Glaser

EUR/USD

Despite a retracement earlier this week below the three year old trend line the euro looks poised for further gains. The pair tested but failed to close above the 1.4580 level off of the 2010 high and this price will serve as an initial resistance. A breach of last week’s high at 1.4180 will also set the stage for a test of the 2009 high at 1.5140. From there the 1.6000 level would be focused in on. Weekly stochastics are overbought but do not show any signs of divergence from the price action. To the downside, last week’s low at 1.4160 is the initial support level followed by 1.4020 and 1.3860.

GBP/USD

In almost textbook fashion, the GBP/USD has broken above the previous trend line off of the 2007 high and retraced back to the line only to move higher. Rising daily, weekly, and monthly stochastics point to further upside potential for the pound. A move above last week’s high at 1.6600 will target 1.6880 and finally the 2009 high at 1.7040. Last week’s high at 1.6425 is the first support. The old long term trend line may prove to be supportive once again at 1.6140, followed by the March low at 1.5930.

USD/JPY

A failure of the pair to move above the trend line off of the 2007 high has sent the pair sharply lower. Momentum is falling and traders may test the 80.00 line in the sand where the potential exists for another round of intervention. The lower channel line may be supportive at 78.50 and a breach there would target the all-time low at 76.41. 83.90 may provide some resistance and a breach of the trend line at 84.90 would turn the trend to the upside.

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.

Source: ForexYard

With Europe still on holiday in observance of Easter, today’s markets will be highly illiquid, making most currencies continue to trade within tight ranges until the opening of trading on Tuesday. Tomorrow’s news should be much more affecting on the region’s currency values, but as for today traders may want to look to the USD for market direction with its impactful housing report scheduled for 15:00 GMT.

Economic News

USD – Forestalled Chinese Revaluation May Boost USD this Week

Following last week’s thin holiday market conditions, the US dollar finds itself in a position to either sink or soar at the beginning of this week. Most analyses at the conclusion of trading last week had begun to call for a fast-paced injection of liquidity which was almost certainly going to favor the euro over its Atlantic rival.

However, the battered currency caught a break Friday and may gain from a market correction early this week. The greenback has a chance to rebound swiftly if a possible China revaluation fails to materialize. Discussions seemed to view a policy adjustment by China as a certainty, but rumors have emerged that the measure may get forestalled thus forcing another portfolio adjustment among traders who were already pricing in the expected change. The expectant sell-off of USD may therefore get delayed and the greenback may find itself on the upside as a result.

Ahead of the Easter weekend global markets were highly illiquid, meaning the new concerns over the competitiveness of the buck based on a potential move from China were likely over-exaggerated, some analysts have said.

As for today’s trading, most major economies remain in holiday vacation mode, meaning we could still see thin market conditions extending until Tuesday. The exception is the Japanese and US economies, both of which are publishing significant figures today. Out of the United States, traders will witness the publication of the New Home Sales report at 15:00 GMT. Should the housing market experience growth similar to last week’s, the greenback may find its legs, especially considering the delayed sell-off brought on from the measures discussed above.

EUR – EUR Mixed as Thin Markets Create Uncertainty

The euro has experienced mixed results against most of its currency rivals after failing to breach key resistance levels and then stumbling on renewed concern over sovereign debt and monetary policy uncertainty. The EUR/USD has held relatively stable as of Friday and does not appear to be revealing any signal of pushing strongly in either direction today.

The region continues to struggle with debt concerns, but area-specific shifts in risk appetite have helped drive the EUR’s surge by the middle of last week. Soaring oil prices have supported the euro against the dollar, but such strength may have overextended the euro and is now applying heavy weights to its value. The speculation of a move by China to revalue its currency had also convinced many that a broad sell-off in the USD would take place early this week, but rumors are spreading that this move may get delayed, helping the USD hold its ground against losses.

With Europe still on holiday in observance of Easter, today’s markets will be highly illiquid, making most currencies continue to trade within tight ranges until the opening of trading on Tuesday. Tomorrow’s news should be much more affecting on the region’s currency values, but as for today traders may want to look to the USD for market direction with its impactful housing report scheduled for 15:00 GMT.

JPY – JPY Gaining from Illiquid Markets

The Japanese yen rose against its major counterparts in early Asian deals on Monday. Presently, the yen is trading at 82.45 against the US dollar and 134.90 versus the pound. Against the euro, the yen is trading much higher at 118.70, compared to an early Asian session’s multi-month low of 123.35 last week.

Growing concerns regarding Japan have driven the JPY lower recently amid deteriorating fundamentals out of the island economy. But those weakening fundamentals are being offset by debt concerns out of Europe as the European Monetary Union (EMU) persists in dealing with a burgeoning debt crisis that simply won’t dissipate. For today traders will want to look to the USD for market direction, but so long as Europe continues to fear rising debt out of Spain and Portugal, going long on the yen may continue to remain appealing.

Crude Oil – Crude Oil Price Reaching toward 2008 Highs

Oil prices have turned upward heading into this week, with the price elevating itself beyond $113 a barrel as of this morning, sparking concern that prices will reach back into the $120 range of 2008. Continued fighting in Libya is partially behind the sell-resistance among global commodities like oil, but improved refining has also helped bolster earnings among Big Oil corporations improving other elements involved in industry and oil production. Concerns about Japan’s reconstruction, declining production, and ever-present nuclear crisis are also pushing economic fundamentals in a direction favoring the purchase of physical assets.

The only counterforce that could enter the market at the start of this week, however, is a resurgent USD versus its main rival, the EUR, if a Chinese revaluation becomes forestalled. If the dollar can continue to make gains this week, buyers may begin to temporarily shift out of oil purchases in favor of other assets. This is not to say oil prices will not continue to climb, only that the climb will get delayed by another couple trading days. Traders will be eyeing further events in the Middle East this week as the risk of crude oil supply disruptions could continue to spread throughout the region, especially as protests in Syria become more volatile as they have been lately.

Technical News

EUR/USD

A bearish cross has formed on the daily chart’s Stochastic Slow, indicating that a bearish correction could take place in the near future. This theory is supported by the Relative Strength Index on the 8-hour chart, which is currently in overbought territory. Traders may want to short their positions today.

GBP/USD

The Williams Percent Range on the daily chart has just crossed into the overbought zone, indicating that a bearish correction may occur shortly. Furthermore, the Relative Strength Index on the daily chart is currently at 80, lending further support to the theory will correct itself. Going short with tight stops may be the wise choice today.

USD/JPY

While the daily chart’s Relative Strength Index is currently in the oversold zone, indicating that an upward correction is approaching, most other indicators show this pair in neutral territory. Traders may want to take a wait and see approach today, as a clearer picture is likely to present itself later on.

USD/CHF

This pair has been trading fairly steadily since late last week. Technical indicators are currently showing that this trend is likely to continue today. Traders will want to pay attention to the Relative Strength Index and the Stochastic Slow on the hourly charts. Any sharp movements may indicate an impending price shift.

The Wild Card

NZD/USD

The Relative Strength Index on the 8-hour chart has just crossed into the overbought zone, indicating that downward pressure may occur in the near future. This theory is supported by the Stochastic Slow on the daily chart which has formed a bearish cross. Forex traders may want to open up sell positions in order to take advantage of the impending downward correction.

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 Cedric Welsch

When it comes to the currency exchange market there are several things that you need to know in order to fully understand what happens. The first thing is that in countries around the world you can easily and quickly convert currency into the money of the nation in which you are, this is the primary function of exchange markets. There are many benefits in having an exchange market. A benefit for instance is to travelers. When you travel from country to country you can either change your money at the airport or other exchange market or simply wait until you land, this makes it easy for travelers to always have the money that they need on hand quickly.

Some hotels offer currency trade services as well as some air ports. For the most part nearly any bank has an exchange making it easy to get the denomination that you need when you need it. Another important thing to understand about the exchange is that the value of certain currencies changes nearly every day. What was worth one American dollar one day could be worth two or more the next. If you are traveling or are simply in need of a currency exchange it is important to know what the market for exchanges is prior to getting your money changed. Yet another important thing to remember is that some currencies can be used in many countries. For instance, several countries accept U.S. bills though it is not the dominant currency. If this is the case you again need to be aware of how much your currency is worth in the country that you are in so that you can be sure to get the amount that is fair.

The past bit of information was focused more on money exchange on a small scale and for personal use, there is also money trading for profit and investment. As far as this goes another important thing that you need to understand is the actual market that you will be trading into. Forex or FX is the major market into which currency trading is done. Because this market is not regulated by any panel or council there is generally no one to judge disputes which means that though you may believe that you are trading your currency for one of higher value, you may not be and there is generally no one to settle any problems that may pop up. When it comes to money trading you really should talk to someone that has some experience in the market to make sure that you understand what you are getting your money tied up in.

About the Author

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