Archive for February, 2012

The dollar is performing well around the world, thanks in part to a current lack of trust in the Euro. Thanks in part to the Greece debt crisis, the dollar has been slowly climbing. Japan, for the first time in a long time, has posted some economic struggling as well, although not nearly in the same boat as Europe. 2011 saw Japan post a trade deficit for the first time in over 30 years. And while Japan’s trading deficit does not compare in severity to the Greek problems, it is enough to keep prospective investors on their toes.

In comparison, the U.S. economy is finally starting to show signs of recovery. Joblessness dropped down below 9 percent across the country this past month—the lowest it has been in quite some time. While this alone is not enough to say that we are out of the throes of a economic hardship, it does indicate that things are getting better for the average U.S. citizen.

What does all of this mean to the Forex investor? The U.S. dollar is going to get stronger and the Japanese yen will get weaker, at least for a short while. This is something that Forex traders can use to help them make money, both short term and long. This is an especially great way to analyze binary options, as well. Since the yen is getting weaker, a binary options trader doesn’t need to worry about how much weaker, the price only needs to decrease by a single pip. If you haven’t tried binary options, you should. They are a great way to invest in the Forex market without exposing yourself to the same risk.

The economic hardship that Japan is facing is likely something that can be fixed within a couple months. Two months ago, the yen was up over 78.00 yen per dollar. Now, that number is below 76.60. With volume between the dollar and the yen slowly disappearing over the past couple years, it might be longer than usual for the yen to fully recover. In the meantime, it is quite likely that it will continue to fall. That is, until news out of Japan reverses this action. Last thing, don’t forget to checkout our Trader’s Elite Review. There is more information that will be mentioned in the future, but this is what we can provide you with today.

Article source: http://feedproxy.google.com/~r/Forexnewstradercom/~3/YzbyhRDv2e4/yen-against-the-dollar

Forex trading presents many possibilities with many opportunities to make a lot of money. In fact, many end up trading Forex for a living.

Forex trading has grown in popularity over the years and the Forex market now has an average daily trading volume of around $4 trillion. But because trading currencies has become so popular, myths have also developed. One myth of Forex trading, is that it is easy.

Euro is holding steady right now as Forex traders wait for news about what’s next for Greece. Financial markets around the world are waiting to see whether or not Greece will accept the austerity measures that are required for a bailout. If Greece accepts, 130 billion euros will be offered and the country will avoid default. If Greece refuses the austerity measures, it could mean a default — and the destabilization of the entire eurozone.

Right now, there is just enough hope that the deal will get done that the euro is holding steady. While off highs seen earlier in the session, the euro still remains slightly higher against the US dollar in rangebound trading. Analysts are considering the possibility that Greece will ultimately exit the eurozone — no matter what happens in terms of acceptance or rejection of the deal today.

For now, though, most Forex traders are in wait and see mode. Recently, there has been some encouraging economic data out of the eurozone. If leaders can prevent a Greek default, and many are waiting for PM Lucas Papademos to make an announcement, the euro will likely see some positive action.

At 14:15 GMT EUR/USD is slightly higher at 1.3177, up from the open at 1.3127. EUR/JPY is up to 76.7675 from the open at 76.5520. EUR/GBP is higher at 0.8326, up from the open at 0.8298.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2012/02/07/euro-holds-steady-as-traders-await-news-from-greece/

Aussie is finding support in forex trading today as Forex traders scramble to make up for the fact that they had priced in a 0.25% cut to the interest rate. Instead of cutting, though, the Reserve Bank of Australia kept rates steady at 4.25%. The central bank considers the economic progress Down Under to be sufficient to allow for yields to remain higher.

Aussie’s support is mostly against the US dollar, though, and even then the currency pair is mostly rangebound. Aussie is also slightly higher against the euro and the UK pound. European currencies are managing to hold their own right to a certain extent on the hopes that Greece will agree to austerity measures needed to get the bailout deal done. While there are some snags, and Greek policymakers led by PM Lucas Papademos are scrambling to put together a package, many think that the euro will live another day. This uncertainty is the reason that European currencies aren’t doing better.

Australian dollar is finding support in better economic conditions and generally higher gold prices. As long as Australia can maintain some of its momentum, it is likely to gain going forward.

At 15:15 GMT AUD/USD is higher at 1.0796, up from the open at 1.0718. EUR/AUD has slipped to 1.2225 from the open at 1.2243. GBP/AUD is lower at 1.4645, down from the open at 1.4756.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2012/02/07/aussie-finds-support-in-forex-trading/

The Australian dollar climbed today, erasing yesterday’s losses versus the US dollar and the Japanese yen and reaching the highest level in six months against the greenback, after the Reserve Bank of Australia surprised Forex traders by keeping its interest rates unchanged.

The Australian currency was falling yesterday as a report showed that retail sales fell 0.1 percent (on a seasonally adjusted basis) in December from November. Another reason for the drop was a deteriorating sentiment about the ability of Europe to deal with its crisis.

The RBA removed all negativity today by keeping its main interest rate at 4.25 percent, while most analysts were pretty sure that it would reduce the rate to 4 percent. Glenn Stevens, Bank’s Governor, made another surprise, saying in his statement:

The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers. Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made.

It’s rather unusual to see these days such positive view on the situation in Europe. The comments about Australia’s domestic fundamentals were less surprising, but no less positive for the Aussie as Stevens said that “information on the Australian economy continues to suggest growth close to trend”.

AUD/USD climbed from 1.0720 to 1.0821, the highest level since August 2, and traded at 1.0802 as of 16:39 GMT today. AUD/JPY surged from 82.06 to 83.02 and touched 83.17, the highest price since November 1, intraday.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2012/02/07/aussie-jumps-to-six-month-record-as-stevens-surprises-traders/

SYDNEY, Feb 8 (Reuters) – Alcoa Australia said it was reviewing the future of its 190,000 tonne Point Henry aluminium smelter as tough global economic conditions have rendered the operation unprofitable.

Alcoa said the aluminium industry had been severely impacted by difficult macro economic conditions, with the higher Australian dollar placing increasing pressure on the market.

‘A combination of factors, including metal prices, input costs and exchange rates, have resulted in the Point Henry smelter becoming unprofitable,’ Alan Cransberg, Alcoa of Australia Managing Director said in a statement.

Alcoa hopes to complete its review on the smelter’s future by the end of June.

The Point Henry smelter is located in the state of Victoria and has a capacity of 190,000 tonnes of aluminium per year.

Aloca’s Point Henry operations, including the smelter and aluminium rolling mill employ around 900 people, however the aluminium rolling mill is not included in the review.

Last month, Alcoa Inc posted a fourth quarter loss due to a steep plunge in aluminum prices, but its revenue beat expectations and the company gave a positive outlook for global demand for the metal, especially in the aerospace and automotive markets.

(Reporting by Amy Pyett; Editing by Lincoln Feat)

Keywords: AUSTRALIA ALCOA

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2012/02/07/2456913.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3

By Grant McCool

NEW YORK, Feb 7 (Reuters) – Rajat Gupta, a former director of Goldman Sachs and Procter Gamble who is the highest-ranking executive charged in a U.S. crackdown on insider trading, could face additional allegations, a federal prosecutor said on Tuesday.

Prosecutor Reed Brodsky told a New York federal judge that the government was prepared to reveal in the coming weeks other insider trading tips that advanced the conspiracy between Gupta and his one-time friend, convicted Galleon hedge fund founder Raj Rajaratnam. Gupta was originally charged last October.

A week ago, prosecutors unsealed an amended indictment against Gupta, who is also a former global head of the McKinsey Co consultancy. At Tuesday’s hearing, Gupta went through the formality of pleading not guilty to the new indictment, only to hear that the government was pressing ahead with its investigation.

Gupta’s lawyer, Gary Naftalis, won a ruling from U.S. District Judge Jed Rakoff to postpone the trial to May 21 from April 9 so Naftalis could prepare a defense against the new allegations.

‘The government is wildly expanding what everybody in the world understands this case to be about,’ Naftalis said. ‘It’s time to stop and try the case that they originally brought.’

Gupta, 63, was charged in October with securities fraud and conspiracy, accused of providing inside tips about Goldman and Procter Gamble board meetings to Rajaratnam in 2008. A superseding indictment announced on Jan. 31 included allegations of tips in 2007.

Prosecutors said Gupta participated in a Goldman conference call meeting in March 2007 from Galleon’s offices. The call was about quarterly earnings that exceeded analyst’s expectations. Rajaratnam bought Goldman stock 25 minutes after the call ended, prosecutors said.

Gupta has denied the allegations.

Dozens of hedge fund managers, lawyers and executives, including Rajaratnam, have been convicted since 2009.

Rajaratnam is serving an 11-year prison sentence after a jury convicted him on evidence based largely on telephone conversations secretly recorded by the FBI.

Investigators recorded at least two discussions between Rajaratnam and Gupta.

The government contends that Gupta provided Rajaratnam with advance knowledge of Warren Buffett’s $5 billion investment in Goldman at the height of the 2008 financial crisis, information about Goldman’s surprise fourth-quarter loss in 2008 and PG’s quarterly earnings in late January 2009.

Naftalis said that part of the defense would be to emphasize that in 2008 and 2009 relations between Gupta and Rajaratnam had deteriorated. He said Gupta lost all of a $10 million investment he made with the Galleon hedge fund manager.

The case is USA v Gupta, U.S. District Court for the Southern District of New York, No. 11-907.

(Reporting By Grant McCool) Keywords: GALLEON/GUPTA

(grant.mccool@thomsonreuters.com)

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2012/02/07/2456917.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art2

BEIJING, Feb 8 (Reuters) – Canadian plane maker Bombardier Inc flatly denied on Wednesday a German media report that it could sell a stake in its commercial aviation unit to the state-owned Commercial Aircraft Corp of China.

Bombardier shares rose more than 3 percent in Toronto trading on Tuesday, helped higher by the report in Germany’s Handelsblatt newspaper.

‘We don’t understand where they came up with this … It is completely false. There is no truth to it,’ Bombardier CEO Pierre Beaudoin told Reuters in an interview in Beijing.

(Reporting by David Ljunggren; Editing by John Mair) Keywords: CANADA CHINA/BOMBARDIER

(david.ljunggren@thomsonreuters.com)(+1 613 235 6745)(fax +1 613 235 5890)(Reuters Messaging: david.ljunggren@thomsonreuters.com)

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Copyright Thomson Reuters 2012. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2012/02/07/2456921.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art1

Investing money into anything is a risky business and Binary Options are not really much different in risk terms. Although they are a much simpler investment and you don't have to tie up huge amounts of money for long periods of time you still have to know what you are doing.