Will the euro sustain yesterday’s good graces

The euro had a good start to the day against sterling and the US dollar on Monday, as overall sentiment for a US rate hike in the upcoming months became more unlikely. It was a very quiet day for the single currency on the data front. Italian business confidence data was released, coming out much better than expected, at 104.2 in comparison to the forecasted figure of 102.7. The euro finally breached the key resistance level against sterling of 1.35, a key level it hadn’t broken since May this year.

Today is an important day for the single currency, with Business and Consumer confidence data due from the Eurozone. Given the strength of today’s Italian figure, it is hoped that the Eurozone data will also be improved; whether the former was sufficient to affect the latter remains to be seen. Germany also releases its preliminary Consumer Price Index (CPI) data; an indicator of inflation, it is forecast to fall to a negative figure of -0.1%, down from 0%. Falling below the zero percent line is a physiological level and is likely to unsettle the single currency yet again.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source:smartcurrencyexchange.com

What is Forex Trading?

Foreign Exchange or FX or Forex trading is the trading in currencies. FX market is the largest financial market in the world, providing the highest liquidity. It features a trade volume of $3.2 trillion and more everyday!

FX trade is famous for its staggering profits as well as for its high risks. This is a decentralized market. There is no tangible platform where buyers and sellers meet. Trader's trade through a network, online is the most preferred one. This market is spread across many time zones of the world. The market never sleeps. It is open 24 hours for 5 and half days a week.

Knowing Forex Better

FX is the medium through which traders exchange currencies of different countries at a price influenced by the market. You might wonder: why trade currencies? One of the reasons is payment of services and products by global companies. Another reason is the forecast of exchange rate movements and an urge to make the most of such fluctuations.

Some of you might ponder: why do exchange rates fluctuate? Well, the value of currencies fluctuates because of the constant change in their demand. The varying rates in Forex trading show the variation in demand.

Becoming A FX Trader

In this trading, you buy a currency when its value is less and sell it when its value is high. Sounds simple, right? Well, the trick is to know WHEN to buy or sell. The entire game revolves around this "when". Fortunes have changed because people did the right thing at the right time. On the other hand, some people have also lost tremendously because they failed to recognize the right time to make the moves. Also, whether you should act on impulse or be always rational is also a matter of consideration in Forex trading.

Currency prices are controlled by a combination of factors, unlike share prices that depend on the profit of companies. The challenge of currency trading lies in forecasting the value of currency. A bigger challenge lies in making the right moves after the forecast.

The good thing about FX trade is the availability of "practice accounts" for beginners. You can get them through most FX brokers. You practice trading virtual currencies based on real exchange prices. It gives you a sense of this trade. When you plunge into the real thing, you don't feel like an alien. Besides this, you can research on Forex trading. There are many websites providing thorough information on how to trade in foreign currencies. They guide you and familiarize you with the strategies used by people who have made millions through FX. Guess what? You can also enroll in FX educational courses to master the art of buying and selling currencies!

No matter what anybody says, the fact is you learn the tricks only when you try out Forex trading. Nobody arrives here as the winner. You need to understand this kind of trade, consult with brokers or financial advisors, and keep a tab on the market trend to gain something out of this high-risk "gamble".

Euro continues along the same trajectory

The euro managed to hold its own on Wednesday, with most of the news in the arena coming from elsewhere. Against its two major currency pairs, the single currency remained around the same level as Tuesday. Against sterling it strengthened due to poor manufacturing data from the UK but these gains were eradicated in the afternoon; compared to the US dollar it weakened slightly in the morning, amid fresh hopes for easing measures by the Bank of China were looking more likely.

With the week remaining muted for the euro, this morning we had very weak industrial production from France – showing a 0.8% drop, when 0.3% growth had been anticipated.

New Zealand suffers as central bank cuts interest rates.

It was an occupied day for New Zealand yesterday, reinforcing in expectation of the official money rate and Rate articulation; at the same time, fell after the discharge. The money rate was sliced from 3.00% to 2.75% as the New Zealand national bank turns around the driven ascent in rates throughout the most recent year. The national bank highlighted that further rate cuts will be information ward and now a few reporters anticipate that rates will be cut further one month from now again until it come back to the 2.5% figure last seen in October 2013. 

Somewhere else, the Canadian dollar revitalized as national bank voted to keep premium rates on hold at 0.5%, whilst building grants beat desires, in any case, still edged around 0.6% in July.

Amlin purchase bid boosts sterling

With very little economic news of note discharged on Tues, sterling announce gains against each the monetary unit and North American nation dollar as news poor of a £3.5 billion bid by a Japanese company, Mitsui Sumitomo Insurance, to buy Great Britain nondepository financial institution Amlin.

With investors recently pushing back dates on once the Bank of European country (BoE) area unit doubtless to boost interest rates within the Great Britain, sterling has found itself fraught, falling to its lowest levels since Gregorian calendar month towards the tip of last week. However, with a major purchase of sterling doubtless to require place within the wake of this deal, sterling found support across the board. Confidence appearance set to come back to British people economy generally

Revised Eurozone growth figures do little to help boost the euro

Yesterday was another muted day for the euro as the only significant data releases consisted of revised growth figures for the Eurozone, which came out at 0.4%, slightly better than the forecasted 0.3%, and the trade balance data for Germany which came out close to expectations and again highlighted the power of the German economy to generate exports. Against sterling, the euro briefly weakened to its worst level in three-weeks but did regain some ground in the afternoon. The euro was largely unchanged for the second day in a row against the US dollar, with the US markets opening again yesterday after Labour Day.

It would appear that the quiet week will continue for the single currency as there is no news out on Wednesday. This means that the euro is more susceptible than usual to events elsewhere.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Busier today following Labour Day in the US

Yesterday was a quiet day for data releases in the US, with only JOLTs job openings data released, which showed a figure that was slightly better than expected. This shows that there are continued job opportunities, which could be why the US Federal Reserve are not too worried about last week’s slump in non-farm employment change. We saw some movement in the US dollar, as sterling strengthened as a result of takeover talks at insurance giant Amlin.

There are more data releases from the US on the table today compared to the last couple of days. The weekly unemployment claims is expected to show a slight drop, while import prices are expected to decrease further due to the strengthening US dollar.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Canadian dollar rebounds

 Yesterday was a step in the right direction for the Canadian dollar, as it rebounded along with other commodity currencies, like its Australian counterpart, after last week’s decline. A rally in Chinese equities and a rise in commodity prices lifted global markets – as a result, Canada’s benchmark index increased by 1%. As a consequence, the Canadian currency rose almost 1 % against the US dollar. With an array of data out today – including the Bank of Canada rate statement – we can expect more movement in the Canadian dollar. However, which direction this will be in is down to the nature of the results.  Are you looking to buy or sell currencies? Contact your trader now for live rates, news and currency purchasing strategies.

Good news for the US dollar is bad news for the Indian rupee

The Indian rupee sunk to a two year low yesterday amid fears that the country’s emerging market assets would be negatively affected should the talk of a US interest rate hike come to fruition. Shares in India dropped 1.2% to their lowest in 15 months, as data confirmed on Friday that the jobless rate in the US had fallen to a seven year low. The fact that more people are in work strengthens the Federal Reserve’s case to increase borrowing rates.

It is expected that the rupee will continue to be volatility until the Federal Reserve makes a final decision on rates.

Are you looking to buy or sell currencies? Contact your trader now for live rates, news and currency purchasing strategies

Black Monday fallout continues to affect the US dollar

Monday was Labor Day in the US, meaning there were no data releases affecting the currency released yesterday.

We expect today to be equally quiet, with no major data releases due to be released. The focus this week will be on Friday, with producer inflation expected to drop in to negative territory for the first time in four months. We also expect a decrease in consumer confidence; both of these examples can be linked to the recent struggles in China.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.

Slight weakening against sterling the big news for the euro

Monday was an uneventful day for the euro, with the single currency weakening slightly against sterling and staying almost unchanged against the US dollar. The only major piece of data was German industrial production data; released early in the morning, this came out worse than expected at 0.7% (compared to the forecast 1%). This pushed the bar forward for the euro to slowly weaken against sterling as the day went on – although other than this, it was an extremely quiet day.