With the popularity of Forex nowadays, it's not shocking that many people want to jump into the bandwagon, so to speak. Nevertheless, it's not only a matter of raising up money and diving right in. Any investment also has its risks attached with it and even foreign exchange is not an exception. That's why it would be wise for potential investors to study as much as they can regarding foreign exchange before setting up a capital.
The internet has definitely revolutionized the modern age and starters in the Forex area can take full advantage of myriad forms that are made available online - tutorials and manuals, videos, to name a few – all aims to provide added knowledge regarding the subject. At times though, the reader faces very complex data and also too much technical jargon, it becomes quite hard when all one really wants is to be able to get an initial feel of the market itself and also to know how Forex can definitively contribute to a person's long-term goals.
Wednesday, November 18, 2009
No dong devaluation
The State Bank of Viet Nam is working to stabilise the foreign exchange rate and the value of the Viet Nam dong.
Responding to concerns expressed by deputies Nguyen Hong Son and Pham Thi Loan, State Bank Governor Nguyen Van Giau attempted to explain the conflicting policy goals the central bank was facing.
While dollar supplies are replenished by export revenues, the country’s trade deficit in the first ten months of this year reached US$8.9 billion, Giau said.
During the global recession, the four major sources of dollars – including exports, foreign direct investment, remittances and tourism – have all shriveled, Giau said, reducing the dollar supply.
"Meanwhile, to reach economic growth targets, the central bank has had to loosen monetary policy, which puts more pressure on the exchange rate," he said.
To deal with the situation, the central bank has already implemented a number of measures to stabilise the forex market, including widening the daily trading band for US dollars and Viet Nam dong, adjusting the daily interbank rate, and cracking down on the foreign exchange black market.
Giau reaffirmed that the dong would not devalued as some have suggested, and he blamed the rumours for the recent overheating of the gold market, a situation that required the central bank to lift its ban on additional gold imports.
"We are working very closely each week with the Ministry of Industry and Trade – some deputy ministers even work together daily – to discuss appropriate solutions," he told deputies. "The gold and forex markets have been gradually stabilised."
Responding to concerns expressed by deputies Nguyen Hong Son and Pham Thi Loan, State Bank Governor Nguyen Van Giau attempted to explain the conflicting policy goals the central bank was facing.
While dollar supplies are replenished by export revenues, the country’s trade deficit in the first ten months of this year reached US$8.9 billion, Giau said.
During the global recession, the four major sources of dollars – including exports, foreign direct investment, remittances and tourism – have all shriveled, Giau said, reducing the dollar supply.
"Meanwhile, to reach economic growth targets, the central bank has had to loosen monetary policy, which puts more pressure on the exchange rate," he said.
To deal with the situation, the central bank has already implemented a number of measures to stabilise the forex market, including widening the daily trading band for US dollars and Viet Nam dong, adjusting the daily interbank rate, and cracking down on the foreign exchange black market.
Giau reaffirmed that the dong would not devalued as some have suggested, and he blamed the rumours for the recent overheating of the gold market, a situation that required the central bank to lift its ban on additional gold imports.
"We are working very closely each week with the Ministry of Industry and Trade – some deputy ministers even work together daily – to discuss appropriate solutions," he told deputies. "The gold and forex markets have been gradually stabilised."
Forex, telecom issues heat up Q&A session
HA NOI — Foreign exchange policy and State management of media, internet and telecommunications infrastructure were up for discussion during the first day of the National Assembly’s three-day question-and-answer session yesterday in Ha Noi.
Speaking at the beginning of the session, NA Chairman Nguyen Phu Trong said the National Assembly’s Standing Committee had received 254 questions from 112 deputies.
They included 36 questions for the Prime Minister. Some of the questions were answered in 126 written documents sent to the deputies, Trong said.
Questions relating to major issues that attracted the most concern of deputies would be raised in the conference room, he said.
The Governor of the State Bank of Viet Nam and ministers of Information and Telecommunications, Industry and Trade, and Home Affairs were scheduled to take the floor.
Other ministers could add details for questions relevant to their fields.
Speaking at the beginning of the session, NA Chairman Nguyen Phu Trong said the National Assembly’s Standing Committee had received 254 questions from 112 deputies.
They included 36 questions for the Prime Minister. Some of the questions were answered in 126 written documents sent to the deputies, Trong said.
Questions relating to major issues that attracted the most concern of deputies would be raised in the conference room, he said.
The Governor of the State Bank of Viet Nam and ministers of Information and Telecommunications, Industry and Trade, and Home Affairs were scheduled to take the floor.
Other ministers could add details for questions relevant to their fields.
Daily Forex Outlook - EURO bows to resurgent USD
U.S. Dollar Trading (USD) took charge of the market with Bernanke's comments being endorsed by ECB President Trichet to send the EURO lower and USD stronger across the board. Even as US stocks closed at year highs, risk was taken off the table as US data was weaker than expected. October Industrial Output was 0.1% vs. 0.4% forecast. In US Stocks, DJIA +30 points closing at 10437, S&P +1 points closing at 1110 and NASDAQ +6 points closing at 2203. Looking ahead, October Housing starts forecast at 0.6mn vs. 0.59mn previously and October Building Permits forecast at 0.58mn vs. 0.575mn previously. Also released, Weekly Oil Inventories is forecast at 1.2mn vs. 1.8mn previously. Also released, October Core CPI is forecast at 0.1% vs. 0.2% previously m/m.
The Euro (EUR) tested 1.5000 in early Asia before the mood soured and the pair fell back due to profit taking. This pullback turned in a rout in Europe with Trichet's comments that Bernanke's strong USD comments were 'very important'. Overall the EUR/USD traded with a low of 1.4805 and a high of 1.5001 before closing at 1.4875. looking ahead, September Current Account previously at -1.3bn.
The Japanese Yen (JPY) weakened against the resurgent USD but was strong on the crosses as risk aversion from falling stocks saw AUD/JPY liquidation from recent highs. EUR/JPY and GBP/JPY are also treading water as the market trying to decipher the next direction. Overall the USDJPY traded with a low of 88.72 and a high of 89.56 before closing the day around 89.30 in the New York session.
The Sterling (GBP) was support on dips as EUR/GBP selling underpinned cable and buyers gained the upper hand. 1.7000 is the natural target for the bulls, last traded in August before the BoE started increasing the Asset Purchase program. October CPI was 1.5% vs. 1.4% y/y. Overall the GBP/USD traded with a low of 1.6753 and a high of 1.6876 before closing the day at 1.6820 in the New York session. Looking ahead, MPC minutes forecast at 9-0 on recent meeting decisions.
The Australian Dollar (AUD) was very heavy as the market took profit from lofty heights after the RBA minutes failed to inspire. The minutes left the decision to raise rates in December open with further data releases look set to decide. Providing continued support however is the commodity rally and already wide AUD-USD interest rate differential. Overall the AUD/USD traded with a low of 0.9310 and a high of 0.9379 before closing the US session at 0.9236.
The Euro (EUR) tested 1.5000 in early Asia before the mood soured and the pair fell back due to profit taking. This pullback turned in a rout in Europe with Trichet's comments that Bernanke's strong USD comments were 'very important'. Overall the EUR/USD traded with a low of 1.4805 and a high of 1.5001 before closing at 1.4875. looking ahead, September Current Account previously at -1.3bn.
The Japanese Yen (JPY) weakened against the resurgent USD but was strong on the crosses as risk aversion from falling stocks saw AUD/JPY liquidation from recent highs. EUR/JPY and GBP/JPY are also treading water as the market trying to decipher the next direction. Overall the USDJPY traded with a low of 88.72 and a high of 89.56 before closing the day around 89.30 in the New York session.
The Sterling (GBP) was support on dips as EUR/GBP selling underpinned cable and buyers gained the upper hand. 1.7000 is the natural target for the bulls, last traded in August before the BoE started increasing the Asset Purchase program. October CPI was 1.5% vs. 1.4% y/y. Overall the GBP/USD traded with a low of 1.6753 and a high of 1.6876 before closing the day at 1.6820 in the New York session. Looking ahead, MPC minutes forecast at 9-0 on recent meeting decisions.
The Australian Dollar (AUD) was very heavy as the market took profit from lofty heights after the RBA minutes failed to inspire. The minutes left the decision to raise rates in December open with further data releases look set to decide. Providing continued support however is the commodity rally and already wide AUD-USD interest rate differential. Overall the AUD/USD traded with a low of 0.9310 and a high of 0.9379 before closing the US session at 0.9236.
The Japanese yen advanced to a five-week high versus the greenback
* A decline in Asian stocks and speculation that Japan's biggest banks are under pressure to raise capital was behind the yen rally. The Japanese currency traded at 89.15 per dollar as of 06:45 GMT from 89.25 in New York yesterday, when it advanced to 88.74, the highest level since October 9.
* The greenback recovered significantly against major currencies as stock markets eased after U.S. inflation, industrial production and housing data missed expectation. In the long-term, persistent negative data out of the U.S. should lead to weakness in the greenback. But for now investors flock towards the dollar as it is widely considered a safe-haven currency.
* The sterling traded near a two-month high against the euro before the Bank of England releases minutes of its November 5 meeting where policy makers expanded their asset-buying program by 25 billion pounds to 200 billion pounds.
* Crude oil rose for a third day as industry estimates showed huge decline in crude inventory. The American Petroleum Institute said yesterday crude inventories fell by 4.37 million barrels last week to 333.1 million after a hurricane in the Gulf of Mexico. The benchmark contract moved as high as $79.70 a barrel, but upside momentum decreases as price moves closer to $80. The US Energy Department will deliver its weekly report in the U.S. session today. Crude inventory probably climbed by 0.8 million barrels according to market expectations.
* The greenback recovered significantly against major currencies as stock markets eased after U.S. inflation, industrial production and housing data missed expectation. In the long-term, persistent negative data out of the U.S. should lead to weakness in the greenback. But for now investors flock towards the dollar as it is widely considered a safe-haven currency.
* The sterling traded near a two-month high against the euro before the Bank of England releases minutes of its November 5 meeting where policy makers expanded their asset-buying program by 25 billion pounds to 200 billion pounds.
* Crude oil rose for a third day as industry estimates showed huge decline in crude inventory. The American Petroleum Institute said yesterday crude inventories fell by 4.37 million barrels last week to 333.1 million after a hurricane in the Gulf of Mexico. The benchmark contract moved as high as $79.70 a barrel, but upside momentum decreases as price moves closer to $80. The US Energy Department will deliver its weekly report in the U.S. session today. Crude inventory probably climbed by 0.8 million barrels according to market expectations.
Daily Forex Outlook - EURO bows to resurgent USD
U.S. Dollar Trading (USD) took charge of the market with Bernanke's comments being endorsed by ECB President Trichet to send the EURO lower and USD stronger across the board. Even as US stocks closed at year highs, risk was taken off the table as US data was weaker than expected. October Industrial Output was 0.1% vs. 0.4% forecast. In US Stocks, DJIA +30 points closing at 10437, S&P +1 points closing at 1110 and NASDAQ +6 points closing at 2203. Looking ahead, October Housing starts forecast at 0.6mn vs. 0.59mn previously and October Building Permits forecast at 0.58mn vs. 0.575mn previously. Also released, Weekly Oil Inventories is forecast at 1.2mn vs. 1.8mn previously. Also released, October Core CPI is forecast at 0.1% vs. 0.2% previously m/m.
The Euro (EUR) tested 1.5000 in early Asia before the mood soured and the pair fell back due to profit taking. This pullback turned in a rout in Europe with Trichet's comments that Bernanke's strong USD comments were 'very important'. Overall the EUR/USD traded with a low of 1.4805 and a high of 1.5001 before closing at 1.4875. looking ahead, September Current Account previously at -1.3bn.
The Japanese Yen (JPY) weakened against the resurgent USD but was strong on the crosses as risk aversion from falling stocks saw AUD/JPY liquidation from recent highs. EUR/JPY and GBP/JPY are also treading water as the market trying to decipher the next direction. Overall the USDJPY traded with a low of 88.72 and a high of 89.56 before closing the day around 89.30 in the New York session.
The Sterling (GBP) was support on dips as EUR/GBP selling underpinned cable and buyers gained the upper hand. 1.7000 is the natural target for the bulls, last traded in August before the BoE started increasing the Asset Purchase program. October CPI was 1.5% vs. 1.4% y/y. Overall the GBP/USD traded with a low of 1.6753 and a high of 1.6876 before closing the day at 1.6820 in the New York session. Looking ahead, MPC minutes forecast at 9-0 on recent meeting decisions.
The Euro (EUR) tested 1.5000 in early Asia before the mood soured and the pair fell back due to profit taking. This pullback turned in a rout in Europe with Trichet's comments that Bernanke's strong USD comments were 'very important'. Overall the EUR/USD traded with a low of 1.4805 and a high of 1.5001 before closing at 1.4875. looking ahead, September Current Account previously at -1.3bn.
The Japanese Yen (JPY) weakened against the resurgent USD but was strong on the crosses as risk aversion from falling stocks saw AUD/JPY liquidation from recent highs. EUR/JPY and GBP/JPY are also treading water as the market trying to decipher the next direction. Overall the USDJPY traded with a low of 88.72 and a high of 89.56 before closing the day around 89.30 in the New York session.
The Sterling (GBP) was support on dips as EUR/GBP selling underpinned cable and buyers gained the upper hand. 1.7000 is the natural target for the bulls, last traded in August before the BoE started increasing the Asset Purchase program. October CPI was 1.5% vs. 1.4% y/y. Overall the GBP/USD traded with a low of 1.6753 and a high of 1.6876 before closing the day at 1.6820 in the New York session. Looking ahead, MPC minutes forecast at 9-0 on recent meeting decisions.
FOREX: Ringgit Opens Slightly Easier Against Us Dollar
KUALA LUMPUR, Nov 18 (Bernama) -- The ringgit opened slightly easier against the US dollar on Wednesday due to short-covering activities by Interbank players.
Dealers said optimistic remarks by the European Central Bank President Jean-Claude Trichet gave position sentiment for the greeback.
One dealer said the ringgit is expected to hover around the current level ahead of Maxis' initial public offer listing tomorrow.
The ringgit opened this morning at 3.3635/3685 against yesterday's 3.3630/3680 closing.
Meanwhile, the local note was mixed against other major currencies.
It strengthened against the Singapore dollar to 2.4269/4330 from yesterday's 2.4276/4339 closing and also rose against the Japanese yen to 3.7653/7734 against 3.7838/7898 Tuesday.
The ringgit also gained against the British pound to 5.6527/6624 compared with Monday's closing at 5.6663/6754 and also rose against the euro to 5.0059/0147 against 5.0236/0325 yesterday.
-- BERNAMA
Dealers said optimistic remarks by the European Central Bank President Jean-Claude Trichet gave position sentiment for the greeback.
One dealer said the ringgit is expected to hover around the current level ahead of Maxis' initial public offer listing tomorrow.
The ringgit opened this morning at 3.3635/3685 against yesterday's 3.3630/3680 closing.
Meanwhile, the local note was mixed against other major currencies.
It strengthened against the Singapore dollar to 2.4269/4330 from yesterday's 2.4276/4339 closing and also rose against the Japanese yen to 3.7653/7734 against 3.7838/7898 Tuesday.
The ringgit also gained against the British pound to 5.6527/6624 compared with Monday's closing at 5.6663/6754 and also rose against the euro to 5.0059/0147 against 5.0236/0325 yesterday.
-- BERNAMA
Subscribe to:
Posts (Atom)
