Dismal US Unemployment Figures

Recently it seems that the ‘green shoots’ of recovery have withered somewhat after miserable US jobs data sparked a return of risk aversion. For the past two months currency traders have speculated that the worst of the global recession was over despite warnings that the optimism was premature. Last week higher yielding currencies such as the euro and the Aussie dollar which have benefited from the recent optimism fell sharply on Thursday after data showed that the US shed 467,000 jobs in June.

Risk Aversion Dominant

Although the euro to dollar rate recovered somewhat on Friday but risk aversion still dominated currency markets and trading was light during the holiday weekend. Arne Lohmann Rasmussen of Danske Bank in Copenhagen stated, “There has been a bit of a recovery in risk currencies, which got really hammered yesterday. But with the U.S. closed it’s a bit of a dull market today, with everyone taking a breather after yesterday’s hectic movements.”

ECB President Says Euro Zone Economic Activity to Remain Weak

Earlier in the week the euro to dollar exchange rate had risen to a one month high of $1.4200 but fell back to $1.3991 on Friday. Remarks by European Central Bank President Jean-Claude Trichet who said that Euro Zone economic activity would remain weak put additional pressure on the euro. Forex traders are also anticipating the G 8 meeting this week which is bound to affect currency markets.

Risk Appetite Fading

The Japanese Yen benefited from poor stock market performance and advanced against the US dollar and the Euro. Like the US dollar the Yen is seen as a safe haven currency and traditionally benefits from risk aversion. Daragh Maher of Calyon, the investment-banking unit of Credit Agricole SA Stated, “We’re in an environment where risk appetite is fading and the yen in capitalizing. We haven’t had any decisive news to change the pessimistic mood.”

Investors Focus on G 8 Summit

The G8 meeting will likely be the focus of most Forex investors and traders this week  There will in all likelihood be a discussion of the US dollar’s status as a reserve currency which coulkd shake up currency markets.

Quick Forex Tip: 4x currency trading offer investors unique opportunities. Online accounts can be opened quickly and easily online. Although forex markets can be volatile, savvy investors can make significant profits trading currencies. With over $3.98 trillion dollars traded daily, there is a huge opportunity for any 4x currency trader to make a profit if s/he does the proper research and keeps up with economic and political changes.

Dollar Regains Lost Ground

The meeting of the BRIC (Brazil, Russia, India and China) nations has come and gone leaving currency exchange rates largely unaffected. Recent remarks by Russia’s president questioning the dollar’s reserve status caused the dollar to fall on Tuesday but on Wednesday the dollar regained some lost ground. Trading has been somewhat erratic as markets struggled to find direction and remained uncertain whether the dollar’s decline was over or had a little further to go.

BRIC Summit Fails to Address Dollar’s Reserve Status

The failure of the BRIC summit to issue any statements regarding the dollar slowed the dollar selling caused by the Russian president’s remarks on Tuesday. Masafumi Yamamoto of Royal Bank of Scotland stated, “At the end there was no strong comment to play down the role of the dollar.” Asian stocks were down as investors tried to make sense of conflicting US economic data causing many to doubt how fast the US recession is easing.

Risk Aversion Surfaces

Some risk aversion has surfaced sending the dollar to yen exchange rate to 96.00 and the Aussie dollar to a three week low of 76.00 against the yen. In early trading on Wednesday the euro to dollar rate rose 0.3% to $1.3883. Better than expected inflation data from the US was taken by forex investors as another sign that recovery is underway paring safe haven demand. May price data boosted expectations that US interest rates will remain low, Brian Dolan of Forex.com stated, “We’re seeing dollar weakness because the idea is that inflation is not pretty evident right now and that is seen as a positive in terms of the growth outlook and risk appetite.”

Currency Markets ‘Lack Conviction’

The Q1 U.S. current account deficit narrowed adding to market optimism and affecting currency exchange rates. Some experts said currency markets lacked conviction leaving investors and traders unsure of how to trade the dollar due to conflicting sets of US economic data.

Quick Forex Tip: Choosing the right currency trading broker is one of the most important decisions the novice trader will have to make. The decision does not have to be complicated or hard. First check to see if the broker is regulated and a member of regulatory organizations. It is also important that the currency trading broker be properly capitalized. A little well done research is sure to yield positive results and hopefully a very profitable relationship with a currency trading broker.

Record Drop in Industrial Production

A record drop in Euro Zone industrial production has put further downward pressure on the euro. Earlier the euro had been pressured by automatic sell orders as the currency hit $1.41 and the Euro Zone figures added to the Euro’s woes. Euro zone industrial production fell 21.6% from April 2008, a record drop. The Euro Zone figures are a sign that forex investment continues to decline in member nations.

Industrial Production Rises in China and Japan

In Asia Chinese industrial production rose more than expected in May and Japan’s industrial production experienced its biggest monthly gain in 50 years. Despite struggling US and European economies many investors believe that the global economy is on its way to recovery from the worst recession since World War Two. Many forex investors remain cautious due to rising deficits and consumer credit costs. Bill Schultz of McQueen Ball & Associates stated, “While this is recovery, and it’s better, it may not be the jumping-on point to a stronger” rise in economic growth.

G 8 Meeting Closely Watched

Investors and Forex traders are watching the current G8 meeting with great interest. Statements and actions from the group of finance ministers will undoubtedly affect global currency exchange rates. At the G8 meeting many participants feel that global recovery is ‘not fully underway.’ European automaker Volkswagen said it saw no signs of recovery outside of China which posted gains in industrial production. A European Commission report stated, “Despite some evidence of a slowdown in the pace of decline, the evolution of imports and exports of all major countries remains very negative. Moreover, the fact that unemployment continues to rise in most major economies, means the global recovery is still not fully underway.”

The euro to dollar rate fell 0.7% to $1.4000 while the pound to dollar rate was $1.6421. The dollar to yen exchange rate rose 0.6% to 98.14. Currency exchange rates are not on the formal agenda of the G8 conference which is a preparation for the July G8 summit.

Quick Forex Tip: Opening a currency trading account is a relatively easy affair but participating in currency exchange markets requires a lot of preparation. Currency trading accounts allow the average investor to participate in the dynamic and lucrative forex market. One of the main reasons so many investors are attracted to currency markets is the leverage available to investors. Currency trading accounts offer investors much higher leverage than is available in stock and commodity markets, so they are a great tool to use.

Investors Hope For US Rate Hike

The US dollar ended its recent gains on Tuesday as investors questioned whether the US would raise rates later in the year. Many forex investors are concerned that recent improvements in the US economy could justify a rate hike. Hopes that the worst of the credit crunch are over were raised after the US Treasury said that 10 of America’s biggest banks will be able to pay back $68 billion in bailout money received at the height of the credit crunch.

Traders Expect Weak Dollar Trend

The euro to dollar exchange rate rose to over $1.40 while the pound to dollar rate rose 1.4 percent to $1.6268. Some forex traders expect the dollar’s performance to be weak for the next few weeks. Michael Woolfolk of The Bank of New York-Mellon said, “I fully expect the dollar to trend weaker over the next several weeks unless big problems in Europe develop.” Recent US job figures boosted the dollar in recent trading sessions but investors remain concerned that the US may not raise rates.

Euro Zone Economy Still Weak

The pound to dollar rate was affected by better than expected UK housing data and a lull in recent political turmoil helped bolster the pound in currency markets. The euro to dollar rate was pressured by a sharp decline in German production suggesting that the euro zone economy is still weak. The euro was helped by hopes that Latvia may be able to avoid devaluing its currency. It has been estimated that Latvia’s economy may contract 18% this year.

US Deterioration Slowing

Investors remained wary of the dollar due to rate concerns. Jeremy Stretch of Rabobank in London stated, “Yes, the deterioration in U.S. data has slowed, but to suggest … the Fed is looking to take back some monetary easing before year-end is somewhat injudicious. It’s safe to say that market is getting ahead of itself.” Investors are waiting for the results of the US Treasury’s auction of 10 and 30 year notes to gauge rate expectations.

Markets have not reacted to the conservative sweep of EU elections but many experts expect currency exchange rates to be affected by expected shifts in policies.

Quick Forex Tip: A great deal of education is required for success in foreign currency trading. There are several excellent training programs available online. Many of these free courses are written by highly successful forex traders and can provide the novice with invaluable information. Additionally, many forex trading firms offer demo accounts where newbies can trade in real time and use varied amounts of leverage. Demo accounts can help new investors to get the ‘feel’ of foreign currency trading markets.

Liquidity Attractive Feature of Forex

A June 2nd story by the global news agency Reuters tells the story of investor Cenk Utkan who lost half his investment in emerging market hedge funds. The 33-year-old managing director of London-based Connexion Capital introduces institutional investors to hedge funds. After losing much of his investments Mr. Utkan turned to global currency markets citing their liquidity. Mr. Utkan stated, “In Russia, stocks got suspended. So I thought instead of locking my money up in a hedge fund, why don’t I go to the most liquid end of the market, which is the currency market?”

Investments Hammered By Recession

Mr. Utkan now traces currencies daily for his personal account. Mr. Utkan is not alone. Many small investors are dumping stocks, real estate, and other investments that have been hammered by the worst recession since World War Two. For these new forex investors liquidity is king. The currency exchange market is the world’s largest with over $3.2 trillion dollars traded daily. Currency exchange rates are always changing and forex markets are not subject to the same sort of regulations that govern stock and equity markets. Betsy Waters of Germany’s Deutsche Bank stated, “Retail investors around the world, particularly in countries where you have more controls over the equity markets, are definitely turning to FX.”

Number of Forex Traders Increases

At dbFX.com, the retail currency trading platform of Germany’s Deutsche Bank, volume has increased 37% in the first quarter compared with a year earlier. Other retail forex companies report a 30% monthly increase in new accounts for the last six months. Betting on currency pairs is not for the faint of heart but by using the leverage available to retail forex investors the rewards can be astounding compared to what equity markets offer. Potential investors are cautioned that leverage can be a double edged sword.

Forex Rewards Great

Although forex markets can be volatile with currency exchange rates changing several times a day those willing to educate themselves about this dynamic market and exercise discipline can reap fantastic rewards. There are many free real time currency converters available online including the popular XE currency converter and the Yahoo currency converter. Both are popular among forex day traders. There is no dearth of information available and we recommend the following sites-

www.fx-trader.info
www.forexopportunity.org
www.forexopportunity.net
www.interbank-fx.net
www.fxconverter.org

Quick Forex Tip: Forex trading offers investors a profitable investment option and can be one of the most rewarding opportunities available to the average investor. Major attractions are the 24 hour a day availability of forex markets, low dealing costs, high leverage margin and high liquidity. Currency trading forex can be learned quickly and easily. There are several free reputable courses available online and many online forex dealers provide demo accounts where novice traders can learn the market before risking any real money.

Dollar Pressured For Last Two Weeks

The US dollar has been getting slammed for the last two weeks in global forex currency trading. Last week there were concerns about the triple A credit rating of the US being downgraded which sent the dollar to a five month low against the euro. Fears of a downgrade faded after Moody’s Investor Service affirmed the credit rating of the US.  The euro to dollar rate rose to $1.41 for the first time in 2009 as risk appetite rose on hopes that the global recession is easing.

Investors Worry About Massive US Deficits

The record $1.8 trillion U.S. budget deficit added to investor worries and affected currency exchange rates globally. Earlier in the year the Chinese expressed concern about mounting US debt and recently the South Korean South Korea’s National Pension Service announced a reduction in the purchase of US treasuries adding to the dollar’s woes. Global stock markets posted 2009 highs dimming the safe haven luster of dollar denominated assets.

Expert Predicts ‘Tepid’ Recovery

Some currency analysts believe that as risk appetite rises the dollar may react in a negative manner to dismal economic data. Boris Schlossberg of GFT stated, “The dollar is being slapped around. The forex market is now getting realistic about this (U.S.) recovery.” Schlossberg also predicted a “tepid” recovery. On Friday the DXY was down 1.4% the lowest since December and is down 6% for the month, the largest monthly fall since 1985.

Pound Posts Largest Monthly Gain in 25 Years

The pound to dollar rate posted its largest monthly gain in almost 25 years and last traded at $1.6169. Higher house prices and higher consumer sentiment in the UK were credited for the pound’s rebound. A survey by Merrill Lynch & Co revealed that 25% of the 220 fund managers surveyed thought the pound was undervalued.

Global currency exchange rates have been affected largely by the ‘green shoots’ recovery theory. Rising stocks have reinforced this belief among investors with a resulting rise in risk sentiment.

Quick Forex Tip: 4x currency trading offer investors unique opportunities. Online accounts can be opened quickly and easily online. Although forex markets can be volatile, savvy investors can make significant profits trading currencies. With over $3.98 trillion dollars traded daily, there is a huge opportunity for any 4x currency trader to make a profit if s/he does the proper research and keeps up with economic and political changes

German Banking Concerns Pressure Euro

The dollar rose against the euro on concerns about Germany’s banks brought the Euro’s rally to a halt. Improving consumer confidence also helped the dollar to euro exchange rate. Weak Euro Zone data also put pressure on the euro. The Conference Board’s U.S. consumer confidence index rose to 54.9 significantly higher than the 42.0 that had been predicted for May.

Treasury to Auction $101 Billion in New Debt

The US dollar traded at five month lows last week pressured by concern that rising deficits could endanger the credit rating of the US. This week the US Treasury will auction $101 billion in new debt which may test investor’s appetite for dollar assets. Last week the euro to dollar exchange rate rose as high as $1.40 but was trading at $1.3893 on Tuesday. Media reports from the UK stated that Germany’s financial regulator said that toxic assets held by German banks would “like a grenade” if banks did not take advantage of government bank plans putting further pressure on the euro.

Solid Demand For Treasuries

The dollar to yen remained at 94. 86. Fears that foreign investors had lost confidence in US debt were relieved after Tuesday’s auction revealed solid demand for US debt. Last weeks concerns about the possible downgrading of the US’s credit rating were relieved by the results of Tuesday’s auction. Melvin Harris of Advanced Currency Markets stated, “There’s been so much talk about the U.S. rating being downgraded, but to be honest, even if this happened — and I don’t think it will — the U.S. is not going to default. That shouldn’t be the prompt to sell dollars.”

Dollar and Yen Remain Strong

Risk appetite is still dominating currency markets and is affecting global currency exchange rates. While both the dollar and the yen remain relatively strong investors are seeking higher yielding currencies and investments. For most of the week currency traders expect forex markets to follow the lead of equity markets.

Quick Forex Tip: Choosing the right currency trading broker is one of the most important decisions the novice trader will have to make. The decision does not have to be complicated or hard. First check to see if the broker is regulated and a member of regulatory organizations. It is also important that the currency trading broker be properly capitalized. A little well done research is sure to yield positive results and hopefully a very profitable relationship with a currency trading broker.

Currency Converters From Trusted Sites

There are many currency converters available online. A few are well known like the Yahoo currency converter and the popular XE Universal Currency Converter. These are well known and trusted sites. Other well known and trusted currency converters include Bloomberg, CNN Money, and many others operated by reputable companies. All of these sites offer global currency exchange rates in real time.

Beware of ‘Shareware’

A quick Google search using the search terms ‘currency converter yields 30,300,000 results. While most currency converters available online are supplied by reputable and honest companies and financial institutions there are a few bad apples in the bunch. Some currency converters available online are offered by free file sharing websites which are notorious for downloading Trojans, malware, adware, and spyware on to the computers of unsuspecting forex traders.

Keyloggers

Using MacAfee Site Advisor as a guide it is revealed that many of the websites offering currency converters are less than honest. For example on the website qarchive a key logger was found. Once installed a keylogger records every keystroke and is used to steal passwords, banking information, and any other personal information that could be used for nefarious purposes.

Beware of Malware

On many sites offering free ‘shareware’ Trojans and other malware are routinely downloaded with currency converters. It is common for malware to be bundled with a legitimate download. On one file sharing website offering a free currency converter the notorious winantivirus program was found. This program is capable of crippling a computer in 24 hours rendering it useless. The purveyors of this malware are currently being prosecuted by the US Federal Trade Commission.

Use Caution

Some shareware sited offering free currency converters will download programs that will hijack the browser, change the homepage, and add tools and modify toolbars with the consent of the user. It is highly recommended that those seeking a free online currency converter stick to well known brands and avoid free file sharing websites.

Quick Forex Tip: Opening a currency trading account is a relatively easy affair but participating in currency exchange markets requires a lot of preparation. Currency trading accounts allow the average investor to participate in the dynamic and lucrative forex market. One of the main reasons so many investors are attracted to currency markets is the leverage available to investors. Currency trading accounts offer investors much higher leverage than is available in stock and commodity markets, so they are a great tool to use.

Mobile Technology and Internet Access

There are several companies that provide currency converters for mobile devices. The use of cell phones has become endemic in areas with mobile service. Smart phones and Blackberries allow the user to access the internet and perform almost any action. Most of the world has been quick to adopt mobile technology and mobile devices have changed the way people communicate and do business.

WorldMate Live Currency Converter For Blackberry

In previous articles we have pointed out the various uses of cellular devices and specifically currency converters. Mobile currency converters allow the user to calculate transactions in most currencies. For Blackberry users WorldMatelive offers a free currency conversion application. The WorldMateLive currency converter can be accessed at App World and takes about 10 minutes to download. After the download WorldMate Live takes about 3 minutes to install. The currency converter has the capability to calculate transactions in 160 world currencies. WorldMate Live also provides global weather reports, comparison charts for clothing sizes, and an itinerary organizer.

WorldMate Live for Other Phones

In addition to the Blackberry application WorldMate Live also provides a similar currency converter for the following phones; Samsung Blackjack, Motorola Q, or a PDA with windows mobile software. The application is free and can be accessed at worldmate.com and takes about 10 minutes to download.

The aCurrency Converter

For those with a T Mobile phone the aCurrency currency converter is available for download from the Android Market. This currency converter covers 160 currencies. Every time the currency converter is opened it automatically updates the latest currency exchange rates.

The ACT Currency Converter

For iPhone users the ACT Currency global currency converter is available from the iTunes App Store. This currency converter covers 190 currencies and is updated by hitting the refresh button. The ATC currency converter costs $1 which is exceptionally inexpensive.

While these currency converters are designed with the tourist in mind they could easily be of use to currency traders who need to check currency exchange rates often throughout the day and may not have immediate access to a computer.

Quick Forex Tip: A great deal of education is required for success in foreign currency trading. There are several excellent training programs available online. Many of these free courses are written by highly successful forex traders and can provide the novice with invaluable information. Additionally, many forex trading firms offer demo accounts where newbies can trade in real time and use varied amounts of leverage. Demo accounts can help new investors to get the ‘feel’ of foreign currency trading markets.

Currency Converters and E Business

Currency converters serve many purposes. Travelers find currency converters invaluable when calculating transactions in foreign currencies. Business that engage in international trade use currency converters to keep a sharp eye on currency exchange rates which can easily mean increased or diminished profits. E-merchants could easily find their business opportunities limited without the use of a currency converter. Currency or Forex traders find a currency converter to be an absolute necessity.

Many Currency Converters Available Online

There are many reliable currency converters available online for free. No matter how sophisticated the converter is the basic function remains the same; to convert one currency into another. Most online currency converters use drop down manus with lists of the currencies to be converted. For those who do not always have a computer handy there are currency converters that can be downloaded to mobile devices such as a blackberry or cell phone.

Finding the Right Currency Converter

One of the best ways to find a currency converter to suit the individual needs of the user is to read reviews of the various currency converters available. For the tourist just about any basic currency converter will do but for those engaged in specific businesses there are websites that feature reviews of the various currency converters available. A currency trader would obviously want to find a currency converter that goes well beyond basic functions.

Varying Degrees of Sophistication

Many of the more sophisticated currency converters require the user to download software and typically these currency converters have many features that can be customized through the various widgets available. For the e-merchant there are currency converters that can be placed on the merchant’s website for the convenience of foreign customers.

Global Business and Currency Converters

As has been pointed out the internet has changed the way businesses operate and those who lag behind are sure to be left behind. The global scope of e-business has made a reliable currency converter essential for the successful businesses person or currency trader.

Quick Forex Tip: Forex trading offers investors a profitable investment option and can be one of the most rewarding opportunities available to the average investor. Major attractions are the 24 hour a day availability of forex markets, low dealing costs, high leverage margin and high liquidity. Currency trading forex can be learned quickly and easily. There are several free reputable courses available online and many online forex dealers provide demo accounts where novice traders can learn the market before risking any real money.