Daily Currency Analysis

EUR/USD

The dollar was generally weaker in Asian trading on Monday as markets continued to analyse last week’s payroll data which raised fresh doubts over the US economy.

The dollar was also undermined by the weekend G7 meetings where there was no additional support for the US currency. European policy makers continued to voice their support for a strong dollar in comments on Monday with ECB President Trichet stating that there was no need for the dollar to weaken against the Euro. Markets will want a more decisive stance in favour of a US currency, especially from the US administration, before making any decisive shift in sentiment towards the US currency.

The Euro-zone Sentix improved to -12.6 for October from -14.6 the previous month which pushed the index to a two-year high, although it was again slightly weaker than expected. There will be further fears that any recovery in GDP growth will falter quickly given the underlying weakness in consumer spending. There was also some fresh over the situation in Latvia which is liable to unsettle the Euro to some extent. There will also be caution ahead of the ECB policy meeting on Thursday even though an unchanged policy looks likely.

The US ISM index for the non-manufacturing sector rose to 50.9 from 48.4 the previous month and this was the strongest reading for over 12 months, although there was still evidence of underlying vulnerability. Although risk appetite staged a cautious recovery following the US data, there was still an underlying mood of uncertainty with notable volatility in the commodity markets.

The dollar edged weaker following the data as underlying sentiment remained negative with the Euro pushing back to test dollar support above 1.4650.

Source: VantagePoint Intermarket Analysis Software

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Yen

Domestic comments on the yen will remain a key focus in the near term. Over the weekend, Finance Minister Fujii warned that Japan could intervene if currency moves were excessive. The remarks will reinforce speculation that the government will not tolerate rapid yen gains from current levels given fears over the economy’s health. Following the comments, the dollar was able to consolidate above 89.50 against the yen in Asia on Monday despite underlying vulnerability.

The US currency was again unable to make a serious attempt at pushing above the 90 level as it remained generally on the defensive and the yen was probing dollar support levels close to 89.50 later in the US session with narrow yen ranges.

Sterling

Sterling pushed above the 1.60 level against the US dollar in early Europe on Monday, but again hit tough resistance above this level. The services-sector PMI index was stronger than expected with a move to a two-year high of 55.3 for September from 54.1 which will should underpin confidence towards the economy to some extent.

Nevertheless, overall sentiment towards the currency remains fragile and there will be unease that the currency failed to take advantage of a rally in equity markets.

There will also be caution ahead of Thursday’s Bank of England policy meeting. Markets will be expecting the central bank to hold policy steady, but there will still be a reluctance to hold long Sterling positions ahead of the meeting.

As Sterling confidence wilted it remained trapped below 1.60 against the dollar and also dipped to re-test support close to 0.92 against the Euro later in the US session.

Swiss franc

The dollar failed to make any impression on the franc during Monday and there was a renewed decline to near 1.03 later in the US session. The Euro was unable to make any headway against the franc for much of the day, but did edge higher to 1.5125 in New York

The Swiss currency is still proving resilient in global markets even when risk appetite is firm and there appears a continuing reluctance to sell the franc. The recent industrial survey evidence will continue to provide some support and ease fears over the competitive position.

The National Bank policy actions will remain an important focus, especially if the Euro re-tests support below the 1.51 region.

Source: VantagePoint Intermarket Analysis Software

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Australian dollar

There were further Australian dollar gains on Monday as the US unit remained on the defensive with a high near 0.8750. Commodity prices also looked to rally after recent losses. Overall Australian dollar confidence is liable to remain firm in the near term with a close focus on the Reserve Bank interest rate decision due on Tuesday.

Although a rate increase looks unlikely, the Australian currency will tend to remain firm if there are hints over interest rate increases by the central bank. There are still important vulnerabilities surrounding the global economy which will pose a potential threat to the Australian currency. A weaker US trend was a key factor in New York and the Australian dollar rallied to highs above 0.8780.

Earn Money Automatically With Forex Trading

by Pete Sandras

The market of Forex currency trading has one of the biggest potentials for people to make money from it. As a result many people are currently interested in Forex trading and there are all sorts of information on the internet and in books and programs to learn about it.

While all this information is essential to your understanding of the market and how you can personally achieve wealth through it, you should keep certain strategies and tips in mind that overall summarize any information you will learn about this new business opportunity. You should invest a lot of time and energy studying in addition to reading articles like this one.

I would argue that the only proper way to do forex trading would be to first wait for the economy to stabilize, as the global economy right now is in turmoil and countries can suddenly increase or decrease their wealth which completely changes the Forex market at the time. Also be careful to keep your life in order. Any form of trading is a risky venture. It ALWAYS involves a risk of losing money, so keep that in mind when you invest, that you should never put your job or house on the line for something like this.

1. Choose a method of learning, or branch out. What I mean is, go to a bookstore, search online, buy an automated robot, whatever you choose to do to get started, you must go at it with the intention of spending hours of studying and learning from previous traders. Even when you get an automated forex software program you can’t just sit there and expect it to do everything for you, you must do your research and carefully set it up. There are tons of options in even the most automated programs you must look into and carefully choose from.

2. Manage your life before you manage your forex trading. Don’t be rash and believe in all of those get rich quick schemes, they are only playing off of your inability to make calm, calculated decisions when you’re infatuated with the idea of making money quickly. You need to have a plan laid out before you spend any money, you need a stable income to pay your rent, and DO NOT expect to suddenly make as much money as they advertise, give it at least 6 months before you can turn a profit.

3. Go slowly, walk, do not run. If you go all out chances are you’ll make some simple mistake that all beginners do and ruin your chances of slowly building a fortune, or you will quickly get discouraged and stop trading all together.

4. The market will be around for your entire lifetime, you can wait a few months before you think you know enough to trade heavily and get into higher risk trading opportunities. Remember with any new venture in life, take your time and learn from your predecessors before you run head first into things. You don’t climb mount Everest your first time hiking right? So why do you think you can trade like a pro your first few times?

About the Author:

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Working With An Expert Financial Advisor

For most young people today, who don’t expect that government pension or security programs will be around in the future, deciding on an expert financial advisor will be a crucial decision to make. There’s no getting around the fact that financial choices made when young can have a deep impact on the quality of retirement later in life, however soon or late that could be.

The above reasons, then, should illustrate why it’s important to know a few things about how to go about finding an expert financial advisor. After all, this person is going to serve as a guide through potentially hazardous waters. So don’t just land on the first person who pops up on a search engine after typing in “expert financial advice” or the like. The finance world is full of shady characters and double-dealers, so keep that in mind.

Always check on a planner’s credentials, certifications and memberships in professional associations. No planner worth his or her salt will hesitate at providing background information. In fact, the good ones all encourage potential clients to look at their bona fides carefully before making a decision. Generally, any planner at one of the large financial services companies will have all these attributes.

This is not to say that only the largest companies have planners who meet all requirements, though. There are many independent advisors who are just as competent. Also, advisors and professional advisor firms always seek to make sure they’re registered with federal or state securities bureaus and that they’ve properly filled out Form ADV Parts 1 and 2. The final copy of it can be viewed online at the Securities and Exchange Commission’s (SEC) government website.

Failing to exercise reasonable and prudent caution when it comes to working with an expert financial advisor can be a recipe for failure down the road. With the amount of information freely available on the Internet or via a simple phone call about any of these people, it would be a crime not to take the time to check. And from there, selecting an advisor will be a matter of picking from among the best on the market.

About the Author:

Find out how an Expert Financial Advisor can help with your Forex Trading. Make certain you sign up for John Eather’s Free eCourse on Forex at http://www.moneymakingfxtrader.com now! Get a totally unique version of this article from our article submission service