### Commodity Currencies

he Commodity dollars declined against many of the majors today following US and European news that pointed to further economic slowdowns and thus, additional declines in demand for commodities. If economic activity declines or remains near current levels, prices on crude and other commodities will lose the support of projected demand increases that had propped them up for some time. In this regard, while the Canadian, Australian, and New Zealand countries are among the first to show signs of a recovery from the global crisis, a sharp drop in commodity prices could sharply alter conditions. As such, if global contraction continues and demand for basic materials declines, the currencies could continue to take a hit.(source web)

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####Euro Volatility Likely as Central Bank Delivers

A busy week of economic event risk left the Euro almost exactly unchanged against the US Dollar, and it seems markets remain incapable of breaking the EURUSD from its multi-month range. Forex options markets showed that volatility expectations remained high ahead of the European Central Bank interest rate decision and the US Nonfarm Payrolls report, but sharp post-NFP moves were incapable of pushing the EURUSD below the key 1.4000 mark. Illiquid late-week trading invited a brief foray below the psychologically significant 4000 level, but a quick bounce signaled that few were willing to force a larger breakdown in the key currency pair. If the combination of an ECB rate decision and a US NFP release were not enough to break the Euro from its range, we see relatively little scope for big moves in the week ahead. Indeed, short-term volatility expectations have fallen substantially ahead of what may be yet another week of range trading.

Euro Zone economic event risk will likely take a backseat to broader financial market flows as the Euro/US Dollar pair remains tightly correlated to key risky asset classes. The rolling correlation between the EURUSD and Reuters CRB commodity index is once again near record-highs. It is subsequently unsurprising to note that Gold, Oil, and the US S&P 500 remain in similarly choppy price ranges prices through the past month of trading. The end-of-week tumble in the S&P index leaves it at risk for continued declines, but we will have to see a noteworthy break before calling for similar moves in the EURUSD.

Traders should keep an eye out for financial market reactions to the US ISM Services report and surprises from final revisions to Euro Zone Q1 GDP results. The former will shed light on the all-important US Services sector and has historically produced big moves in the S&P 500 and US Dollar. Markets remain on edge following a worse-than-expected NFP result, and we will need to see promising signs for US economic conditions to bolster investor confidence. A sharp drop in domestic equities could easily lead to similar moves in the US Dollar—potentially sending the EURUSD below key support. Later-week GDP figures could likewise provide impetus for Euro volatility. Recent revisions to Q1 UK GDP results sent the British Pound substantially lower against major counterparts. Although admittedly unlikely, similar changes to Eurostat’s estimates for domestic economic growth could send the Euro lower versus major counterparts.

EURUSD volatility expectations remain muted, but we cannot rule out flare-ups in financial market tensions. It will be critical to watch whether many many key asset classes can break out of their month-long trading ranges—potentially sending the EURUSD beyond range-lows at 1.4000 or highs near the 1.4200 mark.(source web)

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###Australian share market higher despite miner gains

THE share market closed flat after earlier gains were whittled back despite gains in resources sector gains and a positive lead from Wall Street.

At 16:15pm (AEST), the benchmark S&P/ASX200 index was up 3.3 points, or 0.09 per cent, at 3877.3 points, while the broader All Ordinaries index advanced 2.9 points, or 0.07 per cent, to 3875.2 points.

Ord Minnett private client adviser Jona post June 30 market malaise had produced a quiet trading day for brokers.

"All the rush has been getting clients to take up their rights in Rio and share purchase plans in ANZ," he said.

The local market was following a positive lead and stronger copper price in offshore trading overnight.

Mr Hancock said and rebounded today.

BHP Billiton finished up 40 cents, or 1.18 per cent, at $34.30, while Rio Tinto gained 15 cents, or 0.29 per cent, to $51.75.

Rio Tinto successfully completed the UK leg of its $US15.2 billion ($18.78 billion) equity raising after its largest shareholder ended speculation to take up its full entitlement.

Aluminum Corporation of China (Chinalco) took up its full entitlement despite fears it may snub the offer, after a planned $US19.5 billion ($24.09 billion) deal with Rio Tinto fell through last month.

By 16:20 AEST major stocks in the gold sector were stronger, with up 92 cents at $31.20.

Dual-listed Newmont Mining gained 13 cents to $5.18 andfirmed five cents to $2.98.

At 16:22 AEST, the spot price of gold in Sydney was $US939.50 per fine ounce, up $US7.90 on yesterday's close of $US931.60.

Commonwealth Bank led the banking sector mostly lower, shedding 67 cents to $37.42 as funds managers reweighted their portfolios, Mr Hancock said.

ANZ lost 12 cents to $16.13, Westpac eased 10 cents to $19.58 and NAB firmed 16 cents to $21.85.

Telstra enjoyed high trading volumes, with more than 53.2 million shares changing hands and its share price was two cents higher at $3.37, Mr Hancock said.

Major media stocks were mixed, with Fairfax Media two cents weaker at $1.17 and down two cents at $2.23.

News Corporation (the parent company of the publisher of news.com.au) gained 16 cents to $13.26, while its non-voting scrip advanced 15 cents to $11.60.

On the Sydney Futures Exchange, the September share price index contract was 12 points lower at 3849 on a volume of 19,676 contracts.

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### Tips 7 Currency: Kiwi and aussie at 'crucial' juncture

The New Zealand dollar is at a "crucial" juncture against the currency of our largest trading partner, Australia, say currency strategists who point towards private equity capital flows and uridashi maturities as key influences in coming weeks.

Derek Rankin of Rankin Treasury Services expects the kiwi to head back toward the A85c mark as it recovers from an oversold position and receives a boost as Australian private equity players are forced to pump more capital into their sluggishly performing New Zealand acquisitions.

The kiwi, which peaked at over A92c last September, has come off substantially since then and has been trading in a high 70s to low 80s range since the beginning of this year.

But Rankin, who advised clients to hedge their exposure when the kiwi was below A79c, believes some exporters have been complacent about the cross which has been gradually climbing this month.

"Their banks are now putting a lot of pressure on them telling them they need to chuck in more equity. These guys have Australian funds so they will be pumping money across the Tasman to help recapitalise and get those covenants in line."

Much of that flow may already have taken place, but Rankin thought it could still help drive further gains on the cross.

Like Rankin, BNZ currency strategist Danica Hampton thought the kiwi might have been oversold against the aussie because "this idea of Australia being the lucky country, that it has skirted the recession, has got a bit overcooked in recent months".

"I can't see a compelling reason for the kiwi aussie to be much lower than A77.5c. That said, we have got to the top of a recent range in the last few days. This is something of a crucial junction as to whether this is, in fact, the top of the range or if it will push higher."

While that remained to be seen, Hampton thought the large amount of eurokiwi and uridashi maturities next month could work in the aussie's favour. With $4.6 billion of the kiwi dollar denominated bonds maturing and only 30 per cent of maturities so far this year being rolled over again, this was a potential drag on the kiwi.

Hampton pointed out Australia's three-year swap yield was 75 basis points higher than New Zealand's and its sovereign rating a notch higher.

"So if you're a uridashi or eurokiwi investor you've got to think hard about why you'd roll those funds over in New Zealand dollars rather than Australian dollars where you'll get better returns and a higher degree of comfort."

"If we get through A81c we could be heading towards A85c," said Rankin, citing the cross's historical tendency to swing through ranges of around 10 per cent and his conviction that the kiwi is oversold at current levels given the fundamentals of both countries.

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####6 Tips Shorter work week keeps jobless down

FRANKFURT: Germany's jobless rate edged down to 8.1 per cent in June, official figures showed yesterday, posting a weak seasonal improvement as programmes to put workers on shorter hours helped stabilise employment in the recession.

The Federal Labour Agency said the unadjusted jobless rate was down from 8.2 per cent in May, with the total number of people registered as unemployed dropping by 48,000 to 3.41 million.

However, Germany had a quarter of a million more people unemployed than in June 2008.

The labour agency said German companies' use of shorter working hours to protect jobs during the downturn had kept unemployment numbers from rising even more.

"Despite the massive downturn in production, the current changes are still comparatively moderate; in particular, the strong participation in short-time programmes stabilised the job market," the agency said.

However, the labour market typically lags behind the economy, and the agency was expecting more pressure on jobs as the crisis continues to cut into demand for products from Germany, the world's top exporter.

The Federal Labour Agency said the unadjusted jobless rate was down from 8.2 per cent in May, with the total number of people registered as unemployed dropping by 48,000 to 3.41 million.

However, Germany had a quarter of a million more people unemployed than in June 2008.

The labour agency said German companies' use of shorter working hours to protect jobs during the downturn had kept unemployment numbers from rising even more.

"Despite the massive downturn in production, the current changes are still comparatively moderate; in particular, the strong participation in short-time programmes stabilised the job market," the agency said.

However, the labour market typically lags behind the economy, and the agency was expecting more pressure on jobs as the crisis continues to cut into demand for products from Germany, the world's top exporter.

That "contrasts with a much more rapid pace of monthly increases of 54,000 during December-April," Timo Klein, an analyst at IHS Global Insight, said in a research note.

However, he said he "expects seasonally adjusted unemployment to rise throughout 2009 and 2010, with monthly increments most likely to pick up during the second half of 2009".

German companies that are using or have used short-time working arrangements to preserve jobs include chemical maker BASF SE, steel producer ThyssenKrupp and car makers Daimler and BMW.

The labour agency said since October 110,000 German companies have announced plans for more than 3 million people to work shorter hours.

It noted that such plans are not necessarily implemented, and estimated between 1.3 million to 1.4 million people are working an average of about two-thirds their normal hours.

- AP

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######What alerts should you use tips 5

What alerts should you use?

The basis behind generation of forex alerts is to assist the precise and informed choice about the forex market. Regarding consideration of alerts to promote forex trading, the trader should be conversant and far-sighted to choose and prioritize the trading principles based on the alerts he thinks are most important.

The ideal method to pick the alerts to support trading is to gather all-inclusive and in-depth information regarding the technical indicators. You can use this information and the alerts to accrue profit in particular circumstances. You might also employ these alerts to trim down the chance of false moves. It is best to judge and use alerts astutely as every alert is exclusive to the forex trading market.

If you are trying to build a distinct and exclusive trading strategy, it is best that you learn as much as you can about the technical indicators. You should learn how these affect the forex market. You should observe this phenomenon patiently over a considerable period to get your conception perfected. Know technical indicators entirely and their impact on the forex trading system. Use of charts could be one way to develop an insight about the impact of indicators on the forex market.

A comprehensive perception of intervals and their impact on technical indicators actually helps you to understand the signals and he alerts better. Charts are formulated to show the relationship between the currency price fluctuation and the technical indicators over a period of time. There are minute?s charts where data is reorganized every minute and hourly charts where data is restructured every hour.

You might be in favor of limit exits. This permits you to trade recurrently and more often at high percentage and low pips. Exits are also controlled by using forex alerts. The exit alerts are sometime conservative and inflexible, but these exhibit the authentic progress in way much efficient way that the limit exists.

Following the chart before you enter the market often becomes a practice for a regular trader. You should plan your exit carefully once the entry alert has been taken care of. You can use limit exits, trailing stops and fixed stops to come out of the trade. Many forex traders use signals/alerts to capture reversal in the forex market in short position. He tries to capture it before it turns long, thus accumulate, and optimize his profit. Turning points in short trading are outstanding exit and entry points

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#######Beginner currency forex trading tips 4

Popular currency pairs

The stock market allows the traders to trader at 2:1 leverage. Using leverage of 100 to 1 is allowed to the forex traders. It is traded in currency pairs. One can make money despite of market going up or down. One can buy one currency and sell another one while trading or do vice versa. Some of the popular pairs traded in the market are EURUSD (Euros/U.S. Dollars), USDJPY (U.S. Dollar/Japanese Yen), and GBP/USD (British Pound/U.S. Dollar). These trading pairs are referred to as the major four. Each of the currency pair has its own patterns.

The trader who is frustrated does not have to spend thousands of dollars for learning how to trade in the forex market. Purchasing the e-book would be a smart decision. These e-books cost you about three hundred dollars and are much better than other systems. Using e-book is thus profitable to the traders. A mini forex account could be opened for very less amount as much as $1,000 with the help of a broker. A system can be traded in a practice account and could be automated so the traders can easily operate and feel comfortable before trading with real money. At the mini forex account losses will be less and so it can be an opportunity for the traders to learn before trading with a regula.
First thing you must know that currency trading is not very easy. However, one can learn trading currencies using various methods and earn huge profits. On internet one can see various websites offering forex education for free. However, one needs to hunt little to get free forex education. The best way to learn is by using the forex technical analysis and forex charts. Ignore the news as they are just stories or opinions. It reflects the majority of traders which end up loosing.

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######Compounding Forex Trades tips 3

Albert Einstein is alleged (by some) to have said about compound interest:

“It is the greatest mathematical discovery of all time”

Let’s apply the principle of compound interest to your forex training. To do so, we need to first define “pip”… a highly touted phrase in the forex trading world.

A pip is simply a small unit of forex measurement and in almost all Forex training courses people begin with daily targets of anywhere from 20 to 50 pips a day. This is excessive and typically leads to greed, over exposure and needless risk.

My preference is to set a daily goal of 4 pips… conservative, safe and still quite profitable. For example,

Let’s say that 4 pips a day gives you around a 1% return on investment (ROI)… that’s 1% return on investment per day.

With a 20 trading-day month, you get 20% per month. If there are 240 trading years each year, you will receive a massive 240% return… right?

Actually, it’s a helluva lot more than that. Let’s take a look at how this strategy can truly explode your ROI.

On Day One, one percent is 1% on your ORIGINAL investment. On Day Two, another 1% is calculating on the compounded amount from Day One.

On each day of the 240 days, you are making a one percent return on the
accumulating total; hence, compounded return versus simple return.

So here are the actual figures for monthly ROI on your original investment based on a NET 4 pips per day, 5 days per week - if you took nothing out.

Month 1 . . . . . 19.92%
Month 2 . . . . . 45.44%
Month 3 . . . . . 76.64%
Month 4 . . . . . 114.72%
Month 5 . . . . . 161.20%
Month 6 . . . . . 217.76%
Month 7 . . . . . 286.8%
Month 8 . . . . . 371.04%
Month 9 . . . . . 473.84%
Month 10 . . . . 599.28%
Month 11 . . . . 752.40%
Month 12 . . . . 939.12%

Moral of the story… don’t be greedy. Just set up your daily activity to get 4 pips each trading day. Conservative and doable.

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#####Investments & Ventures tips 2

Beginner investing information, stock investment advice and help for investors on investment planning, management and strategies, venture capital investment and resources on investment services and firms. The modern era, so frequently referred to as the "information age," has brought about a new breed of investor who is both savvy and equipped with the necessary technology to make informed decisions. This, coupled with the creation of many new investment vehicles, has transformed investing from owning a few stocks and having a passbook savings account to a more detailed and advanced activity. Now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today's investors. The links herein relate specifically to investments and ventures.

Sometimes you will be restricted to a limited number of currency pairs. This is especially true if you are using some sort of artificial intelligence software.

On the other hand, most broker platforms permit you to trade all of the pairs. But then again, some will not let you trade oil, gold or silver.

Here is a list of the most frequently traded pairs:

• EUR/USD - Euro and the US dollar
• GBP/USD - British pound and the US dollar
• USD/JPY - US dollar and the Japanese yen
• USD/CHF - US dollar and the Swiss franc
• USD/CAD - US dollar and the Canadian dollar
• AUD/USD - Australian dollar and the US dollar

Some experts recommend that you limit your trading to just one or two pairs (eg EUR.USD and GBP/USD. Not a bad idea actually

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########Forex Currency Trading Tips 1

Are you thinking of having a go at currency trading and looking for some forex tips?

There is no doubt that there is money to be made from forex currency trading, but like most things in life it does take some work. We’ll talk about automated forex robots in a while, but to begin with, you need a thorough grounding in how the foreign currency markets actually work.

Here are some basic forex currency trading tips to help you on your way in the world of the currency markets.

Of the forex currency trading tips you’ll find, I would consider the most important of all forex tips to be to learn as much as possible about how the markets work before you even think about starting to trade with your own cash.

Forex trading is all about speculating on which way two currencies will change in value in relation to each other. Currencies are traded in pairs. If you can consistently predict how two currencies (a currency pair) will move in relation to each other over a given timeframe, you will make a lot of money from currency trading.

Before you start trading there are lots of terms you need to be aware of and understand. I would recommend you read the following to start your education. Both books cover all the basic terminology and can be downloaded instantly.

My next forex tip would be to read as much as you can about the art of “technical analysis”. Technical analysis is basically the science of predicting currency movements using trend analysis and historical data to map out chart predictions. The more you understand about technical analysis and forex charts, the better armed you will be to make money from the forex markets.

There is no substitute for knowledge, so learn technical analysis, even if you intend on using automated tools, having the knowledge of charting trends will help you to get the most from any tools you buy in the future.

Forex trading tips number three would be to choose your currency trading platform and forex broker carefully. Spend time looking at the benefits offered by each before you sign up. A good broker will have been established for a number of years and be able to provide plenty of customer testimonials. They will also provide lots of training and a 24/7 help line manned by real people.

A good forex broker will also offer a trading platform with a “demo account” for you to use. Using a demo account is another of my most important forex tips. Do not risk a penny of your own money until you have trialled your trading strategy on a demo account. Good brokers will provide one. A demo account basically allows you to simulate your trades without the need to deposit any money! So learn as much as you can about technical analysis and then apply what you know via a demo account to see how you fair.

Another forex tip for beginners is to start with a mini trading account. Mini or micro trading accounts only require small deposits and allow you to trade in small amounts also. I would consider it essential that any new trader follow the steps of a demo account first, then a mini account for actual trading before progressing to a regular account.

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what is forex?

The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971
Presently, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.
The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollars, Euros, Japanese yen, Pounds Sterling, etc., and the need for trading in such currencies.

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