Essential Elements of a Successful Trader

All the imported exchange trading knowledge in the planet is not accepted to help, if not you have the cheek to buy and sell bills and put your assets at risk. As with the bingo “You be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is really unintelligible to do when your own real wages is put at risk. You will feel anxiety, even fear. Here lies the jiffy of certainty. Do you have the nerve to be anxious and act at any rate? When a fireman runs into a smoldering construction I assume he is scared but he does it nevertheless and feasible the chosen end result. Unless you can overcome or admit your fear and do it anyhow, you will not be a thriving merchant. (more…)

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Middle east should follow China in trading reforms

With real interest rates in Qatar and the UAE still remaining negative, it is imperative for the Middle East, which has significant non-oil fiscal deficits, to emulate China in gradually reforming the exchange rate regime rather than succumbing to global pressures, according to StandardChartered Bank.Our advice to the (Middle East) region, and to Saudi Arabia as its representative in the International Monetary Fund’s consultative process, is to follow China’s lead and liberalize exchange rate regimes in accordance with domestic fundamentals rather than based on international pressure, StanChart’s regional head of research Steve Brice said in a latest publication. (more…)

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Speculation or possibility for the Dollar

June 26th - The dollar has held onto most of the gains from the latter part of last week as the European trading session gets underway. Speculation as to the possibility of the FOMC hiking rates by 50 contractual base points this time around doesnt seem to have been dismissed yet as the Fed tries to get a grip on inflationary pressures, although ahead of Thursday verdict expect relevant economic readings such as tomorrow US consumer confidence and existing home sales, (more…)

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Dollar drifts higher, market looks for direction

SINGAPORE, Nov 23 - The dollar extended its decline in Asian trading on Wednesday after minutes from the U.S. Federal Reserve’s Nov. 1 meeting indicated that the Fed could be close to ending its policy-tightening cycle.

The dollar had slipped in late New York trading on Tuesday after traders read the minutes to mean that some policy makers were less worried about inflation than about a continued rise in the benchmark interest rate.

But Richmond Federal Reserve President Jeffrey Lacker doused some of the speculation. Lacker, who will become a voting member of the Fed’s rate-setting committee next year, told Reuters it was too soon to declare the Fed’s rate increases over, stressing that inflation remained a risk amid solid growth.

At 0620 GMT, the euro traded at $1.1842, compared with $1.1815 in late New York trading. The dollar was at 118.55 yen, dipping from 118.73.

“There’s very little doubt going into next year that the end of the Fed’s tightening will weigh on the dollar,” said Uwe Parpart, a strategist at Bank of America in Hong Kong. “The question is when will this become significant.”

“These are mixed signals,” he said, referring to the Fed’s “dovish” minutes on the one hand and “hawkish” comments on the other from Lacker and Chicago Fed President Michael Moskow, who spoke earlier this week.

The Fed has raised its benchmark rate 12 times in the past 18 months to 4.0 percent, making dollar deposits increasingly attractive to international investors. The rate increases have contributed to the dollar’s 16 percent surge against the yen and 15 percent rise against the euro this year.

Trading in Asia was subdued as Japanese markets were closed for a holiday and U.S. markets were likely to slow down ahead of Thanksgiving on Thursday.

EUROPEAN RATE RISE

Greg Gibbs, senior currency strategist at Royal Bank of Canada in Sydney, said economic fundamentals favoured the euro in coming weeks, as U.S. data showed areas of weakness while the European Central Bank was preparing to raise interest rates for the first time in five years. Moreover, dollar repatriation by U.S. companies taking advantage of a one-off tax break would ebb in coming weeks, removing one more prop from the U.S. currency, he said.

“I think the euro will continue to strengthen in the next couple of months,” Gibbs said. “The euro will trade at 1.20 again. Thereafter we could see a stronger dollar.”

The euro last traded at $1.20 on Nov. 3.

But Parpart at Bank of America sees the rate differential between the U.S. and Europe growing because the Fed will not only match an ECB rate rise expected next week but will continue to raise rates for a while longer while the ECB stays put.

Robert Rennie, chief currency strategist at Westpac in Sydney, also said the euro’s rebound could be temporary.

“To us the euro’s still a sell. It’s just a question of whether to wait for 1.1880 or 1.2000, and we think the former.”

Some analysts said the Fed’s minutes marked a change for the U.S. central bank, which has been tightening almost on autopilot.

There were also signs the Fed might soon drop or replace its line that policy would be tightened at a “measured” pace.

“The case for a pause has been building for a while and the minutes add some weight to that view,” said Rory Robertson, an interest rate strategist at Macquarie Bank.

He thought the Fed could tighten once or perhaps twice more, depending in part on whether the next couple of payroll reports showed any improvement in hiring. Currency bid prices at 0604GMT. All data taken from Reuters with percent change calculated from the daily U.S. close at 2130GMT.

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Dollar hits 17-mth high as higher U.S. rates seen

TOKYO, Oct 12  - The dollar extended gains on Wednesday, hitting a 17-month high against the yen on reinforced expectations the Federal Reserve will keep raising U.S. interest rates.The dollar also climbed versus sterling to its highest level since late July and nudged closer to a three-month peak hit against the euro last week. (more…)

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Strike hits early trade in forex market

Mumbai: Early trade was adversely affected at the Interbank Foreign Exchange market here today due to the nation-wide one day industrial strike after the bulk of bank employees joined a slew of unions to protest the Centre’s privatisation policy. In thin dealing at the Forex spot market, the rupee was quoted at Rs 44.0250/0350 per dollar in late morning deals, higher from Wednesday’s close of Rs 44.0350/0450 per dollar following a strong opening slot of Rs 44.0150/0250. (more…)

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Yen keeps gains as foreigners snap up Japan stocks

TOKYO, Aug 23 - The yen clung to solid gains on Tuesday as foreign investors continued their love affair with Japanese stocks, helping to push the Nikkei share average to a fresh four-year high.The Japanese currency has stolen the limelight in a week devoid of major economic data in the United States and with many market players away on summer vacation — resulting in thinner trading volumes. (more…)

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