Boost for Europeon Market::

Rising commodity prices pushed European markets higher on Friday, while Asian stocks were helped by an overnight recovery on Wall Street as strong corporate profits buttressed optimism about the world's largest economy. In morning trading, Britain's FTSE 100 was up 1 percent at 4,293.50, Germany's DAX added 1 percent to 4,850.63 and France's CAC 40 rose 0.7 percent to 3,185.27. Wall Street futures were slightly weaker. Dow Jones industrial average futures were down 0.1 percent to 8,410 and Standard & Poor's 500 futures were unchanged at 916.60. Energy stocks helped European and Asian indexes as crude oil prices traded near $71 a barrel. Shares in Shell rose 0.9 percent, BP climbed 0.8 percent, and Total jumped 1 percent. Benchmark crude for August delivery was up 95 cents to $71.18 in European trading as investors weighed mixed signs about the strength of the U.S. economy and crude demand. On Thursday, crude gained $1.56. Meanwhile, a rise in metal prices helped mining stocks, with XStrata gaining 4.3 percent, Antofagasta 2.2 percent and Anglo American 1.6 percent in London. Among the losers, UBS AG slipped 0.6 percent after the Swiss bank announced overnight that it expects to raise 3.8 billion Swiss francs ($3.5 billion) through a capital increase and forecasts a loss for the second quarter. More generally, investors were generally encouraged after U.S. markets on Thursday snapped a four-day losing streak with the help of better-than-expected earnings from homebuilder Lennar Corp. and home furnishings chains Bed Bath & Beyond Inc. The news underpinned hopes that consumer spending, one of the engines of U.S. growth, was picking up after falling over the last year. It also helped investors shrug off another bleak sign that unemployment is rising. Despite the gains, some analysts don't expect the rally that began in March and tapered off this month to resume anytime soon. "I think many investors are waiting for more confirmation that the macro economies are recovering," said Winson Fong, managing director at SG Asset Management in Hong Kong, which oversees about $2 billion in equities in Asia. "Without the fundamentals it's hard to see us moving sharply in one direction or the other right now." "We have seen the markets quite volatile — they can't really make their minds up if they are going up or down," added Jane Coffey, head of equities at Royal London Asset Management. "We had a strong rally from the March lows and although we have continued to see reasonable forward-looking economic data ... the big question now is how strong is the recovery going to be when it starts." In Asia, Japan's Nikkei 225 benchmark inched higher by 81.31, or 0.8 percent, to 9,877.39 and Hong Kong's Hang Seng added 325.23, or 1.8 percent, to 18,600.25. Elsewhere, Korea's Kospi gained 0.1 percent, Australia's benchmark rose 1.2 percent and India's Sensex turned higher by 1.5 percent. Shares of Bridgestone Corp. were among the day's biggest gainers in Tokyo, soaring 8.5 percent. The tiremaker said it now expects a net loss of 46 billion yen ($479 million) for the January-June half, a big improvement from the 62 billion yen loss it had projected earlier. The company cited cost cuts and lower commodity prices for the upward revision. Overnight in the U.S, the Dow rose 172.54, or 2.1 percent, to 8,472.40, after falling 40 points in the early going. It was the biggest point and percentage gain for the blue chips since June 1. The broader Standard & Poor's 500 index rose 19.32, or 2.1 percent, to 920.26. (Source:FP - Peshawr)

DEATH OF A POP MUSIC LEGEND: (1958-2009):

An era of pop music history has ended with the sad and shocking news of Michael Jackson death early this morning. In Pakistan, his death left grief and sorrow over faces of numerous music lovers. Like other parts of world, his fans can be seen every nook and corner of Pakistan. No doubt he was the King of Pop and will be remembered for ever by his many fans. Fans are anxiously to see him in action in upcoming concert to be held London on July 13, 2009. His untimely departure create a vacuum in the pop music and will not filled in times to come. He will be remembered forever. We share our grief to the family of Jackson and his fans on his sudden death.

Forex Trading via Brokers:

Main objective of FOREX trading is to exchange currency one for another with a view the price will change and currency you bought will increase in value compared to the one you sold. Before forex trading you need a Broker. A broker is an individual or may be a company that buys and sells orders as per traders directions. Most Brokers offer small mini accounts. These accounts are a great way to get started and test your trading skills and gain experience. They concentrated in the Forex market and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a prospective Forex broker, should be aware of CFTC registration & NFA membership of a broker and must be make sure that you look over the fees and schedules carefully before you deposit any money. It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm. For verification of a particular brokers visit www.nfa.futures.org/basicnet/.
These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

FOREX TRADING - FACTS::

FOREX — the foreign exchange (currency or forex, or FX) market is the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers.Forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders. However recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade. The currencies of the world are on a floating exchange rate, and they are always traded in pairs. About 85 percent of all daily transactions involve trading of the major currencies. Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar (EUR/USD), US dollar against Japanese yen (USD/JPY), British pound against US dollar (GBP/USD) and US dollar against Swiss franc (USD/CHF). If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to "stay" in it. If everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it. As a note bear in mind that no dividends are paid on currencies. Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the worldwide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts. Therefore, the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution. Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so a new investor can enter and exit positions without any problems. The fact is that the FOREX market never stops; even on September 11, 2001 you could still get your hands on two-side quotes on currencies. The currency market is the largest and oldest financial market in the world. It is also called the foreign exchange market or FX market for short. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market. When you compare them, you will see that the currency futures market is only one per cent as big. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. it is truly a full circle trading game. In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements. Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Only they were able to take advantage of the currency market's fantastic liquidity and strong trending nature of many of the world's primary currency exchange rates. Today, foreign exchange market brokers are able to break down the larger sized inter-bank units, and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market.(David Morrison)

FOREX – FOREX AND FOREX::

Thanks God Pakistan won Twenty-Twenty Tournament played today at Lords, London. Before start of my post I must appreciate and acknowledge their efforts and congratulate to all Pakistani and cricket lovers on this victory. :: FOREX market consists of a global network of dealers. Forex trading system of this world performs trade of about $2 trillion each day. The enormity of the gigantic financial capacity of the forex trade can be truly grasped if you compare this mammoth amount to the $25 billion that New York Stock Exchange trader's trade per day.
.The quintessential qualities of a forex trader are discipline and endeavor. If you are diligent and logical in studying the forex market trends then it wouldn't take you much time to hit the jackpot in Forex trade. However, if you cannot manually manage to analyze all the currency trends yourself then you might take the help of a automatic signal service or a forex trading software which would send you alerts and signals about buying and selling currency after elaborate research and analysis. .If you use one of the automated Forex tools available in the market then you would be able to evaluate the trends of exchange rates and forex market conditions within a few minutes with the help of the data provided by your FX software. As a result you will be able to close your forex deal in less than an hour. Thus an automated forex tool would ensure that you are making optimum use of your trading time. .The global forex trading market is only merely remarkable because of the huge volume of monetary transactions that happens through it but it is also a commendable phenomenon due to its geographical dispersion. With the help of automated FX software you can trade in various local as well as international forex markets within different time zones without personally monitoring those various markets day in and day out..However, before you decide to buy particular FX software, you need to put in a little effort to search for a forex tool which is easy to use and is ideal for beginners. Glean information about that particular forex tool which you plan to buy and thoroughly read the testimonials for that particular forex trading software before you purchase it. If you really want to test the accuracy of your Forex trading robot then you must try to find forex trading software which has the ability to paper trade too, to see its return.

Tax on SMS Good or Bad:

Although cell phone operators and subscribers may not be happy over the announcement of introducing 20 paisa tax per on SMS in budget 2009-10.
In the past, this sector flourished due to some good measures like reduction of GST from 21% to 19%, the reduction of Rs.250 on the import of mobile handsets as well as the reduction of activation tax by Rs.250. The companies have appreciated the government’s announcement to reduce SIM activation tax to Rs.250 from Rs.500, but are not quite satisfied with the cut in GST which was not reduced according to their demand to 16 per cent. The industry sees no benefit from present reduction in activation tax since the industry has already reached its maturity and hence the addition of new subscribers has greatly reduced.

Telecom industry is one of the major source of revenues for the government with annual contribution by the industry in the form of taxes is around Rs.65 billion.
Generally, official believes that industries providing basic services to the people are taxed lower then the general public but things are totally opposite here.

The total subscriber stands at 92 million i.e around 60% penetration ratio. It is not expected to go much higher than this and hence the reduction in activation tax will not be a major benefit to the industry. The reduction in taxes on the import of handsets will also not make any big difference since 90% of the cell phones are imported in the country through illegal channels. The illegal import witnessed a major increase last year when the government introduced a straight tax of Rs750 on all the handsets imported in the country. Therefore, the reduction in the handset tax will only result in decreasing the illegal import of handsets and will not contribute much to the exchequer.

Now lets move to the new taxes imposed on cellular industry in the budget 2009-2010 where the government introduced a very innovative tax of Rs.0.2 per Short
Messaging Service (SMS). Generally around 40 billion SMS are sent in Pakistan every year by the subscriber of cellular phones. With a tax of Rs.0.2 per SMS, the government expects to earn Rs.8 billion per annum.

The imposition of this new tax will discourage the users from using such an important mode of communication.
Since bulk SMS deals will become very difficult to operate, the telecom industry is expected to curtail them from the current levels. This will further result in decrease in the SMS usage and hence reduce the revenue generation for the government. Subscribers are wondering why the companies in Pakistan have offered free SMS packages by paying few rupees whether the sector was being facilitated through imposition of tax on each SMS. Similarly, imposition of a further turnover tax of 0.5% is another move beyond the understanding of common sense. If that was not enough, even a new tax has been imposed on the advertising sector which will pass it on to the customers. Since telecom industry is one major customer of all big advertising companies of Pakistan, it will also have a serious negative impact on the advertisement spend of the cellular industry which directly and indirectly employs hundreds of thousand of people.

Now it is not sure that heavy usage of SMS by the subscribers and with this tax in place, there would be decrease in number of SMS sent in billions per year. Some serious users are happy over this tax, as in their view this is a relief those inboxes filled with unknown and bogus sms (NB: FP.PR.)

Dollar Down - Oil Up:

On Wednesday, the dollar remained under pressure in Asian trade market, shifting logical impact on oil which above 70 dollars in Asia after volatile trade overnight sparked by a weakening US dollar and political unrest in key crude producers Iran and Nigeria. By the lunch dollar fell to 96.37 yen in Tokyo Market from 96.42 in New York late Tuesday. The euro also dropped to 1.3825 dollars from 1.3838 and to 133.25 yen from 133.45. However, Forex dealers expect Japanese yen will likely remain strong in Asian hours. The dollar lost ground overnight in New York after leaders from the world's top emerging economies delivered a warning shot on the domination of the US dollar as their new forum flexed its muscle at a first summit. Analysts see this soared due to political unrest following the presidential elections in Iran and bombing attacks on oil plants in Nigeria represent an explosive mix for the oil market. The leaders of the so-called BRIC nations -- Brazil, Russia, India and China -- called for a "more diversified" currency system after a meeting that came as talk continues over the dollar's future as the global reserve unit. In Tokyo morning trade the dollar briefly dipped below 96 yen for the first time in about two weeks, also driven down by struggling US share prices. The European single currency also dropped against the yen on growing risk aversion which encourages buying of the safe-haven Japanese currency. The euro is however, unwinding against the yen, after the Japanese currency was earlier sold off. For the longer term, this trend of buying the yen over the greenback may not last. Investors are buying the currency with so much confidence. Dealers expected the dollar-yen rate to be volatile in Asian trade::FP:Pr:

Forex Trading – Big Potential + Gain:

All you know, Forex is the largest and most liquid market in the world. Traders have until recently focused on seeking profits mainly with stock and futures markets. This can be attributed to the restrictive nature of Forex trading services offered by Banks. Forex stands apart from others by offering both online and traditional phone Forex trading services to all its investors. With minimum account opening values starting at US$ 100, several advantages exist in trading spot Forex as opposed to trading stocks and futures. Here are some of its benefits:
· Market is on its own, It is widely believed by many that brokerage firms and analysts can change the flow of a currency. In reality, this view is a misconception as Forex is an independent international foreign exchange market that can be influenced by many factors but NOT by any manipulations of traders and brokerage firms.
· Trade when you want, make your own trading schedule. Owing to its diversity, trading can take place in the Forex market 5 days a week, 24 hours a day. With the world's major exchanges based in the United State, Europe and Asia, the time differences between these Continents allows you to engage in the major trading sessions with your own time schedule. These logistics also allows you to respond quickly to breaking market news from every corner of the globe irrespective of your location.
· Big potential of Forex trading is an interesting speculation from every point of view with benefits stemming from both high leverage and potential profits from the rise and fall of the market.
· More buying power with 1:500 leverage. For example; with US $10,000 cash in a standard account that allows 1:100 leverage (1%), you can control up to US$1,000,000 in notional value.
· Take ALL your profits with you Forex charges NO commissions or fee. All profits remain yours. Commission-free trading is one of the most attractive features of FX-P. With dealing spreads as low as 2 pips (for EUR/USD) versatility abounds, providing a more comfortable trading environment.
· Forex is the largest and most liquidated market in the world. The overall volume of the Forex market is US$ 2 Trillion. Most of that volume involves trading of the major currency pairs and Forex clients enjoy tight spreads on these pairs.
· Trade in both bullish and bearish markets compared to other equity markets, where more difficult to engage in certain trade transactions.

Forex Trading Mechanism:

Actually here talk should be current budget which was presented yesterday by a female Minister of State for Finance, first time in the history of Pakistan. Important event of this budget was imposition of a 16 per cent Federal Excise Duty (FED) on services provided by stock brokers in shape of Value Added Tax (VAT). This imposition might shrink the turnover at local bourses. But today is not my topic. Mix reaction is pouring therefore I leave this and return to my today topic. In my view point; the important thing was not Rs2.9 trillion budget but the most important was presenting budget by a female.
Forex Trading currency Mechanism: May be you all know that all trading markets are volatile. Its major influences on market fluctuations are often dictated by economic and socio-political factors. These are also reflected in the Forex market. Time is of the essence when assisting your clients and staying abreast of the ever transforming market changes and being able to inform your clients of any major fluctuations is paramount.
At Forex we guide our clients the most up-to-date currency trading mechanism that gives instant access to the Forex system and allows our clients to fully digest the market changes as and when they occur across the globe. With the added advantage of supplying vital market information and quotes in real-time within an average time-frame of 5 minutes or less, this mechanism enables the trader to obtain quotes at a rapid speed and consequently execute deals at an equally rapid pace. Becoming a successful business broker in the Forex system relies heavily on being able to buy and sell foreign currency at the right moment. Successful Forex trading hinges on the correct decisions made on the appreciating or depreciating values of various currencies across the globe. This exciting market is only just beginning to reveal the true dynamics of its potential for individual and private traders. Operating over a 24-hours period on a global scale, places traders alongside professional, experienced competitors in an expansive, unlimited marketplace. Accordingly, currency trading mechanism is vital to the speed and success of bids and quotes. Quotes on different currencies from a global network of brokers are constantly changing and in order to compete successfully in Forex trading, fast connection in real-time are recommended.

Online Forex Trading and Good Opportunity:

The government of UK was rocket last week, first from the scandal involving the insane spending done by their parliament members and then by the warning from Standard and Poor’s that their credit rating – or should we say debt rating – is in peril of being lowered due to huge budget deficits and a rising national debt not seen since World War 2. Did the Sterling fall though? No, it did not – at least not as much as one would think that a “AAA” rated country would fall after hearing that they will soon be subject to higher interest rates and unfavorable terms that comes with anything less than a “AAA” rating. What did happen was quite fascinating, and it was something that I have been saying here for months. The US Dollar collapsed on the news out of England.Why? You might ask would the currency of a country across an ocean fall on bad news out of the British Isle’s. The answer is quite simple, Forex traders and investors know that the US is next on the chopping block. Although it is firmly believe that they should be first based on their crazy debt to income ratio – they are running at a 12 Trillion Dollar deficit carrying a 1.5 Trillion dollar debt and GDP is expected to fall this year – the Dollar enjoys the privilege of being the Dollar, and thus it gets afforded a little more latitude when it comes to these matters.But the real reason why the US was not first on this list was political and economic in nature. Lower the sovereign debt of the US and countries holding the bonds suffer. As the US will be faced with higher borrowing rates, and will not be afforded the right to offer so much debt and will be regulated as to the terms (10 year, 20 year 30 year), the value of the currency will fall and thus make the value of the debt already out there worth less. This will have a huge impact on the world economy and is probably one of the reasons why China is pondering accepting the Brazilian Real in trade over the US Dollar. But one last thing on this, it is ironic though that while this might hurt the rest of the world, it will help the US get out of the mess quicker. By deflating the currency it means that the US has to pay less in order to repay a debt. For example, if China is holding $10 in bonds from 1999 those bonds are still worth $10 today – plus interest, however the value of the dollar is lower than it was in 1999 and so the payments that the US makes will be worth less than they were only a few months ago. Forex online blogsters are buzzing about this – and all those trading in the dollar should be aware that this is coming. Don’t say you were not warned. But dollar is always getting high and high in Pakistan and it mostly due to present situation. Investor here don’t see elsewhere.

Finding the Best Sources for Forex:: Option Formulas

The world's largest marketplace is witness to more than a trillion dollars that exchange hands on a daily basis. Volatile and never resting, the foreign exchange market is home to millions of traders around the world who trade foreign currency 24/7. It is a market that never sleeps, and if you are an investor in this global financial bazaar, it would be a good idea never to let your attention take a nap either.
When you are all set to make money on Forex, you will necessarily be exposed to the world of options trading. Options are a safer way to maximize profits on the foreign exchange market without the huge risks posed by trading their underlying assets.
If you are interested in trading options, it will be a good idea to have a constant supply of accurate information, and using pertinent data gleaned from this information to make your option trading decisions.
The Internet is also a good source of financial information, and you will find many an excellent Forex option formula if you look closely enough. While some formulas may prove useless, there are some that can help you on your way to make a bigger profit in options trading.
Getting the guidance a Forex mentor will help you find a good Forex option formula that works for you. These Forex experts can give you sound advice about the right books to read, the appropriate programs to use, and many other Forex options strategies, besides.
There are also many books you can find both online and in bookstores that will also give you valuable information on Forex options, and how you can maximize your trading strategies to increase your profit-making potential. (Timothy Stevens)

GOLD MARKET – RISE AND FALL:

Gold was on the rise as it almost touched the mark of Rs25,000 for 10 grams and no let up. In the other part of world it is not the same. Particularly, it has become most profitable than other trading. The precious yellow metal hit an almost two-month high at Rs24,985 per 10 grams as international bullion markets gained momentum in the light of weakening US dollar. Gold stood at Rs24,171 earlier last week on Monday. However, it gained pace coming days and rose by Rs600 per tola to Rs29,000 and moved up a further Rs150 to Rs29,150 very next day. All-Pakistan Supreme Council of Jewellers Association President Haroon Rashid Chand said the local market was cold and unresponsive and international market trends were reflected only in terms of gold value and not trading. “Though international gold rates are rising due to strong buying, local dealers are waiting for gold prices to stabilise again.” He predicted the price rise would continue next week and said that Rs30,000 per tola barrier may be crossed. However, local gold rates yet continue to remain under cost by Rs600-700 compared to the Dubai bullion market, he further stated. In the international bullion market, gold was estimated at $979 an ounce, up by $6 on Saturday. The precious metal was seen as safe haven investment as the American dollar plunged to a five-month low against Euro. On the other hand, silver also witnessed more than nine-month high values at $15.39 an ounce in the international market due to the same reasons. The international prices consequently caused an immediate impact on the local silver rates as they were estimated at Rs342.85 per ten grams and touched Rs400 per tola mark on Saturday in Pakistan.-source The News.

WATANDOST: Inside News About Pakistan and its Neighborhood: Inside Northern Areas of Pakistan

WATANDOST: Inside News About Pakistan and its Neighborhood: Inside Northern Areas of Pakistan

HOW TO START FOREX – TRAINING STRATEGY:

Are you constantly surfing the internet looking for a forex trading strategy? Are you confused as to what course to start with? When you want to get involved with Forex trading, you have to figure out approximately how much money you would like to commit to trading, and then find a low cost course which will educate you to get started. .If you want to get started in trading really soon, one way is to buy a course online that teaches effective methods of trading, courses that gives you a high probability of placing a successful trade. Then, you need to study and test the method on a demo trading account until you are profitable..If you can find a home trading course that has customer support, the better. They can guide you in starting your demo account and even in a live account. Such as the Forex Profit Accelerator of Bill Poulos, here, there is support up to 1 year.http://best-investment-options.com/Recommends/FPA2.html.Here are two things you might want to remember:.Learn. Learn Learn. There are many methods out there, and some are easy to understand, others take time to get hold of. Acquiring as much information as possible and finding your "sweet spot" will save you time in your starting demo account, and saving you money. ."Practice makes perfect" .Please don't start into the market with real money until you are confident and totally comfortable using the trading method. It is suicide kind of way of losing all of your money is to jump into the market too soon, before really testing a trading method. That is what the demo account is for. .As traders, the only way to test a trading method is to stick to it religiously. Therefore, it is a must to write down your plan or method for finding a trade, and stick to it. Just like anything we do in life, from cooking to weight loss programs, proper practice will make you able to enter the markets with confidence and will ensure you don't lose your trading account..These preparation makes investing work your favor..Things to look for in a Forex Training Course:
Make sure it is from a reliable trading education source. One of the best there is nowadays is getting an education from a veteran who has done great in trading. Bill Poulos is one of them. He has made millionaires in trading in his courses due to his experience since 1974. He is known for making trading easy to understand, easy to apply and for all experience levels..Take your time. Practice the concepts over and over again in a demo account before jumping into the real trading.

Foreigners Continue to Fund US Trade Deficit

Economists generally and Dollar bears specifically both love to harp on the perennial US trade imbalance. Despite the halving of the trade deficit (reported by the Forex Blog last week), the gap between exports and imports remains sizable; it is projected at about a $350 Billion for 2009.
The more important data point, however, concerns capital flows. This is applies mainly currency traders, which are less intrinsically worried about the US trade imbalance than how the rest of the world feels about supporting such a balance. For example, if the entire trade deficit is recycled (i.e. invested) back into the US, than theoretically a trade deficit presents nothing to worry about, at least not in the short run. [Of course, such a trend may not be sustainable for the long-term, but that is outside the purview of this post].
The Dollar’s de facto role as the world’s reserve currency has historically ensured that this has been the case. This phenomena has even been strengthened by the credit crisis, as the initial spike in risk aversion generated a steady demand for Dollar-denominated assets. However, there was concern that this demand was leveling off over the last few months as risk aversion ebbed, and foreigners collectively sold a net $95 Billion worth of American assets. Over this period, the Dollar by no coincidence has declined across the board, against both emerging market currencies as well as the majors.
In March - the most recent month for which data is available - this trend reversed itself. Net capital inflows totalled $23.2 Billion, close to the $27 Billion US trade deficit. Especially surprising is that foreign demand for US Treasury securities remained strong - to the tune of $55 Billion - despite low yields. Moreover, the two most important customers both chipped in: “China, the largest holder of U.S. Treasury securities, increased its holdings of government bonds further in March to $767.9 billion. In February, it held $744.2 billion. Japan’s Treasury holdings stood at $686.7 billion in March, compared with $661.9 billion in the prior month.”
Even demand for equity securities remained strong, as foreigners purchased $12 Billion in March alone. Foreign demand and the rising stock market are probably now reinforcing each other. Meanwhile, US investors collectively continue to pull money from abroad and return it to the US; over $100 Billion has already been returned to the US in this way.
Taken at face value, this is certainly good news. Given all the bad news, the fact that capital is still flowing into the US is worth celebrating. At the same time, the fact that the Dollar continues to fall suggests that this more to the story than meets the eye…
(Courtesy: Adam Kritzer)

What Forex System to Choose? Some Technical Analysis:

In the World of Forex Trading there are so many different trading systems you could use to trade the forex market, some better suited to certain people than others. For example some people may find it easier to comprehend and take into account fundamental factors as opposed to looking at a screen covered in technical indicators, and vice-versa.The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include:Pivot pointsChart patternsFibonacci retracementsCandlestick patternsAnd some fundamental factors which are widely used include analyzing:Interest ratesTrade balancesUnemployment ratesGross domestic product (GDP)