The World Wide Forex market

Forex is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country.


Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does take place.

The most heavily traded currencies are those that include (in no particular order) the Australian dollar, the Swiss franc, the British pound sterling, the Japanese yen, the Eurozone eruo, and the United States dollar. You can trade any one currency against another and you can trade from that currency to another currency to build up additional money and interest daily.

The areas where forex trading is taking place will open and close, and the next will open and close. This is seen also in the stock exchanges from around the world, as different time zones are processing order and trading during different time frames. The results of any forex trading in one country could have results and differences in what happens in additional forex markets as the countries take turns opening and closing with the time zones. Exchange rates are going to vary from forex trade to forex trade, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.

The stock market Is generally based on products, prices, and other factors within businesses that will change the price of stocks. If someone knows what is going to happened before the general public, it is often known as inside trading, using business secrets to buy stocks and make money - which by the way is illegal. There is very little, if any at all inside information in the forex trading markets. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.

Every currency that is traded on the forex market does have a three letter code associated with that currency so there is no misunderstanding about which currency or which country one is investing with at the time. The eruo is the EUR and the US dollar is known as the USD. The British pound is the GBP and the Japanese yen is known as the JPY. If you are interested in contacting a broker and becoming involved in the forex markets you can find many online where you can review the company information and transactions before processing and becoming involved in the forex markets.
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Forex News

Fed Rate Cut Skepticism Spreads From Bank Presidents (Update1)

By Scott Lanman and Steve Matthews


Oct. 4 (Bloomberg) -- Federal Reserve district bank presidents are expressing skepticism about the need for further interest-rate cuts, and some investors agree.

The chance of policy makers cutting their benchmark rate twice more this year, to 4.25 percent, fell to 48 percent today, the lowest since the Fed cut borrowing costs on Sept. 18, futures prices show. The December contracts last week reflected a 74 percent likelihood of two quarter-point reductions.

Sentiment shifted as St. Louis Fed Bank President William Poole, Philadelphia Fed chief Charles Plosser, Atlanta's Dennis Lockhart and Richard Fisher of Dallas in the past 10 days highlighted signs the turmoil in credit markets is easing. Economic and financial reports have complemented their remarks, as commercial paper halted a seven-week slump and surveys showed continued expansion of manufacturing and services industries.

``I give them a lot of weight,'' said Keith Hembre, who helps oversee $110 billion as chief economist at FAF Advisors in Minneapolis, referring to the comments by the bank presidents. ``I don't think the evidence is clear that the Fed needs to take additional action.''

Hembre, a former Minneapolis Fed economist, expects the rate-setting Federal Open Market Committee to keep borrowing costs unchanged unless indicators ``substantially'' worsen.

``The credit markets are more stable than they were during August,'' Fisher said today after a speech in Charlotte, North Carolina. ``Things are healing.''

Federal funds futures traded on the Chicago Board of Trade were little changed after a Commerce Department report showed factory orders dropped more than forecast in August.

No Contradictions

Unlike their similar comments before the Sept. 18 Federal Open Market Committee meeting, this time the presidents' views haven't been countered by other policy makers. Fed Governor Frederic Mishkin, who last month detailed a rising risk to consumer spending, refrained from such a remark today in a Frankfurt speech. Vice Chairman Donald Kohn speaks on the economy tomorrow.

Views of policy makers and investors may still change before the Oct. 30-31 meeting. The Labor Department reports on September payrolls tomorrow and a surprise second month of declines could stoke expectations for more rate cuts.

Members of the Board of Governors in Washington and the New York Fed chief hold permanent seats on the FOMC. The other 11 presidents rotate among four voting positions. All participate in the discussions.

Countering Assumptions

Stocks fell on Sept. 28 after Poole said it would be wrong for ``markets to bake into the cake the assumption of ongoing rate cuts.'' Plosser and Dallas Fed President Richard Fisher both even broached the possibility of raising rates to keep inflation in check. ``Should further correction'' in rates be needed in either direction, ``we will make it,'' Fisher said Sept. 24.

The remarks cemented the officials' stance in analysts' eyes as ``hawkish,'' or more inclined to keep rates higher to contain inflation. Richmond Fed President Jeffrey Lacker, dissented four times in 2006 in favor of raising rates.

``I don't think another move in October is a done deal,'' said former Fed governor Lyle Gramley, now a senior economic adviser at Stanford Group Co. in Washington. ``There are a number of the hawkish presidents that would be regarded as solid economists.''

Ahead of the Fed's September meeting, Plosser said officials shouldn't put too much weight on job losses in August, while Fisher said he was ``generally encouraged'' about the economy.

Wrong Call

Such statements led many economists to speculate that Chairman Ben S. Bernanke and his colleagues would split the difference and cut rates a quarter-point. They were wrong. Speeches by Bernanke, Mishkin and San Francisco Fed President Janet Yellen focused more on risks to the economy, and such views may have carried the day.

No official has suggested he would have dissented on Sept. 18. Poole joined the unanimous decision for a half-point cut, saying Sept. 28 it was ``necessary'' given that ``we had a lot of turmoil in markets.'' Plosser called it ``appropriate'' because of slower job growth and lower home prices.

That doesn't necessarily mean all were ``fully comfortable'' with the result, said former Cleveland Fed President W. Lee Hoskins. In fact, the turmoil may have spurred a ``united front,'' he said.

``I would be somewhat surprised if you had a group of people come to a decision without some disagreement, particularly if there's high uncertainty about where inflation and the economy are going,'' said Hoskins, now senior fellow at the Pacific Research Institute in San Francisco.

Bond Sales

This time, the bank presidents' comments come amid evidence that credit markets are recovering from the sell-off that accelerated in August. Issuance of corporate bonds rated below investment grade rose to $6.9 billion since the start of last week, compared with zero sales in the first half of September.

The Institute for Supply Management reported this week that its gauges of manufacturing and services industries both indicated a continued, though slower, expansion in August. Plosser said Sept. 25 that ``much weaker'' data would be needed to change his view.

``The Fed wants to keep all of its options open,'' said Edward McKelvey, senior economist at Goldman Sachs Group Inc. in New York, who used to work at the Fed. ``They leave each FOMC meeting with a fair degree of uncertainty about what they'll do next.''

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net ; Steve Matthews in Atlanta at smatthews@bloomberg.net .

Source : Bloomberg.com Read more

Forex News

Bernanke Spoke With Rubin as Credit Crisis Worsened (Update1)

By Craig Torres


Oct. 3 (Bloomberg) -- The Federal Reserve's Aug. 7 decision to keep interest rates unchanged set off a chain of high-level discussions with Wall Street executives, money managers and cabinet officials that culminated in Chairman Ben S. Bernanke's public about-face 10 days later, according to records of his schedule.

Starting with a phone call from former Treasury Secretary Robert Rubin the day after the August rate meeting, Bernanke's appointments included Lewis Ranieri, founder of Hyperion Capital Management Inc., and Raymond Dalio, president of Bridgewater Associates.

The information on Bernanke's calls and contacts was obtained under the Freedom of Information Act by Kenneth H. Thomas, a lecturer at the University of Pennsylvania's Wharton School in Philadelphia. The records depict a chairman who ``has made a very good effort to get up to date with what is going on,'' Thomas said.

David Skidmore, a Fed spokesman in Washington, confirmed the authenticity of the document provided by Thomas to Bloomberg News. He said he couldn't provide details of discussions that Bernanke, 53, had with Rubin and others.

The conversations came against the backdrop of the worst global credit rout in almost a decade. After $38 billion in cash injections into the banking system failed to boost liquidity, the Fed on Aug. 17 cut its discount rate by half a percentage point, to 5.75 percent, and signaled a September reduction in the benchmark federal funds rate. The Fed cut the key rate a half-percentage point to 4.75 percent on Sept. 18.

Rubin's Message

Rubin, 69, now chairman of the executive committee at Citigroup Inc. in New York, told Bernanke that the Fed made the right decision on Aug. 7, even as traders complained the central bank was oblivious to weakening markets, according to a person familiar with the conversation.

On Aug. 9, Bernanke met from 11 a.m. to noon with Ranieri, a former vice chairman of Salomon Brothers Inc. and a pioneer in the mortgage-backed securities market. Fed Governor Randall Kroszner and Community Affairs Director Sandra Braunstein, who also runs an enforcement team, joined the conversation with Ranieri. Ranieri, 60, wasn't available for comment.

Dalio visited Bernanke at 2 p.m. the same day. Bridgewater is the fourth-largest U.S. hedge fund firm, with $32.10 billion in assets under management as of July 1, according to HedgeFund Intelligence's Absolute Return magazine.

Dalio's office in Westport, Connecticut, didn't return telephone calls seeking comment.

Exchange With King

According to the Fed records, Bernanke consulted throughout the month with staff experts, investors, congressional officials, community groups and Bank of England Governor Mervyn King.

Bernanke and King spoke by telephone at 1:30 p.m. on Aug. 17, following the U.S. discount-rate cut that morning. Bernanke was also in frequent contact with Treasury Secretary Henry Paulson, who said in an interview last month that he meets the chairman regularly.

Bernanke's schedule lists 35 Fed conference calls from Aug. 9 to Aug. 31, including at least two during the central bank's summer retreat at Jackson Hole, Wyoming. During the first full day of the symposium, Bernanke said in a speech that he would do what was needed to keep the six-year economic expansion going.

On the eve of the Aug. 7 rate decision, Bernanke received a briefing from Fed staff on markets. He also spoke with Timothy Geithner, president of the Fed's New York branch and the central bank's chief liaison with Wall Street.

Adding Reserves

In the days after the rate meeting, as Bernanke touched base with executives and investors, credit costs climbed. The Fed added more reserves to the banking system than any time after the terrorist attacks of Sept. 11, 2001, in an attempt to increase liquidity.

Yield differences between high-grade debt and riskier credit widened, according to a macroeconomic risk index tracked by Citigroup Global Markets. The index rose to 0.98 on Aug. 17, with a reading of one being a measure of high risk aversion, up from 0.89 on the day before the rate decision.

Wayne Passmore, a Fed expert on mortgage finance, met with Bernanke at least four times in August, including before and during Bernanke's Aug. 2 meeting with Freddie Mac Chairman Richard Syron, the schedule shows.

``He is going up and down his staff,'' gathering information on markets, Thomas said, referring to Bernanke.

The chairman continued to get reports on market conditions from investors after cutting the discount rate.

On Aug. 23, the schedule says Bernanke took a call from John Brennan, 53, chief executive officer of Vanguard Group. Senior Fed economists Brian Madigan, now in charge of the Monetary Affairs Division, and Patrick Parkinson, a financial stability expert, participated.

Vanguard managed $1.1 trillion in mutual fund assets at the end of 2006, according to the company's Web site. Officials for the Valley Forge, Pennsylvania-based firm couldn't be reached for comment.

To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net


Source : Bloomberg Read more

Forex News For Today October 03, 2007

Japanese Financial Stocks May Advance; Nikko Cordial May Jump

By Chen Shiyin and Kiyori Ueno

Oct. 3 (Bloomberg) -- Japanese financial stocks may gain after Citigroup Inc. said it plans to buy the rest of Nikko Cordial Corp. it doesn't already own and on speculation that the worst of the U.S. credit-market crisis may be over.

Nikko Cordial may rise after Citigroup said it will buy the remaining shares at a premium to its last traded price. Lenders including Mitsubishi UFJ Financial Group Inc. and securities firms may advance on the view declines triggered by the subprime turmoil were excessive.

Measures tracking banks, consumer lenders and brokerages were among the Topix index's four worst performing industry groups last month as U.S. subprime mortgage losses led to a surge in borrowing costs worldwide.

``Financial stocks may be a target of bargain-hunting,'' said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. in Tokyo. ``There's a view that the subprime problem is in the past, at least for the time being.''

Honda Motor Co. and Nissan Motor Co. may climb after the automakers reported higher U.S. sales last month. Lower sales may drag on shares of their largest rival, Toyota Motor Corp.

Nikkei 225 Stock Average futures expiring in December ended at 17,090 in Chicago, down from the close of 17,110 in Osaka and 17,160 in Singapore yesterday. The Bank of New York Japan ADR Index, which tracks the nation's American depositary receipts, advanced 1.1 percent.

The Nikkei climbed 1.2 percent to 17,046.78 yesterday, closing above 17,000 for the first time since Aug. 9. The Topix index added 1.5 percent to 1,639.79.

About seven stocks advanced yesterday for every five that slid on the New York Stock Exchange after the pace of takeovers picked up and investors speculated falling August home sales may mark the bottom of the housing slump. The Dow Jones Industrial Average slipped 0.3 percent, a day after reaching a record high.

Nikko Cordial

U.S.-traded receipts of Nikko Cordial, Japan's third- biggest brokerage, jumped 19 percent from yesterday's close in Tokyo. Citigroup will buy the remaining 32 percent of the brokerage for about 1,700 yen a share, or about 530 billion yen ($4.6 billion), less than six months after acquiring control of the company.

Measures of banks and securities companies dropped 7.1 percent and 5 percent, respectively, in September, even as the broader measure gained 0.5 percent.

Financial shares rallied yesterday after Citigroup Inc.'s Chief Executive Charles Prince said the largest U.S. bank expects ``to return to a normal earnings environment in the fourth quarter'' and former Federal Reserve Chairman Alan Greenspan said the credit slump may be ending.

Receipts of Nomura Holdings Inc., Japan's largest brokerage, added 0.6 percent from the closing share price in Tokyo yesterday. Those of Mitsubishi UJF, Japan's biggest publicly traded lender, rose 0.9 percent, while Mizuho Financial Group Inc.'s receipts gained 0.6 percent.

Automakers, JFE

Honda, the second-biggest Japanese automaker, reported a 9.4 percent gain in its U.S. sales while those for Nissan, the No. 3, increased 6.7 percent. Toyota, the largest, said its sales fell 4.4 percent.

The industry's annualized sales rate fell to 16.2 million last month, down from 16.6 million a year earlier, according to Bloomberg data. That's the fourth consecutive month of declines.

JFE Holdings Inc. may be active after Nikkei newspaper reported that the company's JFE Steel Corp. unit will raise the price of steel plate used for ships and heavy equipment by 15 percent as raw materials costs increased.

The company will boost the price by about 10,000 yen a ton to about 80,000 yen during this fiscal year, the highest price since the late 1980s, the newspaper said.

JFE will also team up with Toshiba Corp., a maker of heavy electrical machinery, to build small and midsize steam turbines for power plants, the Nikkei reported separately.

To contact the reporter for this story: Chen Shiyin in Tokyo at schen37@bloomberg.net ; Kiyori Ueno in Tokyo at kueno@bloomberg.net .

Source From Bloomberg Read more

Dollar Falls to All-Time Low Versus Euro on Fed Rate Outlook

 By Min Zeng

Sept. 29 (Bloomberg) -- The dollar fell to the lowest against the euro since the 13-nation currency's debut in 1999 as slowing growth and inflation increased speculation that the Federal Reserve will cut interest rates a second time this year.

The U.S. currency depreciated to an all-time low versus a basket of six of its major peers and posted the biggest monthly drop against the euro in almost four years. The dollar may decline further next week before a government report economists expect to show the U.S. unemployment rate rose in September to 4.7 percent, the highest in more than a year.

``Continued dollar weakness probably is still in the cards,'' said Ihab Salib, who helps oversee $3 billion in international bonds in Pittsburgh at Federated Investments Inc. ``I don't expect a meltdown in the dollar. It will be a moderate depreciation.''

The dollar fell 4.5 percent to $1.4267 per euro in September, reaching the record low of $1.4278 yesterday. It was the biggest monthly decline since December 2003. The U.S. currency reached all-time lows in each of the past seven trading days. The dollar posted a 5.1 percent drop in the third quarter, the biggest since the second quarter of 2006.

The New York Board of Trade's dollar index reached 77.66 yesterday, the weakest since the gauge began in 1973. The Fed's trade-weighted index comparing the dollar with major currencies dropped on Sept. 25 to the lowest since its inception in 1971.

Norway's krone was the biggest gainer this quarter, rising 9.4 percent against the dollar, while New Zealand's dollar lost the most, falling 1.9 percent. The dollar declined 6.8 percent to 114.81 yen over the same period.

U.S. Dollar Weakness

The U.S. dollar weakened against all of the 16 most actively traded currencies this month, falling 1.5 percent against the pound and 0.8 percent versus the yen. For the year, the dollar has lost 7.5 percent against the euro, 4.3 percent against the pound and 3.6 percent versus the yen.

The yen fell against all the major currencies except the dollar this month as the Fed's half-percentage-point rate cut on Sept. 18 encouraged carry-trade investors to resume borrowing in Japan to buy higher-yielding assets elsewhere. The yen lost 3.7 percent to 163.79 per euro, declining 7.1 percent against the Australian dollar and 6.6 percent versus the New Zealand dollar.

Japan's currency rallied on Aug. 17 to the highest against the dollar since June 2006 as higher borrowing costs related to subprime-mortgage losses led investors to avoid higher-yielding assets. The yen rose this quarter against all of the 16 most actively traded currencies except Norway's krone.

Consumer Confidence Plunges

Reports this week showed consumer confidence fell to almost a two-year low while new-home sales sank to the lowest in seven years. The price gauge tied to spending patterns and excluding food and energy costs, the Fed's preferred measure, rose 1.8 percent from August 2006, the smallest annual gain since February 2004.

Former Fed Chairman Alan Greenspan said yesterday in an interview with BBC Radio 4 that the chance of a U.S. recession is higher now than a few months ago.

The Labor Department will report on Oct. 5 that the unemployment rate rose to 4.7 percent this month from 4.6 percent a month earlier, according to the median forecast of 64 economists surveyed by Bloomberg News.

Futures contracts showed 86 percent odds yesterday that the central bank will cut its target to 4.5 percent at its next meeting Oct. 31, compared with a 14 percent likelihood a month ago.

Signs of Inflation

The euro also benefited this week as signs of rising inflation in Europe may increase speculation that the European Central Bank will boost interest rates before year-end.

Germany's inflation rate, measured using a harmonized European Union method, accelerated to 2.7 percent from 2 percent in August, the Federal Statistics Office said Sept. 27. That's the most since June 2001.

M3 money supply, which the ECB uses to measure future inflation, grew 11.6 percent from a year earlier after increasing 11.7 percent in July, the central bank said Sept. 27.

``This will get ECB concerned, and the expectation of an ECB ease was squashed,'' said Robert Sinche, head of global currency strategy in New York at Bank of America Corp. ``The euro-dollar move is a combination of dollar weakness and euro strength.''

The ECB is expected to keep its target rate at 4 percent when its board meets on Oct. 4, according to a Bloomberg survey. The Bank of England is expected to hold its rate at 5.75 percent the same day.

ECB President Jean-Claude Trichet yesterday told Dutch television it's ``too early'' to decide whether financial-market turmoil will hurt economic growth in the euro region.

The Euribor futures for delivery in December rose to 4.61 percent yesterday from 4.49 percent a week ago. The futures dropped to as low as 4.24 percent on Aug. 21 during the global credit crisis.

From: Bloomberg.com Read more