Dollar Falls Slightly

The US dollar fell slightly against the Euro and the Japanese Yen due to an ease in risk aversion spurred by the news that the US government plans to inject $20 billion in capital to rescue the troubled Citigroup bank. European and US stock markets reported gains signaling risk appetite which could further weaken the dollar. The dollar remains a safe haven for risk adverse investors and provides plenty of Forex opportunity.

Citigroup Bailout Welcomed by Investors

While many investors remained cautious because of global recession fears, the news of the Citigroup bailout was welcomed by investors seeking more Forex opportunities. Dustin Reid, director of Forex strategy at RBS Global Banking & Markets in Chicago stated, “The forex market continues to be all about risk appetite and its proxy, equities.â€

 He also stated that the rescue plan, “Clearly sends a signal that some of the U.S. banks, in the government’s view, are too big and important to fail. The move should also help to calm overall market sentiment for the very short-term.”

In morning trading in New York, the euro was up 1.4 percent against the dollar at $1.2758 EUR, while it also rose 1.2 percent to 122.12 yen EUR/JPY. The dollar slipped 0.2 percent to 95.70 yen, while the British Pound followed the rising direction of UK share prices and rose 0.7 percent to $1.5005.

Geithner Named Treasury Secretary

US stocks experienced rising demand but the dollar has been falling following the news Timothy Geithner will be named by U.S. President-Elect Barack Obama as Treasury secretary. Obama is expected to officially name Geithner as Treasury Secretary at a news conference scheduled for noon today. (Monday, Nov, 24, 2008) Geithner had previously been president of the Federal Reserve Bank of New York.

German Economic Figures Grim

In Europe the economic climate remains gloomy. In Germany the Munich-based IFO economic research institute said its business climate index declined to 85.8 in November from 90.2 in October, it’

s lowest since February 1993. The German economy is the largest in the Eurozone and weak economic figures could signal further rate cuts.

The Forex market continues to offer investors Forex opportunities that stock and commodity markets cannot match at the present time. The Forex market has not experienced the volatility of stock markets and all indicators point to plenty of Forex opportunity in the near future.

Investors Seek Safe Havens

In today’s economic crisis investors are seeking safe havens from the financial storm that is battering the world’s economy. Throughout the world markets are plunging, and companies seeking credit for day to day operations are forced to lay off employees and consumers are fearful and spending less adding to the economic crisis. One of these safe havens for currency investors is the US dollar which continues to offer Forex opportunity in troubled times.

Disappointing Statistics

Disappointing economic statistics released Friday sent stock Markets plummeting throughout the world. In Europe the Markit Purchasing Manager’s Index fell to its lowest in 10 years. In Asia currencies sank on Forex markets making it harder for companies to pay off debt that is in Dollars and Euros. The exception was Japan where the Yen rose to a 13 year high. Japanese exports are floundering and the deepening economic crisis in the US and Europe is sure to have an adverse affect on Japanese exports. Despite the negative economic statistics global currency markets continue to provide investors with Forex opportunities.

Read the full story

Investor Confidence Returning

On Tuesday the Euro rose sharply against the Japanese Yen signaling investor confidence that the coordinated European bailout plan will revive floundering banking systems. The gain followed announcements by Britain, Germany and France to recapitalize their banking systems taking the apprehension out of extreme risk aversion and hastening the selling of the Japanese Yen. The US dollar remained strong against most major currencies providing investors with plenty of Forex opportunity.

Yen Gains Amid Recession Fears

Last week the Japanese Yen saw stunning gains as investor uncertainty over how much deeper the global financial crisis was going to get prompting many investors to unload risky carry trade positions as global share prices fell sharply. The US also announced plans to recapitalize banks. Insiders familiar with the US plan said that about half of the proposed $250 billion would go to the nation’s largest banks. Japan’s Finance Ministry announced plans on Tuesday to stabilize financial markets, including the passage of a law enabling public fund injections into regional banks.

Read the full story

Effects of the Current Crisis

The current financial crisis will affect many aspects of the life of the average person in the foreseeable future. Investors will see shrinking portfolios, job prospects will dim, and retirement funds will dwindle. Credit markets will freeze; small businesses will feel the pinch and many will see their net worth diminish.

The Financial Crisis and US Leadership

The financial crisis may also have an unforeseen effect-the limitation of the US to exert a leadership role in world affairs. Since World War Two the US has been the most powerful nation militarily but just as important is the reputation of the US as a financial powerhouse. New York has long been considered the world’s financial center. The status of the US dollar as the world’s dominant currency gave it special powers and privileges. “The dollar’s status as a reserve currency … has given the U.S. a privileged measure of economic stability relative to its rivals,” said journalist Sebastian Mallaby, of the Council on Foreign Relations. “It has allowed the U.S. to project power abroad, too.”

Read the full story

Forex Opportinity For Small Investors

Many small investors in both Europe and the US are interested in Forex trading but have little or no understanding of how Forex markets work and how to invest. Before trading Forex, or any other markets for that matter, a thorough education is paramount. Forex education and training are necessities for those potential investors who wish to participate and take advantage of Forex opportunities.

Researching Forex Opportunities

There are several ways that investors can educate themselves about Forex markets and opportunities. The internet is the logical place to start and just typing the word ‘Forex’ in a Google search will garner millions of results. Beware of sites that make outlandish claims and offer no useful information. Many Forex sites are blatant advertising sites that offer no real information and should be avoided. There are many legitimate websites that offer thorough Forex training and many of these sites offer demo accounts where potential Forex traders may trade imaginary currencies in real time. These demo accounts allow potential Forex traders to get a feel for the market ,how it works ,and to learn how to take advantage of Forex opportunities

Read the full story

A Brief History of Forex

Since the Forex markets have no central location and conduct business using various electronic platforms investors in the UK enjoy the same opportunities as traders around the globe. Forex opportunities can be accessed from anywhere with internet service. Historically modern Forex markets came into existence with the Bretton Woods agreement which established rules for commercial and financial transactions between industrialized nations. The Bretton Woods agreement was instrumental in the reconstruction of Europe after World War Two.

In the early 1970’s the gold standard was abandoned and currencies were allowed to float freely. By the 90’s various policy changes allowed small investors to enter this lucrative market. Today Forex trading is popular in both Europe and the United States and the UK is no exception. Forex markets are the largest in the world with approximately 2 trillion dollars US traded daily. No longer the exclusive domain of large banks and corporations, Forex markets now provide astounding opportunities for the average investor.

Read the full story