How to Invest in Forex in these Times?

“To understand Forex is important to also have some concepts in mind, plus some tips about how to be a dealer and understand markets…. This, with a combination of the current events that create breaking news”

Introduction

Inside the basics of knowing Forex, and to be introduced in the planet of the currencies and trading, there are main basic concepts to know about it. One of the main pillars, many people say, is some topic in Economics.

Basically, the Economical science gives tools to analyse events that happen among the markets and in between the economic actors. And y that, it is intended, in short words, everything and everyone that can be affected of has influence in some other event/agent. 

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Sterling in this week has been affected by the increased volatility, but could recover the loss against the US Dollar. The US Economy send mixed signals, in unemployment and the non-manufacturing companies.

This week has contributed to the materialization of some concerns and certainties investors have about the development of Europe and the economy, not leaving behind the contagion (possible) effect.

The main conclusion, after all, is that economy y is not yet as solid as it was before the 2008 crisis. There are at the bottom, other significant analysis. This is a general acceptance, now that the debt crisis in Europe continues to send negative signals; and then, the fact that US provides mixed signals: ...Read More

Services Sector in the US impacted the global markets. Moreover, in Europe the interest rate holds in 1%

Services sector in the US can be so relevant for the economy, that the fall in the Services Sector Index, provided by the Institute for Supply Management, made global financial markets tremble, another prove of how weak markets continue to be.

The index, before yesterday, had expectations to end at better levels, at 55.5, as many experts forecasted. Unfortunately, the report said it reached a result of 53.5, and despite the thoughts were convinced on a lower number than the one presented in March (56.0), ....Finance News - Read More

With less volatility, FTSE 100 shows a rising but firm trend. The British pound, instead, absorbs PMI for the services sector.

Financial markets in UK are showing a diverse trend than peers in the Euro Zone, after one day of knowing the high unemployment rates, never seen in 15 years.

With high expectations about tomorrow’s ECB meeting, and new data about unemployment rate in the US, the FTSE 100 shows a rise of 0.37 percent, behind German Dax 30 (1 percent) and Italy’s Ftse Mib (0.79 percent). Nevertheless, the volatility on the markets in Europe is really high, and this is a reason why Forex Investors look for pounds as a way to refugee their investments previously made in Euros.....

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Construction in UK and bad unemployment news from the Euro Zone makes the sterling rise

As analyzed before in some occasions in this portal, construction is a pushing sector that reflects in the overall, the conjuncture of an economy. This in the UK is not excluded. With a good performance in April, as economists said, in the construction sector, will give more related advantages respect to critical economies, like the Euro Zone. ....Read More

In the Labor Day, Sterling absorbed the results of the Purchasing Managers’ Index

In a labor holiday, where most of European markets are not on duty, the sterling is absorbing easily some negative data about the Purchasing Manager’s Index (PMI), where the data showed a fall to 50.5 in the month of April, 1.4 points below march. Even if it is above 50 points the constant rate that decides a contraction, the trend goes back to levels presented in 2009, when the PMI recovered from the crisis.... Read More 

Spain and its GDP will help to support a Growth Agenda in the Euro Zone.

Suggestions about a new Euro Zone crisis, meaning repetitions of the debt struggle, are going to be the new task for the European Central Bank. The issue now is not austerity rules anymore, where this kind of policies are difficult and painful to achieve, and the easy lending was used to increase liquidity and reduce risk, but it seemed that was more to benefit only the banking sector and did not encourage investment and safety guards for small and medium companies. ...Read More - Money EX

Shares are rising due to the guarantees provided by the FED, but the Sterling is still absorbing the GDP drop

In the United Kingdom the market is still absorbing the negative impact related to the fall of the GDP in the first quarter of the resent year. Nonetheless, positive news coming from the US are making shares rise, especially in Asia, and it is likely to contact the western hemisphere.

Meanwhile the FED put some guarantees on promoting growth, Asian markets reacted with more positivism into their shares. Basically, what the Federal Reserve meant was of keeping a quantitative easing policy, as long as it supports the increase of the output in America.Money EX - Financial News Read More

Despite experts’ forecasts, UK’s GDP feel 0.1 in the first quarter of the year.

In an opposite trend to what experts forecasted, the ONS declared today that UK’s economy shrank in 0.2 percent in the first three months of the year, and with that, the technical recession of two consecutive quarters with a negative growth.

After a fell in the output of 0.3 percent in the period October-December, economists had a piece of hope for the beginning of this year, and that is the reason why they expected a growth, modest, but real, of 0.1 percent. Instead, the construction sector, the main sector that has been deeply analyzed in this column, has struggle to maintain and recover the pre-crisis performance..... Money Expert - Read More

In this year of Public Debt concerns, UK in march shows a higher net public debt, nut a lower impact in the GDP, meaning that they have more space for more policies to encourage growth.

2012 has been the year of debt policies in Europe, and the attention of all investors is to know how are the figures related growing, and what are the institutions doing for to escape from this bitter situation.

In UK, March has not helped to convince the markets, because the net public borrowing rose more than expected, leaving always the question about if it will be possible to reach the full year’s target. Basically, excluding financial sector, the public sector deficit increased to 18.174 bn pounds in March....Financail Forex Read More

Volatility caused by the Banking system holds the stock markets on red, but the BoE says that, even if there will be shown negative numbers that relate to a possible recession, the real situation is different than what the numbers show.

The Banking system in Europe s holding the whole financial system, as the markets became so volatile this week, with a couple of days of positive closures, but data seems to show that next week will begin in negative. This can be a strong consequence of all the austerity measures versus the huge injection of capital, which at the end can result into a credit crunch that is penalizing ....Currency Exchange - Read More

Volatility is increasing. Europe presents a lot of divergences in trends, and US is hit by the Tech sector. All of this, was taking into consideration by the BoE, analyzing a possible QE

These weeks, and the previous ones, have shown that what today rules is a significant increase of the volatility of the markets. In short terms, markets are into panic every time more than before. For instance, Italy yesterday was one of the lowest performers with the Ftse Mib in Europe, but two days ago was the one with the most outstanding closure in the stock market. ... Money Exchange - Read More

Banks are helping European stock markets grow. The winner is Italy, with the FTSE Mib rising over the 3.6 percent.

The Banking System bust feel satisfied in Europe, not only because all the guarantees they have been provided by the governments, and international institutions, such as the ECB and the IMF, but now credit organizations are regaining in the stock markets.... Currency Exchange

A Mixed situation where US are recuperating, but fears of debt in SPain keep the markets surrounded of fear and volatility.

After a high volatility, and mixed, Monday, US was benefited with the Retail Sales. But still, fear is on the air. S&P was down in 0.05 percent, meanwhile the Dow Jones increased in 0.56 percentage points. Thanks to an increase of 8 percent respect to 2011, ....Read More

Quarterly growth in China released on Friday made markets tremble

Chinese Economical Data was not accurate with forecasts, and this, of course, disappointed markets, revealing negative performances. The expectations of a rising GDP growth for the first quarter in China was not enough, and combined with the tensions in Europe,....Read More

Italian Bonds Auction represents a new sign of confidence in the short term in Europe and the UK is grateful showing more Exports to this continent.

Days after the negative impact of the US jobless claims, markets are retaking back and optimistic trend when news from Italian debt are bringing back signs of optimism. Bond yields in Italy are gaining demand, and yesterday ended with lower yields, which represents a factor that, even if investors expected lower gains, the attractiveness of the assets is increasing. In other terms,...Read More

European shares opened this week absorbing the US Jobs Report that impacted yesterday Asian markets

Following the drops in Asian financial markets, the negative shock from US Jobs data, released last week, made also a downbeat to UK. Beginning with the stock market, UK’s FTSE fell 0.8 percent, due to the fact that investors couldn’t react yesterday, since financial markets in Europe were close yesterday due to holidays. With this,....Read More

In UK services show signs of new possibilities for boosting the economy, even if retail sales in europe has not taken off yet.

This week shows diverse contrasts that send bad signals to markets in general, and to investors, especially in the european context, seen as a whole continent.

Currency shows gains against dollar, but the real sector has not taken off yet, meaning that there is still a gap between what economical agents expect and what is really happening. This keeps the book open in the decisional criteria for the central bank....Read More

The ECB has much more to do than ever: unemployment, debt, budget, and new concerns on prices inflation, which results on decisions over the interest rate that impacts instantly currencies.

Europe is again on the heat zone, and the problems continue to be the same. With no back data as a strong support for investors, showing record-high unemployment rates and a weak industrial performance, the economy is not responding effectively to the package of stimulus made before.

In the general panorama,....Read More

Europe is quitting in optimism, as data of unemployment shows eight straight months increasing.

Despite the push up in the world markets thanks to the PMI data in China, boosting even the not so strong european markets, gaining in value also I the Forex markets, data on unemployment made this small gains disappear.

Even worse, since the introduction of the Euro in the 17 countries as a currency, the zone has never perceived a so high unemployment rate. The statistics office for the Euro zone, Eurostat, announced a level of 10.8 percent in february of the present year, 0.1 percent higher than January.....Read More

A week with mixed symptoms, ends with a high levels of the sterling against the US Dollar

This week is ending with mixed signals, without being sure about what is the new trend that is impacting the markets, or if finally, the markets will start to progress and keep a stable positive path.

Beginning with impacts about slow and unexpected performance in China, and the good data from the US, in Europe, the debt crisis is topic behind, but these non uniform trends are pressing in to panic the old continent. ...Read More

Finance Ministers in Europe to meet and agree a new support for the next 15 months. Stock and Forex markets reacted positive about this.
 
In the front line, finance ministers are acting instantly to some symptoms of more negativity implanted into the markets and making investors be more risk averse, and decrease their trust in the European economy, and the sights of a possible solution in the short term of the debt crisis. This is why, in  order to increase the investors' confidence, the ministers of the 27 countries are thinking about setting a new back support in case of an emergency for the next 15 months. Complementing the European Stability Mechanism, this could mean 500 bn more Euros available, in case that a country enters into a critical emergency, like it happened to Greece not so long time ago....Read More

New worries in the financial markets. Data of business profits in China are pulling down shares in the world.

With China on the lead, financial markets are worried about new signs of negative trend, and low performance. After the red numbers yesterday, today the equity markets in Hong Kong are still suffering the panic in the world. The shares are receiving negative shocks from the banking and energetic sectors in China, and by that, .....Read More

UK’s GDP contracted in the last quarter of 2011, below the forecasts. Instant impact in the Forex market with low levels of the British Pound

UK’s economy still needs to do and hold onto the austerity plans, now that the Office for National Statistics mentioned today that in the last quarter of 2011, the economy dropped in 0.3 percentage points, meaning in the final 3 months of last year, the economy contracted more than expected by analysts. This growth categorized in the period October-December made the annual growth rate stay in a growth of around 0.5 percent, 0.2 percent ....Read More

News from Abu Dhabi and Comments from the Federal Reserve help markets in Europe to escape for a moment from last week’s negative scenario.

News from Abu Dhabi pushes up the stocks of the part-nationalized UK bank Royal Bank of Scotland. The rumours spread say that the government is analyzing a possibility to share part of the bank to some Abu Dhabi’s investors. This contributed to keep, among other positive news, the FTSE 100 up to 0.43 percent increase, from which 6.05 percent corresponds to the RBS’s growth in the stock market....Read More

New debates of the granny tax to increase consumption, the variable that needs to be incentivized after new data from consumers’ confidence.

The economy in Europe has demonstrated that it can be recovered. The main question left is, how to keep the optimism in the markets, and at the same time, control the inflation, and thus, prevent high volatilities in the Forex segment? This long concern can be summarized in, how to incentive growth to the economy? And by that, the positive trend will no more be something to speculate about, but something more real that will permit analysts to make... Read More

A week against the expectations, taught the markets that the economy needs more than optimism. Currencies are back to more volatility.

This week is over and the expectations are focusing on the next one. The main reason is that the economy still seems to be volatile, and the crisis damage is not totally healed. The British Pounds was having, in the previous week, an interesting performance, rising up to high values against the dollar, and starting to be again attractive at the same time showing a stable trend. ....Read More

A different week from the previous, equity markets are starting to wonder. FTSE in Negative, but the Sterling is performing positively.

This week has been acting different from last one. Optimism is not as high as seven days ago, and investors are wondering about the effectiveness of all the policies made in Europe, to come out from the crisis and re-boost the economy. The previous LTROS provided by the European Central Bank were supposed to act as an item to calm down the markets and let them increase results. At least, in the short term,.... Read More

Markets and oil are waiting for more positive news to gain optimism and keep the same movement of last week.

Different respect to last week, markets this week are not so active. Oil prices are still reflecting some preventive measures waiting for more confirmation of an economic recovery. On the positive field, the fact that Apple announced payments of dividends and a USD 10 bn payback program, kept some of the investors with optimism and enthusiasm, .....Read More

A new trend in the markets is showing United States accelerating with optimism, impacting Europe. Investors might have mixed reactions in UK, impacting the Sterling, in which this week hit high against USD.

The second week of March of this year has been characterized by a change of trend in the markets. More specifically, in the United States where good data supported high records of the Dow Jones and S&P. This positive shock also impacted in Europe, thanks to a new air of optimism after the deal between Athens and its Bond holders. After this, and the £109 bn for Greece’s bailout...Read More