The foreign exchange market is a highly volatile market that requires traders to be watching positions carefully. Within a few seconds time, currencies can move in either direction and drive investors out of their positions. The most popular method to trade these types of markets is through the use of technical analysis. Technical analysis revolves around the study of the supply and demand that is happening within the market place. The demand will have an impact on the price and the investor can use the analysis of the price movement to gauge what direction the market might be headed. Technical indicators are not a sure bet and do not provide the trader with the one magic equation to make money. These indicators are simply showing you what the price has done in the past, be it hours or minutes, so the trader can develop a plan for a future trade. There are a few technical indicators that are used to trade Forex more than others. Some of the best forex indicators include: simple, exponential, and weighted moving averages, stochastic, and ADX momentum study.
Markets celebrated throughout the world last week when the European Central Bank decided to follow the lead of the US and the UK by printing money by the bucketload.
The euro, since it has existed, has been a strong and reliable currency. This isn’t because of the underlying governments, which are as bad as governments anywhere. Nor is it because the economies have been strong or weak. It’s because the Germany’s influence on the ECB prevented it doing anything idiotic, such as printing money, buying sovereign junk debt, or keeping interest rates at absurdly low levels.
As a result, the US dollar fell from 1.07 euro at the start of Bush Jr’s term to 0.77 at the end. The result: a 28% decline in the value of the US dollar. It would have been over 40% if the financial crisis hadn’t been engineered.
Since it was formed 10 years ago, Euro has become a solid currency. However, things are going on the opposite way in the last few weeks. It start with Greece where their budget deficit reach more than 12%.
The problem seem to be cantagion to PIIGS country (Portugal, Italy, Ireland, Greece and Spain). Germany, European Union strongest economy seem not willing to help out what they see as a bunch of Mediterranean layabouts.
New York-based investment bank Morgan Stanley is among those saying the possibility of a euro collapse has to be considered. So, if the euro might not be around in 2020, here are seven trades to start thinking about.
Foreign exchange reserves are the foreign currency deposits that held by central banks and monetary authorities. In Malaysia it is also known as International Reserves. It comprices of Foreign Currency, IMF Reserve Position, SDRs, Gold and Other Reserve Assets.
As of 29th January 2010, International Reserves for Malaysia is at USD97 billion (MYR332.2) and Malaysia is at 16th position when compare with other nation. International Reserves data are released by Bank Negara Malaysia twice a month.
Below are the chart for Malaysian International Reserves since end of 1999. The chart will be updated regularly. You may bookmark this page instead of this post for easy access.
Bank Negara Malaysia recently warned the public not to participate in illegal investment or training programme on forex or foreign currency trading. All such programmes that offered by individuals or companies both domestic and foreign are included.
Members of the public are usually enticed to attend such investment or training programmes which promises a quick and good returns.
The modus operandi of such programmes includes offering free training, seminars or workshops to lure investors. During the session, investors asked to set-up an online foreign currency trading account with their parent company which they claim having a valid licence to trade foreign currency overseas.