Aussie, the Australian dollar is now at the stress free rally on the trade on Wednesday. The kiwi is also relaxed as they have seen their heights in recent days and developed a little from their lows. Aussie is now much scared to trade or has any contracts as they showed up their economy status. They showed that their GDP (Gross Domestic Product) is 1.2% in the mid of the march.

Before three weak when we look at the values of the Australian dollar it was at $1.0757 which is considered to be the peak value and that was set as reference on Tuesday whereas on Wednesday it was at $1.0751. On Tuesday a report on the net exports was issued and that implied that they possess a decreased 2.4% points from their growth in the quarter part.

Dealers and investors said that the Aussie dollar is at unwinding position which means it values can’t be predicted at instance. However, they concluded that they re resistive at values from $1.0637 to $1.0757 and they have given a growth diagram on the Australian dollar. The rates on hold would 4.75% decided by reserve bank and they finalized their meeting on next week.

The bank bill doesn’t seem to support the customers however no much chance will be imposed on the interest rate hikes in this month nevertheless the neck pack tight will be seen in the October month. Australian bonds faced their bad time now and they are everywhere low now. The 10-year contract decremented for 0.08 points and reached 94.715 and 3-year contract low for 0.11 and now at 95.040.

The New Zealand dollar value is now at $0.8200 where it was actually at $0.8246. However, traders believe that they would soon be constant at $0.8219. Kiwi reached its 26 year record high on the Tuesday trade. They are now at $0.8264 and in the end of the month they would be $0.8300.

Related posts:

1. Aussie is now at striking peak against dollar
2. Aussie Dollar Falls on New Home Loans
3. The pound continues its rally against a broadly weaker aussie

In the Philippine, Stock Exchange BEL or Willy Ocier-led Belle Corporation was one of the top stories among the domestic stock market last year. Belle Corporation was actually a sleeper during the first half of last year (2010). It was only trading around a PHP of 1.80 in the month of July before it moved to north. From the month of August to the December of 2010, it had a rise from PHP 1.85 to PHP 4.60.It didn’t stop there as Belle Corporation  continued to move higher in the first month of 2011 and on 19th of the same month, it reached a high PHP of 6.49. Then onwards a profit taking took over and the stock was slid back to a much low PHP of 4.92.

Many people have started asking, “Will BEL soon get back on the bullish track?” I would say that given its present technical set-up, there is a pretty good chance that Belle Corporation would surely make a turn around and will head back to north. As it’s very clear from its daily chart, BEL has weakened back to the PHP price level of 5.00. If you notice, that this mark also coincides with the 38.2% Fibonacci retracement level of the last up wave, making it a better level of support. The issue’s uptrend level is still around to keep it from decreasing further. Moreover, a hidden bullish divergency, where the price registers higher lowers while the RSI makes lower lows, is also present. This suggests that the traders and investors could quickly pick up the stock. A rally from PHP of 5.00, therefore, could send it back to its former high PHP level of 6.49.On the other hand a break below that, could push its PHP down to the other Fibonacci retracements PHP levels ranging from 4.50 or 4.00.

Related posts:

1. Weak US data enabled the US dollar to continue clawing back losses against the euro
2. Sterling halted its recent rally and is slipping back sharply against the kiwi as UK GDP figure disappoints
3. The single currency slipped back on Friday following weak Bank of America earnings

The kiwi dollar struggled on Friday enabling the pound to jump 1.4%, briefly nearing the 2.30 level, as risk appetite in the market waned.

• Higher-risk currencies struggled to make headway at the end of last week as the rally in global equities in the wake of the positive US GDP data came to an abrupt halt.
• As global stocks fell, investors sought shelter in the haven currencies fuelling a sell-off in the higher-yielding kiwi dollar, buoying the sterling price.
• In trading this morning, the New Zealand dollar has pulled back from six-week lows against the pound, with profit taking in high-yield currencies taking a pause.
• Support has also come from improved manufacturing data in China, a key importer of New Zealand goods, which has outweighed some of the negative sentiment toward the currency.
• Analysts have noted though that reduced support for a rise in interest rates and lower risk appetite may prevent the kiwi from regaining its strong valuation.

Related posts:

1. A rise in risk aversion weighed on the pound on Friday, supporting dollar gains
2. Demand for the kiwi remained strong yesterday, but it has lost ground in the wake of comments from Ben Bernanke
3. Sterling traded strongly at the end of last week against the kiwi but has slipped back sharply this morning

The dollar strengthened, consolidating after broad selling on the back of data showing strong US growth, gaining over a cent on the single currency.

• Equities took a sharp downturn at the end of last week, having rallied after the positive US GDP data, most likely as a result of end of month profit taking, which buoyed demand for the greenback.
• Data also showed that US consumer spending fell for the first time in five months in September, coinciding with the end of the government’s car scrappage scheme.
• The US Commerce Department says spending dropped 0.5% in September, compared with a 1.4% rise in August, which encouraged investors to buy back into the haven currency.
• The US dollar extended gains in the afternoon, pushing the euro down near three-week lows after data showed that a US Midwest manufacturing index was stronger-than-expected failed to heighten risk appetite.
• The euro has climbed in trading this morning with the price currently hovering around the mid 1.47 mark.

Related posts:

1. Euro lost ground vs the dollar following an easing in risk appetite
2. Sterling lost ground against the euro on Friday, and has dipped below 1.09 in trading this morning
3. The euro made ground against the dollar on Friday, but has relinquished its gains this morning

Related posts:

1. RBS recommends buying euro / dollar on the decline
2. The euro has made strong gains against the dollar, buoyed by a rise in risk and pressure on the US currency
3. Selling pressure held firm on the pound yesterday, with the euro price falling below €1.08

The pound continued to advance against a broadly weaker single currency yesterday, hitting a six-week high of 1.1167 as investors trimmed their euro holdings.

• Preliminary CPI data from Germany revealed that consumer prices remained flat on the year in October. Monthly data showed that the index did rise by 0.1% in October from September, though this rise failed to garner support for the euro.
• The markets also saw a slight withdrawal of risk activity yesterday as weak housing data in the US renewed concern over the health of the global recovery.
• The data dragged European equities down to three-week lows, which appeared to impact more severely on the single-currency, enabling the pound to gain.
• This morning, the pound is consolidating its position above 1.1100, with analysts reiterating that sterling is likely to remain in a holding pattern until next week’s BoE asset purchase decision.
• Investors are cautious amid uncertainty over whether the Central Bank will extend their quantitative easing programme, and so sterling movements may continue to be dictated by risk appetite in over the coming days.

Related posts:

1. Selling pressure held firm on the pound yesterday, with the euro price falling below €1.08
2. Weak equities undermined the aussie’s upward trend yesterday allowing the pound to post marginal gains
3. Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today

Related posts:

1. Positive economic data supported euro gains vs the US dollar yesterday, but the price has pulled back this morning
2. Negative UK economic data pushes the pound down against a broadly weakened dollar
3. ZEW index of economic sentiment in Germany declined in October

Related posts:

1. Today the direction of the stock exchanges will set the corporate reports
2. Indicator “risk-yield” begins to decline
3. Forex Market to Move on News Coming from Europe and Canada

Related posts:

1. BNP Paribas expects continued decline of the British pound
2. Data on retail sales have supported the dollar
3. Aussie made strong gains yesterday as further positive economic data supported investor demand

The US currency snapped a four-day losing streak against the euro, rising from a 14-month low, as investors cautioned their risk activity following further corporate earnings reports.

• The dollar strengthened as Bank of America earnings fell short of expectations, sparking profit taking in the euro, as well as higher-yielding currencies.
• The Bank reported losses of $1 billion in the third quarter, which sent equity markets down having rallied on the more positive earnings of other major US banks and corporations earlier in the week.
• This report aided the dollar, strengthening haven appeal and bringing the US currency up from multi-month lows against the euro.
• In addition, the greenback found support as data showed that US consumer sentiment eased in October, disappointing market expectations.
• One analyst stated that if the pound can bounce, then the markets must be wary that the dollar can also. The bounce in the UK currency increases the risk of a broad bounce in the dollar, even if it may only be a short- term reprieve.

Related posts:

1. The euro posted gains against the US dollar on Friday and has reached back over 1.46 this morning
2. Japanese Yen Surges as Stocks Drop on Election Results, China Bank Earnings (Euro Open)
3. The single currency continues to strengthen against the dollar, posting a fresh 14-month high

The pound achieved a ten-day high against the kiwi yesterday, as bullish comments combined with profit taking to bring the UK currency off multi-month lows.

• The UK currency was buoyed by comments that quantitative easing is in fact having its desired effect and that the MPC may not need to extend QE in their next meeting as many has speculated they would.
• The news triggered a wave of profit taking, pushing the sterling/kiwi price up two and half cents on the day to close at 2.1849.
• There was positive news from the US yesterday in the form of corporate earnings, in particular, Goldman Sachs and Citigroup, but the rise in risk appetite failed to assist the higher-yielding currency as investors chose instead to lock in profits.
• The pound has extended its climb in trading this morning, currently edging back over 2.19 as investors continue to profits ahead of the weekend.

Related posts:

1. The aussie stumbled yesterday, enabling the pound to gain as investors took profits
2. Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up
3. Investors were cautious yesterday ahead of an ECB rate decision, but the euro has rebounded this morning

The pound was able to reverse a four day slide against the kiwi yesterday, following positive data in the UK labour market.

• Figures showed that fewer than expected Britons claimed for unemployment benefit month-on-month in September, and the overall unemployment rate held steady at 7.9%, beating market expectations of a rise to 8.0%.
• The kiwi also suffered after some investors turned bearish following weak US retail sales, which fell in September by the largest amount in 2009, driven by a fall in car sales at the end of the country’s scrappage scheme.
• The pound was able to reach up over 2.17, but in a market that remains broadly bearish towards the pound, the kiwi trimmed its losses, with the price closing at 2.1600.
• The New Zealand dollar has climbed again this morning, supported as stronger-than-forecast inflation data raised the prospect of an interest rate rise sooner than expected.

Related posts:

1. Sterling picked up from early lows to post marginal gains against the euro yesterday
2. Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
3. Sterling made gains against the kiwi yesterday, but rising risk appetite has supported kiwi advances today

The pound relinquished early gains against the single currency, closing marginally down at 1.0704 as rising risk appetite benefited the euro.

• Sterling initially rose against the single currency yesterday after data showed a smaller than expected rise in the number of UK jobless claiming benefits, and the overall unemployment rate unexpectedly held at 7.9%.
• This data prompted investors to further pare back some of the heavy bets built up against sterling in recent weeks, which have pushed the price to multi-month lows.
• In addition, some analysts have said that speculation over an extension of quantitative easing could be overdone, and that the pound / euro price could have correction potential.
• However, the market remained broadly bearish on sterling because of Britain’s deteriorating fiscal position and the likelihood that rates will remain at 0.5% for a long period.
• In afternoon trading, the euro clawed back its losses, supported by a significant rise in global equities, which buoyed demand for the broadly stronger single currency.
• The pound has reversed its down trend this morning, benefiting from the word so of a BoE policymaker who said that quantitative easing was now working.

Related posts:

1. Euro advanced yesterday but its progress has been halted today in the wake of dovish euro speculation
2. Sterling relinquished strong gains vs euro yesterday as risk appetite eased
3. An easing of risk appetite weakened the euro yesterday, but it has rallied back over $1.46 so far today

The pound reversed its three-day slide against the euro as a surprise dip in a German economic sentiment index offset weak UK inflation data.

• In early trading, sterling was undermined by a declining inflation rate, which prompted further speculation that interest rates could be on hold at 0.5% until 2011 and sent the UK currency to a six-month low of 1.0628.
• The Consumer Prices Index (CPI) dropped to an annual rate of 1.1% in September from 1.6% in August. Meanwhile, the Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments and housing costs, fell, to -1.4% from -1.3%.
• However, the pound rebounded strongly after the “positive signs” in the eurozone began to fade, with the German ZEW measure of investor sentiment unexpectedly falling after three months of gains.
• Additionally, the pound was given slight support in the afternoon after the BoE Deputy Governor spoke more positively about the UK recovery, subduing rising concerns over the health of the economy.
• Investors took the opportunity to lock in profits, allowing the pound to rally up from session lows to close up at 1.0718.

Related posts:

1. Weak equities undermined the aussie’s upward trend yesterday allowing the pound to post marginal gains
2. Sterling relinquished strong gains vs euro yesterday as risk appetite eased
3. A strong kiwi dollar shrugged off weak data from the US to post gains against sterling on Friday

A lot of people like the participants of the currency markets, economists and experts of the Central bank have been trying to understand and identify, what factors exactly drive the highs and the lows of the Forex market. A lot of experts suggest that predicting the future move or trend of the Forex market is more of an art than a science. That is because even the experts at times have to split their views in relation to the direction of the Forex market.

Technically speaking there are two schools of thoughts or approaches which is primarily used to analyze the Forex market. The first one being the Fundamental Analysis and the second one is the Technical Analysis. We would be discussing each one of the approaches briefly.

Fundamental Analysis – This is based upon the prevailing economic conditions. Majorly people who are medium to long term traders in the Forex market tend to stick to this approach. As this involves an assessment of the economic growth, macroeconomic indicators which might include the GDP, prevailing interest rates, inflation in the economy unemployment in the country and the foreign exchange reserves in the country.  Along with the involved geographical risks, while evaluating the future value of a currency. These are the forces which drive the demand and the supply of money. More over at times the Central banks might also intervene in the Forex market to correct the values there.

Technical Analysis – This is based upon the recorded historical data of the prices. The data is used for the computation or rather forecasting the future price or trend of the Forex market. These days more and more people like the traders, who are generally trade for a short term tend to get drifted towards the technical analysis approach. This may be called as a gift of the implementation of the modern technologies and the computers. Unlike the Fundamental analysis the Technical analysis is based on the assumption that the result of all the in formations used for the Fundamental analysis is the prevailing Forex rate in the market, so nothing needs to be captured separately. The discounting mechanism of the Forex market may be called as another reason for the technical analysis to be so popular. The market normally does not predict anything but it just reveals the thought process of the hedge funds, the pros in the market and the other major movers and shakers of the Forex market.

In the end I would say no approach is right or wrong. As it’s not a very uncommon phenomenon that the Fundamental Approach predicts a bullish trend and the reverse shown as per the Technical approach and the approach other than the one you use appeared to be correct or vice-versa. Thus being a hardcore fundamental or technical trader would just mean being in the dark for half of the time. So I would suggest look at both and use your common sense.

Related posts:

1. Sterling posted gains vs the single currency, with the market forecasting no change in MPC policy
2. Forex Secret – Using Slanted Channel Technique at Forex Market. By Vyacheslav Vasilevich
3. Forex and Financial Market Update

The pound lost a further one and a half cents to the kiwi following negative UK data, and as the aussie rate hike put the focus on the next RBNZ rate decision.

• Fears that Britain’s fragile economic recovery is faltering were sparked after official figures revealed a surprise fall in industrial output in August.
• The data showed a 1.9% drop in manufacturing output month on month, a full 2.5% below the market prediction, encouraging further pound selling.
• The kiwi also benefited indirectly from the 25 basis point rate rise in Australia, which supported demand for higher-yielding currencies.
• The pound is now trading at record 20-year lows against the New Zealand dollar, as investors price a similar move from the New Zealand central bank into the market.
• The New Zealand dollar is up a further 0.3% this morning, as stronger global equities, higher dairy prices, and a weak US dollar helped to maintain support for risk trades.

Related posts:

1. Sterling made gains against the kiwi yesterday, but rising risk appetite has supported kiwi advances today
2. Sterling fell just 0.03% against the kiwi yesterday, but has suffered in trading this morning
3. Positive economic data from NZ, keeps the kiwi rallying higher vs sterling

The pound continued to edge downward, undermined by speculation ahead of the MPC meeting later this week.

• Data revealed that Britain’s services sector grew more strongly than expected in September, expanding at its fastest rate for two years, quelling fears over the UK recovery following weak PMI data in the manufacturing and construction industries last week.
• However, the data failed to buoy confidence in the pound significantly with investors remaining wary of taking positions in UK assets ahead of the MPC statement this week.
• Additionally, business activity in the US non-manufacturing sector expanded in September, against market expectations of standstill, which supported dollar buying.
• The equity markets also rallied from lows at the end of last week, as confidence returned to the markets, however this was of little benefit to a burdened pound, with the pair closing relatively unchanged at 1.5934.
• The US currency has come under pressure this morning however, following speculation that the dollar may be dropped as the currency used in oil trades in the Gulf States, allowing the pound to make hesitant gains.

Related posts:

1. Weak US data sapped demand for the aussie yesterday, enabling the pound to gain
2. Weak US data yesterday afternoon strengthened dollar appeal, trimming sterling’s gains
3. Pound made gains against the aussie on Friday following weak US data

The pound reverted back to its downward trend against the kiwi in trading yesterday, losing 0.8% to close the day near last week’s lows at 2.2163.

• A strong jump in a New Zealand business confidence survey added to evidence that the economic recovery is gaining pace, supporting demand for the kiwi.
• The Reserve Bank of New Zealand published a bright economic outlook yesterday, which was also picked up on by investors with expectations for a rate rise strengthening.
• Additionally, in the US, the second quarter GDP figure was revised upward revealing that the economy had contracted by less than initially expected, which supported a move into riskier assets, although weak employment data did offset this trend slightly.
• In trading this morning, the pound has lost further ground, with the price edging down below 2.21 as confidence in the kiwi remains strong.
• However, analysts have stated that the New Zealand dollar may cap its advances with investors unwilling to chase the currency ahead of US payrolls and manufacturing data later this week.

Related posts:

1. Positive data from NZ keeps the kiwi advancing against the pound
2. Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
3. Sterling made gains against the kiwi yesterday, but rising risk appetite has supported kiwi advances today

The pound reversed recent losses to gain 0.75% on the aussie yesterday in the wake of some positive economic data, which spurred investor demand.

• A GDP revision showed that British output contracted 0.6% in the second quarter compared with activity in the first three months of 2009, better than the previous estimate of -0.7%, according to the Office for National Statistics
• This data was supported by higher realised sales and an increase in net lending to individuals, which, together, underlined hopes that the UK should pull out of recession in the 3 rd quarter.
• The positive market reaction enabled the pound to distance itself from long-term lows hit recently against the aussie, though an increasing UK current account deficit may weigh on sterling’s recovery.
• In trading this morning, the Australian dollar has rebounded, already up 0.4% on the day, following better-than-expected month on month retail sales, which add to the case for a rise in interest rates as early as November.

Related posts:

1. The UK economy is showing signs of recovery, which has buoyed the ailing pound
2. The pound has reversed recent losses against the aussie, supported by rising risk aversion
3. Positive data from NZ keeps the kiwi advancing against the pound

In trading yesterday the pound picked itself up from 6-month lows against the single currency, gaining 0.7% as positive data buoyed investor sentiment.

• In a final revision, Britain’s second quarter GDP figure was reported as -0.6%, up from a previous revision of -0.7% and strengthening claims that the UK will exit recession in the third quarter.
• There was also positive data from the UK CBI retail sales index, which showed considerable improvement from last month, reaching levels well above expectations.
• Additionally, lending to individuals rose in August, reflecting both an increase in the willingness of high street banks to extend credit, and also improved consumer confidence in the market as they begin to take on more debt.
• In the evening, it also emerged that the BoE may not be planning to lower interest rates, backtracking from King’s recent comments, and enhancing the pound’s yield appeal.
• Sterling fared well following the day’s news, but its gains were capped as it was also revealed that the U.K.’s current account deficit widened in the second quarter to its largest level for nearly two years, as investment income narrowed.

Related posts:

1. Positive data from NZ keeps the kiwi advancing against the pound
2. Pound edged higher against the euro yesterday and has consolidated its position this morning
3. The dollar reversed its slide yesterday, buoyed by stronger equities, but has fallen back today