MacroFinder.com Blog

LONDON, Mar. 19, 2008 (Thomson Financial delivered by Newstex) — The dollar has shed most of yesterday’s gains in the wake of Wall Street’s sharp rally following the US Federal Reserve’s decision to lower its benchmark interest rate by three quarters of a percentage point to 2.25 pct.

After the Fed’s rate cut, which was slightly less than the market consensus for a full 100 basis point reduction, the Dow Jones index of leading US shares enjoyed its best day in five years, helping the US currency to rally too. The euro fell down towards the 1.56 usd mark while the dollar climbed back above 100 yen.

‘This rally hasn’t been sustained and there’s already a bit of a hangover after yesterday’s celebrations creeping in,’ said James Hughes, analyst at CMC Markets.

‘It’s going to be a case of simply sitting back and seeing just how far the major crosses do unwind now and whether there is any net effect of the rate news, but so far saving that quarter percent for a later cut is looking as if it may be little more than a very brief shot in the arm,’ he added.

The Fed’s accompanying statement proved to be more hawkish than many had expected. It showed that the Federal Open Market Committee (FOMC) was divided, with two of the ten governors favouring ‘less aggressive action.’
The Fed also indicated that it was giving increased attention to elevated inflation levels, thereby signalling that an end to the current rate cut cycle was fast approaching.

Antje Praefcke, currency strategist at Commerzbank Corporates & Markets, said the Fed’s stance is unlikely to comfort markets for too long, given the ongoing uncertainty in credit and financial markets, despite good quarterly results yesterday from Goldman Sachs (NYSE:GS) and Lehman Brothers. (NYSE:LEH)

‘It will take months before light is expected at the end of the write downs and revaluations tunnel and the flight into quality is likely to continue for the time being,’ said Praefcke. ‘Therefore, we think that the Swiss franc and the yen as well as the euro will push higher against the dollar.’
Analysts said renewed concerns about the credit crisis and the related economic damage are likely to set in again soon
Elsewhere, the pound will be in focus this morning when the Bank of England releases the minutes to the last meeting of the rate-setting Monetary Policy Committee and the statistics office releases the latest labour market report.

Bank watchers expect the Committee to have voted 8-1 to keep interest rates on hold at 5.25 pct in early March with David Blanchflower seen as odds on to have dissented and called for a cut.

If more vote for a cut, then the pound could be hit hard.

‘This has the potential to weigh on sterling,’ said Steve Pearson, chief currency strategist at HBOS.

Regarding the labour market report, sterling markets will be interested to see if there is a negative surprise. So far, employment levels have remained high despite signs of an economic slowdown elsewhere.

‘In the case the labour market report comes in weak, the pound will immediately head south,’ said Hans Redeker, global head of FX strategy at BNP Paribas. (OOTC:BPRBF)

Feb 16

Last day Trade forex Friday 15 Febuary 2008

Forex No Comments »

Last day Trade forex Friday 15 Febuary 2008

What is your target profit in one week from 11/2 to 15/2?

25 pips in low risk account

If you risk 10% of your account you will get 2.5% profit.

This will accumulate to one month and one year.

Risk is true.

1/2 week:

5.2% profit

8/2 week:

-9.5% loss

15/2 week:

2.5% profit

One month:

Must have -1.8% loss in total. Ok we hope next week profit.

2008

1/2 = 5.2%

8/2 = -9.5%

15/2 = 2.5%

22/2 NA

29/2 NA

This for education purpose only.

Account size:

100%

if this month can profit 5%

How much profit if account size $100, $1000, $10,000, $100,000?

$5, $50, $500, $5,000

Same as how much do you have money or capital.

This experiment result is true. We control all the experiment. We want to prove forex is profit !

How about one year if account size $100, $1000, $10,000, $100,000? 5% per month.

Year 5×12 = 60%.

$60, $600, $6,000, $60,000

Around 60% . But the experiment is not finish yet. So many problem could happen !

So if you want invest in, please seacrh fund manager in forex market. Thank You !

Feb 14

Visit us here www.Macrofinder.com

Stock, Forex, Macrofinder.com No Comments »

Feb 14

Foreign exchange reserves around the world

Forex No Comments »

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official reserves or international reserves. These are assets of the central bank held in different reserve currencies, such as the dollar, euro and yen, and used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions.

Monetary Authorities with the largest foreign reserves in 2007.

Rank	Country/Monetary Authority	*billion USD (end of month)*	change in year 2007
1	People’s Republic of China	$1528 (December) ¹	+42.9%
2	Japan	$996 (January)	+10.6%
—	Eurozone	$511 (December)	+16.6%
3	Russia	$485 (February 1) ²	+56.8%
4	India	$293 (February 1) ²
5	Republic of China (Taiwan)	$273 (January)	+2.7%
6	South Korea	$262 (January)	+9%
7	Brazil	$189 (February 12) ³	+105.9%
8	Singapore	$168 (January)	+24.6%
9	Hong Kong	$160 (January)	+14.6%
10	Germany	$136 (December)	+20.3%