Financial News

Like our children often argued on whether Terminator beat Robocop or vice versa, one of the most discussable topics through FX trading world is, which is better, the ECN brokers or the market makers. Well, answering that will be possible if you know your ultimate goal. Once you got it, then we need to explore what actually differs from the ECNs and M-Makers. Furthermore, read 5 Forex broker types you need to know about. The Market Makers' Quandary It’s a well-known fact that retail brokers are the party to all Forex transactions. I got an example for you. Imagine two FX participants, where Bob is selling while Jessie is buying; at this time, an exchange broker gets his cut presenting Bob and Jessie and holding the transaction. At TopFX, for instance, whether Bob is buying or Bob is selling. TopFX is the counterparty to his trade. TopFX has a couple of tricks to apply; they can put that trade into the pool and...

Forex is Foreign Exchange which is also known as the Currency Exchange. So, the market where the exchange of the currencies takes place is known as the forex market. The pricing of the currencies are based on spreads as well as the exchange rates constituted by participants of the market. The forex market is an Over-the-counter market. The transactions as a result are totally different from stock trading. Moreover, investing in the forex market can help you earn dollars. You will be able to use this money to pay off debts through different debt solutions. Investing in the forex market Forex market is considered to be one of the best investment options. In fact, the foreign exchange market is considered to be one of the largest asset classes in the world. The trading volume on a global basis amounts to almost $2 trillion each day. This is much more than the volume of trade that is made in the stock exchange market. Things...

Wednesday was another day of overall positives on the markets: at the end of the day, the EUR/USD pair fixed above 1.3800, adding more than 1.3%. The British pound rose to 1.5750 on the GBP/USD pair despite the country’s unemployment report showing the rate had increased to 8.1% (the previous figure was 7.9%); the average market forecast was 8.0%. All stock markets ended the day in the green zone, reacting to the positivity coming from Europe: yesterday, European Commission President Jose Manuel Barroso presented a plan to recapitalize European banks in order to protect Europe’s banking system from possible repercussions related to the debt crisis in the Euro zone. Also, the second vote on expanding the EFSF in the Slovakian parliament will likely take place on Friday, October 14. Members of the country’s ruling coalition have already reached an agreement with opposition leader Robert Fico on passing the amendments. Europe has recently been displaying a more coherent unified position to...

Yesterday at an expanded session of Congress, US President Barack Obama expressed his disappointment with the national economy, a problem which is threatening his political career. He ordered Congress to pass a $447 billion plan to create jobs, tilted heavily toward the republican’s plan to lower taxes. Speaking before both houses of Congress, Obama demanded six times that lawmakers act “immediately” according to the plan which will increase spending on infrastructure, reduce the number of teachers who are approaching retirement age, and cut income tax paid by employees and small business owners twofold. “The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy,” Obama said to lawmakers yesterday. Employment growth ground to a halt while the unemployment rate has hovered at and above 9% for the past two years. The president’s approval ratings fell to a new low after US society’s doubts about his capability...

Forex trading is becoming more popular as people are discovering that this moderately regulated form of investment in foreign currencies is an easy way to make money, and it can be accessed 24 hours a day seven days a week, because when one market is closing somewhere in the world, another is opening. Like all other forms of investment however it is not without its risks. It is just as easy to lose money in Forex trading as it is to make money, but by taking some basic precautions your chances of losing money can be minimised. 1. Find a System you can Trust Like all investment opportunities it is important that you sit down and devise a system before getting started. There are many purported systems around and some are no more than scams. Don't take any notice of testimonials or any claims to fast riches. The best systems are those that give a 14 day free trial. This means the...

The greenback has started the week under pressure on no reached deal between the current democratic ruling party and the republicans for hiking the taxes until now can open the door for succeeding voting for raising the current debt working $14.29B limit which has been reached in the middle of last May while the markets are waiting anxiously for the way the US Government to pay its financial obligations in the second of next month and it looks that till we reach this time the markets sentiment will be possessed by the development of this ascending problem in US eyeing on next Friday release of US Q2 GDP which is expected to get down to 1.6% y/y from 1.9% in the first quarter of this year. The Swiss Frank got use of this negative business spending sentiment and continued its pressure on the US dollar despite the recent weaker than expected release of Swiss trade balance of June which came at...

The US dollar was off to a strong start this week as pressures in Europe have kept equities lower with banking stocks leading the plunge. Traders are expecting a report to show decreasing securities purchases of US securities but it could be the bond purchases from Europe that highlight the North American trading session. The euro began the week lower with the EUR/USD being sold off the as forex trading began in New Zealand with the pair gapping lower but failing to break the 1.4000 level. Last week’s EU banking stress tests were mostly disregarded by financial markets given the criteria used was considered inadequate due to the yields for much of the periphery are trading at much higher levels than what was used in the stress tests. A Financial Times article highlights the major roadblock to a resolution in the European debt crisis as German Prime Minister Angela Merkel and ECB President Jean-Claude-Trichet butt heads. Merkel wants investor participation in a...

Yesterday, the Federal Reserve Chairman (Bernanke) gave his semi-annual testimony before Congress with a markedly dovish tone and went even as far to suggest that government stimulus and quantitative easing measures are not out of the realm of possibility.  For the most part, his statement was similar to his comments from June but what can be seen here is that the Fed seems to be keeping all of its options open until there is a firm recovery in the economic data.  Market jitters continued as the Eurozone finance ministers held an emergency meeting and Fitch downgrading the Greek credit rating to its lowest level.  The EUR/USD trades at 1.4130-1.4280, with the USD/JPY continuing its recent drop and falling to 78.50-79.60. Macro data today will focus on Eurozone CPI figures and jobless claims from the US. There continues to be disagreements between different Eurozone entities about the prospects for an emergency session on Friday to discuss plans for the debt problems that...

The Eurozone sovereign debt crisis remains in focus, with Eurozone finance ministers meeting on Sunday to discuss the next steps for Greece. All clear, for the time being. The Greek government had its implementation law approved on Friday with a majority of 155 to 136 in its second voting round. After the double parliamentary vote, the disbursement of the fifth tranche of the original €110bn package will have no obstacles and will be almost certainly deliberated on Sunday July 3rd by the Eurogroup and on Tuesday July 5th by the IMF. Now that the short term liquidity issue has been solved, all efforts will be put on the finalisation of the “private sector involvement” aspect of the new bailout package. With press reports ‘hinting’ at progresses both on Banks’ (and other institutional investors) commitment to maintain exposure to Greece and on that of a possible clearance from rating agencies that the options would not be considered an event of default,...

Wow, so much to talk about today. I’m going to skip quickly over poor Dominique Strauss-Kahn who is now, fairly obviously, the victim of a conspiracy to frame him. What’s the difference now? Strauss-Kahn was "too soft on Greece" and was focused on ending the bond speculation that he felt was crippling that country (and the Socialist Kahn was also warming up to be France’s next President) so he was "removed" from his position and Legarde (a better Bankster ballplayer) stepped in and teamed up with the EU to push the Greek people into debt slavery and, of course, "save" the Banksters from taking any awkward losses writing down Greece’s very obviously bad debt. With Strauss-Kahn out of the way they stole Billions here and Billions there and shuffled some money around and now that Greece is "fixed" (on the evening of the day Greece finally gives up and votes to pass the draconian austerity measures) and evening of the same day...