February 2013

Macroeconomics and the Forex Market – How Do They Relate?

Macroeconomics is the “big picture” way of looking at economics. It usually means looking at the broadest possible indicators of economic health such as a nation’s productivity and interest rates. The ability to take this wide view is an essential tool in creating a profitable strategy for trading in the Forex market. Here are some of the broad based indicators that can be useful in evaluating the Forex market.  Read more

Japanese Retail Trade Dropped in January

Japanese retail sales fell less-than expected in January, according to official data released by Ministry of Economy Trade and Industry on Tuesday.

Retail sales dropped to a seasonally adjusted rate of -1.1 per cent from 0.4 per cent in the previous month. Analysts’ expectations were an annual rate of -1.3 per cent. Read more

Italian Elections Results Stir Political Gridlock, Global Markets Rattle

The Italian elections exit polls came in Monday revealing an imminent political gridlock as houses of the parliament appear split between left and right.

While the center left coalition, headed by the market preferred Pier Luigi Bersani seems to be going to secure the lower house of Parliament,  the center right coalition headed by former Prime Minister Silvio Berlusconi leads the vote in the upper house. Results spark new fears for the Euro zone and risk assets lose ground during the London afternoon. Read more

UK’s Credit Rating Downgrade – A Brief Explanation

For the first time in nearly forty years, the United Kingdom has suffered the loss of its triple-A credit rating due to a reduced assessment of their short term economic outlook. The downgrade made by Moody’s Investors Service or simply Moody’s, one of the world’s biggest credit rating agencies, is perhaps not as much of a negative as might first appear, and investors should probably be cautious about reading too much into it.  Read more

Understanding the Forex Market’s Liquidity

The foreign exchange market (Forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers. One of the distinguishing traits of the foreign exchange market is that it is open 24 hours a day. This allows investors from around the world to trade during normal business hours, after work or even in the middle of the night. But one of the best features of all is that in the case of the Forex markets, liquidity, at least in the major currencies, is never a problem. This liquidity it accounts for some $4 trillion per day in trading volume. Read more