Look At World Financial Situation Including Forex Markets

Yesterday, financial markets have evolved with great caution still concerned about the situation in Europe and with numbers in the United States not optimistic. Wall Street ended on a positive note despite an uncertain start of the session due to the publication of the registered unemployed. The latter came out to 388,000 against 389,000 (revised) while the consensus expected a figure around 375,000. Entries back to their level in early April after reaching 361,000 in the last two months, a lowest in nearly four years. This figure revives questions about the economic recovery across the Atlantic. After this disappointing indicator, operators awaiting closely the promises of home sales. The latter rose 4.1% in March while the consensus expected a gain of 1.5%. This good news has given new momentum to the indices that have ended on a positive trend. Thus, at the close, the Dow Jones was awarded a gain of 0.87% to 13,204.62 points while the Nasdaq has gleaned 0.69% to 3050.61 points. The broader index S & P 500 rose 0.67% to 1399 points.

Earlier in Europe, the Paris index yielded 0.13% to 3229 points. In values, to report the drastic drop Alcatel-Lucent dropped 16.61% due to the significant deterioration in its gross margin in the first quarter of 2012 (35.3% to 30.3%). This morning, the Tokyo Stock Exchange ended down 0.43%, the Nikkei back on 9520 points. The Topix index fell by his side from 0.72% to 804.27 points. A few minutes of opening markets in Europe, markets are expected to be down. The CAC 40 futures contract slipping 1.09%.

Forex: On the foreign exchange market, the euro is down against its major currency counterparts. The day after the downgrade by Standard & Poor’s rating of Spain, tensions were reignited around the Spanish debt and fears of contagion in the euro area. Indeed, S & P lowered the rating by two notches to the Spanish sovereign debt to “BBB +” against “A”, with negative implications, citing the risk of fiscal slippages potentially greater than expected. Following this announcement, the euro erased its gains after the Fed meeting to maintain ultra accommodative monetary policy of the U.S. Federal Reserve.

In this context, the EURUSD moving down 0.37% to $ 1.3170. Elsewhere in Europe, the GBPUSD is down 0.10% to $ 1.6174 while the EURCHF is stable at 1.2014 Swiss Franc. Across the Atlantic, traders will closely today’s GDP first quarter to 14.30 (consensus 2.5% annualized), and at 15:55 the index of consumer sentiment (consensus 75.7).
On the Asian side, the trend is bearish following the deterioration of Spain, despite the announcement of increased economic support program of the Bank of Japan. In this context, the EURJPY pair is down 0.66% to 106.34 yen while the USDJPY is down 0.30% to 80.72 yen.

Raw materials: In terms of raw materials, oil restarts after being down had come back yesterday, sitting on the highest one month. The trend was reversed after lowering the rating of Spain by rating agency Standard & Poor’s. This lowered the rating to BBB + against A previously focusing on the need to support the country’s banks. The announcement reminded investors once again the difficulties facing Spain and the risks this implies for the European continent. Consequently, the euro erased its losses against the greenback which penalizes the dollar-denominated commodities. Investors will also pay attention this morning in an Italian bond issue in the context of nervousness. Thus, on the Nymex, Light Sweet Crude barrel evolves around 103.9 dollars. The contract was also halted in its increase in contact resistance at 105.1 dollars corresponding to the 50-day moving average. For his part, Brent North Sea is trading this morning, against 119.4 million.

On the front of precious metals, gold also benefits from the announcement of S & P. The yellow metal is increasing advantage of its safe haven status. Moreover, central banks have increased their gold reserves and hedge funds their bullish positions. After reassurances from the Fed, the return of the central banks’ appetite for gold is significant support for the yellow metal. This morning, an ounce of gold stood against 1,652 dollars.

Euro Decides To Hold Back For Direction

The single currency fell back again on the sidelines of an EU summit which is illustrated again by his lack of response to current tensions, despite the willingness of leaders in the region to strengthen fiscal discipline.

All the countries of the European Union except the UK and the Czech Republic, adopted in Brussels the introduction of golden rules and agreed on the European Stability Mechanism (MES ), which has 500 billion euros in 2013 will replace the current EFSF. Although this is a step towards greater fiscal discipline, the imminent risk of a subsequent default of a member of the eurozone is not removed, now the attention of investors on negotiations the situation in Greece and Portugal.

While an agreement between Athens and its private creditors was expected over the weekend, after a new offer of the International Institute of Finance on the rate of new bonds, the bitterness intensifies talks this week and tensions are growing even among the Hellenic Government and Berlin.

Despite the easing of European bond markets, where rates in Spain are broken below the 5%, the rates for their Portuguese reached 16% to a record, highlighting, in the wake of Greece, risk of a debt restructuring of the country.

Finally, the rating agency Fitch has not hesitated to break down in turn five Euroland countries, including Spain and Italy next targets of the operators in case of spread of the crisis.

Why You Should Profit From The Foreign Exchange Market

The foreign exchange market is the biggest market among all the financial market. The daily trading amounts to more than three trillion United States dollars every day. The number of traders and the variety of these traders is very large as well.

There are a lot of reasons why one should become a trader in the foreign exchange market.

The major reason is that only the money which you invest in the foreign exchange market can be lost. You can make more money than you invest, but you can not lose more than you have put in the first place. This is also why becoming forex trader is so appealing to people.

This amount of money is known by the term margin. And if the investment you have made goes bad, there is a limit to how much can go down the drain.

But this is the worst case scenario. There are not many cases when the investor loses everything in normal market conditions. Even though the leverage which is related to the trading in the foreign exchange market is very high, this type of trading is less risky as compared to trading in the commodities or the futures market. There is no such advantage in the stock market either. There is no leverage of this kind in the equities market.

Another reason why you should become a forex trader is that in markets such as the commodities market there are chances that the market will move suddenly and dramatically. In this case protecting the investment becomes very difficult. There are no limit moves and trading gaps in forex trading.