Forex Trading Directory, Forex Market, Foreign Exchange

If you're looking for a forex trading directory that can provide you with the links and information you need to get started in the exciting world of forex trading, you've come to the right website!  Forex Yellow Pages is here to provide you with the forex (foreign exchange) resources you need to become a successful trader.  Why is it so important to find a good forex company?  Individual investors are required to go through a broker to trade, as they don't otherwise have access to the forex market. With the advent of the World Wide Web, Internet investing has become very popular, especially online forex trading.    However, you shouldn't dive in headfirst without educating yourself first.  With our forex directory, you can become a smarter and more informed investor.

US Dollar Slips as Risk Aversion Subsides

Written by Terri Belkas and David Song, DailyFX.com

The US dollar swayed as investors continued to feed their risk appetite, leading the higher-yielding commodity currencies higher. As a result, the low yielding Yen took the biggest loss against the greenback, with the Swiss franc following behind as the pair rose to trade in the 1.044 range. Against the European currencies, the US dollar continued to lose its footing as mounting inflationary concerns in Europe took hold of investors. As a result, both the Euro and British pound advanced against the US dollar as the pairs rose to 1.553 and 1.957, respectively.

A speech by Chicago Fed President Evans lowered the growth prospects for the US economy as he highlighted the growing weakness in household spending, and stated economic growth to remain sluggish throughout 2008. However, Fed President Evans did go on to say that he expects economic growth to recover by 2009, and expects inflation to fall within 1.5 to 2 percent by 2010. On the economic front, the US Budget Surplus fell to $159.3B from $177.7B as the government continued to dish out more money for military and governmental agendas, with corporate tax receipts falling more than expected as it dipped 15 percent this year. Read the rest of this entry »

Posted in Forex News | No Comments »

Trichet Holds His Hawkish Tone Despite Ongoing Financial Turmoil

Less than an hour after the European Central Bank announced the benchmark rate would be held at 4.00 percent, President Jean Claude Trichet delivered his usual commentary to an attentive public. Over the past few weeks, speculation that the policy authority would take a more dovish approach to its rate decisions had grown after a number of leading indicators have shown a stunting in the region’s strong pace of economic growth and data that suggests inflation trends are finally pulling back to tolerable levels.

Just yesterday, a report of consumer spending revealed Euro-Zone retail sales plunged 1.6 percent in the year through March - the sharpest decline on records going back to 1995. More importantly, for the inflation-minded policy board, the leading annualized German CPI number unexpectedly dropped from a 3.1 percent to 2.4 percent clip, which was both a 10-month low and much closer to the central bank’s 2.0 percent target.

However, despite these dovish shifts in economic data, President Trichet did not waver in his hawkish stand. Highlighting the group’s primary concern for the future of policy action, the central banker said that upside risks to inflation were prevailing and that price pressures would remain their “highest priority.” Furthermore, Trichet stated that in attempting to avoid second round inflation effects, he was concerned about the short to medium-term effects of rising food and energy prices. What’s more, he suggested he was also worried about the strong pricing power that firms have had and attempts to index wage growth - both factors that easily send inflation into an upward spiral. Looking outside of his inflation concerns, even his gauge of economic growth and the health of the financial markets was hawkish on balance. While the President said their were downside risks to growth, he still read moderate, ongoing growth in data. Altogether, he confirmed his belief the economy would meet the ECB’s forecasts for 2008 growth. One possible caveat to stable growth though was financial market turmoil. At the same time, after mentioning this factor as the main downside risk to the economy going forward, he went on to say that he saw little constraint in lending and tha tmoney and credit growth were “still vigorous.”

Altogether, the ECB’s hawkishness was not unexpected; but the optimistic view for economic growth amid the global downturn and ongoing credit crunch was not fully factored into the market. And, while there were comments that suggested the group would not lift rates in the foreseeable future, they are still far more hawkish than their American, British and Canadian counterparts. With rate forecasts showing little sign of yielding, the fundamental strength of the euro may weather otherwise significant declines in future economic indicators.

Written by: John Kicklighter, Currency Analyst for DailyFX.com

Posted in Forex News | No Comments »

5 Most Important Events for the Forex Market This Week

Written by Terri Belkas, Currency Analyst

Following a week of major US economic indicators, the only significant release pertinent for the US Dollar specifically this week will be ISM Services, which could be surprisingly strong. Meanwhile, employment data out of Australia and Canada could shake up the commodity dollars, while rate decisions from the Bank of England and European Central Bank may not be as market-moving as usual.

1. Conditions in US non-manufacturing sector – which accounts for approximately 70 percent of total economic activity in the country and includes retail, services, and finance – are anticipated to remain contractionary in April, as the Institute for Supply Management index is estimated to fall to 49.5 from 49.6. However, there is a chance this figure could be a bit better than forecasted, as employment in the services sector surged during April. Indeed, according to both the ADP employment report and Non-Farm Payrolls, the services sector was one of the only areas to hire additional workers during that period, while goods producing companies are practically bleeding workers. If ISM Non-Manufacturing manages to jump above the 50 mark – signaling expansion – the news will only add to speculation that the Federal Reserve will leave rates unchanged when they meet again in late June.

2. The Australian labor markets have tightened substantially over the past few years, as the unemployment rate dropped to multi-decade lows of 4.0 percent in February. While this rate ticked up to 4.1 percent in March, conditions remain resilient and this has driven wages higher, boosted disposable income, increased domestic demand and economic growth in general, but has also fueled inflation. Indeed, the Australian labor markets are expected to add on another 10,000 workers in April, and like the US Non-Farm Payrolls release, the figure rarely meets expectations and can lead to volatile short-term price action for the Australian dollar immediately following the news at 21:30 EDT.

3. The Bank of England is expected to leave rates steady on Thursday at 5.00 percent after cutting by 25bps during their last meeting. The rate decision will come at 7:00 EDT and since the Monetary Policy Committee is anticipated to leave rates unchanged, they are unlikely to issue a monetary policy statement which should leave the market’s reaction to the news very muted. Nevertheless, given the fact that the vote for the April rate cut included six in favor of the 25bp reduction, two votes for no change, and one vote for a 50bp cut, it’s clear that there is major disagreement amongst the Committee on what their next move should be. Inflation pressures in the UK have not been quite as strong as in the Euro-zone, though CPI is still above MPC’s comfort zone, and in the Bank’s Financial Stability Report they tried to put a positive spin on the credit crunch by saying it was “needed after the credit boom and was bound to have costs.” However, the MPC also noted major risks from a plunge in commercial property values, which could lead to significant losses for UK banks on losses related to commercial mortgage-backed securities (CMBS). This has stoked concerns that the UK is in for a US-style housing market collapse, or worse, an all-out recession. As a result, the risks are tilted very much to the downside for the British pound going forward.

4. Like the Bank of England, the European Central Bank is widely expected to leave rates steady at 4.00 percent for the eleventh consecutive meeting. The rate announcement will come at 7:45 EDT, but the big show is at 8:30 EDT when ECB President Jean-Claude Trichet will give his monthly press conference. Will he remain hawkish, or focus more on the instability in the markets? Estimates for Euro-zone CPI in April plunged to 3.3 percent from 3.6 percent, though this is still well above the ECB’s 2 percent target as energy and food costs remain high. On the other hand, the ECB has stepped in to inject liquidity into the money markets, as credit conditions remain tight. There’s little doubt ‘price stability’ will be the foremost concern for Trichet, but if he suggests that price pressures will moderate in the near-term or that feeble financial market conditions are threatening economic growth, the euro could actually sell-off across the majors.

5. The only significant event risk on Friday will be from the release of the Canadian net employment change at 7:00 EDT. This release is essentially “the other NFP” report, as the data tends to be highly market-moving for the Canadian dollar and rarely meets estimates. Lately, the net employment change has been lackluster, but a surprisingly strong figure will undoubtedly lead the USD/CAD pair to plunge sharply in the minutes after the news hits the wires. On the other hand, a disappointing net employment change could lead the pair to surge. However, follow-through during the rest of the day tends to be limited. Check in to see what other traders think about the USD/CAD pair and the Canadian data post-release in the DailyFX USD/CAD Forum.

Posted in Forex News | No Comments »

British Pound Shuns Economic Data

Written by Kathy Lien, Chief Strategist of DailyFX.com

This week, economic data has had zero impact on the British pound.

Over the past few days, the currency pair managed to rally on weaker economic data and today it sold off despite a smaller drop in manufacturing PMI.  The move in the sterling is largely due to the overall strength of the US dollar although there were some positive news from the UK government this morning.  According to the bank of England’s Financial Stability Report, the worst of the global financial crisis could be over.  Prime Minster Gordon Brown also promised to cut corporate taxes to prevent UK companies from moving abroad.  At the same the BoE warned that the country’s biggest banks could see major losses as the commercial mortgage market deteriorates.  Nonetheless the UK economy is still in a vulnerable position which makes further gains unlikely.

Posted in Forex News | 1 Comment »

US Dollar Gains Ahead of Heavy Event Risk

Written by Terri Belkas and David Song, DailyFX.com

The US dollar gained against most of the major currencies ahead of the market moving data scheduled for tomorrow, and pushed investors to lower their risk appetite as they raised bets of a 25bp rate cut. As a result, the greenback advanced against most of the commodity currencies expect for the Canadian dollar, which held up amid falling oil prices. The low yielding Yen also strengthened against the US dollar - sparked by a rise in risk aversion, while the Swiss franc inched lower to trade at 1.03. The European currencies continued to lose ground against the US dollar as negative sales data for the UK and Euro-Zone lowered the growth prospects for both countries and pulled back the British Pound and Euro to 1.96 and 1.55, respectively.

Fresh housing data lowered the growth prospects for the US economy as downside risks continued to surface, with more consumers voicing their concerns about the current economic situation. The S&P/CaseShiller Composite fell 12.7 percent, the sharpest decline since record keeping began in 2001. Financial instability paired with tightening credit conditions has made it increasingly difficult for the housing market to get back on its feet, with home prices persistently falling as the inventory of unsold homes reached record levels. Falling consumer confidence has also added damped the growth prospects for the economy as the Conference Board’s Consumer Confidence index fell for the fourth consecutive month to dip to a five year low of 62.3 from 64.5. Consumers continue to feel the economic strains as raging food and energy costs limit their spending capabilities, with growth prospects looking increasingly bleak as economic activity deteriorates. Read the rest of this entry »

Posted in Forex News | No Comments »

Will the FOMC, Q1 GDP Bring the Dollar Back to Losing Status?

Source: DailyFX.com
The US dollar staged a massive comeback last week as US economic data indicated that, while conditions remain dismal, they aren’t quite as bad as expected. First, the Richmond Fed index “only” fell to 0 from +6, versus expectations of a drop to -1, while existing home sales slipped 2.0 percent. Next, the headline reading of the Commerce Department’s durable goods orders report contracted for the third consecutive month during March, due largely to declines in demand for transportation and defense goods. However, the markets took their cue from the durable goods orders excluding transportation reading, as the index surged 1.5 percent and helped to keep the US dollar rally alive.

Looking ahead to this week, Tuesday’s economic data will likely highlight some of the reasons why traders are ramping up speculation that the country is in midst of a recession. Indeed, the S&P/Case-Schiller index of home prices is likely to fall sharply for the fourteenth consecutive month. Later in the morning, the Conference Board’s consumer confidence index is forecasted to fall to a five year low of 62.0 from 64.5, which won’t be entirely surprising as rocketing food and energy prices combined with the collapse of the US housing sector and tightening credit conditions have sparked widespread pessimism throughout the financial markets. On Wednesday morning, highly anticipated Q1 GDP figures will be released, and a Bloomberg News poll of economists reflects consensus estimates for a 0.3 percent gain. However, these could be rather optimistic expectations, as there is a good possibility that GDP could actually fall negative.

Nevertheless, the market’s response may be muted as the FOMC rate decision will come at 14:15 EST and the Bank is forecasted to cut the fed funds rate by 25bps to 2.00 percent. However, the vote for the March reduction in the fed funds rate had two dissenters, both of whom voted in favor of “less aggressive” policy given upside inflation risks, and futures are now only pricing in a 75 percent chance of a 25bp rate cut and a 25 percent chance of no change in policy. The odds are certainly in favor of more accommodative policy, but if the concurrent policy statement suggests that the FOMC may not cut rates again at their next meeting, the US dollar could actually rally. The latter part of the week will see both ISM Manufacturing and Non-farm Payrolls, though the employment data will likely be the bigger market-mover. NFPs are expected to fall negative for the fourth consecutive month, indicating that consumer spending will continue to deteriorate as record high energy and food prices sap disposable income. – TB

Posted in Forex News | No Comments »

Will U.K. GDP Provide Tradeable Event Risk?

Thursday, 24 April 2008 13:24:40 GMT 

Written by John Rivera, Currency Analyst 

The GBP/USD has remained in a trading range between 1.9600 to 2.000 for nearly a month. The upcoming first quarter growth numbers may provide the impetus to break it free and put it onto its next trend phase. The economic report is expected to show growth slowed for a consecutive quarter to 0.4%, bringing the annualized rate to 2.6%, and remaining below its recent growth trend average of 3%.

Trading the News: U.K. Gross Domestic Product

What’s Expected

Time of release:                  04/25/2008 08:30 GMT, 04:30 EST

Primary Pair Impact :          GBPUSD

Expected:                              2.6%

Previous:                               2.8%

How To Trade This Event Risk

The GBP/USD has remained in a trading range between 1.9600 to 2.000 for nearly a month. The upcoming first quarter growth numbers may provide the impetus to break it free and put it onto its next trend phase. The economic report is expected to show growth slowed for a consecutive quarter to 0.4%, bringing the annualized rate to 2.6%, and remaining below its recent growth trend average of 3%. The housing slump brought on by the recent credit crisis has started to weigh on consumer confidence leading to retail sales declining for the first time in three months. The BoE in an attempt to jump start the housing market recently infused 50 billion in liquidity into the market., when it traded treasuries for mortgage back securities. The move brought more fear than relief as speculation grew that there was more fallout ahead from the credit crunch. Inflation concerns on the back of record oil prices  have provided support for the Pound as the BoE has been adamant that price stability remains a focus of theirs. However, growth prospects have grown dimmer as indicated by the recent CBI manufacturing survey. The forward looking indicator saw sharp declines in expectations for orders and output, with 13% more negative responses than positive. Therefore, the inflation argument may lose its influence on the cable, leaving it exposed to more downward pressure.

The negative expectations and recent softening fundamentals leaves the greatest chance for volatility with a rebound in growth. Although March’s retail sales declined, they managed to exceed expectations and were resilient throughout the first quarter. Therefore, the potential for an upside surprise exists, especially considering that unemployment has remained firm  at 2.5%. With strong GDP readings from both the quarterly and annual figures, we will look for a five minute green candle to confirm entry on a long, two lot GBPUSD position. The stop for both lots will be set either at the nearby swing low or at a reasonable, fixed distance. The target on the first half of the trade will equal the distance to the stop, while the second lot’s objective should be taken on discretion. When the first lot takes profit, the stop on the second should be moved up to break even to conserve profit.

The most likely scenario, given the toll the housing slump, rising inflation and tight credit markets have exacted on the economy, is that growth slowed. If the GDP numbers cross the wires worse than expected, we will use the same criteria and strategy setup for a short as we would for the long, except in reverse.

taken from : http://www.dailyfx.com

Posted in Forex News | No Comments »

Japanese Yen Crosses Mixed

Written by Kathy Lien, Chief Strategist of DailyFX.com

The Japanese Yen crosses were mixed today with USD/JPY rallying but many of the other yen crosses dipping despite a 42 point rally in the Dow.

After breaking higher last Friday, there has not been much follow through in US equities, which leaves many traders nervous about whether risk appetite is really here to stay.  The latest merchandise trade balance report was weaker than expected, but the surplus still increased last month.  The strength of the Japanese Yen is beginning to take a toll on exports, particularly in the electronic components and machinery sector.  Imports on the other hand rose 11 percent, mainly due to the rise in oil prices.

Posted in Forex News | No Comments »

The Week Ahead Japan & Australia: Australian and Japanese Inflation Data (CEP News)

(CEP News) - It’s an important week for Japan and Australia, with both countries releasing inflation data.Looking at Australian inflation, economists expect the Reserve Bank of Australia weighted median for the first quarter to rise 0.9% following a 1.1 % rise in the fourth quarter of 2007. Annual weighted median data is expected to rise 4.0% following a prior increase of 3.8%.

In Japan, markets will pay attention to Tokyo CPI, excluding fresh food and energy, which is expected to rise 0.5% in April following March’s rise of 0.5%. The annual core rate is expected to rise 0.1% following a prior rise of 0.1%. The national CPI for March, excluding food and energy, is expected to come in flat following February’s fall of 0.1%

All times in EST

Sunday:

The week starts with the release of Australia produce price index for the first quarter, which is expected fall 0.5% following last quarter’s rise of 0.7%. The annualized rate is expected to rise 3.9% following a prior rise of 2.8%.

19:50 JN Tertiary Industry Index (M/M) FEB Exp: -0.5% Prior: +0.7%

21:30 AU Producer Price Index (Q/Q) 1Q Exp: +1.0% Prior: +0.6%

21:30 AU Producer Price Index (Y/Y) 1Q Exp: +3.9% Prior: +2.8%

21:30 AU New Motor Vehicle Sales (M/M) March Prior: -2.3%

21:30 AU New Motor Vehicle Sales (Y/Y) March Prior: +3.1%

Monday:

Japan’s final print of February’s leading economic index will be released, with economists forecasting a 54.5% increase following January’s rise of 50.0%.

1:00 JN Leading Economic Index FEB Final Exp: +54.5% Prior: +50.0%

1:00 JN Coincident Index FEB Final Exp: +70.0% Prior: +44.4%

3:00 JN Convenience Store Sales (Y/Y) March Prior: +1.2%

Tuesday:

It’s a busy day for Australia with the release of first-quarter inflation data. The Reserve Bank of Australia weighted median for the first quarter is expected to rise 0.9% following last quarter’s rise of 1.1%. Annual weighted median data is expected to rise 4.0% following a prior increase of 3.8%.

Japanese merchandise trade balance for March will also be released. The consensus is for a surplus of ¥1405.0 billion following February’s surplus of ¥970.0 billion.

1:00 JN Supermarket Sales (Y/Y) March Prior: +1.9%

19:50 JN Merchandise Trade Balance Total March Exp: +¥1405.0B Prior: +¥970.0B Revised: ¥966.2B

19:50 JN Adjusted Merchandise Trade Balance March Exp: +¥890.2B Prior: +¥598.4B

20:00 AU DEWR Skilled Vacancies (M/M) April Prior: -2.2%

21:30 AU Consumer Prices (Q/Q) 1Q Exp: +1.1% Prior: +0.9%

21:30 AU Consumer Prices (Y/Y) 1Q Exp: +4.0% Prior: +3.0%

21:30 AU RBA Trimmed Mean (Q/Q) 1Q Exp: +0.9% Prior: +1.0%

21:30 AU RBA Trimmed Mean (Y/Y) 1Q Exp: +3.8% Prior: +3.4%

21:30 AU RBA Weighted Median (Q/Q) 1Q Exp: +0.9% Prior: +1.1%

21:30 AU RBA Weighted Median (Y/Y) 1Q Exp: +4.0% Prior: +3.8%

Wednesday:

Aside from weekly Japan foreign investment data, the day is light for economic data.

19:50 JN Foreign Buying Japan Stocks 18-Apr Prior: -¥3.4B

19:50 JN Foreign Buying Japan Bonds 18-Apr Prior: +¥561.0B

19:50 JN Japan Buying Foreign Stocks 18-Apr Prior: +¥82.6B

19:50 JN Japan Buying Foreign Bonds 18-Apr Prior: +¥490.3B

19:50 JN Corp Service Price (Y/Y) March Exp: +0.7% Prior: +0.7%

19:50 JN All Industry Activity Index (M/M) FEB Exp: -0.5% Prior: 0.0%

Thursday:

The week ends on an important Japan inflation data.

Tokyo CPI, excluding fresh food and energy, is expected to rise 0.5% in April following March’s 0.5% increase. The annual core rate is expected to rise 0.1% following a prior rise of 0.1%.

The March national CPI, excluding food and energy, is expected to come in flat following February’s fall of 0.1%

19:30 JN Tokyo CPI (Y/Y) April Exp: +0.5% Prior: +0.6%

19:30 JN Tokyo CPI Ex-Fresh Food (Y/Y) April Exp: +0.5% Prior: +0.6%

19:30 JN Tokyo CPI Ex Food, Energy (Y/Y) April Exp: +0.1% Prior: +0.1%

19:30 JN National CPI (Y/Y) March Exp: +1.2% Prior: +1.0%

19:30 JN National CPI Ex-Fresh Food (Y/Y) March Exp: +1.2% Prior: +1.0%

19:30 JN National CPI Ex-Food, Energy (Y/Y) March Exp: +0.0% Prior: -0.1%

Friday:

No data is expected to be released.

Posted in Forex News | No Comments »

The Day Ahead Canada & U.S.: Canadian Inflation and U.S. Philly Fed Survey

(CEP News) - On Thursday, markets will focus on Canada with the release of March CPI inflation data. In the United States, the Philadelphia Fed’s manufacturing survey will be the highlight of the day.Canadian annualized core CPI is expected to remain below the Bank of Canada inflation target, coming in at 1.4% for March following February’s increase of 1.5%. Month-over-month core CPI is expected to rise 0.3% following February’s increase of 0.5%.

Fergal Smith, managing market strategist from Action Economics, said Wednesday’s inflation data won’t have much of an impact on the Bank of Canada at the April 22 meeting. He said he still expects the bank to cut 50 basis points.

“I don’t think it is going to have a massive impact on next week’s policy announcement. If we get a weaker than expected core inflation number, the market would start to price in more aggressive easing beyond next week,” he said. “And if we got surprising firm inflation data, markets would start to strip out some of the easing priced in after next week.”

Turning to the U.S., markets will receive more regional manufacturing data with the release of the Philly Fed Survey. Economists expect it will come in at a level of -15 following March’s -17.4 reading.

Economists from Lehman brothers said they are expecting the index to slip further down in March to a reading of -18.0.

“Although new orders and shipments both rose last month, unfilled orders fell sharply, indicating limited potential for a significant improvement,” economists from Lehman Brothers wrote in a research note. “Additionally, the employment and the hours series both suggested that firms were reducing their headcount and trying to manage their production schedules.”

All times in EDT.

Thursday:

7:00 CA Consumer Price Index (M/M) March Exp: +0.5% Prior: +0.4%

7:00 CA Consumer Price Index (Y/Y) March Exp: +1.5% Prior: +1.8%

7:00 CA Bank Canada CPI Core (M/M) March Exp: +0.3% Prior: +0.5%

7:00 CA Bank Canada CPI Core (Y/Y) March Exp: +1.4% Prior: +1.5%

8:30 CA Report on Travel Between Canada and Other Counties

8:30 US Initial Jobless Claims 12-Apr Exp: +375K Prior: +357K

8:30 US Continuing Claims 5-Apr Exp: 2950K Prior: 2945K

9:45 US Fed’s Kohn speaks at conference on credit markets, banking

10:00 US Leading Indicators March Exp: +0.1% Prior: -0.3%

10:00 US Philadelphia Fed. APRIL Exp: -15.0 Prior: -17.4

10:30 US EIA Natural Gas Storage Change 11-Apr Exp: +16 Prior -14

10:30 US Fed’s Prescott, S&P’s Miller and Lehman Brother’s Watkinson Participate in Fed Panel

14:00 US Fed’s Fisher speaks in Chicago

15:00 US Fed’s Lacker to speak to media at credit conference in Charlotte

15:15 US New York Fed’s Calabia to moderate Credit

4:30 US MI and M2 Money Supply

Posted in Forex News | No Comments »