Monday, May 18, 2009

Canadian News


Canadian Dollar Slumps To 5-week Low Against Aussie 5/19/2009 12:44 AM ET

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TOP MARKET NEWS
Aussie Jumps To New Multi-Week High Against Canadian Dollar
Southeast Asian Currencies Jump Against Dollar
American Express to Slash 4000 Jobs - Update
Stocks Finish Substantially Higher Amid Encouraging Housing Data - U.S. Commentary
Stocks Rally On Housing Hopes (RTTNews) - During Asian deals on Tuesday, the Canadian dollar weakened to a 5-week low of 0.8938 against the aussie. This may be compared to Monday's close of 0.8913. If the loonie falls further, it may likely target the 0.90 level. by RTT Staff WriterFor comments and feedback: contact editorial@rttnews.com

Tuesday, April 14, 2009

GBP/USD: Sterling pushes higher


FXstreet.com − GBP/USD Current price: 1.4900. Bullish bias remains intact in the pair, with hourly 20 SMA acting as dynamic support and guiding the movement. Clear open under mentioned moving average could trigger some downside correction, supported by indicators that also tend to the downside, although the strong congestion zone around 1.4850 should contain further falls.[ Full Story ]
FXStreet.require('Tabs.js');
Technical Forex News
EUR/USD: Euro closing at 1.3260FXstreet.com Wed, Apr 15 2009, 02:29 GMT
GBP/USD: Sterling pushes higherFXstreet.com Wed, Apr 15 2009, 02:20 GMT
USD/JPY: Yen testing support at 98.50FXstreet.com Wed, Apr 15 2009, 02:16 GMT
Dollar mixed, Gbp higherFXstreet.com Tue, Apr 14 2009, 22:06 GMT
Forex: USD/JPY falls 1.35% on the day; below 99,00FXstreet.com Tue, Apr 14 2009, 16:26 GMTView All
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Exclusive Forex Trading Analysis
U.S. Update: Wall Street rules currency market by Valeria Bednarik
Japanese stock fell, with Nikkei 225 down despite general optimism early Monday, sending Euro down after approaching to 1.3400 during past American session.[ Full Story ]
The yen pared earlier losses and gained broadly on Tuesday by Charmer Charts.com
Asian shares rose to a six−month high on Tuesday after Goldman Sachs' stronger−than−expected profit signaled the worst could be behind for U.S. banks[ Full Story ]
Currencies at a glance
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Wednesday, March 4, 2009

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Welcome to Invest Money Inc
Our program is intended for people willing to achieve their financial freedom but unable to do so because they're not financial experts. Invest Money Inc is a private investment club founded by an experienced and professional management group, provides investment products and service all over the world.
Invest Money Inc is a long term high yield private loan program, backed up by Forex market trading and investing in various funds and activities. After years of successful partnership with some investment clubs and working offline with private investors we finally decided to launch our private online investment platform on June, 2008. Profits from these investments are used to enhance our program and increase its stability for the long term.
Invest Money Inc has various established relationships with reputable private investment clubs. We understand every aspect of market needs and strive to create and manage wealth in several ways to provide peace of mind for its clients.
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Open an account at Invest Money Inc and you will be able to participate in our referral program. We will pay you 7-15% of your referrer's deposit.
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Referral Program
Open an account at Invest Money Inc and you will be able to participate in our referral program. We will pay you 7-15% of your referrer's deposit.
Name
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Basic
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999
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and more
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Family sues HSBC over forex account


By Selina Lum
A FAMILY from Taiwan is suing HSBC Private Bank for forcing three of its members to close a foreign exchange trade on their US$24 million (S$37 million) investment account, which resulted in them suffering losses and being deprived of potential profits.
Mr Huang Po Jen, 30, his mother Madam Chen Ling San, 57, and his grandmother, Madam Chen Cheng Su Yun, 83, are claiming about US$3 million.
The case opened in the High Court yesterday and is scheduled for 10 days.
The dispute revolves around a purported investment strategy that Mr Huang said was agreed on the phone between him and bank employees on Nov 8, 2004. He claims the strategy allowed him to hedge a forex transaction - by conducting an opposite trade - unless his collateral fell below a certain level.
Hedging is the practice of engaging in financial transactions which offset each other to reduce potential losses.
But Mr Huang claimed that about a month later, HSBC changed its mind and pulled the plug on the agreement.
Being unable to hedge and protect his investment resulted in losses, he said.
Mr Huang, who has lived in New Zealand for the past 15 years and is a naturalised citizen there, manages the family's assets. The two women live in Taiwan.
He opened an account with HSBC here in January 2004 which allowed him to trade in foreign exchange. He testified that Singapore was considered an ideal destination for the funds, given the country's reputation and integrity as a financial centre. They also used HSBC as it was well known worldwide, he said.
In October 2004, he bought US$22 million by selling &yen17.8 million (S$35 million), essentially betting that the euro would drop against the US dollar. However, the euro strengthened and he began to incur paper losses.
Mr Huang said that on Nov 8, 2004, he was told in a phone conversation with relationship manager Alex See and forex trader Joanne Lee that he could hedge this trade. So he began buying euros to manage his losses. But on Dec 2, he said, he was told that he could no longer use this strategy to make some profits, which would minimise his loss.
Yesterday, his lawyer, Mr Kannan Ramesh, argued that it was not reasonable for the bank to 'change the ground rules' and 'reset the parameters' that had earlier been agreed upon.
The bank denies there was such an agreement. Even if there was, there are contractual clauses which allow it to end such agreements and which exempt it from liability for doing so. It also says it is unreasonable for Mr Huang to link his losses to the bank's actions.
Mr Ramesh rebutted the bank's position, arguing that these 'omnipotent' provisions effectively give banks 'unfettered and complete discretion to change the ground rules as and when they please'.
Mr Huang will be calling an expert witness to support his case.
HSBC's witnesses include Mr See, Ms Lee, chief executive officer Jimmy Soh and an expert who will testify on a variety of issues.

Forex trading examples

Forex trading examples

Example 1

An investor has a margin deposit with Saxo Bank of USD 100,000.
The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.
The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.
Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.
Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.
Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.
Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.
As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.
This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.

Example 2:

The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).
The dealer quotes 112.05-10. The investor sells EUR at 112.05.
Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.
He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.
Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.
The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.
This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.

Example 3

The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:
He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.
Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.
After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.
Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.
Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.
The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.



Asset Management, Saxo Bank John Hardy publishes daily comments on the Forex market. Mr Hardy's analysis attempts to overlay short term technical developments and fundamental event risks with longer term themes and trends in the G-10 currencies. Mr Hardy considers inter-market correlations as paramount in understanding moves in the Forex space, so the analysis draws on a number of models based on other markets and gauges their correlation with Forex markets in an attempt to detect inefficiencies that may provide trading opportunities.



Manager/Market Strategist, Saxo Bank
David Karsbøl holds a Master of Science degree (Economics) from the University of Copenhagen and has previously been employed as an insurance analyst. Mr Karsbøl works with fundamental analysis and research and contributes to Saxo Bank's strategy products. He also develops and maintains macroeconomic models and a number of trading models, which are designed to profit from co-variations between the Forex and fixed income markets. Mr Karsbøl is regularly appears on major financial news networks and comments several days a week on the financial markets via Saxo Bank's live Market Call webcast. He is a native Danish speaker and is fluent in English







How to Trade Forex


Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.
The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.
The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.
Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements.