After a few days of discussions, many observers believe Tories and Liberal Democrats are forming a coalition government in United Kingdom. Currency analysts are now relieved that Gordon Brown seems to step down as Labours leader from September this year.

The new government are likely to cut borrowing sooner then a Labour government would and in general, it should do well for the economy and the british currency. Forex analysts already predict a hung parliment between conservatives and liberal democrats and they seem to like it – pound sterling rose by almost 1 % today. Interest rates Read the rest of Tories + Lib Dem victory make sterling rise? »

A stronger demand then previous t-bill auctions, made the euro gain slightly against the main trading partners on Tuesday.

Government t-bill auction received $780 million euros

Today’s auction was attracting double as much capital as the last time. The treasure bills sold had a lenght of 26 weeks at a yield of 4.55 %. Greece also offered t-bills with a lenght of 52 weeks, with a yield of 4.85 %.

Euro rise against Dollar & Sterling Pound

It seems like euro forex traders were happy about the successful t-bill auction. During the afternoon, the Euro have risen considerable against several other currencies.
Against the Dollar (EUR/USD) from 1.3626 to 1.3573, and against the Pound Sterling (EUR/GBP) from 0.8808 to 0.8839.

euro - us dollar, 13th of April

Intraday graph, Euro against US Dollar above. (See more dollar graphs here)

euro - sterling, 13th of April

Intraday graph, Euro against Pound Sterling above. (See more Euro graphs here)

Finally, the Euro against the Swiss Franc (EUR/CHF) went from 1.4390 to 1.4334.

euro - franc, 13th of April

Intraday graph, Euro against Swiss Franc above.

Or why not check our some more Euro graphs.

Where do you think the Euro is heading in the coming weeks?

The pound sterling has been declining during most of this year, but maybe we are about to see a turning point now?

As you can see in the GBP minute graph, the Pound Sterling have been increasing against US Dollar before Easter holidays starts.

In the longer forex charts for GBP/USD, it looks like the GBP Read the rest of Pound Sterling heading upwards against USD? »

Norges bank left the interest rates on hold at 1,75 % – just as expected. Their outlook for Norways economy was more negative then earlier expressed. As a result, the norwegian krona have declined against the major trading partners and currencies.

Why did Norway keep interest rates at 1.75 %

One of the main reasons for keeping the rate at current levels was scaled back inflation expectations, while a slower recovery in Europe was another. Recent Norwegian growth and unemployment rates have also been slightly lower then expected.

Forecast for Norwegian krona?

The krona Read the rest of Norway leaves rate on hold – NOK descreases »

Today we cover two interesting currencies which seen increased volume in the last 6 months – Australian dollar against the U.S. Dollar. Here is a brief currency forecast from a technical analyst point of view.

AUD/USD – Short-term

Over the next 48 hours, make sure to keep track of the following resistance and support levels:
-Resistance to AUD/USD: 0.9190-06, 0.9228, 0.9276-90 and 0.9404
-Support for AUD/USD: 0.9136, 0.9118, 0.9050-75 and 0.8997

Although there is support for the currency pair around 0.9118, the possibility for a break through the resistance at 0.9228 remains. In the short term, most of the leading forex analysts believe in a bullish move, ie. Australian to U.S. dollars strengthened against the USD.

AUD / USD – medium term

We have seen a Read the rest of Currency Forecast for AUD/USD, March 18th »

Japanese currency are becoming more interesting for carry traders, while forex experts estimate a set-back over the next months.

Yen as a carry trade

During much of the beginning of the century, yen was the main carry trade currency among international forex investors and traders. This mean it was sold by investors because its yield was so negligible, and the proceeds were invested in higher yielding currencies, such as Australian dollar (AUD) or Sterling (£). However, in the middle of the financial crisis, the yen was displaced by the US dollar, in the light of the slashed American interest rates.

Shift in lending rates

It’s now cheaper to borrow money in Yen then Read the rest of Yen attract carry traders again »

The Krona have started to appreciate considerible against the Euro and other currencies lately. Many currency traders now belive it’s time to add the krona to their portfolios. At least as long the Euro is under pressure.

Swedish Krona – from loser to winner

Last quater, the krona was the worst performing major European currency. The link to Baltic banks and quickly increasing unemployment
rate was part of the problems. Now, it’s gone to the regions leading currency instead.

The reasons behind are a few. To start with, Sweden’s budget deficit are shrinking while most other countries deficit are growing. Read the rest of Swedish Krona – A Safe Currency »

Are you into comparing various forex brokers and their trading platforms? We found a good site doing the job, ForexTradingPlatforms.net.

What’s required in your forex trading platform?

We have never seen a forex page with so detailed reviews about how the forex sites look like. Here, Read the rest of Latest Reviews of Forex Trading Platforms »

Many European Investors believe the Euro crisis are about to spread to Spain and Portugal, after Greece took a hard hit in the beginning of the month. The Euro have taken a hard hit and lost over 6 % against the Euro the last weeks. Are Europe just in the beginning of the crisis, while US are on their way out?

Spain deny lost budget control

“We have control of the ship, we have a plan,” said María Teresa Fernández de la Vega, Spain’s deputy premier. Earlier the same day, the prime minister José Luis Rodríguez Zapatero, visited Washington
where he was confident about his home country: “Spain has a strong and solid financial system.”

Well, all are not as confident. Both Madrid and Lisbon ran up their budget deficits to dampen the effects of the economic crisis and partly because of Read the rest of Eurozone Crisis Spreads, USD Gains »

Indian authorities had enough. Now they are closing down another international foreign brokerage, Société Générale, from trading and operation in India. The reason being problems following the international laws that compel companies to provide complete information about overseas clients.

Soc Gen suspended from Indian financial markets

It was a clear decision from The Securities & Exchange Board of India (SEBI), regulator of the derivate och stock market in the country. If foreign brokerages should operate in India they better follow the rules, was the message from Indian authorities. Read the rest of Soc Gen Suspended From Trading In India »

Swedish Riksbanken speech insisted that Sweden’s rate is planned to remain flat until autumn 2010. Ingves pointed out the risk of a potential real estate bubble if the current interest rate levels remains for a long period.

He continues: “We believe that interest rates will be significantly higher in a few years from now”. In 2011, the interest rates will probably go up sharply, from less than 1% to 3%. At least if we are to believe the current forecast from the Swedish Riksbank.

Why was the Swedish interest rates unchanged?

Everything indicates that the recovery in the economy continues, while inflation pressures continue to be low.

With the Riksbank’s inflation target of 2 percent and to simultaneously support the economic recovery of the Riksbank decided to leave the repo rate unchanged at 0.25 percent. Read the rest of Swedish estimations for interest rates & currency during 2010 »

Wen Jiabao, Chinas premier minister, made it clear yesterday that China will not give in to US and European demands for the Yuan to strenghten. Beijing are becoming more defiant against foreign pressure regarding their currency policy.

“On the one hand, you are asking for the renminbi to appreciate; and for the other hand, you are taking all kinds of protectionist measures”, said Jiabao.

He find that by keeping the Yuan stable against the Dollar, China is contributing to the global recovery. Read the rest of China will not let its currency strenghten »

The last week have put a lot of focus on Greece and the Euro. Below are some possible outcomes of the crisis in Greece.

Increasing Budget deficit

How far can the statistics for Greece’s public finances be trusted? The Bank of Greece says the budget deficit in 2009 will be 12.7%. Two months ago the previous government said it would be 6.7%. The latest numbers reveal a debt level of 121 % higher then GDP. However, the true numbers might not be discovered
yet, in the highly corrupt country of Greece.

Even lower credit ratings

Both Standard & Poor’s and Moody’s have now lowered Greece credits ratings. Greece have now the lowest credit ratings in EU. But it’s still higher then many investors had expected. After the news of the adjusted credit ratings for Greece, the Euro fell 0,5 % against the dollar. Read the rest of Greece, a danger for the Euro and Eurozone? »

The Dollar ended the week with monthly records against its major six rivals, indicating a broad strenght of the US currency.

Major investors and forex analysts expect that recent stronger economic data will prompt FED to higher interest rates sooner the earlier expected.

Stronger data supports the US dollar

The recent series of stronger data are shifting to support the dollar. “At least from an interest-rates perspective,” said Mike Moran, senior forex strategist at Standard Chartered Bank in New York. Read the rest of Dollar Surges after Rate-Hike Assumptions »

About to choose a new forex broker? Then you should check out the newest and perhaps most detailed fx platform comparison site out there: ForexTradingPlatforms.net.

With an unusual and very professional web design, you can guess that a lot of time have been spent to make proper forex broker reviews. A lot of brokers are compared, such as Forex Yard and Ava Fx, covering a lot of dimensions of every forex trading platform. Which Read the rest of Which Forex Trading Platform is the best? »

Neonet, a Scandinavian company that offers execution services in equity trading, is now launching a new trading algorithm to conceal liquidity. The company is already well-known maker of systems for trading robots and algorithmic trading.

Dark algorithm – Popular among large trading firms?

Being able to trade shares and currency, without the trade can be seen on the market, is something that has become increasingly popular. The development of the European marketplace has driven the demand of the new generation of algorithms that can provide access to non-displayed (dark trading) liquidity in order entry.

Perfect for Read the rest of Neonet launching a new trading algorithm to conceal liquidity »

An important fundamental factor for online forex traders are the account balance for a country, strongly effecting foreign exchanges rates in the long term (6 months to 3 years).

What is Current Account Balance?

The account balance summarize the flow of goods, services, income and transfer payments into and out of a certain country.  It tracks the trade balance (exports and imports for goods and services), income payments (such as interest, dividends and salaries) and unilateral transfers (aid, taxes, and one-way gifts). Positive values indicates inflow of capital while negative values means that capital are leaving the country.

It is a record for how a countries economy interact with other regions. The balance is the total amount of money in a certain account, equal to the net of credits & debits at a defined time period. Countries strive to have a positive trade balance, or trade surplus, exporting more than importing.

Why is trade balance important for online forex traders?

Countries with positive trade balance require traders to buy the local currency, increasing the value against the other currency. On the other hand, an unfavourable current account balance is known as a trade deficit, which tend to lower the local currencies value against the major trading partners.

Below you find a table over countries with the best current account balance Read the rest of Best Current Account Balance (2007 vs 2008) »

Have you been thinking about going to some Forex Event, Forex Conference or Exhibition? Look no more. We have here collected all the best currency trading exibitions and conferences as we know of.

Forex Expos, Seminars, Conferences and Events in September, 2009

Forex Conference: FXpress User Group Conference
Date: Sept. 14-15
Location: Calyon International Bank, New York City
For more information: Visit https://portal.fxpress.com and click on “Events”. Here you have all availible information about this forex conference.

Forex Trade Show: 4th Annual Paris Trading Show
Date: Sept. 18-19
Location: Paris, France
For more information: Go to www.salonat.com..

Forex Conference: 4th Annual FIA and OIC New York Equity Options Conference
Date: Sept. 22-23
Location: New York Marriott Marquis
For more information: Go to www.futuresindustry.org and you will find all info you need.

Forex Expos, Seminars, Conferences and Events in October, 2009.

Forex Expo: : Melbourne Trading & Investing Expo
Date: Oct. 2-3
Location: Melbourne Convention & Exhibition Centre Read the rest of Forex Exhibitions and Conferences 2009-10 »

Forex Traders are worried Fridays release of the US unemployment rate was way worse then expected and now the US Dollar might face further decrease.

American Labor Department reported that the much higher unemployment rate could be due to lagging data. The non-farm payroll employment fell by 216 000 jobs in August, followed by a revised decrease of 276 000 jobs in July. The new numbers are indication that America is now facing a 9.7 % unemployment rate, the highest in 26 years. Financial analysts and currency traders did expect a 9.4 % unemployment rate in July.

Further pressure on US Dollar

However, it seems like the decrease have moderated the last months, even if some sectors still face continued job losses. Still, consumer confident might be lagging in the coming months. As a result of the unexpected numbers from USA, many online forex traders assume that the US Dollar will continue to suffer against the Euro and Yen.

Many investors  see online forex as an alternative when the equity and property market remain risky.
There are many reasons for this. Let us explain a few here:

• When the stock market are turbulent, investors seek alternative investments.
• It’s hard to predict the stock market at the moment.
• Newspapers write more about online forex and how currencies fluctuate.
• With currency trading, you are not dependent of a positive equity market.

What will you do in turmoil times, trade online forex?