A recent US Senate committee hearing declared that virtual currencies are, “a legitimate financial service” and has given it the stamp of respectability. Since then the value of the bitcoin has soared to over $1,000.
Enthusiasts of the currency say it is a very efficient way to handle global money transfers, and are astounded to see its value rise so much within five years of trading. It was only January, when it was less well known, that its value was just $20, to say it has fluctuated wildly is putting it mildly, $230 during April, below $70 during July, then over £600 in November. The Bitcoin is sometimes described as a new type of currency, but as for all currencies, its value is determined by how much people are prepared to exchange it for.
In order to process a transaction a computer must solve a mathematical problem which has a 64 digit answer, this is called mining bitcoins. The miners now use bespoke flexible chips, application-specific integrated circuits, known as ASIC, when a problem is solved, the processing of a block of Bitcoins is completed, and the miner receiving a reward of new Bitcoins. (more…)
In the latest forex news, the US dollar has slid considerably in comparison to other major currencies.
While earlier this month many forecasts were bullish regarding the dollar’s upward trend, analysts have now scaled off this position and are taking a more contemplative approach.
Indeed, the dollar may slide further as is possibly indicated by the relative strength index (RSI) which appears to be setting the stage for a downward trend in the weeks to come. This is especially relevant considering that the Jackson Hole Economic Symposium is on schedule for the following week.
Although the bearish stance for the dollar may continue temporarily, should chairman Bernanke not hint at another round of QE3, sentiments may begin to reverse. (more…)
The recent financial turmoil for the Euro continues. Despite extensive funding programs from the European Central Bank, which was presented on March 1st, the EUR currency fell further against both the Japanese Yen (JPY) and the American Dollar (USD).
A lot of efforts
The efforts to curb the crisis in the Euro-area is (more…)
It is not often that we have news related to music videos or songs here at OnlineForex.net. This news post is however different.
The OnlineForex.net song by Jonathan Mann
We at OnlineForex.net are proud to present “The OnlineForex.net song by Jonathan Mann feat. Jonathan Mann”. We have as you understand been working hard with Jonathan Mann to produce our very own jingle with corresponding inspirational video a la Jonathan Mann. Listen and have a look at the video below and then let us know what you think or leave a comment in the bottom of this post.
The OnlineForex.net song by Jonathan Mann feat. Jonathan Mann
Almost every other iPhone 4 owner in the Western world, has probably seen the video with Jonathan Mann (below), when he sings about the antenna problems that arised when the phone was first released. Steve Jobs himself choose that the song should be (more…)
After losing ground for 13 months in a row, USD is about to break out and gain momentum against both euro (EUR) and sterling pound (GBP), according to technical analysts.
Why is USD gaining ground?
Many European countries economy is weak, with Portugal getting downgraded by Moody’s and Greece are having big problems paying their debt. Italian stock market fell almost 9 % previous week over yield spread concerns.
In fear of rising inflation, ECB increased the interest rates last week, without any positive effect on the exchange rates.
Both USA and British economies remains week, but not as bad as the Eurozone.
What do you think about EUR, GBP and USD? Will USD gain significant against sterling and the single currency?
The currency markets fluctuate more than ever, while possibillities to make money in a short period of time increase. If you have a hard time to choose which currencies to buy or sell, help from a currency forecaster or currency analysts can be a good option.
Based on Bloomberg’s yearly ranking, we have here put together the best currency forecasters for some of the most traded currency pairs:
Best overall currency forecasters
Here we have the best currency forecasters for 2010, when EUR/USD, USD/JPY, EUR/JPY, GBP/USD, EUR/GBP, EUR/CHF, USD/CHF, USD/YUAN was considered.
South Korea sought had some problems with speculative currency inflows the latest year, making the local currency to spike. Now, an investigations of the major banks and their forex positions will start, according to Korean Ministry of Strategy and Finance.
What kind of forex trading will be investigated?
We will put our focus on forex forwards, forex futures and forex derivate instruments. No investigation will be made for online forex trading, according to the South Korean ministry.
Purpose of the investigation?
The investigation aim to prevent excessive short term foreign currency loans, and offshore borrowing. South Korea is the 4th largest economy in Asia, and excessive capital inflow may lead to financial instability and slower recovery from the economic slowdown (more…)
The Royal Mint just launched 2010 ‘Coins of the Year’. Below you find some of the royal coins for 2010.
Above: 50 pence coins
Above: Two pound coins
Background of Coins of the Year
Coins of the Year are targeted to those collecting coinage. Every year, new coins are launched and by purchasing a ‘Coin of the Year Set’ you can start a long term collection of minted legal tender.
In the long term, unusual coins in limited editions often turns out to be a good investment. All coins from Celebrate Britain come in excellent uncirculated quality, with superior-quality finish than circulating coins.
Coins of the Year 2010
The coins for 2010 are a 70-year celebration of the ‘Battle of Britain‘, a turning point of the Second World War. British pilots were fighting against German forces and it certainly was a risky job. Average life expecacy for pilots from Britain was only 8 days.
Special celebration coins for 2010
The five pound coin below is not in circulation, but you can (more…)
RBA, The Reserve Bank of Australia, decided on Tuesday to keep the interest rates unchanged for the third month in a row. We continue to see strong numbers for Australian employment and growth, and expect AUD to continue being strong against the USD with many carry traders moving to the pair (USD/AUD).
Strong growth among Australia’s trading partners
Economic data for the June quarter indicate strong growth, around 6 %, for Australia’s major trading partners. China, Japan and Korea had a stronger growth than expected, while the US economy grows less than expected.
Economic conditions in Australia
First, the Australian labour market has continued to show more jobs, while employment increased by over 46 000 jobs in June, growing 3.25 % since (more…)
Nationalbanken, Denmark’s centralbank, released info about their currency reserve yesterday. And it’s clear that there have not been much action by the Danish centralbank.
It apprears the currency reserve descreased 2.2 million DKK to 438.4 million DKK. The new balance is a result of sold Danish currency for 1 million DKK and a foreign loan for 1.2 million DKK.
There was no interventions by the Nationalbank in June.
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.
The latest days of increased stock market indecies have weakened the US Dollar (USD) and strenghtened many of the smaller currencies, such as the Swedish Krona (SEK), British Pound (GBP) and the Franc (CHF). We do expect a falling stockmarket within short (1-2 weeks) and a falling risk aptite, (more…)
Friday the 20th will bring a lot of interesting data, that most likely will effect the direction of many currencies. The pound will be strongly effected by the GBP retail sales, while the USD will be dependent on numbers from the consumer confidence index. My bet is that the pound will drop, since the data will probably come in lower then expected.
Feb 20, 09:30 GMT – GBP Retail sales
GBP Retail sales with a forecast of: -0.1%; Previous: 1.6%
Fri Feb 20 – EUR stimulus package
Germany´s Bundesrat upper House of parliament votes on second stimulus package
Fri Feb 20 13:30 GMT – CPI in America
US Core CPI. Forecast: -0.1%; Previous: -0.7%
Feb 24 15:00 GMT USD – Consumer confidence
US Consumer Confidence
Forecast: 37; Previous: 37.7
Feb 24 15:00 GMT – USD
Bernanke to testify to examine the US financial system
Feb 25, 15:00 GMT – US Home sales
US Home sales. Forecast: 4.75M; Previous: 4.74M
Feb 26, 09:00 GMT, Germany Unemployment rate
Some important data for the Eurozone – Germany Unemployment rate. Previous: 7.8%
The Swedish Krona (SEK) had a hard day. New statistics about the GDP showed scary results. Swedens economy are predicted to decline 2.4 % during 2009, from the earlier 1.4 % estimate. At the same time, the interest rate have been cut to 1 %. Not happy time for currency traders trying to profit on a stronger krona. Only this Tuesday, the currency lost between 2-3 % to most of the majors. Below you can find the latest forex spot exchange rates:
A recent US Senate committee hearing declared that virtual currencies are, “a legitimate financial service” and has given it the stamp of respectability. Since then the value of the bitcoin has soared to over $1,000.
