Category: News

Osborne to target foreign exchange manipulation

In a statement which could be causing numerous brokers and financial strategists to sweat, Chancellor Osborne has announced that he will be working closely with a variety of regulatory experts in order to ensure that the foreign exchange marketplace within the City Of London is free of corruption and other dubious dealings. One of the final unregulated marketplaces on the planet, the world of foreign exchange, also referred to as “forex”, remains largely out of sight and is primarily managed by traders who have been given a variety of buy and sell orders on behalf of larger global companies.

According to recent allegations, it is believed that 15 major banks have now been involved in forex currency manipulation. 9 of those listed have now suspended or fired forex traders that had previously been working for them. That being said, the extent to which the Osborne and his team of UK-based watchdogs can invoke change is somewhat limited, due in large part to the fact that the forex market remains a global enterprise, largely out of reach of any one nation. While Osborne’s changes may serve to “clean up” his particular “neck of the woods”, it is highly doubtful that his actions will have any lasting impact on the forex industry as a whole.

Of additional concern for Osborne is the potential fallout that could occur before key elections in 2015. Were hefty fines to be levied against UK companies in upcoming months, rival parties could accuse him of failing to act responsibly and ensure the validity and legitimacy of one of London’s most dominant industries. It should, ultimately, come as no surprise that these attempts at regulation are now occurring.

A political move, or perhaps an honest attempt at repairing a fractured industry, Osborne is nonetheless making bold moves into a well-established, highly organised industry that has relied upon its decentralized nature to exchange trillions of pounds of currency to companies around the world over the past decade. It will be interesting to see what, if any, “progress” Osborne can make.

GBP EUR USD AUD Foreign Exchange Rate Forecasts & Predictions June 2014

The world of foreign exchange (forex) trading is arguably one of the most complex and nuanced financial marketplaces on the planet. Featuring an array of finely tuned pricing mechanisms and intricate arrangements, the process by which currencies lose or gain value relative to one another has become a trillion dollar industry.

Market analysts have released their exchange rate predictions for the month of June, and their assertions seem to coincide directly with recent announcements in key nations around the world.

The British Pound Sterling has made further gains, expanding its competitive edge on international currencies due in large part to recent announcements that manufacturing data has demonstrated healthy growth. Although the Bank of England’s recent statements on monetary policy are causing some to worry that the price rally being experienced by the Pound Sterling is only temporary, analysts are recommended a neutral to positive outlook on this particular currency.

Similar successes cannot be claimed by the Euro Dollar, which has suffered slightly due to recent revelations that the ECB might continue to reduce interest rates, further driving down the value of this already beleaguered currency. Combined with disappointing manufacturing news, the Euro is believed to currently be in a period of decline. Analysts have adopted a negative outlook on this particular currency.

The US Dollar’s positive manufacturing reports will most likely keep this currency within previously established ranges compared to the Pound Sterling. That being said, the recent Michigan sentiment index is largely negative, potentially undercutting any positive outlook nurtured by the overall manufacturing report. Analysts currently believe that the US Dollar sits at a neutral to positive outlook.

The Australian Dollar has been impaired slightly by recent reports illustrating weak domestic building numbers. Because of this, it is unlikely that the Reserve Bank of Australia will move to strengthen the national currency using an interest rate hike. According to analysts, the Australian dollar currently sits at a neutral to negative outlook.

Overall, the assertion could be made that the “threat” of volatility in the forex marketplace will be greatly enhanced or reduced by policies currently being decided upon in Europe and Australia. That being said, many of the world’s major currencies stand to benefit from any sign of weakness in these aforementioned economies.

Gold Enjoys Reprieve Around $1240

Although gold prices have fluctuated significantly over the past week, a small margin of confidence has been restored following the stability that this precious metal seems to exhibiting. Falling sharply from a well-established $1275, gold reached a four-month low near $1240, a move which, for many, was as disappointing as it was financially painful. That being said, it seems that this particular price point may signal the full extent of the ‘damage’, as further losses have not been seen. Given the relative stable nature of the precious metals marketplace, significant fluctuations in gold price are bound to quickly draw attention.

That being said, this new pricing base is markedly lower than the recent high of $1315. Although many believed that market volatility around gold was largely reducing, the fast drop to $1240 has caused some to rethink their original predictions and quickly adopt new tactics in this particular niche of the precious metals marketplace.

The price of gold is, essentially, determined by a variety of factors. The health of national currencies is one of the most significantly influential forces when assessing the overall strength of a commodity. With this in mind, it becomes much easier to understand the relationships between the price of gold and the economic health of the world’s prominent economies during the 2008 financial crisis: as markets plummeted, the price of gold soared. Gold is, due to this ‘sovereignty’ often thought of as a “safe haven” during periods of economic turmoil.

With a number of important policy decisions soon to be announced, including the ECB’s potential disclosure of new policy options and the U.S. non-farm payrolls data, gold traders are waiting with somewhat bated breath to see what exactly may happen to the price of gold in the coming weeks. Were the ECB to announce new, looser regulations, many believe that the price of gold would inevitably rise. That being said, the loss of value in the Euro may also serve as a prominent factor in assessing the value of gold in the coming weeks. Volatility, it seems, may be returning to the precious metals marketplace after all.

How Big Should Bitcoin’s Role be in B2B Payments?

What exactly is the future of Bitcoin, and what role should this digital currency play in the B2B payments market, one of the most vital niches within the larger global infrastructure in existence today? These two questions are often asked by financial analysts and industry experts seeking some sort of invaluable insight into the future of the digital currency, not only for speculative purposes, but also in hopes of gaining some sort of traction when developing sustainable business platforms in what is arguably one of the most dynamic and volatile economic climates in recent history.

For some, Bitcoin’s precipitous rise in both value and public interest is a sign that this product (and the revolutionary system it represents) should be avoided at all costs. After all, Bitcoin has not only undermined the modern banking system as we know it, but it has also posed a credible challenge to the sovereign currencies of nations around the world.

These exact critiques are, for some, the very same reasons why they believe Bitcoin is poised to adopt an even larger role in the B2B payments market in the months and years to come. Due to the fact that Bitcoin is arguably much more secure than standard transactions, Bitcoin could trade back and forth on a B2B level without as high a risk of hacking and theft. Combined with the fact that Bitcoin transactions carry no additional charges, some are proclaiming that this method of payment is undeniably a cornerstone of the future 21st century business infrastructure that has slowly been evolving over the past decade.

Regardless of whether or not Bitcoin does indeed become a fixture in B2B payments, it stands to reason that an increasing number of businesses will begin to demand what Bitcoin provides – a no-hassle, expense-free service by which money can quickly find its way into the hands of those who need it the most, all without the threat of a security breach or online theft.

Is this the future of B2B transactions? It seems there are very few reasons why it shouldn’t be. With Bitcoin, however, success is measured not only in literal effectiveness but also public sentiment, a more elusive standard of measure that has proven itself to be a major catalyst for price increases and drops in recent history. If Bitcoin is, indeed, to become a fixture within B2B practices, it must first be embraced by the influencers and thought leaders who hold power over this particular enterprise.

Bitcoin Software is the future for money exchange

For many investors who have spent the last six months of their life proclaiming loudly that Bitcoin is the way of the future, the current price fluctuations that have led to the lowest price points for the currency since 2013 may be causing cold sweats, nightmares and vigorous bouts of rage/denial. That being said, taking to the time to breathe deeply and think about the history of Bitcoin may provide a more realistic and, hopefully, optimistic feeling of where this currency may be headed.

When Bitcoin first arrived on the internet, early adopters proclaimed that this currency would rattle the foundations of the current marketplace and, to be honest, it did. With values absolutely skyrocketing prior to the Mt. Gox catastrophe, many investors were swept into thinking that Bitcoin truly had revolutionized currency. That assumption, really, isn’t too far off the mark. Regardless of what the future of Bitcoin as a single cryptocurrency may be, the technology powering it and the ideas it has generated will live on long past this particular payment vehicle.

That being said, for those who are committed to gaining the most clear picture of the coin itself, the news is going to feel demoralizing. For a currency as young and volatile as Bitcoin, “first” impressions are everything. Given the absolute plunge of the currency in recent months, there’s virtually no way that an experienced investor looking to tuck away millions in a promising opportunity will give Bitcoin a second thought. The less transactions that occur, the fewer opportunities that Bitcoin has to reach new segments of the population who may find it a valuable tool. The fewer people who find the currency useful, the less credibility it is able to hold on to. And this, of course, is how the currency could die.

The idea of Bitcoin, however, will likely stay alive for decades to come, due in large part to the revolutionary nature of the blockchain, a system of reinforced anonymity and security which, due to its inherent flexibility, will likely become a ubiquitous element of the online arena.

Therefore, Bitcoin enthusiasts really have two choices when it comes to thinking about their favorite currency. They can acknowledge that the coin itself was bound to face a turbulent period of growth and change that may lead to its demise, or they can think of the bigger picture, i.e. the blockchain, and revel in the fact that Bitcoin truly is just the beginning of something much larger and more revolutionary than they could have ever imagined.

You could win a prize pool of $6000 with OctaFX & Forex-TSD’s contest

It seems that there’s no shortage of enticing and alluring competitions in the FX marketplace, particular for traders who are looking for the opportunity to show off their skills against a global pool of eager and ambitious competitors. OctaFX, in conjunction with Forex-TSD, have recently announced the arrival of a new competition designed to explore the “limits” of a trader’s ability in a no-holds-barred simulator contest.

Participants will each be given a starting sum of $10000 and 1:500 leverage in a race to see who can accrue the most wealth within a one month period. Although the funds used to facilitate this competition are fake, the prize winnings are very real. The 1st place winner will receive 2500 USD, while the 2nd and 3rd place participants will receive 1500 USD and 1000 USD, respectively. Financial prizes are also offered to 4th and 5th placed competitors.

Competitions such as these serve two primary purposes. Not only do they give amateur traders the opportunity to explore new strategies in a friendly competition, but they also raise awareness of trading software platforms, which, in this instance, is represented by the OctaFX platform all competitors will be using throughout the duration of the event.

Because of this, it could be asserted that both OctaFX and the five lucky finalists will all leave this competition a “winner.” Although OctaFX is dispensing cash to each of the winners, it is likely that they believe that participants in the competition will return to the company and continue to use their platform for commission-drive trading.

Additional information about this competition can be found at http://www.octafx.com/company/news/$-6000-prize-pool-in-a-new-octafx-&-forex-tsd-demo-contest/. Contestants must register on the website before the competition begins in order to be included in the event.

There really is no reason why those interested in enhancing their FX trading abilities should not participate in an event such as this. The opportunity to expand one’s abilities in a competitive environment will prove to be an invaluable experience for those who have not yet had the opportunity or ability to engage in FX trading in the real world. Essentially, the knowledge gained in this competition is as valuable as the actual prize itself.

Top tips for achieving your currency exchange trading goals

Money Exchange Software

The possibility of making money on the foreign exchange market is achievable, however, it is essential that you do your homework first and are fully aware of how the trading system works.

Forex is the largest currency trading centre in the world. The main participants within the trading market are the larger international banks. It has a greater market trading volume than both stock and bond markets and offers investment opportunities for those who choose to navigate it.

Trading in foreign currencies can be tricky as it’s hard to know what is going on in another country. Currency and trading analysis is very subjective and highly technical. For example, different traders can look at the same data and come to different conclusions. Carrying out thorough research first is the safest way to protect your assets from other’s mistakes.

A good first tip is to ease yourself into the trading market gradually, avoid the temptation of doing too much too soon and risking big losses. Therefore, it’s advisable to only use one currency pair when beginning.

Make sure you keep positions to under 5% of your account’s value, this will then allow you to make mistakes. By doing this you still have the chance of coming back and winning a trade even after a mistake. It’s important to remain conservative in your trading in order to become successful in the market.

When buying into expensive trading programs, make sure you check the customisation options available. You will want to have the ability to alter your system if necessary so that your strategies are still working.

Trading on the Foreign Exchange Market is more about intelligence and judgement than our emotions and gut instincts. You need to think carefully about all the decisions you make. Be wary of the Forex robots as they often turn out to be a big profit maker for the seller and not much for the buyer.

Experienced Forex traders will advise anyone new to the market to take notes on all trades, outline successes and failures and learn from this.

In order to mitigate your risk factors, start out with a practise account, this is a great tool to use in the beginning until you can assess what you are capable of.

Once you feel you have reached a level of stability in your trading strategies, it may be time to move up to a mini account. Try to attempt the scalping method, this involves making a series of trades within short time frames. Keep four-hourly or daily charts when you are trading on the market for best results. This is easily achievable with access to the Internet, which can now keep you constantly updated.

Finally, trading in too many markets can get confusing so make sure you don’t over-trade. Over-trading could result in a loss whereas making fewer trades could result in greater profits.

Questions to Ask Yourself to be Successful

Forex, the foreign exchange market involves the trading of foreign currency and is available to anyone. Large international banks are big traders within the market.

Newcomers to the Forex market should remember never to trade with you emotions, it is all about intelligence and accurate judgements.

If a particular market lacks public interest then avoid trading here. Because every trader will make different choices, do not chose your personal Forex position based on that of another traders. Beware though, mistakes can easily happen in this market even if someone seems to be succeeding, so you must make thoroughly researched choices.

A Forex Robot is a piece of automated Forex software that automates trading decisions. The most popular robots for retail traders are built around the metertrader platform. They run on this platform as “expert advisers” and can do anything from giving you a signal to place a trade, to automatically placing and managing the trade for you. Their use is never advisable, as they create huge profit for the sellers and little for the trader.

You can practise your trading moves through virtual demo accounts or practise accounts as a way of familiarising yourself with the market and how it all works.

Although you can track the market every 15 minutes, this will not give you the overall direction of the current trend so avoid the stress of doing this. This time window is known as a short-cycle.

You need to remember to keep a cool head when you are trading with Foreign Exchange, otherwise you will end up losing money.

Try starting out by trading in a single currency pair rather than multiples. Once you have more knowledge of the market you can start to increase this number.

Start by following the market for just 2-3 hours at a time and note what happens. Avoid trading too much too soon and risk potentially losing a lot of your capital. Newcomers should learn how the market works and make their own informed judgments. This is how you become a successful Forex trader.

Finally, remember that as a newcomer, there is a lot to learn about the Foreign Exchange Market, it will take time to succeed and don’t forget to learn from your mistakes.

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