FOREX: Currency Markets May See Knee-Jerk Volatility as Trade Volumes Shrink

FOREX SPECIAL :-

Key Overnight Developments

• Japanese Yen Slumps on Profit-Taking After Yesterday’s Advance
• British Pound Spikes Higher as Trade Volumes Amplify Volatility
• NZ Dollar Gains as Money Supply Sees Smallest Drop in 13 Months

Critical Levels

CCY	SUPPORT	RESISTANCE
EURUSD	1.3071	1.3167
GBPUSD	1.5385	1.5523

Currency markets kept to narrow ranges in the overnight session as trading volumes wound down ahead of the Christmas holiday in most of the world’s top banking centers. The Euro oscillated in a narrow range above the 1.31 figure. The British Pound popped higher late into the session to add 0.3 percent against the greenback in what appeared to be a move similar to yesterday’s spike in the Japanese Yen, owing mostly to the amplifying effects of thin liquidity rather than a specific catalyst.

Asia Session Highlights

CCY	GMT	EVENT	ACT	EXP	PREV
NZD	2:00	New Zealand Money Supply M3 (YoY) (NOV)	-0.2%	-	-1.1%

The New Zealand Dollar narrowly outperformed, adding 0.2 percent on average against the major currencies after the Money Supply shrank at the slowest pace in 13 months in November. The outcome hints inflationary pressure may begin to pick up after the yearly CPI figure hit a six-year low in the third quarter, opening the door for rate hikes in 2011. The Reserve Bank of New Zealand will add 56bps to benchmark borrowing costs over the next 12 months according to traders’ priced-in expectations.

The Japanese Yen moved lower against the spectrum of its top counterparts – with the most profound losses noted against the Kiwi and the Swiss Franc – as the currency retraced some of the equally impressive and difficult-to-explain advance in yesterday’s trade. The currency had gained 0.6 percent on average, marking the largest daily advance in three weeks, on what appeared to be liquidity-driven volatility.

Euro Session: What to Expect

CCY	GMT	EVENT	EXP	PREV	IMPACT
EUR	11:00	French Total Jobseekers Change (NOV)	-	-20.3	Low
EUR	11:00	French Total Jobseekers (NOV)	-	2676.8	Low

The economic calendar is essentially negligible and the top European markets will be closed for the Christmas Eve holiday, pointing to choppy trade amid thin liquidity conditions. Indeed, using the CME EUR/USD futures contract as a proxy – trading volumes have nearly halved since just over a week ago on December 14th. We will stick with our existing exposure, keeping an eye out for knee-jerk volatility.

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USD/JPY rises further to 83.77, 6-week high

Forex Special :-
                          The Dollar extended the upside against the Yen supported by risk appetite and upbeat US data. USD/JPY jumped to 83.77, reaching levels not seen since October 5. Currently trades at 83.60/65, 0.55% above today’s opening price. 

The pair is moving further away from 15-year lows at 80.25/30 and is extending weekly gains to more than a hundred pips. 

A decline in US government bonds is sending yields higher, weakening the Yen further. The Japanese currency is falling sharply and during the American session reached fresh daily lows across the board. 

• USD/JPY

USD/JPY (Nov 18 at 17:20 GMT)

83.59/61 (0.50%)

H 83.8 L 83.095

S3	S2	S1	R1	R2	R3
82.4258	82.6329	82.8400	83.3700	83.5784	83.7868

[?]Trend Index	[?]OB/OS Index
Strongly Bullish	Neutral
Data updated on Nov 18 at 17:15 (15-minute timeframe)

• 1D
• 1M
• 3M
• 1Y

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National Leaders Be printed on Rupees!

Apart from the issue of the devaluation of the Pakistani Rupees due to the down sliding economy, the issue of the images of our national leaders be printed on the rupees is not something often discussed. All of our rupee coins and notes have the image of Quaid-e-Azam, and probably it is evident that so far Quaid-e-Azam is the only national figure that has able to survive in the minds of the youth and masses in general.

What if we have the images of our other national/ historical leaders???

“The minister for Defense Production Sardar Abdul Qayum Jatoi has urged for the print of Allama Iqbal image on 100-rupees currency note as this will be a good message for youth.

He said most of the countries have printed the images of their national heroes on currency notes so we must print the image of our national poet Allama Iqbal on 100-rupees currency note.

Having just Allama Iqbal’s image on 100 rupee will be a small step, but a better step. It is important more than ever in these times when the youth of Pakistan have absolutely no connection what so ever with creators and pioneers of Pakistan. In the United States, each note of a Dollar has an image of one of the unanimously great President. The first President George Washington is on the 1$ note, and then other Presidents. Although, we do not have any Prime Ministers that we can their images on, we do have plenty of national leaders who fought and shaped the image of Pakistan- The Land of the Pure.

I am here suggesting some of the names:

Allama Iqbal,

Liaqat Ali Khan,

Mohtarma Fatima Jinnah,

Choudary Rehmat Ali

Ali Brothers

If you think others should be please do write it in the comments, inshallah.

Our government should try to have one national leader per note of our Rupee. That way the illiterate people as well as many educated yet ignorant youth of Pakistan would also know or at least remember the names and faces of our great leaders, without whom Pakistan would never have existed!

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Forex Rates In Pakistan

The rates of forex in pakistan. Taht are the result of 24 august 2004.

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Basic Information on Forex Trading

Forex Special :-
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The Forex market is a world wide market with the main centres being in New York, Tokyo, London, Frankfurt and Sydney. Because the Forex market is traded all around the globe, it is able to operate almost twenty four hours per day.

Trades are made between individual participants and not through a central exchange. This is known as an "interbank" market as trades are administered over the counter (OTC).

Basic information on Forex trading market is the buying and selling of one countries currency against another countries currency. Money is made and lost when the currencies, for example, (GBP) Pounds Sterling and (USD) United States Dollars, are bought at the current exchange rate, and sold back either when the market has performed in your favour and made you money or gone against you and you have lost money.

There are many different markets and information on Forex trading but the most important market is the "spot market". It is called that because the trades are performed then and there, on the spot. Other important markets are futures trading, trading on margin and forward outrights, and they are more involved in their execution.

To learn more information on Forex trading and an incredible innovative system that can make your trading profits go through the roof, go here Profitable Trend Forex System

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