Forex Investment and Currency Trading

USD
Despite further negative developments in the US financial system, the dollar has remained resilient. Highlighting the ongoing credit crisis, Merrill Lynch announced further writedowns and plans to sell more stock. European equities have pushed lower, driven mainly by financial stocks. US equity futures are in positive territory after positive data releases this morning. Ahead of key US data releases at the end of the week, USD is likely to continue to trade in a range and having weathered the earnings season well, the resilience of USD to further negative news from US financials perhaps illustrates that much of the bad [...]

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Currency Pairs
Every FOREX trade involves the simultaneous buying of one currency and the selling of another currency. These two currencies are always referred to as the currency pair in a trade.
Major and Minor Currencies
The seven most frequently traded currencies (USD, EUR, JPY, GBP, CHF, CAD, and AUD) are called the major currencies. All other currencies are referred to as minor currencies. The most frequently traded minors are the New Zealand Dollar (NZD), the South African Rand (ZAR), and the Singapore Dollar (SGD). After that, the frequency is difficult to ascertain because of perpetually changing trade agreements in the international arena.
Cross [...]

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Thailand The BoT released its quarterly Inflation Report on Monday. The Central Bank raised the full year CPI forecast sharply. The revised forecast implies inflation will likely reach double-digit levels in 3Q08. The core inflation was also raised with annual core inflation readings expected to stay above the target zone in the near term. Growth forecast was lowered due to slower than expected recovery in domestic demand. Overall, the forecast revisions were in line with market expectation of a significantly higher CPI trajectory and moderately lower growth in 2008. Substantial upward revisions to 2009 core and headline CPI point to [...]

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USD was moderately softer during a very quiet session overnight. Today’s economic calendar is light on data but is full for most of the week with an abundance of releases scheduled for Thursday and Friday. July nonfarm payrolls are the most important data this week. Consensus looks for a seventh straight negative print of -70k that will lift total job cuts above 500k. Ahead of payrolls, July Conference Board consumer confidence (Tue) is expected to show further deterioration, while the advance Q2 GDP report (Thur) is seen showing a modest gain, as the bulk of the boost from the tax [...]

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