Forex Investment and Currency Trading

USD fell off its highs overnight with DXY dropping from a peak of 76.129 down to 75.489 as EUR/USD recovered moderately from the biggest EUR/USD one day sell-off since Sept. 2000 that was observed on Friday. Sentiment towards EUR remains fragile in what will be an important week data wise. Exacerbating this fragility is the conflict between Russia and the former Soviet republic of Georgia , as EUR is the major reserve currency in that region.
The key events in the US this week will be Retail Sales on Tuesday and CPI on Wednesday. Retail Sales is expected to print at [...]

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Options are not a simple investment vehicle and the terminology can be confusing.
Options may be used for speculation—to make a profit—or as a hedge— to protect a position maintained in the normal course of one’s business, if you hedge a speculative spot FOREX position with options, it is considered a speculative hedge. It is only a true hedge if you are hedging a legitimate business transaction that entails currency risk.
For speculation, options may be used as either a trading instrument in and of themselves or as a money management tool paired with spot FOREX trading.
New traders are advised to become [...]

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1 - 3 Month Outlook
The underlying pressure for CNY to appreciate is illustrated by the fact that China’s FX reserves have increased by almost $300bn so far this year. Latterly, the pace of revaluation has slowed, particularly against the US dollar, in the face of weaker growth in the OECD economies, and there have been hints that the authorities have become more growth and less inflation focused. Nevertheless, given the size of the trade surplus and strength of FDI inflows, the positive trend in the yuan is expected to continue in the short term.
6 - 12 Month Outlook
Real GDP growth [...]

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USD was the worst performing G10 currency overnight with DXY falling to a low of 73.976, relinquishing most of yesterday’s gains. In the US today, data will take the form of initial jobless claims, pending home sales, and consumer credit, though focus will lie firmly on non-US data with the BoE and ECB announcing rates. Both banks are expected to leave rates on hold, while focus for EUR will be on the ECB press conference which follows
USD/CAD drifted lower from the 9-month high of 1.0495 seen yesterday, before catching a bid as London opened to recoup some of those losses. [...]

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