Forex Investment and Currency Trading

The overnight story is quite clear: an overall appreciation of the U.S. dollar, continuing the rebound seen on March 27. The Korean won had seen the sharpest appreciation last week; now it is experiencing the sharp depreciation. The declines in other Asian currencies, though they may appear relatively large, only bring them back to levels seen less than two weeks ago.
Market Outlook
The dollar and yen rallied on Monday as renewed trouble in the US auto sector dented investors risk appetite while Spain’s first bank bailout since the start of the financial crisis compounded the euro’s losses.  With risk appetite rapidly [...]

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A currency forward is a contractual agreement between two parties to exchange two agreed amounts of currencies on a certain date in the future.
Term of currency forwards
There are at least three banking days between the execution and final settlement of a currency forward transaction. The term of a currency forward usually ranges from one month up to two years. In individual cases, the term may be even longer.
Final settlement
Currency forwards general provide for final settlement in the form of physical delivery. The counterparties exchange the relevant amounts of currency on the due date as agreed.
Closing of positions
The closing out of [...]

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Both USD and JPY have performed strongly with the European currencies feeling the brunt of the pain. European equities have traded broadly lower but losses have not been so large as to suggest such significant FX price action. With the topic of inflation gaining increased coverage against the backdrop of QE, today’s core PCE data in the US may also attract some focus. The US 5-year inflation breakeven has continues to rise in recent days in the aftermath of the Fed’s decision to buy US Treasuries. With the downward pressure on real yields likely to intensify, traders continue to believe [...]

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Brent crude prices are moving higher with the recent activity showing accelerated gains. The May contract is finally showing a turn higher in the moving averages, as the 20-day moving average is rising at USD 46.26/bbl, while the 60-day moving average is now at USD 45.18/bbl. From a charting perspective, the move above the USD 52.20/bbl resistance area (USD 52.21/bbl was the Jan. 06 high on the continuation chart) helps to confirm the breakout higher, with the USD 56/bbl level kept as the near term target. Some support is layered from USD 52.20/bbl to USD 50/bbl, but more significant chart [...]

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