Forex Investment and Currency Trading

Payrolls declined by 467k in June, a larger decline than the consensus (-365k) expected, while the unemployment rate rose to 9.5%, a smaller rise than the 9.6% figure market projected. The report on balance was weaker than expected, owing to the weak payroll print and a decline in the workweek. The main message is that last month’s slowing in the pace of payroll decline overstated the pace of improvement in the labor market; but the report does not fundamentally change the trend of gradual improvement.
There was a net revision of +8k to the prior two months, and despite the weaker print [...]

[Read more →]

CHF: Reported intervention against EUR & USD
Reuters & Bloomberg yesterday reported speculation that the SNB has been buying both EUR and USD, consistent with a dramatic move in the CHF crosses. The perceived involvement in USD/CHF came as a surprise to the market, as the SNB had previously stated it would specifically buy euros as part of its intervention policy. But, the weakness in the USD and JPY had meant that daily estimate of the SNB’s trade-weighted exchange had appreciated by more than the level of EUR/CHF would suggest. Indeed, the Swiss TWI was at its strongest post-intervention level ahead [...]

[Read more →]

Retail sales disappointed in April, falling 0.4% m/m (consensus: 0.0). The breakdown of the retail sales report was particularly surprising. Auto sales actually inched up by 0.2% despite the plunge in unit new vehicle sales in April. This could be attributed in part to an increase in used vehicle sales and price effects. Retail sales ex-autos fell 0.5% m/m versus forecast for a 0.4% rise. Similarly, “core” retail sales, which nets out autos, building materials, and gasoline sales, unexpectedly declined 0.3%. This follows on a 1.0% slide in March, leaving core retail sales down a record 2.2% y/y (data only [...]

[Read more →]

The developments on the international capital markets have not only led to a range of new products. Modern technologies have in some cases also altered the way securities are traded. It is now possible to buy and sell the same security, money market instrument or derivative on the same day. This is called day trading. The intention is to take advantage of small and short-term fluctuations in the price of an individual asset so as to sell it at a profit or to limit price risks. If you conduct day trading, you should be aware of the particular risks involved.
Immediate [...]

[Read more →]