Stronger US Economy Brings Dollar Higher

US DollarThe US strengthened on the speculation that the solid growth of the US economy will make the Federal Reserve to remove the stimulus and increase the interest rates.

The US gross domestic product grew 3.1 percent in the last quarter of 2010. That’s compared to the previous estimate of 2.8 percent and the forecast of 3.0 percent. The claims for unemployment benefits decreased to 382,000 from 387,000 last week. Analysts suggested a decrease to 388,000.

Federal Reserve Bank of Philadelphia President Charles Plosser told about the necessity to prepare a plan for removing the stimulus from the US economy, saying:

Monetary policy will have to reverse course in the not-too-distant future and begin to remove the massive amount of accommodation it has supplied to the economy. Failure to do so in a timely manner could have serious consequences for inflation and economic stability in the future.

He also said that his “proposed strategy involves raising rates and shrinking the balance sheet concurrently and tying the pace of asset sales to the pace and size of interest rate increases”.

EUR/USD closed at 1.4086 after opening at 1.4171, while GBP/USD fell from the opening price of 1.6120 to 1.6040. USD/JPY opened at 80.99 and closed at 81.33

TAIWAN DOLLAR FELL TO STOCK INDEX

Taiwan Dollar Taiwan Dollar sank today as the nation's stock index fell to its lowest level in five months, slowing the rapid currency appreciation.

Taiex stock index fell as much as 2.6 percent, the biggest loss since August 25. Taiwan currency fell 0.1 percent this week, but has gained 3.9 percent this year so far.

USD / TWD rose from the opening level of 28.9520 to 29.2250, the biggest gain since December 31, at 14:16 GMT

BAD FRANC VS. U.S. DOLLAR ON ECONOMIC REPORT

Swiss Franc Swiss Franc which jumped to a record versus the U.S. dollar after the macroeconomic data shows that U.S. economic growth slows.

Federal Reserve Bank of Philadelphia's index of manufacturing conditions dropped from 43.4 in March to 18.5 in April. U.S. jobless claims fell to 403,000 last week, while analysts expected a decrease to 394,000.

USD / CHF fell from 0.8879 to 0.8818 today as of 15:06 GMT after earlier reaching a record low 0.8779

FOREX TECHNICAL / FOREX FOREIGN (DOLLARS)

Hearing the words Trading Forex or FX, often arise in your mind of negative thinking that making money on the internet from forex trading (Forex) online is gambling, not kosher, not promising jobs, high risk, requiring large capital, and businesses such useless HYIP ( High Yield Investment Program).

Stereotypes on top cause of business opportunities / business forex trading (forex) is often underestimated in our society. It is not denied because of the local forex traders who often uses half-way play gambling in their clients' money, without any sense of responsibility to the relevant client money. If you happen to win more clients which will include funds for their play. If it is losing money yet still get a commission. Who are victims of course the client (you).

Indeed there are many traders (fund managers) are making money and doing business in a professional and responsible to their clients' funds. But however much better if you own a start trading and making money on the internet through online forex trading without "hand over the fate of" your funds to another party. Why?
1. Because if you've managed to make money on the internet from forex trading with profit stable and constant, then you will not be forever dependent on other parties (fund manager or your boss)
2. In forex trading forex there are so many opportunities (how and trading techniques) in producing and making money. What you need is to find a trading system (trading system) your own personal. That is how or techniques that proved profitable forex trading for you, consistent, and reliable (reliable). If you have found your personal trading system, then the gates of success were there in plain sight
3. If you are already proficient and successful in the business of online trading forex (foreign exchange), will work FOR YOUR MONEY. No rule you will be "prompted" by a friend or relative to play their funds. We ourselves know some traders who have found their own trading system, became very successful and then play their clients' funds until the count of hundreds of thousands of USD (billion rupiah) to millions of U.S. dollars (tens of billions of rupiah). The percentage they get of course very EXTRAORDINARY (thousands USD to tens of thousands of USD per month).

Trading Forex

Foreign currency or collectively, in other words, such as foreign exchange, foreign exchange, forex or FX is also the currency issued by a foreign country as legal tender in the country. Money not only used as legal tender, also developed into a tradable commodity. Own foreign exchange market experienced rapid growth in the early decades of the '70s. As for the causes of foreign exchange grew rapidly among others are:
• The movement of the foreign exchange value of the experiencing significant movement so attractive bagibeberapa certain circles to be involved in the foreign exchange market.
• Business is increasingly global. With the increasingly intense business competition made the company must find new resources that is cheaper, and spread all over the world, giving rise to demand for a particular country's currency.
• The development of telecommunications is so fast with the means of telephone, telex, fax, internet, has given the convenience to market participants to communicate more easily so that transactions are made.
• Gains on foreign exchange markets gained at large tend to increase the desire
various parties tried to gain gain (profit) from foreign exchange movements.

INTERRELATION BETWEEN CAPITAL MARKET AND FOREX MARKET

Capital markets can have an impact on currency markets in various ways. For example, if a strong stock market rally that occurred in the U.S., with the Dow and Nasdaq to register impressive gains, we tend to see a large influx of foreign money into the U.S., because international investors rush in to join the party. This flow of money will be very positive for the U.S. dollar, due to participate in the stock market rally, foreign investors must sell their own domestic currency and buying U.S. dollars. The contrary is also true: if the stock market in the U.S. is playing bad, foreign investors will likely rush to sell U.S. equity ownership and then change back to the U.S. dollar to their local currency - which would have a substantial negative impact on the greenback. This logic can be applied to all other currencies and capital markets around the world. This is also the most basic usage of capital market flows to trade FX

MEANING FOREX

Forex is short for Foreign Exchange, or the exchange of the value of different currencies, forex activity unwittingly or consciously, often carried out by all people in the world, if you travel abroad you must exchange your currency with the currency of your destination country. Or another example of a result of export-import activities, the needs of the market and banking institutions, must be doing activities to exchange currency.
If we trade using petukaran difference between purchase price and sale price to fluctuate by the minute, usually referred to by traders who typically do forex trading through a trading house / brokers! Can an online Internet or via phone, or by manually though!
What is traded on the Foreign Exchange Market / Forex?
The answer, of course, money. Currencies are traded in pairs through a broker or dealer, such as the Euro vs. U.S. Dollar (EUR / USD) or Pound vs. Yen (GBP / JPY).
Unlike stock markets, such as New York Stock Exchange or the Jakarta Stock Exchange, the foreign exchange market has no trade center offices. Located in NY Wallstreet NYSE, JSE, while located in Jakarta. The foreign exchange market can be considered as a market that is "Interbank" or OTC "Over The Counter" for the time trade that continue to follow the trade of each country and can be assumed that the foreign exchange market is open for 24 hours.