Forex Still Pondering

(Reuters) - Gold weakened on Thursday, tracking a weaker euro, as hopes of solving Greece's crisis dimmed, with the euro zone pondering a delay of the bailout for the debt-ridden nation. Spot gold rallied 1 percent at one point on Wednesday on expectations of a solution for the Greek crisis, but sentiment soured after news that euro zone finance officials were considering delaying parts, or even all, of a second bailout program for Greece. Spot gold lost 0.6 percent to $1,717.91 an ounce by 0617 GMT (1:17 a.m. ET) on Thursday, reversing gains in the previous session. U.S. gold fell half a percent to $1,719.70. Investors are keenly watching the twists and turns of Greece's struggle to convince its international lenders to grant an urgently needed bailout to avoid a messy default. Gold ...

The Weekly Bottom Line : 11/11/2011 HIGHLIGHTS OF THE WEEK United States This week markets laid siege to Italian sovereign debt, driving yields on 10-year bonds to levels not seen since the country adopted the common currency a decade ago. The longer such rates are sustained, the greater the risk that Italy becomes insolvent, and is forced into a messy default. Two things must happen for the crisis to be contained. First, investors must regain confidence in Italy's ability to make good on future debt obligations. Second, the European Central Bank (ECB) must act in a more aggressive role as lender of last resort. Stateside, the deficit reduction committee is nearing its November 23rd deadline for coming up with $1.2 trillion dollars in fiscal savings over the next decade. ...

Forex News and Events: Markets continue to witness a broad based sell-off, as the lack of policy response from Europe holds any potential risk rally captive. Risk reduction remains entrenched, as yesterday's announcement that Greece would once again face larger deficit than originally anticipated, played into the markets fears. Although, this shouldn't be earth shattering news to anyone paying attention, since the IMF estimates forecasted such an outcome. However, it is disturbing due to the fact this was predicted and Greece walked right into the result. Government reports showed that GDP is expected to fall 5.5% in 2011, and 2.5% (upper limit) in 2012. A deficit short fall should come in at 8.5% of GDP, over the previous 7.6% parities agreed on. The Greek government was quick to issue ...

Forex News and Events: Forex markets are broadly moving in a risk on pattern aided by the decent rally in regional Asian indices despite massive event risk looming in the not distant future. USD has come under selling pressure while Gold continues to see exodus from longs dropping the precious metal sharply from $1921 to $1827.57. We wouldn’t put to much value in the recent price action as nothing has changed in the macro environment and more likely seeing a short term correction after a few days of severe risk aversion. The news flow today has been on the light side considering what we have been managing the last few days. News wires are buzzing about a possible $300bn jobs package to be unveiled by US President Obama in his Congressional address tomorrow. The primary means of funding ...

(Reuters) - Gold prices surged to a record $1,578.50 an ounce on Wednesday as fears grew over the euro zone debt crisis and after minutes to the Federal Reserve's June meeting suggested some members were pondering the need for additional monetary easing. Following are key facts about the market and different ways to invest in the precious metal. HOW DO I INVEST? SPOT MARKET Large buyers and institutional investors generally buy the metal from big banks. London is the hub of the global spot gold market, with more than $33 billion in trades passing through the city's clearing system each day. To avoid cost and security risks, bullion is not usually physically moved and deals are cleared through paper transfers. Other significant markets for physical gold are India, China, the Middle ...

Economic Data Analysis Markets Braced for the Worst as End Quarter Looms The prospect of near term Greek default still haunts markets, despite European Council agreement on medium-term assistance. We expect Greece to secure the next bail-out tranche, but coordination risk is high. This week's austerity vote is key. Beyond peripheral Eurozone concerns, the persistence of soft economic conditions has driven yields to fresh 2011 lows. News this week is unlikely to signal an upturn in sentiment, but we see little to provide additional downside risk. Much bad news is priced in rate markets. There is little for markets to cheer at present. Over the past week already subdued equity markets posted further losses; the US S&P off 0.4% and ten-year Treasuries reaching 2.91% - rates ...

After the market finally attained their answer from the Federal Reserve, the market today is bound to move according to the new chapter. Labor figures from Germany are the key focus in Europe as UK gradually exits the market ahead of Friday’s Royal Wedding holiday. Yesterday, the FOMC concluded the two-day meeting with steady rates at their historic lows as expected while Bernanke provided further insight into the policy outlook. We saw the same comments again and again and the Feds pledged to keep rates ear zero to stimulate the recovery. As expected, rate disparities remained the dominant theme with investors still confident in the global economic recovery despite the strong hurdles seen since the beginning of 2011. The euro and sterling rose on the back of the strong sentiment and ...

THE 8 MOST DANGEROUS MISTAKES OF FOREX (AND HOW TO AVOID THEM) INTRODUCTION With my little years in FX Trading, I sat down one day to cross check the causes of my SUCCESSES & FAILURES. The personal determination to reflect on this was driven by my desires to improve on my performance in the future. I now ask the Question “what makes a good Investor?” pondering on that question I discovered that the 8 most dangerous mistakes of FOREX that I am about to write on are what they totally avoided in the course of their trading experience. I discovered that their no.1 ingredient is PATIENCE. Often, beginners to the game always hope for annual returns in hundreds and thousands of percents and then you will see many snake-oil sales men that are willing to encourage them with impossible promises. ...

And now, let’s update our Trade of the Decade. Our “Trade of the Decade” called for selling Japanese bonds and buying Japanese stocks. The bonds go down when the liquor runs out…and then, when Japan can no longer close its budget gaps by borrowing, it will print money. First, the bonds will crash. Then, the stocks will soar. Has it done well? Not exactly. But the decade has just become. And it looks more promising than ever. Lord Keynes may not have had the Japanese bond market in mind. But almost an entire generation of JGB investors is living proof that “the market can stay irrational longer than you can stay solvent.” For nearly 20 years, they thought rising supplies of Japanese bonds must lead to falling prices. As the quantity increased the quality had to decline. It was irrational ...