Canadian Dollar Could Pull Back on Friday

The Canadian dollar held its own against the US dollar on Thursday, despite the release of disappointing data, as the Ivey Purchasing Managers’ Index (PMI) tumbled to a record low of 39.1 in December. This marked the second straight month that the index held below 50, which signals a deterioration in business activity, and a further breakdown of the report also shows that employment conditions contracted for the fourth consecutive month.

This reading suggests that Friday’s releases could have bearish implications for the Loonie, as the Canadian net employment change is forecasted to have fallen by 20,000 during December while the unemployment rate is anticipated to have risen to a nearly three-year high of 6.5 percent from 6.3 percent. Since the employment change tends to be a very volatile release, this should have the greatest impact on the Canadian dollar, with a sharper than expected drop likely to weigh on the currency and an unexpected positive result likely to push it higher.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Vital Tips on Getting Started in Forex Markets

You can actually make a regular source of income by entering the fascinating world of forex trading. But there is a checklist you need to follow to have a profitable trading experience. That would make your forex trading worthwhile and that much more orderly.

It is the forex broker that you select who helps you to open your online forex trading account. Apart from having a flawless reputation, the broker you select should preferably be affiliated to a large banking institution. For example Saxo Bank is reportedly a good forex broker. But there are several others too. The choice is entirely yours. Before you make the final selection, read online reviews of the brokers and select the broker who is the least controversial and who has the maximum positive reviews in broker review sites. Remember to read the trading rules of the broker, particularly with reference to the leverages they offer, the carry forward charges to roll over your position to the next day and so on. In other words pay attention to the fine print of the terms and conditions of the broker’s agreement. Get someone who is well versed in forex trading to help you out on this.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

No-fail Strategies in Choosing Regulated Forex Broker

Make really sure you're getting a forex spot account and not forwards and futures account. Almost everybody uses the spot market as it is easier to rollover your position. Be certain that you feel comfortable with regulated forex broker policies before registering. Look for these few stuffs

1. Bid/ask pip price on currency pairs

As we take the journey through the final part of this article, you can look back at the first part if you need any clarifications on what we have already learned.

2. minimum trading unit size 3. Reliability of the trading platform

4. EBook in teaching you the standard strategies to trade

5. Requoting policy

Search for the most competitive spreads as this will decrease your costs of trading FOREX. If you're trading heavily, it might cost you a lot of dollars for not receiving a great competitive spreads. Competitive spreads are about 3 to 5 pips and if you're receiving spreads of 8 pips or more, just snub this platform.

Transparency of the trading platform is also important to make really sure they never charge you more. Sometimes, they might make a muddle and charge you more and this might get you into extra unwanted cost. Choose a regulated forex broker cleverly before trading currencies. If likely, open a small account in 2 or 3 platforms before choosing which platform you want to use in long time. Analyze it for few days or weeks and see which gives you the best offer. Getting wrong online FOREX trading platform can cause you to spend both your time and money.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Characteristics of Forex Market

1st, It consists market but no trading field
The finance industry in the western countries consist two sets of systems, namely the centralism business central operation and there is no fixed place for such business network. Stock trading is being traded through stock exchange. Like the New York Stock Exchange, the London stock market, the Tokyo stock market, respectively is American, English, the Japanese stock main transaction place, it is a centralism business financial commodity, its quoted price, the transaction time and hand over to the procedure all consist of unification the stipulation, and has established the same business association, it has formulated the same business rules. The investor could buy and sells the commodity through the broker company, this is known as "consist of trading market and trading field".

But foreign exchange business is done without any unification operation market and business network, it has no centralism unified place like the stock transaction. But, the foreign currency trading network actually is globally, and it has formed a organization which has no formal organization, the market is relied through an approval way and the advanced information system, Forex traders do not consist any membership qualification for any organization, but must obtain colleague’s trust and approval. This kind of Forex market which has no trading field is known as "consist of market but no trading field". Each day, the trading volume in the global Forex market involves billions of U.S dollars, the so huge large amount fund, is being control under both the non-centralism place and non central governance system, plus it is settle based on non-government governance.

2nd, Circulation work
Due to the different geographical position of the various financial centre, the Asian market, the European market, the Americas market because of the time difference relations, it has become an entire day 24 hour continued operation whole world foreign exchange market.
Early morning 0830 (New York time) New York market opens, 0930 Chicago market opens, 1830 Sydney opens, 1930 Tokyo opens, 2030 Hong Kong, Singapore open, before dawn 1430 Frankfurt opens, 1530 o'clock London market opens. So 24 hours uninterrupted movements, the foreign exchange market becomes a day and night market, only on Saturday, Sunday as well as the various countries' significant holiday, the foreign exchange market only then can close.
This kind of continued operation, provided no time and spatial barrier ideal outlet for investors, the Forex trader may seek the best opportunity to carry on the transaction. For instance, Forex trader buys up the Japanese Yen in the morning at the New York market, in the evening Hong Kong market opens the Japanese Yen rises, the Forex trader sells in the Hong Kong market, no matter Forex trader in where, he all may participate in any market, any time business. Therefore, the foreign exchange market may say is does not have the time and the spatial barrier market.

3rd, Zero and Game
In the stock market, the rise or the drop of stock market could influence the value of the stock whether to rise or drop, for example the Japanese new date iron stock price falls from 800 Japanese Yen to 400 Japanese Yen, the value of this stock has been reduced to half. However, in the foreign exchange market, the value of a stock and a currency is being calculated differently, this is because the exchange rate is refers to the exchange ratio both countries currency, the exchange rate change will influence one kind of monetary value to reduce and at the same time another kind of monetary value increase. For instance in 22 years ago, 1 US dollar exchanges 360 Japanese Yen, at present, 1 US dollar exchanges 110 Japanese Yen, this explains the Japanese Yen currency value rise, but US dollar currency value drops, in the end the value will not reduce or increase. Therefore, some people described the foreign currency trading is "zero and the game", exactly said is the wealth shift.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Risks By The Foreign Exchange on Forex

Exchange rate risk.

As it was mentioned, the trading on the Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.

Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes.

The most popular measures to cut losses short and ride profitable positions that losses should be kept within manageable limits are the position limit and the loss limit. By the position limitation a maximum amount of a certain currency a trader is allowed to carry at any single time during the regular trading hours is to be established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Agriculture Futures Trade Higher on the CBOT

Wheat, corn, oats, soybeans trade higher on the Chicago Board of Trade; livestock futures fall

Agriculture futures rise on the Chicago Board of Trade.
Wheat for March delivery gained 17 cents to $5.9925 a bushel; March corn rose 14.25 cents to $4.1225 a bushel; March oats advanced 12.25 cents to $2.31 a bushel; and March soybeans jumped 37.5 cents to $9.565 a bushel.
Meanwhile, beef and pork futures fell on the Chicago Mercantile Exchange. The U.S. Department of Agriculture on Friday posted to its Web site 30 U.S. meat plants from which Mexico suspended purchases Wednesday. Among those affected are a Plant City, Fla.-based Smithfield Packing Co. facility, Sioux Falls, South Dakota-based John Morrell & Co. and a number of Iowa-based Tyson Fresh Meats Inc. plants.

February live cattle lost 2.22 cents to 86.1 cents a pound; March feeder cattle fell 2.8 cents to 91.75 cents a pound; February lean hogs were down 1.9 cents to 58.95 cents a pound; and February pork bellies slipped 1.15 cents to 88.45 cents a pound.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Industrial Output Fell Less Than Expected in Nov.

Industrial output fell in November as weakness in autos, other industries depressed activity

Industrial output fell slightly less than expected in November as manufacturers continued to suffer from weakness in autos and many other areas that is not expected to ease anytime soon.

The Federal Reserve reported Monday that industrial activity dropped by 0.6 percent in November. Economists expected a decline of 0.8 percent.

The manufacturing sector is suffering like the rest of the economy from the deepening recession, which has cut consumer demand for many products.

"Manufacturing production tanked in November and the data were even worse than they look," said Joel Naroff, chief economist at Naroff Economic Advisors. "The only industry that posted a gain was aircraft and that was only because Boeing started back up after the strike."

The 0.6 percent drop in November followed a revised 1.5 percent increase in October. However, that gain occurred after a 4.1 percent plunge in September, which represented the biggest one-month drop since a 5 percent decline in February 1946.

For November, manufacturing output was down 1.4 percent, reflecting a 2.8 percent decline in production at auto plants, the third drop in the past four months. Production fell by a huge 11 percent in August and 3.6 percent in October.

Detroit automakers last week got turned down in a bid for a bailout package from Congress when Senate Republicans insisted the auto unions agree to wage cuts. General Motors Corp., Chrysler LLC and Ford Motor Co. all are seeking assistance, but the prospects at GM are considered the most dire.

After a weekend trip to Iraq and Afghanistan, President George W. Bush told reporters on Air Force One on Monday that the administration would provide short-term government assistance, saying "an abrupt bankruptcy for autos would be devastating for the economy."

For November, output at aerospace factories, the category that includes airplane manufacturer Boeing Co., jumped by 12.8 percent after three straight months of declines.

A strike halted production at Boeing's commercial airplane factories for eight weeks before the Machinists union accepted a four-year contract and began returning to work on Nov. 2. The strike cut Boeing's revenues by more than $100 million a day and forced subcontractors worldwide to lay off workers.

Output at the nation's mines, a category that includes oil and gas production, increased by 2.5 percent in November following an even bigger 7.2 percent rise in October. The October gain followed a 9.5 percent plunge in September as production along the Gulf Coast was disrupted by the September hurricanes.

Production at the nation's utilities rose by 1.6 percent in November following a 0.7 percent increase in October.

The Fed said the rebound following the end of the Boeing strike and the hurricanes added almost 1 percentage point to industrial production in November.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

European Central Banks Cuts 75bp to 2.50%

European Central Banks Cuts 75bp to 2.50%, Euro-Dollar (EUR/USD) Pushes Above 1.2625



The European Central Bank lowered borrowing costs the most in its 10-year history as they cut the benchmark interest rate by 75bp to 2.50% from 3.25% as the economy heads in a recession. The central bank should continue to hold a dovish outlook going forward as price pressures alleviate, which could drag on the euro over the near-term. Meanwhile, the larger-than-expect rate cut failed to trigger a drop in the euro as the EUR/USD pushed higher to hold above 1.2625, but may face increased volatility over the next few hours of trading as investors eagerly await ECB President Trichet’s press conference scheduled for 13:30 GMT.

[Claim Your Bonus with ForexGen]

Special Promotion for New Clients


Free cash bonus when you open your new live account withen the next 30 days. You will recieve a FREE cash bonus which will be added to your trading account. The cash bonus depends on the account type you open.

Account Type Account Type
Mini Account Standard Account
Free Cash Bonus Free Cash Bonus
10% of your deposit 10% of your deposit
maximum $250 maximum $500

To be able to withdraw your free cash bonus, you need at least to open 20 trading lots in period not exceeds 3 months.For more information about our current and future promotions, contact one of our customers support agents at promotions@forexgen.com

BoE Cuts Rates by 100bps As Expected

BoE Cuts Rates by 100bps As Expected But Signal More Action To Come As Credit Conditions Remain Difficult

The Bank of England cut their benchmark rate by 100 bps as was expected by economist bringing it to 2.00%. The Pound traded higher on the news reversing earlier losses as traders started to expect a more aggressive move given the dour fundamental data that has recently crossed the wires.


Talking Points
• Japanese Yen: Finds Support at 92.50
• Pound: BoE Cuts Rates By 100 bps
• Euro: Rate Decision Ahead
• US Dollar: Jabs Data On Tap

BoE Cuts Rates by 100bps As Expected But Signal More Action To Come As Credit Conditions Remain Difficult.

The Bank of England cut their benchmark rate by 100 bps as was expected by economist bringing it to 2.00%. The Pound traded higher on the news reversing earlier losses as traders started to expect a more aggressive move given the dour fundamental data that has recently crossed the wires. The release of the HBOS home price indicator showed that values drop another 2.6% in November which sent the pound below 1.4500 for the first time in over six years. Credit conditions remain tight which has kept the housing market from bottoming which has forced the central bank to take more measures to provide liquidity to the market.

The BoE in its post announcement remarks stated that its “unlikely that normal lending volume restored without action” as “money, credit market conditions extremely difficult”. The central bank said the consumer spending and business investment has stalled which has dragged the economy into a recession. The MPC expects inflation is likely top drop further with the possibility of it falling below its 2% target very likely. The comments signal that the central bank is not done taking action and more easing is very likely in the near-term which could lead the pound lower as markets digest the comments.

The Euro traded heavy in early trading falling to as low as 1.2549 before finding support. The Riksbank unexpected 175 bps rate cut led to the Euro dropping as speculation increased that the ECB would cut rates deeper than expected at today’s rate decision. The Swedish bank wasn’t scheduled to make a policy decision until December 17th and the preemptive move demonstrates how dire the circumstances are in Europe. The ECB is expected to cut rates by 50 bps at 12:45 GMT, but the possibility of a deeper cut has significantly increased. Indeed, the second reading of GDP for the third quarter remained at -0.2% confirming the region’s economy is in a technical recession and the lower revision of household consumption demonstrates the lack of confidence by the consumer. A more aggressive move could sink the Euro below support at 1.2330, the October 28th low with 1.2000 a possibility. However, if the central bank meets expectations and President Trichet demonstrates no intention to deviate from the MPC’s measured approach then we could see a bullish reaction with a break above 1.3000 a possibility.

The majority of the event risk for the dollar may hinge on the markets interpretation of the actions from the European central banks. The continued easing could brighten the outlook for the global economy sparking risk appetite and leading to dollar weakness. However, employment data may dampen demand for risk as jobless claims are expected to remain above 500,000 for the fourth week in a row. U.S. factory orders are expected to have fallen 4.5% in October adding to the evidence the frozen credit markets brought manufacturing activity to a halt. Despite the fundamental data headlines that GM and Chrysler are considering pre-arranged bankruptcy could have a major impact on risk appetite. The potential impact on the U.S. economy of two of the three major U.S. automakers falling into bankruptcy could send traders to the sidelines. However, the potential resolution to Detroit’s troubles could bring relief to traders, who dislike the unknown and spark bullish sentiment.

[ForexGen Scalping Enabled Account]

Trade and scalp the market ForexGen has the pleasure to announce the availability of both Dealing Desk and No Dealing Desk Platforms. No Dealing option provide traders with direct access to the best bid/ask prices through multiple bank access. No re-quotes & No dealer confirmation is the main characteristic of the no dealing option made specifically for “scalpers” and active FX professionals. Absolute freedom to trade during news and economic events. The no dealing desk option allows traders to place entry orders inside the spread! Unlike competing FX firms, [ForexGen] offers traders all the advantage of a “no dealing desk” option.

Advantages of No Dealing Desk Option

*Trade the news without intervention or restrictions
*Although spreads may vary in volatile market conditions, they are tried to be kept within the usually limits.
*Place scalping orders without intervention or restrictions.
*A client-friendly trading environment, No re-quotes.
*Ability to place orders inside the spread
*Competing rates from multiple banks
*Spreads are variable and can move sharply
*Ideal for active or professional FX traders

For more information about our current and future promotions, kindly visit this page often or contact one of our customers support agents at promotions@forexgen.com, or you can [chat] with our representatives, you can also[request a call back]from one of our agents by sending us your contact number and the best time we can reach you.

British Pound Technical Outlook

Looking in at the hourly chart, the GBPUSD rally from 1.4554 is clearly corrective. While this could be the beginning of a flat or triangle, it may also be a completed correction at 1.5539 that will lead to new lows. Further, the decline from 1.5539 counts well as an impulse.

A rally back to former resistance at 1.5073 would potentially complete wave ii within the bear cycle from 1.5539. 1.52 is the 61.8% of the decline from 1.5539. This scenario fits well with a EURUSD rally in wave e before resumption of weakness.


[ForexGen Introducing Brokers]

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

Trading the Reserve Bank of New Zealand's Rate Decision

NZD/USD:

October 2008 Reserve Bank of New Zealand Rate Decision

The RBNZ lowered the benchmark interest rate by 100bp to 6.50% from 7.50% – the largest reduction since the central bank began using the official cash rate in 1999. The extraordinary efforts taken on by Governor Alan Bollard suggests that economic conditions are deteriorating at a rapid pace as the economy slipped into a recession during the first half of the year, and policymakers may ease policy further over the coming months as growth prospects deteriorate. Dr. Bollard stated that ‘economic activity will be further constrained by these international developments,’ and went onto say that the central bank will ‘lower the rate further’ as price pressures alleviate. Falling oil prices have clearly helped to taper the upside risks for inflation, which could lead the RBNZ to hold a dovish outlook throughout the next year.

September 2008 Reserve Bank of New Zealand Rate Decision

The Reserve Bank of New Zealand lowered the benchmark interest rate to 7.50% from 8.00% despite expectations for a 25bp cut. Governor Alan Bollard reduced the cash rate by 50bp for the first time since the 2001 as the economy slipped into a recession during the first half of the year, citing that the bank is now ‘in a loosening mode.’ The downturn in the economy paired with fading demands from the global economy has led the central bank to push inflationary concerns to the backburner even as consumer price inflation reached 5.1% in the third quarter, which is higher than the 4.9% forecast anticipated by the central bank. Despite the uptick in prices, Dr. Bollard expects inflation to moderate over the next few quarters on the back of falling energy prices, and he may continue to hold a dovish outlook as concerns of a global recession intensify.

July 2008 Reserve Bank of New Zealand Rate Decision

The New Zealand central bank reduced its cash rate for the first time in five years by 25bp to 8.00%. The downturn in the housing and financial sector paired with a 0.3% contraction in second quarter GDP continues to fuel recessionary concerns for the economy. RBNZ Governor Alan Bollard stated that ‘economic activity is likely to remain weak over the reminder of 2008,’ and went onto say that the central bank would ‘lower rates further’ if the inflation outlook continues to improve. Dr. Bollard also noted that ‘unpleasant international news has emerged since the June statement and there is a risk that the domestic economy will slow further,’ fueling bearish sentiment for the New Zealand dollar. As a result, the Kiwi plunged after the release, generating a short position with a gain of 25bp.

How To Trade This Event Risk

The New Zealand dollar may face increased selling pressures over the next 24 hours of trading as the RBNZ is widely expected to lower the benchmark interest rate by 150bp to 5.00% from 6.50%. A Bloomberg News survey showed that 10 of the 17 economists polled expect the central bank to lower the key rate to 5.00%, whereas the remaining 7 economists forecast a 100bp cut to 5.50%. The downturn in the global economy paired with weakening demands for exports has clearly taken a toll on firms as business confidence fell to its lowest level in November since recordkeeping began in 1988, and conditions may only get worse as companies continue to scale back on production and employment. The New Zealand manufacturing index contracted for six consecutive months to reach a record low reading of 43.5 from 46.7 in September, while the unemployment rate surged to a five year high of 4.2% from 3.9% in the second quarter. Fading employment opportunities will continue to drag on growth despite the significant fall in energy costs as domestic demands waver. Retail spending fell 0.9% in the third quarter, followed by a 1.4% decline in the previous quarter, and may lead the Reserve Bank of New Zealand to ease policy further as price pressures alleviate. Falling oil prices have certainly helped to taper the upside risks for inflation, which should allow policymakers to hold a dovish outlook going forward. Moreover, RBNZ Governor Alan Bollard stated that he expects economic activity to remain subdued as growth prospects for the global economy deteriorates, and went on to say that ‘we would expect to lower the rate further’ as the outlook for inflation falls within the central bank’s 2% target for inflation. Policymakers expect headline reading for inflation to fall to 2.7% over the next two years as the economy contracts at a record pace, which could lead the reserve bank to ease policy well into the next year as the outlook for growth remains bleak.

Trading the given event risk may not be as clear cut as some of our other trades as market participants expect the RBNZ to aggressively lower borrowing costs over the near-term, so we would need to see a drastic shift in policy to consider a bullish outlook for the Australian dollar. Therefore, a rate reduction of less than 100bp paired with a neutral outlook for future policy would set the stage for a long NZDUSD trade, and we will look for a green, five minute candle following the release to confirm a long trade on two lots of the kiwi-dollar. Our initial stop will be placed at the nearby swing low (or reasonable distance), and this risk will determine our first target. Our second target will be based purely on discretion, and in order to preserve our profits, we will move the stop on the second lot to breakeven once the first trade reaches its target.

Nevertheless, deteriorating fundamentals paired with the drastic slowdown in the economy is likely to push the RBNZ to loosen monetary policy even further in order to ward off the downside risks to growth, and may continue to lower borrowing costs next year as the economy faces its worst recession in nearly a decade. As a result, dovish commentary following a 150+bp rate cut would favor a bearish outlook for the kiwi-dollar, and we will follow the same strategy as the long positions described above, just in reverse.

[ForexGen.com] is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, ForexGen is the best broker.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Why participate in the Forex Market

• Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account activation.
• Scandinavian quality with Swiss precision, funds secured and local agents in 20+ countries..
• ForexGen offers Forex trading in the major currency pairs; crosses and CFDs.
• Low capital start , with $250 in minimum account size.
• Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
• ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

for more information > > >

Segregated Accounts With ForexGen

Businesses and municipalities can place certain segregated client funds in an interest-bearing account.

ForexGen's Segregated Deposit Account gives you convenience and efficiency in managing client funds that cannot be commingled. This service is appropriate if you are a brokerage firm, financial company, money management firm, investing or insurance broker or intermediary that holds segregated funds on behalf of clients.Our robust solution enables you to gain access to multiple segregated accounts with one access. You can easily divide earned interest among the participating parties.

For more informations press here »»»

Customer Agreement with ForexGen

ForexGen presents specialized Forex online trading services. We support trading in variable currency pairs, available services 24 hours a day most of the week. Real time prices are supplied to facilitate the trading and make it more quick and efficient. Our trading terms & conditions are the most competitive trading terms & conditions for various trading kinds which represent our appreciation to every client starting from the smallest customers. ForexGen is re-setting professional trading technology, by a continuously tracing the competence offers and modifying our trading conditions and provided platforms.

For more information >>>>

24hrOnline Forex Trading With ForexGen

With a volume of $3 trillion traded each day, the foreign exchange market is the largest financial market in the world. While Forex trading was once the exclusive domain of banks and large financial institutions, the rise of Internet technology has made it accessible to all types of investors including individuals with small investment capital.

As word of its substantial and quick potential profits is spreading, online forex trading is becoming more popular each day. Through online currency brokers such as ForexGen, traders can now buy and sell currencies in one mouse click and with no commissions or fees. Online forex trading allows you to take advantage of market fluctuations – even small – in various currency rates. At ForexGen, you get free access to topnotch tools which will help you predict market direction and place your orders.

for more information ……….

Forex Basics With ForexGen

To start getting income from foreign exchange market (Forex), you don't need to have any financial experience. You just need to find your way in the multitude of possibilities offered for those looking for profit from national currencies rate variations. And ForexGen provides all beginners with an Academy of professional experts in forex. The point of classic Forex trade, meant to get a quick income, is simple (which hardly differs from other markets): you have to sell on higher price what you've bought on lower price.

But to get a grip on currency rates, you need more than simple mathematics. First thing, you have to learn all definitions: Besides the correct meaning of terms "currency" and "rate", you need to know what "quotation" means, along with "currency pair" (which consists of base and counter currencies). You need to know what are "point", "spread", "trend", "position" etc. Every action on Forex market is preceded by an analysis. Depending on its functions, the analysis can be fundamental (when the economic dynamics of a country are being studied thoroughly, along with prognoses on its changes), or technical (when we apply a mathematic approach to the graphs of currency rate fluctuations).

The trade on Forex market goes on twenty-four hours a day. Saturday and Sunday are traditionally considered days of rest. The same as for all the other markets, work on Forex market uses a certain set of strategies, methods and techniques. There are rules you have to try and follow, and there are things you shouldn't do. Every market session (Asian, European and American) has its own law and established traditions, which you also have to learn about.

And finally, for the trade on Forex market you need to use certain tools (software, papers etc.) without handling which the theoretical knowledge will be useless.

for more information ……….

Different Types of Forex Orders with ForexGen

A trader has at his disposal different types of orders to make FOREX trades. A clear understanding of each type of order is necessary to be a successful FOREX trader. Market Order – is an order to buy or sell at the current market price. They can be used to enter or exit a trade.

Market orders should be used with care because in fast-moving markets there may be a difference between the price seen at the time a market order is given and the actual price of the transaction. This is due to slippage – the amount the market moves in the few seconds between giving an order and having it executed. Slippage could result in a loss or gain of several pips.

Limit Order – is an order to buy or sell at a certain limit. They can be used to buy currency below the market price or sell currency above the market price. When buying, your order is executed when the market falls to your limit order price. When selling, your order is executed when the market rises to your limit order price. There is no slippage with limit orders.

Stop Order – is an order to buy above the market or to sell below the market. They are most commonly used as stop-loss orders to limit losses if the market moves contrary to what the trader expected. A stop-loss order will sell the currency if the market falls below the point set by the trader.

One Cancels the Other (OCO) – this order is used when placing a limit order and a stop-loss order at the same time. If either order is executed the other is cancelled, allowing the trader to make a transaction without monitoring the market. If the market falls, the stop-loss order will be executed, but if the market rises to the level of the limit order, the currency will be sold at a profit.

for more information ……….

New to Forex Markets?

Forex is definitely one of the most exciting and profitable markets. If you want to join the elite and start investing you need to follow 5 very simple steps that will eventually lead yo to succes:

Self Study:
In order to start investing you need to study and observe the Forex market carefully so that you can make the right decisions when the time comes.
You can study the fundamental analysis to monitor the political and economic news' effect on FX market.
Also the study of technical analysis is useful as it predicts the price movement based on past experience.
ForexGen offers a Training section developed specially for new traders .

for more information > > >