An Overview of the Maltese Property Market

Posted by admin as Euro Rates

Malta is continuing to benefit from an increase in tourist arrivals, mainly due to the introduction of more budget airlines serving Malta’s route. The islands are now being serviced by low cost airlines, flying in from the UK, Ireland, Italy, Spain, Scandinavia and Germany, with further interest being shown for other destinations. This has resulted in Malta becoming an even more desirable lifestyle and investment destination for foreigners looking to invest in overseas property.

The Mediterranean climate, good standard of living, modern healthcare and education, and low cost of living are a few of the other reasons why the Maltese Islands are well sought after by foreign nationals. In addition, Malta is one of the safest countries in the world, with English widely spoken, making it an ideal location for retirees. Other beneficial factors include the stable internal housing market, the country’s safe and growing economy, and the progressive increase in tourism figures.

The adoption of the Euro had also provided a major stimulus to the economy and further advantages are expected to come from reductions in personal taxation and pressure for a reduction in interest rates.

Foreigners looking to purchase property in Malta can choose from a wide selection of properties, whether town houses, farmhouses, maisonettes, sea-view apartments and luxury properties such as villas and penthouses besides others.

Foreign buyers have previously targeted traditional village houses, especially in Gozo, however new beachfront developments are starting to spring up. The property market in Malta is witnessing the development of a number of major projects which are set to further increase foreign interest. A number of residential, serviced towers in the Sliema/St Julian’s area will provide stunning views of the sea and Marsamxett Harbour area.

Traditionally seen as the perfect destination for retirement, since Malta joined the EU in 2004 the property market has also started to attract younger buyers looking to invest in property. Many investors rent out their property whilst other property seekers come looking for luxury property, attracted by the excellent tax rates available to higher tax payers.

For more information please visit: www.maltapropertysearch.com

maltapropertysearch
http://www.articlesbase.com/real-estate-articles/an-overview-of-the-maltese-property-market-730899.html

Forex Trading – Top 7 Economic Indicators That Can Make You Money in Forex Trading

Posted by admin as Euro Rates

The key to making money in the Forex Trading is understanding what makes currency pairs move. Well, it’s the fundamentals that make currency pairs move but yet not all the economic indicators are important. So which are the ones that can really shake the currency market? Below are some of the important ones which you can use as forex trading strategies:

1. Interest Rate: This is the most important economic indicator and it rules the forex market.
Economies with higher interest rates tend to have stronger currencies and investors are always looking for the greatest possible investment returns.

You will realise that if there is any changes to the interest rate to countries like United Kingdom, Europe, U.S etc, be it cutting or raising, most of the time there will be big movements in the forex trading market.

For example, if Europe has an interest rate cut, investors will sell Euro, which has a weaker currency now and invest in Great British Pound instead, which has a higher interest rate.
Central banks have to raise interest rate if there is too much inflation and you have to watch these two economic inflation indicators as the central banks will be looking at it too:

2. Consumer Price index(CPI): The higher the index is, the stronger the economy will be. Thus, forex traders may push the currency of that particular country higher if they find confidence in the index.

3. Producer’s Price Index(PPI): If prices for producers are rising, they will most likely pass those costs onto consumers. This lead to higher inflation and stronger currencies.

4. Gross Domestic Product(GDP): It is reported quarterly and is the primary indicator of economic strength. A higher GDP is often associated with higher interest rate, which is frequently positive for the currencies.

A forex trading tip: Sometimes you may see a currency pair dipped drastically because the actual results of the GDP is much lower than the forecast, so you might want to consider following the trend and sell that currency pair.

5. Payroll Employment: Monthly measure in payroll employment reflects the number of new jobs created or lost and is an important indicator of economic activity. In forex markets, large increases in payroll employment means that the strong economic activity could lead to higher interest rates, which is seen positive for the currencies.

6. Retail Sales: It is a measure of the total receipts of retail stores and is a major indicator of consumer spending. Rising retail sales are associated with a strong economy, which leads to rising currencies.

7. Durable Goods Orders: It is a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. It is a major indicator for manufacturing sectors. Rising durable goods orders are associated with a strong economy which leads to stronger currencies.

You may learn to trade forex by catching some good opportunities when there are news releases for the above economic indicators. Although the forex market is fundamentally driven, the best way to trade forex is to combine them with forex technical analysis and a forex trading system, which can be found in my “Forex Trading to Riches” ebook.

Daniel S.
http://www.articlesbase.com/currency-trading-articles/forex-trading-top-7-economic-indicators-that-can-make-you-money-in-forex-trading-732736.html

Forex Trading – Top 7 Economic Indicators That Can Make You Money in Forex Trading

Posted by admin as Euro Rates

The key to making money in the Forex Trading is understanding what makes currency pairs move. Well, it’s the fundamentals that make currency pairs move but yet not all the economic indicators are important. So which are the ones that can really shake the currency market? Below are some of the important ones which you can use as forex trading strategies:

1. Interest Rate: This is the most important economic indicator and it rules the forex market.
Economies with higher interest rates tend to have stronger currencies and investors are always looking for the greatest possible investment returns.

You will realise that if there is any changes to the interest rate to countries like United Kingdom, Europe, U.S etc, be it cutting or raising, most of the time there will be big movements in the forex trading market.

For example, if Europe has an interest rate cut, investors will sell Euro, which has a weaker currency now and invest in Great British Pound instead, which has a higher interest rate.
Central banks have to raise interest rate if there is too much inflation and you have to watch these two economic inflation indicators as the central banks will be looking at it too:

2. Consumer Price index(CPI): The higher the index is, the stronger the economy will be. Thus, forex traders may push the currency of that particular country higher if they find confidence in the index.

3. Producer’s Price Index(PPI): If prices for producers are rising, they will most likely pass those costs onto consumers. This lead to higher inflation and stronger currencies.

4. Gross Domestic Product(GDP): It is reported quarterly and is the primary indicator of economic strength. A higher GDP is often associated with higher interest rate, which is frequently positive for the currencies.

A forex trading tip: Sometimes you may see a currency pair dipped drastically because the actual results of the GDP is much lower than the forecast, so you might want to consider following the trend and sell that currency pair.

5. Payroll Employment: Monthly measure in payroll employment reflects the number of new jobs created or lost and is an important indicator of economic activity. In forex markets, large increases in payroll employment means that the strong economic activity could lead to higher interest rates, which is seen positive for the currencies.

6. Retail Sales: It is a measure of the total receipts of retail stores and is a major indicator of consumer spending. Rising retail sales are associated with a strong economy, which leads to rising currencies.

7. Durable Goods Orders: It is a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. It is a major indicator for manufacturing sectors. Rising durable goods orders are associated with a strong economy which leads to stronger currencies.

You may learn to trade forex by catching some good opportunities when there are news releases for the above economic indicators. Although the forex market is fundamentally driven, the best way to trade forex is to combine them with forex technical analysis and a forex trading system, which can be found in my “Forex Trading to Riches” ebook.

Daniel S.
http://www.articlesbase.com/currency-trading-articles/forex-trading-top-7-economic-indicators-that-can-make-you-money-in-forex-trading-732736.html

An Overview of the Maltese Property Market

Posted by admin as Euro Rates

Malta is continuing to benefit from an increase in tourist arrivals, mainly due to the introduction of more budget airlines serving Malta’s route. The islands are now being serviced by low cost airlines, flying in from the UK, Ireland, Italy, Spain, Scandinavia and Germany, with further interest being shown for other destinations. This has resulted in Malta becoming an even more desirable lifestyle and investment destination for foreigners looking to invest in overseas property.

The Mediterranean climate, good standard of living, modern healthcare and education, and low cost of living are a few of the other reasons why the Maltese Islands are well sought after by foreign nationals. In addition, Malta is one of the safest countries in the world, with English widely spoken, making it an ideal location for retirees. Other beneficial factors include the stable internal housing market, the country’s safe and growing economy, and the progressive increase in tourism figures.

The adoption of the Euro had also provided a major stimulus to the economy and further advantages are expected to come from reductions in personal taxation and pressure for a reduction in interest rates.

Foreigners looking to purchase property in Malta can choose from a wide selection of properties, whether town houses, farmhouses, maisonettes, sea-view apartments and luxury properties such as villas and penthouses besides others.

Foreign buyers have previously targeted traditional village houses, especially in Gozo, however new beachfront developments are starting to spring up. The property market in Malta is witnessing the development of a number of major projects which are set to further increase foreign interest. A number of residential, serviced towers in the Sliema/St Julian’s area will provide stunning views of the sea and Marsamxett Harbour area.

Traditionally seen as the perfect destination for retirement, since Malta joined the EU in 2004 the property market has also started to attract younger buyers looking to invest in property. Many investors rent out their property whilst other property seekers come looking for luxury property, attracted by the excellent tax rates available to higher tax payers.

For more information please visit: www.maltapropertysearch.com

maltapropertysearch
http://www.articlesbase.com/real-estate-articles/an-overview-of-the-maltese-property-market-730899.html

The European Banking Sector in 2009

Posted by admin as Euro Rates

The German government has finally succumbed to the pressure of the credit crunch and banking crisis by plunging E10bn into Commerzbank.

The bank is a major constituent of the German economy and lends to millions of their customers both private and institutional. This indicates once again just how reliable the whole of the economy, from start to finish, is on banks.

Such a bailout secures many of the bank’s jobs, much to the annoyance of others who blame the banks solely for this situation. However it also assists in kick starting the free flow of money in an attempt to prevent a serious recession. Whilst that seems positive it is something that German and European tax payers will have to foot the bill for in the years to come.

Like the Royal Bank of Scotland, Commerzbank is in the middle of buying Dresdner for a mere E9.8bn. This is another huge and bitter pill to swallow considering Commerzbank’s market capitalisation is only E3.8bn.

Whilst this recent action should hope to make the deal go through it will just make the recovery that much harder and longer.

Other European banks have been warning of their losses as the value of many of their debt assets continue to tumble. Credit Suisse and BNP Paribas are two of the huge European banks that have also suffered in the face of this crisis.

A friend at Credit Suisse recently told me he was the last person he could see on his floor in the Canary Wharf office. Not a comforting fact.

So not only is the European banking sector suffering just as badly as the UK, but the cracks are really beginning to show in other areas. Consumer, economic and industrial confidence have all plummeted to new lows and in Spain the number of unemployed reached three million for the first time ever.

Spain’s economy in the last 15 years has been built on property and the activity over the last year has taken its toll. Many of the developments now stand half built and many of those will have to be knocked down. The situation is not going to get any better in the short term. Whilst local politicians say ‘unemployment has not reached the bottom but won’t hit four million’, they are more optimistic than I am.

With inflation dropping like a stone and such dire economic data from the Euro zone the pressure is ever building for the ECB to take similar action to that of the Bank of England.

The ECB cut rates by 0.5% in January 2009, but with rates still standing at 2%, more cutting is expected.

And what if you’re looking to invest or spread bet on the banking sector? It might be worth sitting on your hands for a while.

Spread betting carry a high level of risk to your money and may not suit all forms of investor. You can lose more than your initial investment so make sure you only speculate with capital that you can afford to lose. Likewise make sure you understand the risks involved and seek independent financial advice where necessary.

Peter Jones
http://www.articlesbase.com/investing-articles/the-european-banking-sector-in-2009-729332.html

Forex Trading Makes it Possible to Make Great Money From Home

Posted by admin as Euro Rates

Forex trading has become one of the fastest growing areas of finance. It’s something that people will have as a hobby or a job as it offers a great way to make some money. If you have the right mindset, it can be a highly profitable market to invest in.

People who trade forex capitalize on the fluctuations in value of different currencies. In other words, they gain or lose value based on variety of different factors such as politics, the rates of bonds and commodity prices.

Consider this example, if the Euro is worth $1.50 when you buy it and you then sell it for $1.52 that means that you make $0.02 per unit on the transaction. This works out to only a small percentage of the overall transaction, but don’t think that this means there’s no money to be made!

This may not seem like much but doing this over a number of transactions adds up and can end up providing you with a significant source of income. Even if you are only getting between 3-5% in gains on your transactions you can still make a good living.

Successful traders play the fluctuations in the market and know which currencies to buy and sell at a given time.

How Traders Know What to Trade

There are things that a trader knows to use in order to determine what currencies to trade by watching what affects those currencies. For example, if you were looking at trading the Canadian currencies and understand it is tied to oil and wood – you can then know that when demand for wood changes the currency is going to adjust as well. The US dollar is tied to both treasury bills and the interest rates of the Federal Reserve so when these rates change the value of the dollar changes as well. These are just two examples of what people look out for.

There are unlimited resources to help provide you with the information that you need to make investments on the Forex market. The more you research the better your chances are of maximizaing your gains and avoiding any significant losses.

You will also see some traders zone in on just a few currencies so that they can become “experts” in certain currencies.

Many traders subscribe to research services that can help to provide you with information on the various aspects of the market. However, doing this can also leave you reliant on the judgment of other people.

The majority of individual who trade on the Forex market for a living make use of something called a “forex robot” or an automated program. These programs analyze data in real time to provide you with the signals and cues you need to know when possible profit turning trades are available.

For those considering the options that Forex gives when it comes to creating additional income, looking into these types of programs can be a great asset especially when just starting out in the market.

If you’re going to use a program like this to help you make money, you’ll want to look for a couple of things.

The first step is to make sure that there is a demo program or option available to allow you the chance to check out the program out prior to placing an actual cash investment. Usually this should run a week or two weeks in order to get a good view of how the program operates.

The second thing to look for is a money back guarantee. Naturally you want to see that the software works and is easy for you to use. Companies that know their product works will have no problem giving a guarantee.

Purchase the program, test it and then make your decision. If the program isn’t meeting your expectations – get your money back.

Sam Lockwood
http://www.articlesbase.com/finance-articles/forex-trading-makes-it-possible-to-make-great-money-from-home-696476.html

Invest in Budapest? Guide to Hungary’s Capital

Posted by admin as Euro Rates

In a country without a coastline to attract tourists, Budapest has become the driving force behind the growing Hungarian property market… Why Budapest?

Budapest, aka the ‘pearl of the Danube’ is the beautiful capital city of Hungary.

The country has been a member of the EU since 2004. With the communist years now a fading memory, and hopes of accession to the Euro before too long, it’s considered a good long-term investment.

Budapest itself is a thriving city that effortlessly combines beautiful architecture and a buzzing café culture and arts scene with the commerce that accounts for 60 per cent of the country’s GDP.

For Brits who want to own a city bolthole, Budapest is a more attainable alternative to Western European capitals, and numerous airlines, including the low-cost carriers, can fly you there in a couple of hours.

And, of course, the city’s blend of students, workers, and international business people, many of whom need to rent accommodation, has not gone unnoticed by, among others, Irish, Danish, Italian, Israeli, and British investors.

Who’s Buying, Who’s Renting?

Buyers range from seasoned investors snapping up 60 properties at a time, to people in their twenties who can’t get on the property ladder at home

In Budapest potential tenants will depend largely on the area you choose to buy in, but, clients tend to be students, young professionals and foreign business people.

 

Location, Location: Where Should You Buy?

Budapest straddles the River Danube, and is comprised of 23 numbered districts. The numbers run clockwise out from the middle, with the most central districts having lower numbers and, usually, higher prices.

The districts all have differing attractions. District VI, for example, is home to the best cafes, bars, theatres and the opera house, while District IV, which is on the Danube, offers clean air and easy access to the centre.

But investors willing to take a risk may want to look further afield, for example to District VIII, home to much of the city’s gypsy population, which has recently been the subject of much investment, or District X, which used to be an industrial area.

How Much?

Obviously this can vary enormously, but a one bed apartment in District VI could cost £60-85,000, while the same sized place in the less popular District VIII only £43-65,000.

Hungarian mortgages of up to 70-80 per cent are available to British buyers with interest rates of around six per cent.

What To Buy: New Build Or Crumbling Beauty?

While the beautiful Habsburg-era dwellings can be tempting for the romantic British buyer thay can present problems.

Not only can renovating from a distance be costly and difficult, but, he says, pricing resale property is tricky, and you could easily end up paying too much.

In addition, an older property may not appeal to the local rental market.

As the standard of living of many Hungarians has risen, they are looking for more modern accommodation. You can rent out resale properties but tenants prefer the newly built.

 

In addition, older properties may come with larger, but fewer rooms, which reduces the amount of potential rental income. “A 40sq metre property might be a resale studio but it would be a one bedroom new build.

You could have the best of both, however, in the form of the new loft apartments that are appearing on top of many of the historical buildings.

Developers install a new lift, and build up a couple of extra storeys on top. The buildings are beautiful, but the loft conversions are a better investment.”

The Prospects: Get Rich Quick?

According to the agents, although there has been a huge amount of new construction, tenants are still out there, and rental incomes are covering foreign investors’ mortgages, (though yields of 7-8 per cent may be more likely with international tenants).

But, in terms of capital growth, this is no high-risk, high-profit emerging market. Although the city has seen huge price rises in recent years, it now looks set for more moderate growth, and investors are tempted more by stability than high profits.

According to a recent Knight Frank report on global house prices, year-on-year price growth in quarter two 2006 was five per cent.

Robert Weiner at GPL Hungarian Property says: “I have people who say they want to invest for a few months, and I have to tell them that really it’s a three-to-four-year investment.”

The Buying Process

If you are buying only one or two properties in Hungary the process is drawn out but straightforward. Permits are required, which appear to be a formality, but can take three months.

However, if you need to speed it up, or plan to hold a portfolio of properties, you will have to establish a Hungarian company.

This will reduce your tax bill on any rental income, but may cost you around £700 to set up, plus monthly payments to maintain your books. In addition, as a business, you may have trouble borrowing more than 50 per cent on a Hungarian mortgage.

Your total legal expenses will vary according to price and whether the property is a new build or a resale.

Stamp duty on new builds is six per cent, but it starts at 15 million forints (around £37,000). So if you’re buying a HUF 20 million (around £53,000) new-build property, you should set aside around HUF 800,000 (£2,115 or four per cent) for legal expenses.

For resale properties duty is two per cent on the first HUF 4 million rising to six per cent thereafter, so you would need to add an extra HUF 740,000 (nearly £2,000) to your costs.

Tips

- Choose a reputable agent and developer.

- Avoid inspection trips offered by agents – don’t be pressurised into making any decisions.

- If you want to buy in a less salubrious area, be realistic. It may take a long while for it to become ‘gentrified’, so look at the reality, as well as the potential.

- If you are asked to pay any fees or commission to an agent, look elsewhere.

Hungary: The Facts

 

Total Population: 10.1 million

Budapest population: 2 million

Government: Parliamentary democracy

Official language: Hungarian

Currency: Currently the Hungarian Forint (£1 = approx HUF 400), but accession to the Euro looks likely by 2014

Major religions: Roman Catholic, Protestant, Greek Catholic, Jewish, Orthodox

Members of: the IMF (1982), NATO (1999), OECD (1996) and the EU (2004)

How to get there: By air: Budapest (Ferihegy) International Airport is ten miles from the city centre. By rail: direct links between Budapest and 25 other capital cities. By water: hydrofoil services during the summer months link Budapest with Vienna and Bratislava.

Within the city: Three subway lines, buses and trams carry passengers throughout Budapest.

mansolo
http://www.articlesbase.com/real-estate-articles/invest-in-budapest-guide-to-hungarys-capital-706700.html

Have Commodities Finally Bottomed?

Posted by admin as Euro Rates

To figure out where commodities are going, the main questions that need to be answered are: what type of demand will come out of China and where is the US dollar going? Is the Chinese driven commodity boom over? Not over, but expect a significant slowdown. The Chinese government said that exports were down 2.2% in November from a year ago, the first decline in seven years. Imports were down almost 18%. Over the next few months commodity investors will need to closely monitor China’s economy. In terms of the dollar, after an 18% rally from mid September we have seen the dollar fold 6.5% in the last 3 weeks. We are betting that an interim top has been made and we will see a re-visit of the 75 level before we see 90 in the US dollar index. This should bode well for commodities that are priced in dollars. Deeper than that though, weakness in the US dollar should signal a modest stabilization for the global financial system as investors are becoming more willing to take some risks. Investors will remain skittish for months to come, but as the central banks race to zero, investor’s will look for other homes for their capital.

Energies:

February crude oil was up $5.43 or 12%, helped by a weaker dollar and anticipation that OPEC will announce another 1.5-2.0 M cut in production this Wednesday. We see support at $43 with resistance at $51/52. It may be premature to call a bottom, but under the right circumstances; a weakening dollar, stable stock performance and OPEC cuts, we could see a bounce to $65. The US Department of Energy said that crude oil supplies were up 400,000 barrels last week to 320.8 million barrels. Supplies of gasoline were up 3.8 million barrels, more than expected thanks to increased imports. Heating oil supplies were up 1.7 million barrels. February RBOB was 14.22 cents higher last week gaining 14% with a close back above $1.00/gallon. Support is seen at the 9 day moving average at 1.0461 followed by 1.0000 with resistance at 1.2500. To play OPEC or a potential short covering rally look at the January 110/120 call spread for $1400. This is a $4200 spread with only 9 days so you will get quick results, win or lose. Put in a gtc sell order for $3000 and if not filled look to hold until expiration with a break even at approximately 1.1350. A new low was rejected in heating oil with just under a 1 penny gain on the week. $1.50 should serve as the pivot point on the February contract. You could see a move back to the low 140’s or to 1.65. At present we would advise waiting for more evidence on the sidelines for a futures play. We do see a trade back over 2.00 over the next 3 months, traders eager to get exposure could look at the 160/180 call spreads for $2500 or the 170/190 call spread for $2000; both in March.

The US Department of Energy said underground supplies of natural gas were down 67 billion cubic feet last week to 3.291 trillion cubic feet. Supplies are now down 1% from a year ago. January natural gas was down 22 cents, pressured by warmer temperatures across the US. This is the lowest price seen since August of 04′ and currently we are long and wrong with clients positioned in February $8 calls. We are still expecting a bounce and will either use a bounce to cut losses or potentially roll the position forward depending on the magnitude of the move. We see support on January between 5.40/5.45 with first resistance at 6.00 but we expect to see a trade up to the 6.25/6.75 level, the question is when and from where?

Currencies:

The BOC met and agreed to reduce its interest rate from 2.25% to 1.50%, the lowest in 50 years. It was the sixth cut this year and 25 basis points more than most were anticipating. Even in the face of this, the Loonie gained 1.69 cents last week largely helped by gains from energies and metals. As we have pointed out in recent posts we expect the triple bottom at 77.00 in March to hold. We suggested long futures and to buy the 82 calls and 78/82 call spread in March for $1500. Look for an exit on options at $2500-3000. For new entries look for a long entry between .7850/.7900.
The March Euro closed up 6.36 cents, the highest close in seven weeks, encouraged by comments from the ECB that the economy may start to recover in the second half of 09′. After a close above the 50 day moving average mid-week we saw strong follow thru to the end of the week. We could see a trade up to 1.36/1.37 but we do not see much more. Support comes in at 1.3285 and then 1.2930 with first resistance at 1.3560.

The Swiss National Bank lowered its interest rate target from 1.00% to .50%. The March Swissie gained 2.87 cents or 3.5% last week. Support has held for the last 4 weeks and we would now be exploring the long side buying dips. Support comes in at the 9 day moving average at .8366 with resistance at .8636. We expect the gap at .8821 from 10/30 to be filled in coming weeks.

The Aussie dollar was 1.65 cents higher last week which was a bit disappointing considering the rally commodity wide. Resistance is seen at last week’s high at .6757 with support at .6460 followed by .6350.

We figure perhaps the Aussie had gotten ahead of itself moving 8.5% higher in the last 3 weeks and may need time to rest. We would be positioned on the sidelines.
For 6 consecutive weeks now the Japanese yen has strengthened against the greenback, gaining 1.94 cents last week and at one point trading as high as 1.1373; the highest level seen since August of 95′. If the carry trade unwind were to continue into 09′ we could see a challenge of 1.25; the highs from 95′. This would be an additional 14% increase on top of the last 4 month gains of 21%. We are currently flat with our retail clients looking for a long opportunity. Our best performing CTA which is up 120% ytd still has exposure and feels we have a way to go. They are positioned in both futures and options; contact us for more details. Support in March is seen at the 9 day moving average at 1.0850 followed by last week’s low at the 50% Fibonacci retracement levels at 1.0687. I would not be surprised to see a sharp pullback to 1.0525, which would do little chart damage. First resistance is seen at 1.1125. Japans’ central bank could cut rates on Friday from 0.3%, but we think they will hold and continue with quantitative easing.

The March pound picked up 2.40 cents last week. 1.4650 should serve as support with mild resistance coming in at 1.5100 and major resistance at 1.5350. We would be positioned on the sidelines expecting a bounce that would set up a good short opportunity.

The Kiwi dollar was only 10 ticks higher and at times was like watching paint dry. We suggest getting long futures with a stop below the previous week’s low at .5164 anticipating a move back over 60 cents in the March contract within the next few months. Patience will need to be exercised because this could be a slow mover. Interest rates after next week should be .50/.75% in the US and 5.0% in New Zealand; you do the math.

The March US dollar index fell 3.62 cents or just over 4.0%, the lowest close in seven weeks, hurt by expectations that the US will likely have to keep interest rates low for a long time. This was the largest weekly move since mid-October. Last week’s low challenged the 38.2% Fibonacci retracement with next support seen at 82.50. Resistance comes in at 85.60 and for now it appears an interim top has been established. We would advise selling rallies while the direction will largely be governed by the FOMC decision on rates, the Fed’s comments and how other markets react.

Metals:

March silver was 73 cents higher last week but remained in the $1.50 trading range we have been in for 8 weeks running. This may sound familiar because I have pointed this out the last few weeks; the significance is that we feel this market is acting like a coiled spring. The longer we see sideways action the larger the breakout; we expect the move to be to the upside. 10.50 still serves as resistance while a weekly close above that level should mean prices are on their way to $13-15. We continue to accumulate the December 09′ $15/20 call spreads and will be a buyer again this week for clients near $1700 if given the opportunity. We would be a buyer of March futures on dips looking for guidance from gold, crude and the dollar. We would start scaling into longs at 9.50 followed by 9.00 and as long as the 8.51 low from 10/28 holds, on a closing basis we like being long. Looking at the weekly charts both the stochastic and MACD still support that we are in the beginning stages of a trend reversal. The silver to gold ratio currently sits roughly at 80:1 and we feel next year it will revert back to at least 50:1. That being said if gold moves to$1000 silver should be at $20.

February gold was higher by $65.30 last week; this move mirrored the previous week’s move of $66.80 just in the opposite direction. This was a seven week high and principally caused by US dollar weakness and investors turning to gold amid financial uncertainty. $750 should continue to act as support with $835 as resistance, a level hit but not penetrated in prior weeks. A close above $835 should propel prices to $865. Although the daily movement shows tremendous volatility, looking at the weekly and monthly charts gives longer term traders cause for excitement. We have seen more notice from investors with an increase in volume and open interest in recent weeks. We have suggested to clients to look at $100 call spreads in April and June; one such idea was the June 800/900 call at $2700. Friday’s settlement was $3670.

To view our full commentary which includes the sectors of energies, livestock, currencies, financials, grains, softs, and metals, subscribe to our 4 week free trial by visiting this link: http://mbwealth.com/subscribe.html.
MB Wealth offers fees starting at just $8 round turn!

To find out exactly how we are positioning our clients in commodity futures and options,
Contact us today at 1-888-920-9997.

Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Before trading MB Wealth recommends that you should carefully consider your financial position to determine if commodity trading is appropriate for you. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results. There are no guarantees of market outcome stated, everything stated above are our opinions. Calculations of profit and loss have not factored in commissions and fees.

Green Faucet
http://www.articlesbase.com/investing-articles/have-commodities-finally-bottomed-689534.html

Foreign Environments Affecting International Business

Posted by admin as Euro Rates

Businesses in general experience a wealth of issues that impact their ability to conduct business and remain successful. This is even more so the case with international business. Forces external to the company can decide whether a business is successful or fails and in particular, financial and political forces have some of the greatest impacts on today’s organizations. The intent of this paper is to discuss these forces and show specific examples of what many industries can experience when operating on a global scale.

Typically businesses ride a financial rollercoaster when conducting business internationally. Currency has become one of the biggest financial hurdles to overcome when operating overseas. While this type of external force is considered uncontrollable, there are ways that businesses can mitigate negative financial hardship.

Fluctuating currency values can have both a positive and negative effect on organizations and it is crucial that financial managers plan for both. Establishing currency contracts with banks can help protect a corporation when the Yen value drops significantly and Asian business could be affected. It is important to be continually aware of exchange rates and have the ability to implement financial safety vehicles should a problem loom on the horizon.

While a certain amount of risk is involved with fluctuating exchange rates, governments of the regions in which a company may operate have the potential to implement currency exchange controls which can have an equally devastating result. By restricting the use of a particular currency for international transactions, governments ultimately overvalue that currency compared to the open market, making it extraordinarily difficult to transact business economically.

Another financial force affecting businesses is a country’s balance of payments (BOP). Should the country’s BOP slide into deficit, this could be a result of inflation, causing that country’s government to take action in several ways to overcome this BOP deficit. To encourage deflation, the administration may implement currency devaluation practices or other monetary policies intent on controlling the BOP. To counter this practice, an organization may consider seeking export incentives to provide relief.

Another area of great financial importance is taxation. When determining where to pursue business overseas, taxes can be very cost prohibitive, even when other financial, social and political forces are to their advantage. Skillfully negotiating a lower tax burden can be the difference in having the ability to offer a lower product price than ones competitor or not and should therefore be carefully considered.

The political forces affecting global businesses are ever-present and come in many forms. Ideological forces such as communism, socialism and capitalism play considerable roles in how well a business operates and must be considered when venturing into international commerce. Ideals such as communism and socialism make for difficult situations when pursuing free trade making expanding businesses opportunities in that region a difficult task.

While the basis of capitalism is free enterprise, it should not be construed as an perfectly harmonious environment in which to operate. Government maintains several areas in which it may control business through taxes, wages, employment conditions, safety, pollution, zoning and other areas.

Typically, it is assumed that socialist and communist countries are the only ones in which the government owns businesses but nationalization of business is farther reaching than where these systems exist. The practice of nationalization of business can be to support companies that provide necessary but not profitable goods and services for the country but also use the business to funnel more funds into government itself.

From a positive aspect, protection of business by government such as in the areas of farming and mining can positively affect business in general. The farming industry as a whole may experience financial difficulties but it may be necessary for the government to provide protection or assistance for the good of the nation.

Politically, terrorism remains in the forefront of the minds of many managers. Businesses operating internationally are particularly susceptible to terrorist threats and attacks and must incorporate their protective measures into their daily business plans. Companies can be subject to acts such as kidnapping of corporate executives for ransom or the bombing of contracted construction sites intended to cripple the government. It is imperative for businesses to not only be aware but be prepared with countermeasures intended to thwart the attempts of terrorists as well as a means of helping the company recover from an attack.

Other political forces affecting global businesses are the governments themselves and their ability to maintain a stable environment. Every country may deal with the unexpected happenings of fiscal or monetary changes, but governments that can maintain relatively stable during these changes are ideal. When the political environment of a country is in flux, this can also impact the businesses importing to, exporting from or operating in that country. Should that country be in the midst of hostile actions toward other nations, businesses can certainly suffer.

In the US and Europe, labor unions are a political force that can have great impact on operations. American labor unions have strong political ties and are quite active in the political arena. Their influence can affect many types of legislative decisions that will ultimately affect a company’s ability to conduct business. Strikes or poorly negotiated labor agreements can allow the union to force businesses into decisions that may ultimately lead to their own demise.

Here we’ve seen examples of financial and political forces affecting international business but have universality regardless of region. Financially, currency rates have an impact on business whether a company operates abroad or not. With businesses being interconnected the way they are, the yen rate and the euro rate will both influence how large and small business alike can function. Inflation and BOP play a very large part in how we do business overall regardless of where in the world we are located and it is a very important factor when making business decisions. Politically, governmental control, social ideals like communism and stability of the current regime can dictate whether Starbuck will open stores in Nepal or Nice, Frankfurt or France. The choices governments make to nationalize or privatize can even determine the fate of McDonalds. That being the case, every business operating at an international level must assess its risk in that country before making a commitment. Understanding the economic, social and political nature of a country will be key to that business’ future.

Tom Feinberg
http://www.articlesbase.com/international-business-articles/foreign-environments-affecting-international-business-742346.html

Forex Trading – are You Gaining or Loosing?

Posted by admin as Euro Rates

Did you know that you can find a market that is open 24 hours a day? The market is called Forex market and if you go there, you can’t find services, commodities and goods. The Forex market is the place where different kinds of currencies are traded. In every trade, two currencies are involved. For instance, you can sell your Canadian dollars for Euros; or you can pay Japanese Yen for US dollars. Forex rates or exchange rates can change unexpectedly. You need to monitor these exchange rates in order to determine if the price of a certain currency increased or decreased.

Changes in the Forex market usually occur quickly and so it is important for traders to keep track of the market. Political and economic events can influence the changes in the Forex market. If you want to determine whether you’re gaining or losing in Forex trading, this article can help you with the calculations.

The Forex investment is greatly affected by the exchange rate and in order to understand the relationship between the two, you should also be familiar with Forex quotes. Like the currency pairs, Forex quotes can be found in pairs as well. Here is a very good example:

1.Suppose the currency pair is USD (US dollar) and CAD (Canadian dollar)

The Forex quote for this pair is USD/CAD=170.50; this is interpreted as ‘every one US dollar is equivalent to 170.50 CAD. The currency found at the left side is known as the base currency and it is always equivalent to 1. The currency found at the right side is called counter currency. The stronger currency is always the base currency and in this case, the USD. The Forex quote’s central currency is USD and so you can find it in most Forex quotes.

How can you determine if you’re earning profits or not? You can use another example.

2.This time use EUR to USD. Assuming that the Forex rate is 1.0857; in this example, the USD is the weaker currency. If you bought 1,000 Euros, you will need to pay $1,085.70. After a year, the Forex rate was at 1.2083 and this means that the Euro’s value increased. If you decide to sell the 1,000 Euros now, you will get $1,208.30; now, in this transaction, you gained $122.60. What if the Forex rate a year after was 1.0576? This means that the Euro’s value weakened. If you still decide to sell the 1,000 Euros, you will only receive $1,057.60 which means that you lost $28.10; did you get it?

Forex trading involves a lot of risks just like mutual funds and stocks. The fluctuations in the exchange market are responsible for such risks. Low level risks like government bonds in the long-term can give returns but are quite low. If you want to get higher returns, you need to invest in Forex trading but you need to face higher level risks.

You must set financial goals for the short term, as well as for the long term. By doing so, it will be much easier to balance the risks involved and the security. You will be able to conduct your trades with ease and comfort. Make use of all the available Forex trading tools so that you can make wise and profitable trades. After reading this article, you can already calculate if you’re gaining profits or not.

 

Regi Ross
http://www.articlesbase.com/currency-trading-articles/forex-trading-are-you-gaining-or-loosing-732546.html