source
http://www.forexhelp.com/news-1184173304-c0031008-46481

WASHINGTON (AP) - Lawmakers on Wednesday said tighter regulation of hedge funds may be necessary to protect ordinary investors from unforseen losses.

That was the consensus among many Democrats, and some Republicans, at a House hearing focused on Bush administration recommendations for managing the economic risks posed by hedge funds and their high-dollar cousins, private equity firms. But lawmakers also expressed uncertainty about how to proceed without further study of the issue.

http://www.forexhelp.com/news-1184165855-c0031008-39705

The Bush administration recommendations, made in February, call for increased vigilance on the part of regulators, investors and lenders, but not any new regulation.

Rep. Carolyn Maloney, D-N.Y., and other members of the House Financial Services Committee voiced concern about the fallout from the recent near collapse of two hedge funds managed by Bear Stearns Companies Inc.

Since many public pension funds invest in hedge funds, such difficulties could hurt the retirement savings of schoolteachers, firefighters and other employees, members of the committee said.

http://www.forexhelp.com/news-1184169252-c0031008-42951

"I don't think anybody can be entirely confident that everything is well here, but neither is it obvious what to do," said Barney Frank, D-Mass., chairman of the House Financial Services Committee.

Frank said the panel wouldn't "rush to regulate," but he noted that many of the bad loans that have roiled the mortgage markets were made by brokers and other unregulated entities.

http://www.forexhelp.com/news-1184169134-c0031008-42840

The Bush administration guidelines were issued by the President's Working Group on Financial Markets, which was formed after the 1987 stock market crash. The group is led by Treasury Secretary Henry M. Paulson and includes the heads of the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The hearing is the third in a series by the House Financial Services panel this year on hedge funds and private equity firms, which are attracting increasing scrutiny in Washington.

ttp://www.forexhelp.com/news-1184247765-c0031008-37818

Both have grown rapidly in size in recent years, heightening their potential impact on the broader financial markets

Hedge funds, which trade rapidly in everything from commodities to real estate to complex derivative investments, now control approximately $1.4 trillion in assets.

The Securities and Exchange Commission on Wednesday adopted a new anti-fraud rule for hedge funds. The rule, adopted by a unanimous vote of the five SEC commissioners, makes it a "fraudulent, deceptive or manipulative act" for hedge fund managers to make false or misleading statements to or otherwise deceive investors or prospective investors.

http://www.forexhelp.com/news-1184241153-c0031008-31416

source: http://www.forexhelp.com/news-1184193720-c0031008-54210

WASHINGTON (AP) - Private equity firms that sell shares to the public should be designated as investment companies, a category that would have meant more regulation for Blackstone Group, Democratic lawmakers said Wednesday.

Rep. Dennis Kucinich, D-Ohio, said during a House hearing that the Securities and Exchange Commission made a mistake last month when it refused to classify the New York-based Blackstone as an investment firm before it proceeded with its initial public offering.

Such a classification would have required Blackstone to disclose more information about its holdings, set up an independent board of directors and limit the amount of debt it could take on.

http://www.forexhelp.com/news-1184204237-c0031008-02223

Most mutual funds are considered investment companies and are subject to those rules.

Critics of Blackstone's initial public offering, including labor groups such as the AFL-CIO, said it could set a dangerous precedent because the SEC allowed a private equity firm to go public while escaping strict regulation.

If more private equity firms and hedge funds follow a similar route, Kucinich said, ordinary investors will have access to high-risk investments that were formerly restricted to more sophisticated investors. Kucinich chairs a subcommittee of the House Oversight and Government Reform Committee.

http://www.forexhelp.com/news-1184199898-c0031008-01006

Last month, Kucinich and Rep. Henry Waxman, D-Calif., joined the AFL-CIO in asking the SEC to delay Blackstone's public offering as a result of their concerns, but the New York-based firm proceeded with its IPO June 27 and raised $4 billion.

Private equity firms Kohlberg Kravis Roberts&Co. and Och-Ziff Capital Management LLP are both planning initial public offerings later this year, while other firms such as The Carlyle Group are rumored to be considering doing so.

http://www.forexhelp.com/news-1184197658-c0031008-00531

The firms have faced increasing scrutiny in Washington as they engage in ever-larger buyouts, such as Cerberus Capital Management's $7.4 billion purchase of DaimlerChrysler AG's Chrysler unit and Blackstone's $26 billion acquisition of Hilton Hotels Corp.

The Senate Finance Committee held a separate hearing Wednesday on whether the huge earnings of private equity and hedge fund managers should be subject to higher taxes.

Andrew J. Donohue, the SEC's director of the division of investment management, defended the agency's decision in the Blackstone case and said the private equity firm is "more akin to an investment adviser."

The SEC concluded that the value of investment securities held by Blackstone and Fortress Investment Group, the first private equity firm to go public, was less than 40 percent of the firms' total assets --the definition of investment company under federal law, Donohue testified. That's partly because Blackstone sold shares in its management entity, which is separate from its investment funds.

John C. Coffee, a professor at Columbia University Law School, told the House members that there are other ways to increase the oversight of partnerships like Blackstone.

The SEC should urge the New York Stock Exchange and Nasdaq to require partnerships to accept similar corporate governance rules that the exchanges require of other companies, Coffee said, such as an independent board of directors and shareholder voting rights. Partnerships are currently exempt from such rules.

http://www.forexhelp.com/news-1184173140-c0031008-46284
http://www.forexhelp.com/news-1184176214-c0031008-48227

source:http://www.forexhelp.com/news-1184227674-c0031008-18752

WASHINGTON (XFN-ASIA) - The United States said it is considering forging a bilateral investment agreement with Taiwan but ruled out a free trade pact in the immediate future.

The two sides raised the possibility of an investment accord during annual talks under a Trade and Investment Framework Agreement, which usually precedes a free trade pact.

http://www.forexhelp.com/news-1184229930-c0031008-20827

"Both sides agreed to intensify discussions of possible concrete steps to deepen bilateral cooperation in the investment area, including the possibility of a bilateral investment agreement," said deputy US Trade Representative Karan Bhatia.

http://www.forexhelp.com/news-1184218376-c0031008-07408

"Basically, it would commit both sides to a high standard of investment protection," he told reporters.

Taiwan has been seeking a free trade pact with the US, its key investor, trading partner and top arms provider. Annual US-Taiwan trade is valued at about 60 bln usd.

Resolutions have been adopted in the US Congress and at least 39 of 50 US state legislatures support an FTA with Taiwan, but the US administration and business community are reluctant to pursue it with vigor due to concerns over the likely adverse reaction from Beijing.

http://www.forexhelp.com/news-1184218386-c0031008-07417

Washington switched diplomatic recognition from Taiwan to China in 1979.

Bhatia said an FTA prospect with Taiwan did not arise because the administration of President George W. Bush had lost its nearly five-year-old Trade Promotion Authority (TPA), known as "fast-track" on June 30.

"In the absence of TPA, any discussion of FTA will be premature," he said.

http://www.forexhelp.com/news-1184226454-c0031008-17499

Under the TPA, the administration negotiated trade agreements that could only be approved or rejected by the legislature, but not amended.

www.gencappartners.com

source:

http://www.forexhelp.com/news-1184216416-c0031008-06276

Forex - US dollar gains vs yen after Bank of Japan leaves key rate unchanged

SYDNEY (Thomson Financial) - The US dollar strengthened against the yen after the Bank of Japan on Thursday kept its overnight call rate target unchanged at 0.5 percent for the sixth straight meeting, as widely expected by the market.
http://www.forexhelp.com/news-1184205642-c0031008-02680
At 2.17 pm (0417 GMT) in Sydney, the dollar was trading at 122.35 yen, up from 122.29 yen in early Asia trading, while the euro was at 1.3754 dollars, up from 1.3748 earlier.

The Japanese central bank said the vote by its nine-member policy board was eight to one, with Atsushi Mizuno voting against the proposal by BoJ governor Toshihiko Fukui to leave the overnight call rate at the current level.

"The BoJ's decision and the vote were largely as expected by the market, including Mr Mizuno's dissenting vote," said Mitsuru Sahara, a senior manager at Bank of Tokyo-Mitsubishi UFJ.
http://www.forexhelp.com/news-1184176818-c0031008-48479
Currency markets are now awaiting Fukui's speech which is due to begin at 3:30 pm Tokyo time (0630 GMT).

Sahasa said unless the BoJ governor indicates that a rate hike in Japan is unlikely next month, then the currency market will not likely be affected too much by his remarks.

He said the market is currently looking at a 70-80 percent chance of a rate increase in Japan in August. The BoJ's next policy meeting is on August 22-23.
www.forextradingsoftwarenextgeneration.com
Elsewhere in Asia, traders will again find themselves short of key data releases for the second consecutive night and range trading will likely dominate into Friday.

NAB Capital strategists said carry trades are likely to remain supported following the BoJ's decision.

"With no change in the glacial pace of interest rate increases, it's hard to see why Japanese investors won't continue to invest abroad in high-yielding currencies such as the Australian dollar," they said.

CMC Markets chief analyst Ashraf Laidi said the US dollar/yen currency pair could stabilize around the 122.10 yen level if US equity markets continue their recovery from this week's earlier sell-off.
http://www.forexhelp.com/news-1184173669-c0031008-46709
But he said the greenback's weakness is becoming more structural in nature, suggesting renewed losses down to 121.60 yen and possibly further to 121.20 yen. Key support for the US dollar remains at 120.75 yen, he said.

Laidi said that while a rebound in US equities should boost the euro on rising risk appetite, a decline in US equities may not be as negative for the euro as proven in previous episodes.
www.childtrendsdatabank.org
"Traders must also watch the price of gold. If we see a decline in equities accompanied with rising gold, then this reflects a sign of reduced risk appetite coupled with overall dollar weakness from subprime (lending) woes," he said.
http://www.forexhelp.com/news-1184173304-c0031008-46481

1. Narrow your objectives.

You probably won't be able to achieve every financial goal you've ever dreamed of. So identify your goals clearly and why they matter to you, and decide which are most important. By concentrating your efforts, you have a better chance of achieving what matters most.

2. Focus first on the goals that matter.

To accomplish primary goals, you will often need to put desirable but less important ones on the back burner.

3. Be prepared for conflicts.

Even worthy goals often conflict with one another. When faced with such a conflict, you should ask yourself questions like: Will one of the conflicting goals benefit more people than the other? Which goal will cause the greater harm if it is deferred?

4. Put time on your side.

The most important ally you have in reaching your goals is time. Money stashed in interest-earning savings accounts or invested in stocks and bonds grows and compounds. The more time you have, the more chance you have of success. Your age is a big factor - younger people (who have more time to build their nest egg) can invest differently than older ones. Generally, younger people can take greater risks than older people, given their longer investment horizon.

5. Choose carefully.

In drawing up your list of goals, you should look for things that will help you feel financially secure, happy or fulfilled. Some of the items that wind up on such lists include building an emergency fund, getting out of debt and paying kids' tuitions. Once you have your list together, you need to rank the items in order of importance (if you have trouble doing so, use the CNNMoney.com Prioritizer for help).

6. Include family members.

If you have a spouse or significant other, make sure that person is part of the goal-setting process. Children, too, should have some say in goals that affect them.

Electric roadster maker making money

7. Start now.

The longer you wait to identify and begin working toward your goals, the more difficulty you'll have reaching them. And the longer you wait, the longer you postpone the advantage of compounding your money.

8. Sweat the big stuff.

Once you have prioritized your list of goals, keep your spending on course. Whenever you make a large payment for anything, ask yourself: "Is this taking me nearer to my primary goals - or leading me further away from them?" If a big expense doesn't get you closer to your goals, try to defer or reduce it. If taking a grand cruise steals money from your kids' college fund, maybe you should settle for a weekend getaway.

9. Don't sweat the small stuff.

Although this lesson encourages you to focus on big-ticket, long-range plans, most of life is lived in the here-and-now and most of what you spend will continue to be for daily expenses - including many that are simply for fun. That's OK - so long as your long-range needs are taken into consideration.

10. Be prepared for change.

• Coming out of retirement at 65
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• Dear USPS: Consider privatizing
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• Buy foreclosures now, before it's too late
• 
  

source: http://money.cnn.com

THANK TO : By David Lawder and Jessica Wohl

WASHINGTON/CHICAGO (Reuters) - Former U.S. Treasury Secretary Henry Paulson talked often to the head of Goldman Sachs at the height of the credit crisis but did not actively seek to help the bank he once ran, a spokeswoman for Paulson said Saturday.

The New York Times on Saturday reported records of two dozen conversations between Paulson and Goldman chief executive Lloyd Blankfein the same week last September that rival bank Lehman Brothers collapsed and insurer American International Group -- closely connected to Goldman -- was rescued with public funds.

Goldman was the single biggest beneficiary of the AIG bailout, receiving nearly $13 billion in counterparty payments that would have been lost had the insurer failed.

Paulson's spokeswoman Michele Davis confirmed the telephone conversations with Blankfein took place but denied Paulson had any intention of helping Goldman specifically.

"Suggesting that AIG was saved for the sake of one firm is as ridiculous as saying firemen put out a fire in a skyscraper to protect just one of the thousands of people in the building," Davis said in a statement.

Goldman has come under fire from some lawmakers and public interest groups for its government connections, seemingly sailing through a deep recession shortly after accepting $10 billion of taxpayer bailout money and benefiting from a host of other government programs, including access to the U.S. Federal Reserve's borrowing window.

PAULSON ON SIDELINES

Paulson asked Treasury and White House lawyers for a waiver from an ethics ban on contacting his former firm, as officials feared that Wall Street was facing a total collapse.

The Times said the waiver was granted on Sept. 17, the day after the AIG bailout was announced and the day after he received a phone call from Blankfein.

"Following Lehman's failure and the acquisition of Merrill Lynch (by Bank of America) that prevented its failure, officials feared the same crisis of confidence might spread to the remaining investment banks, Morgan Stanley and Goldman Sachs," Davis said.

"If Morgan Stanley were to fail, Secretary Paulson and the other regulators believed that Goldman Sachs, as the last remaining investment bank, might fail as well."

If the government needed to intervene on Goldman, Paulson "needed to be able to actively engage in finding a solution," she added.

http://money.cnn.com/galleries/2009/news/0908/gallery.extreme_job_interviews/index.html

The Sept. 16-21 telephone records, which the Times said it obtained under a Freedom of Information Act request, showed that Paulson spoke much more frequently with Blankfein than he did other Wall Street executives during a week in which the world stood on the brink of financial collapse.

He spoke with John Mack, CEO of Morgan Stanley, which was in a more tenuous situation, 12 times over the same period.

Paulson and Blankfein spoke three times before the waivers were granted and five times on Sept. 17, the New York Times said.

Paulson spent 32 years at Goldman Sachs and preceded Blankfein as CEO before becoming Treasury secretary in 2006.

The records also show frequent phone calls with Timothy Geithner, the current Treasury secretary who was head of the New York Federal Reserve, Fed Chairman Ben Bernanke, and congressional leaders.

A Treasury Department spokeswoman declined to comment.

Davis said the volume of calls to Blankfein reflected in part the need to keep abreast of market developments such as frozen money market mutual funds and address a "crisis of confidence" in the remaining investment banks.

A Goldman spokesman told the New York Times that Blankfein spoke with the Paulson about Lehman Brothers' troubled London operations and "disarray in the money markets."

At a July 16 congressional hearing, lawmakers angrily asked Paulson to explain changes in U.S. policy during the crisis and said he had conflicts of interest in decisions involving Wall Street firms.

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Source & special Thank to http://www.bloomberg.com

By Shamim Adam and Liza Lin

Aug. 10 (Bloomberg) -- The U.S. economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, said Laura Tyson, an adviser to President Barack Obama.

“We may have hit stability, we may be in the beginning of an upturn” based on the latest economic data, Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur. Nobel Prize- winning economist Paul Krugman said the deepest slump since the Great Depression may be ending.

“It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,” Krugman said in a separate interview in the Malaysian capital. “My guess is that we’ve bottomed out now, that August was probably the trough month.”

Krugman, 56, cited last week’s government report showing that the pace of U.S. job losses slowed more than forecast in July and the unemployment rate dropped for the first time in 15 months. He also pointed to reports by the Institute of Supply Management that manufacturing, while still contracting, is on the mend.

Tyson, 62, cautioned that declining housing values and an overhang of unsold homes pose threats to a recovery, and it’s too early to say the jobs report is the beginning of a trend.

“We’ve had one number that’s been slightly stronger than expected,” she said. “It’s pretty hard to read a single month as creating a trend. Most of the forecasts are still that the unemployment rate rises through till the end of the year.”

Unemployment Falls

U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June. The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. Obama said last week that the unemployment numbers indicate “the worst may be behind us.”

The report propelled the Standard & Poor’s 500 Index above 1,000 for the first time since November as U.S. stocks rose for a fourth week. The S&P 500 rose 2.3 percent to 1,010.48, the highest since Oct. 6. The Dow Jones Industrial Average climbed 198.46 points, or 2.2 percent, to 9,370.07.

The Aug. 7 Labor Department report came a week after the Commerce Department said U.S. gross domestic product shrank at a better-than-forecast 1 percent annual pace in the second quarter after a 6.4 percent drop in the prior three months.

There’s no reason for a second stimulus package now, Tyson said in the interview. She suggested on July 7 the U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small.” She told CNBC three days later that it’s premature to plan for a second stimulus package.

Stimulus Expectations

“We know that relative to plan, the stimulus package in place is performing along expectations,” Tyson said yesterday. “Right now, based on the evidence that the economy has put forward and the stimulus spend out relative to plan, there isn’t any reason to think about a next round.”

Policy makers may want to consider doing more for unemployed Americans, Tyson said. Employers have eliminated about 6.7 million jobs since the recession began in December 2007, the most since the Great Depression.

Congress will consider extending unemployment benefits next month when lawmakers return from their August recess, Majority Leader Harry Reid said Aug. 7. The Senate’s top Democrat said 1.5 million Americans may exhaust their benefits by the end of the year if Congress doesn’t act.

“That could be considered as a second stimulus or it could be considered as an extension of unemployment compensation,” said Tyson, a professor at the University of California’s Walter A. Haas School of Business, who was an adviser to Obama during last year’s presidential campaign.

1 Million Jobs

Krugman, a Princeton University economist, said the stimulus plan probably saved 1 million jobs. He said a second package is needed and should be directed at state and local governments as well as spending on construction projects.

The U.S. economy may be the first after Asia to “take off,” said Raghuram Rajan, the former chief economist of the International Monetary Fund who’s now a professor at the University of Chicago.

“Unemployment may continue rising and job losses may continue, but growth will start picking up in the U.S.,” Rajan, 46, said in an interview yesterday. “We will get a few quarters of rebound growth.”

Krugman, Tyson and Rajan were in Kuala Lumpur for the World Capital Markets Symposium, which starts today.

To contact the reporter on this story: Shamim Adam in Kuala Lumpur at sadam2@bloomberg.net; Liza Lin in Kuala Lumpur at llin15@bloomberg.net

For the new FIFO rule created by NFA, it had made some changes to our trading, actually is good for us to prevent losses or margin call. Here the changes that affected:-1) If apply FIFO: You need to close the 1st trade before you can close the 2nd trade, but you still can open the same lot size for the same pair. Only can create S/L & T/P for the 1st trade.

2) If without FIFO: You can't open the same lot size for the same pair and you need to open different lot size for them, Eg: 1.00 lot for 1st pair and 1.01 lot for 2nd pair.
Do you want to know why the NFA is enforcing this rule?
It's supposed to be a protective rule to prevent you from incurring major losses on a set of losing trades. If you didn't close the first opened first hoping the market would retrace to either minimize your losses or potentially achieve a small profit, the NFA feels that too often the market does not retrace to just compound your losses further until you hit margin calls. I think the NFA created the exception for different lot sizes to rule more with a velvet glove than an iron fist because it gives traders some flexibility and keeps a balance between protective vs. controlling for the new rule.

For more info, please visit http://www.nfa.futures.org/news/newsNotice...?ArticleID=2273
source: & THANK
http://forum.lowyat.net/topic/880976/+2380


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On April 29th, I wrote an article about some new NFA rules . They ended hedging with NFA registered brokers (bad), and also restricted the ability of brokers to wreck profits by claiming price feed errors (extremely good).

Everyone was so focused on the hedging part that some of the implications of the wording got overlooked. There was a little detail about FIFO (first in, first out). I assumed this was only talking about hedges. Evidently, the NFA FIFO rule has some more implications. FPA member Pratomo posted some info from FXCM about the problems in the forums 2 days ago and I've done a little more digging. I don't think most forex traders are going to like how this will affect trading with NFA registered brokers.

My article on the problems with the NFA's anti-hedging rules

It seems that the NFA plans to apply FIFO to ALL positions on a currency pair., not just old hedged trades This means if you have 2 separate sell orders on the USDJPY, you can't close the 2nd one you opened before closing the first order. You can only close them in the order that you opened them (or all at once). No more running a long- term strategy on an account and using the same account for a little bit of day trading. I don't know if this was something the NFA intended or if it's something that one of their over-zealous regulators suddenly realized he could foist off on on all of us by deliberately misinterpreting the original intent of an already poorly designed set of regulations.

It gets worse. Much worse. Stop losses and take profits apply to individual orders. If this is implemented, you won't be able to set a proper stop loss or take profit on any platform with an NFA registered broker after July 31st, 2009. Some platforms allow you to set up a pair of OCO

And finally, the worst of the worst for those of us who really like to use MT4. MetaTrader 4 doesn't work this way. Currently, brokers don't seem to accept pending orders that would make your position on a pair neutral because of the NFA's anti-hedging rules. The end effect of this is that if you trade with MT4 and open a second position on a pair, there won't be any way to set a stoploss. Unless the people at MetaQuotes do something about this, you probably won't be able to have a stoploss on even a single position.

Since SL, TP, and the ability to close individual orders in any order are built into MT4, it is possible that NFA regulated brokers may not even be able to offer trading through MT4 starting on August 1st, 2009.

Pratomo's posting with info from FXCM

If this rule happens and MT4 remains usable, the only thing I'll be using any of my NFA brokers for is long term, super-low leverage position trades. All the rest of my trading will be moved to non-NFA brokers outside the USA. If they really wipe out MT4, I'll be defunding my USA accounts and moving everything offshore (ok, I'm “forex platform challenged” and I admit it).

The NFA claims that these rules will make it easier to keep track of their positions – even though this strips out stoplosses from MT4 and complicates them on other platforms. It looks like the NFA wants it to be easier to see why traders get margin called rather of helping traders prevent margin calls.

Is the NFA really intend on destroying retail forex in this country? Do they really want to take money out of the USA and send it overseas? I don't know what they really mean to do, but it's not hard to see what the real consequences are. My only hope is that someone in charge at the NFA realizes that this is an amazingly stupid thing to do and stops it from happening.
orders. These will act as SL and TP, but only for the size of position you set them to. If your total positions on a pair comes to 2.4 lots, you'll need to set your OCO to 2.4 lots if you want everything to close. There are 2 drawbacks. First, you need to set up the OCS (or set of OCOs) to the correct amount to cover all your positions without going over or under. Second, if you miscalculate your risk and get a margin call before hitting the OCOs, those OCOs will still be waiting to be activated, thus risking a 2nd margin call.
SOURCE & THANKS to :
http://www.forexpeacearmy.com/forex-forum/forex-articles/5216-does-nfa-plan-destroy-mt4-usa.html

New NFA Rules

FAQ on FIFO at Daily FX

My article on Risk Management – for use with brokers that can legally offer stoplosses

Jobs Sparks USD, Stock Rally

The dollar surged against the majors on the Friday session, rallying sharply against the euro from 1.4412 to 1.4156 and pushing the sterling to 1.6655. The catalyst for the steep move was the closely anticipated July jobs data. In sharp contrast to recent market behavior, the greenback’s strength coincided with a rally in the US equity markets. The major bourses were all higher by over 1.6%, with the S&P 500 advancing by 1.75% and the Dow Jones up more than 1.64%.

The July labor report unexpectedly improved for the first time in 15-months with the unemployment rate defying estimates for an increase to 9.7%, instead declining to 9.4% from 9.5% in June. Non-farm payrolls posted a drastic improvement, revealing a loss of 247k jobs, besting calls for a reading of -320k jobs, versus an upwardly revised June reading of 443k jobs lost.

The market action today challenges recent trade correlations, rewarding the greenback on improving sentiment that the US economy will be the first to recovery from the global economic recession. Nonetheless, the economic reports remain inconsistent but reinforce the prospects that the deterioration in fundamentals is slowing. The focus will now be on the two-day FOMC monetary policy meeting next week, with traders closely scrutinizing the Fed’s outlook for the economy.

Daily Report: Non-Farm Payroll to End Consolidations?

EURUSD trades near 1.4170, with support starting at 1.4140, followed by 1.41 and 1.4060. Subsequent floors are seen at 1.4030 and 1.40. On the topside, resistance will emerge at 1.42, backed by 1.4230 and 1.4260.

MG Financial Group
http://www.mgforex.com

Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

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Weekly Review and Outlook

Traders Back to Fundamentals, Has Dollar Bottomed?

After making a new 2009 low against most major currencies last week, dollar struck a strong comeback on the back of upside surprise in employment report in US and closed the week higher. While the employment markets were still weak, the non-farm payroll report did show significant improvements over the last few months, considering that the -247k job loss in July was one-third of that peak of -741k recorded in Jan. Another surprise was the drop in unemployment rate which was down from 9.5% to 9.4%. While the economists are viewing that as a "temporary dip" and unemployment rate is still generally expected to rise towards the end of the year, the expectation has now shift to an earlier and lower peak.

Dollar has responded positively in a broad sense to a piece of positive data finally, arguing that traders are possibly turning back to fundamentals. In particular, consider that dollar was initially sold off after NFP on risk appetite trades but those weakness was quickly overshadowed by massive dollar buying together with surge in bond yields. Markets are continuing to reinforce the expectation that Fed will begin to remove the ultra-loose monetary policy sooner than earlier expected. Indeed, Fed fund futures are pricing in over 60% chance that Fed will raise rate from the current 0-0.25% range by January meeting, up more than 10% chance from a month ago.

The question in everyone's mind now is whether the dollar has bottomed? While the rebound last Friday was strong, there is no clear confirmation of reversal yet. Note that dollar's strength was seen mainly against yen and European currencies. The recovery against Canadian dollar and Australian dollar was mild while there wasn't much strength seen against New Zealand dollar indeed. Also, note that if the notion of traders turning back to US fundamentals is correct, we'd continue to see the greenback correlate positively with stocks, like what it did on Friday. In other words, strong data from US will boost both stocks and the greenback. In turn, strength is stocks will lift commodities as well as commodity currencies. However, strength in greenback will likely pressure commodities. So, in case of strong US data, European currencies will likely be pressured. But the fate of commodity currencies and dollar in generally, will depend on the developments in commodity markets, including gold and crude oil. But in any case, yen will be pressured by improvements in investor sentiments.

Two other main events last week was BoE and ECB meetings. The Bank of England decided to keep interest rate unchanged at 0.5% but to extend the asset purchase program by 50B pounds to 175B pound. This was done as recession has been deeper than expected and after assessing the new set of economic forecasts, the existing stimulus plans and generation-low interest rate are not sufficient to overcome deflation. More in BOE Extends The Asset Purchase Program To 175B Pound

As anticipated, ECB kept its main refinancing rate unchanged at 1% in August. Moreover, there's nothing new in the press conference that we could get regarding economic outlook, monetary policies or exit strategies. More in ECB Meeting: Non-eventful As Expected

Technically, dollar index did draw strong support from mentioned 75.89/77.67 support zone and rebounded strongly last week. Bullish convergence condition in daily RSI argues that 77.43 might be a short term bottom at least. But there is no confirmation yet. Focus will be on 79.66 resistance initially this week and break there will solidify the case that dollar has already bottomed out and turn focus to 80.89/81.47 resistance zone for confirmation.

source: http://www.actionforex.com/

Candlesticks & Ichimioku Analysis

• NZDUSD Candlesticks and Ichimoku Analysis
• EURJPY Candlesticks and Ichimoku Analysis
• USDCAD Candlesticks and Ichimoku Analysis
• EURCHF Candlesticks and Ichimoku Analysis

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Managed forex accounts may or may not be appropriate for you. A managed forex account can give an investor who does not have time to trade, the opportunity to participate in the gigantic world of currency trading. Also, investors who want their capital managed by an experienced professional, may find that forex managed accounts fit well in their existing portfolios.

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Diversify away from the stock market with a managed forex account
The returns from professionally managed forex accounts are not related to the forex strategies performance of the stock market, as indicated by various studies conducted. Therefore, putting a portion forex charts
of your investment capital into a managed account that invests in the forex market can be a way to diversify your portfolio whether the stock market goes up or down. This is one of the reasons why some investors participate in this alternative investment vehicle.

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Are managed forex accounts right for me?
Managed forex accounts may be appropriate for investors who are looking for the following benefits:

• An asset global forex class for the aggressive part of their portfolios.*
• Low minimum investment compared to other managed accounts.
• A way to diversify away forex platform from the stock market.
• Increased diversification managed forex in their investment portfolios.
• A professional, well-known forex currency
  account money forex trading strategies manager.
• A way to participate in the foreign
  forex rate exchange market forex markets without having to trade the market themselves.
• Account balance forex strategy
  can be withdrawn at any time - no lock-up period.

A forex managed account may also be appropriate for high net-worth individuals
Method used in the managed forex program
Different money managers use different methodologies in the forex managed account in an attempt to capitalize on short-term price swings and trends that occur in major currencies. A diversified managed account may also uses money management techniques to for risk control.*

The forex managers
The managers of the managed forex account program have years of market experience.

Source:http://www.forextradingusa.com

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