Dollar Moves Up

TOKYO, April 13 (Reuters) - The dollar edged up against the yen in quiet trade on Monday with many overseas players still away for the Easter holiday and others waiting until the U.S. corporate earnings season gets into full swing.

U.S. banks including Goldman Sachs (GS.N) JPMorgan (JPM.N) and Citigroup (C.N) are set to report Q1 results this week, and traders are keen to see how stock markets react to these earnings reports.

Last week, the dollar rose against the yen, buoyed by a rally in U.S. stocks after positive earnings guidance from U.S. bank Wells Fargo (WFC.N).

"If U.S. earnings results show signs that the U.S. is pulling away from the worst of the economic downturn, risk appetite is expected to grow, putting pressure on the yen," said Yoshihisa Kanzaki, currency dealer at Shinkin Central Bank.

Market watchers said the currency market has priced in positive U.S. earnings figures, so the market is more likely to react to any negative surprises.

The dollar was trading around 100.33 yen , compared with 100.22 yen in late Tokyo trading on Friday. The U.S. currency touched 101.45 yen last week, its highest in six months.

The euro was quoted at $1.3144 , down from $1.3186 on Friday when it also slipped to $1.3090, a level not seen since mid-March.

Against the yen, the euro was at 131.85 yen , down from 132.24 yen. It climbed to 137.42 yen last week, its highest point in six months.

The Australian dollar rose above 73.00 yen , the highest since October, before falling back to 72.33 yen.

Retail investors seemed to be picking up the higher yielding Aussie, with thin trade exaggerating its price swings, market watchers said.

Australia last week slashed its key cash rate by just 0.25 basis points to 3.0 percent, less than some had expected. (Reporting by Kaori Kaneko; Editing by Hugh Lawson)

Euro Gains Ground

The Euro gained some ground after European Central Bank lowered the interest rate by a quarter of a percentage point to 1.25 percent, most analysts expect less than the 1/2 a percentage point drop.


Interest rates in the Eurozone are three full percentage points lower than they were in October.

The pound, meanwhile, gained on the US dollar after a report from Nationwide Building Society that said the average price of a house in the UK was up 0.9 percent in March from February, the first increase in nearly a year and a half.

The average price of a house rose to £150,946 against an expected continuation of price declines.

In late morning trade, the pound traded at 91.3p to the euro while it took .4664 to buy a pound.

The higher house prices and a gain in equities markets made it look as if contractions in the UK economy could be slowing down..

The Swiss franc weakened after the Swiss National Bank said it will continue to intervene to keep the currency from gaining value and on the ECB’s smaller-than-expected rate cut.

At late morning in New York, the Swiss currency traded at SFr1.5248 to the euro while it was at SFr1.1337 to the greenback.

The yen was also weaker as risk appetite returned as equities markets saw gains, with the Japanese currency trading at ¥99.545 to the US dollar shortly before noon in New York.

This morning the dollar was gaining ground on the euro and then came to a halt
hovering around the 1.3270,which in the last 24 hours was almost 300 pip gain
against the Euro. This Euro/USD market moves on a whim and I am sure it is going to
go back the other way in just a short time. But as of 5.00 this morning the dollar is still moving up.

Language of Forex Traders

By: Jason Fielder


There's far more Forex jargon than can be covered in just one article, but this article will also help to fill in more of the most common Forex jargon for beginners. No matter what the group (doctors, astronomers, basketball players, poker players, etc.) each group has its own distinctive lingo. The Forex is no exception, and the sooner you learn some of the lingo, the easier it will be to follow tutorials, learn how to trade, and start holding your own in conversations with other professional traders. So without any further delay:

"Lots." This is more than lingo, and not a word referring to a lot of something. Lots are specifically the bulk amounts of currency required for trading in the Forex market, most currencies are priced in lots of $100,000.

"Margin." This is the minimum amount of money needed to put up to place a trade with a broker. As long as you have this minimum amount in your account you can trade. When your account falls below that margin amount, all your open positions in the Forex market are closed out.

"Margin Call." A margin call is made when, due to losses, your account falls below the allowed minimum for a broker account. When this happens the broker makes a margin call, which will close out all your open positions in the Forex market.

"Limit Order." This is an order to execute a trade only if it hits a specific price or better.

"Carry Trade." Depending on what Forex traders you hang around with, you could hear this one a lot. A carry trade is a trade where you choose a currency pair in which you go interest positive, meaning that you are earning daily interest on your trade because of the difference in interest rates between the two nations.

"Counter-Trend." Many people think this means trending downward, but that is NOT correct. A counter trend market is a market that is not trending either way, meaning all movements are basically staying within the same channeled area.

"GTC Order." Good Till Cancelled Order. This is an order placed for a currency pair that will remain in play until the trader shuts that position down.

"OCO Order." One Cancel Other. A type of trade using two orders that are set up by trigger values. When a currency pair hits a trigger, that trade goes into effect while the other is automatically cancelled.

Article Source: http://www.tradeforex2000.info/forexarticledirectory


And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: www.foreximpact.com/reports/89percent/ From Jason Fielder: Founder, ForexImpact.com