Forexgen Trading

Fundamental Outlook for US Dollar: Bearish
 
- US personal spending contracted for the fifth straight month in November as jobless claims held near 26-year highs
- US durable goods order fell less than expected, helped by an increase in defense spending and business investment
- US retail sales tumbled during December despite aggressive discounting, according to SpendingPulse

The US dollar has spent the past week consolidating within thin ranges, as low volumes did little to spark directional trade. This left the greenback down 1 percent against the euro and up roughly 1.5 percent versus the British pound and Japanese yen by Friday’s close. In the coming week, the US markets will be closed on January 1 for New Year’s Day, and low liquidity conditions could persist as scattered financial markets around the globe will also be closed on Wednesday and Thursday. Meanwhile, there will be a bit of event risk on hand, leaving potential open for volatility to pick up a bit.

On Tuesday at 9:00 ET, the S&P Case-Shiller Home Price Index for the month of October is anticipated to fall by a record 17.8 percent from a year earlier, highlighting the extent of the collapse in the US housing sector. At 10:00 ET, the Conference Board’s Consumer Confidence Index for the month of December is expected to edge up to 45.5 from 44.9. This would mark the second improvement in a row, but it’s necessary to keep these figures in perspective, as the record low of 38.8 going back to 1967 was just realized in October, down significantly from the index’s average of more than 100 throughout 2006 and 2007.

Indeed, the outlook for consumption remains bleak, especially as aggressive discounting by retailers was not able to prevent holiday spending from slumping 4 percent in December from a year earlier (excluding gasoline), according to SpendingPulse. On Wednesday, initial and continuing jobless claims are likely to hold near their highest levels since late-1982, boding ill for the January 9 release of US non-farm payrolls. Finally, on Friday, the Institute for Supply Management’s index of manufacturing conditions during December may fall to the lowest levels since 1982, while the record low of 29.4 reached in May 1980 looming close below.

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All central banks, and the U.S. Federal Reserve System (FRS) as well,
affect the foreign exchange markets changing discount rates and performing the monetary operations (as interventions and currency purchases).

For the foreign exchange operations most significant are repurchase agreements to sell the same security back at the same price at a predetermined date in the future (usually within 15 days), and at a system.specific rate of interest. This arrangement amounts to a temporary injection of reserves into the banking.

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Short-term trading in currencies is unlike short-term trading in most other markets. A short-term trade in stocks or commodities usually means holding a position for a day to several days at least.

But because of the liquidity and narrow bid/offer spreads in currencies, prices are constantly fluctuating in small increments. The steady and fluid price action in currencies allows for extremely short-term trading by speculators intent on capturing just a few pips (explained in Chapter 2) on each trade.

Short-term forex trading typically involves holding a position for only a few seconds or minutes and rarely longer than an hour. But the time element is not the defining feature of short term currency trading. Instead, the pip fluctuations are what’s important. Traders who follow a short-term trading style are seeking to profit by repeatedly opening and closing positions.

After gaining just a few pips, frequently as little as 1 or 2 pips. In the interbank market, extremely short-term, in-and-out trading is referred to as jobbing the market; online currency traders call it scalping. (We use the terms interchangeably.) Traders who follow this style have to be among the fastest and most disciplined of traders because they’re out to capture only a few pips on each trade. In terms of speed, rapid reaction and instantaneous decision-making are essential to successfully jobbing the market.

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* Providing the most huge income sharing plan
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* ForexGen IB can also charge commission for each lot the traders execute.
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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.

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[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.

You will generally see the trend begin to flatten out and begin to trade within a defined and repeated level of support and resistance. We would like to see this on a Daily and/or 4 hour chart...a range on "minute charts" is not established enough to trade without a greater element of risk.

Ideally, one would want to see at least two tests of support and resistance before declaring a range to be in place.

To trade a range, a trader would go long at support with a stop just below support or short at resistance with a stop just above resistance. The higher probability range trades will be those in the direction of the overall trend on the Daily chart. Also, when price action breaks out of the range, the breakout will likely (although no guarantees) be in the direction of the trend.


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[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

The Canadian dollar could face increase selling pressures over the next 24 hours of trading as market participants forecast GDP to contract 0.3% in October. Growth prospects for the world’s eighth largest economy have weakened considerably throughout the fourth quarter as firms cutback on employment and reduced spending.

Trading the News: Canadian Gross Domestic Product

What’s Expected

Time of release: 12/24/2008 13:30 GMT, 08:30 EST

Primary Pair Impact : USDCAD

Expected: -0.3%

Previous: 0.1%

Impact the Canadian GDP numbers had on USDCAD over the last 3 Quarters







September 2008 Canadian Gross Domestic Product

The Canadian economy grew 0.1% in September, while the annual rate of growth increased 1.3% amid expectations for a 1.1% rise. The breakdown of the monthly report showed that construction fell another 0.4% following a 0.2% decline in the previous month, while industrial production slipped 0.3% from August. Meanwhile, the Bank of Canada expects economic activity to grow at an annual pace of 0.6% in 2008 and 2009, which is the slowest pace for growth in over a decade, and conditions may only get worse as demands from the global economy falter. Mounting growth fears have already raised speculation that policymakers will continue to lower borrowing costs well into the next year as growth prospects weaken further, and may hold a dovish outlook throughout the coming months as price pressures alleviate.

August 2008 Canadian Gross Domestic Product

Economic activity in Canada contracted 0.3% in August, and conditions are likely to get worse as demands from home and abroad deteriorate. The breakdown of the report showed that wholesaling activity plunged 3.1% from the previous month, which was followed by a 1.1% decline in manufacturing. Weakening fundamentals paired with the spillover effects of the global credit crunch have stoked fears that the world’s eighth largest economy will face a recession as trade conditions deteriorate, which could lead the Bank of Canada to ease policy further over the coming months in order to stave off a severe downturn in the economy. The BoC stated that they expect economic activity to weaken further throughout the rest of the year as the major economies around the world head into a recession, which could stoke increased selling pressures for the loonie going forward.

July 2008 Canadian Gross Domestic Product

The Canadian economy expanded 0.7% in July, to reach its fastest pace of growth since March 2004. The breakdown of the report showed that manufacturing activity increased to 1.3% from the previous month, which was followed by a 3.1% gain in energy production. Despite the bigger than expected rise in GDP, the downturn in the U.S. paired with the spillover effects of the credit crunch has sparked fears of a global recession, which has raised speculation that the Bank of Canada will opt to lower the interest rate as demands from the global economy falter. Moreover, the recent pullback in oil prices has certainly helped to anchor inflation expectations, and only strengthens the argument for the BoC to lower borrowing costs as growth prospects for the major economies around the world deteriorate.

How To Trade This Event Risk

The Canadian dollar could face increase selling pressures over the next 24 hours of trading as market participants forecast GDP to contract 0.3% in October. Growth prospects for the world’s eighth largest economy have weakened considerably throughout the fourth quarter as firms cutback on employment and reduced spending.

The Canadian economy lost 70.6K jobs in November, which was the biggest decline since 1982, and raised the unemployment rate to a two-year high of 6.3% from 6.2% in the previous month. In addition, business spending fell to a record low during the same period as the Ivey PMI slipped to 40.2 from 52.2 in October. The downturn in the domestic economy has certainly dragged on growth as retail spending fell 0.9% in October, and the growth outlook for Canada may weaken further as demands from the global economy deteriorate. Trade conditions for the second consecutive month in October as the trade surplus narrowed to 3.8B from 4.3B, and conditions are likely to get worse over the coming months as the U.S., Canada’s biggest trading partner, heads into its longest recession in over a quarter century. Meanwhile, the Bank of Canada stated that the economy ‘is now entering a recession’ at the December 9th policy meeting, and as a result, policymakers lowered the benchmark interest rate by 75bp to 1.50% - the lowest level since 1958. In addition, the BoC forecasts inflation to fall to 1.6% during the second half of 2009, which could lead the central bank to lower borrowing costs even further as they carry out their dual mandate to ensure price stability while fostering economic growth.

[ForexGen Services]

Client Services
[Customer Support]
[Trading Support]

[ForexGen Partnership]

ForexGen offers three types of business partnerships.

* [Introducing Broker]
* [White Label]
* [Money Manager]

ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.
[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

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