Is there any relation with forex and gold/oil/bond/security/com-doll/stocks?

The title may be guessed on you how does it work with Forex. Yeah! Fantastic! This is because you will be find more valuable information about monitoring these market and of course there is a close relation with Forex for those above the title.........

Gold is trading when usually investors think that the currency is just struggling with economic circumstances. So fund transferred where? Where will be USD spent out? The answer is just fund goes to buy Gold because it is safe them for investing.

So when gold prices rise meanwhile USD fall. But clear that Australia is 1/3 Gold producer and more than 25% bank reserve gold in  Swiss banks.

*You will be found AUD/USD and USD/CHF some jumps for catching pips.... But not all time..... When just confirmation Gold price rise or fall and of course London Gold Market, remember it.   

Black crack or oil prices monitoring carefully when the oil price rises USD fall  but not all time and USD/CAD is trade is then ok because Canada supply to USA nearly 2 million barrels per day.

When people become bored with currencies and not happy with tiny profit then may be attended with bonds.. Unlikely say that the bank does not provide good profit...so buying bonds is quite happening then...

And people do it high return bond means that higher interest is declared by the Governments.... to the bond buyers this is called bond yields. So if bond demand rises then for example with USA then USD price rises ....  

*take an eye the bond price at BondsOnline.com or Bloomberg.com

Stock  give to your gauge about how looks that economy at a certain time. If the stock market is quite good investing move flow over it and believe then that currency must be bull in power in nature.

*so look up these data at finance.yahoo.com 

News that can help you to understanding economic condition for forex

Are you forgotten fundamental analysis? Oh...no at all.Good.Now you can guess an economic condition of a certain country quite well. How? Well I just now send to you. Try to overcome learning Forex quickly ......................

Beige Book : Current Economic condition shows. The USA federal reserve board uses this report to determine about  interest rate policy at FOMC meetings  after the release the beige book a report  published.

Effect : If the beige book portrays inflationary pressure then the The FED may raise interest rates. If the beige book portrays recessionary conditions then the FED may set low interest Rates.

Published : Eight times  in a year. Two weeks ago the FOMC meeting at 2.00 pm ET on Wednesday.

Source : The Federal Reserve Board.

The Chicago Purchasing Manager’s Index ( PMI ) : It is related ISM index which is Very much in use for determining overall economic activity. If 50% above the grade then expanding factory Sector or below 50% indicate the opposite.

Published : Monthly. Current month last business day at 10.00 ET.

Source : Chicago Purchasing Manager’s Association.

Consumer Confidence Index : It is based on current economic situation survey on 5000 Consumer’s.

Published : Monthly. Current month last Tuesday at 10.00 ET.

Source : The Conference Board.

Consumer Price Index ( CPI ): It is familiar as Cost – Living-Index. It is referred the Core CPI which is one of the key measure of inflation for the US economy. Inflation occurs when core CPI is larger than expected. It measures the price changes such as food, energy, house rent.

Published : Monthly. Current month at 13^th 8.30 ET.

Source : Bureau of Labuor Statistics, US Department of Law.

Website : www.stats.bls.gov/news.release/cpi.toc.htm 

Durable Good’s Order: It is official calls as Advance Report of Durable Goods manufacture’s and Order.

Effect : If the index rise then production raise + employment get a job. And the other is opposite.

Source : The Census Bureau of the Department of Commerce

Published : Monthly. Current month the 26^th at 8.30 ET.

Website : www.census.gov./ftp/pub/indicator/www/m3/index.htm. 

Employment Cost Index (ECI) : It measures labuor cost including wages/salaries and benefits as well. 

Effect : It is useful in evaluating wage trend and risk of wage inflation. If wage inflation.Threaten’s interest will be rise then bond and the stock price will fall.

Published : Quarterly. Last business day of Jan , April, July, Oct at 8.30 ET.

Source : US department of labor. Bureau of labour statistics.

Existing home sales :

Source : The National Association of Realtors.

Published : Monthly. On the current month 25^th business day. 

Gross domestic products (GDP) :

Source : US Department of Commerce Bureau of Economic Analysis

Published : Quarterly. 3^rd / 4^th of the month at 8.30 am ET.

Website : www.bea.doc.gov/bea/dn1.htm

Housing starts and Building permit : It is relevant just residential investment which is near ¼  GDP. 
Source : The census bureau of the department of commerce.

Published : Monthly 16^th.

Website : www.census.gov./ftp/indicator/www/housing.html.

Industrial production and capacity utilization : Industrial sector represents 25% of GDP. It's this rate Up 85% then inflationary pressure is generated. 
Source : The board of governor of the federal reserve system.

Published : Monthly 15^th.

Website : www.federalreseve.gov/release/G17/Current/g17.txt 

Initial claims : Person whose claims to Gov. for the first time they are unemployment. So people claim so that job market growth.

Source : The department of labour of the gov.

Published: Weekly, Thursdays 8.30 ET

ISM Manufacturing Index : Its service is 300 purchasing nationwide under 20 categories.

Effect : It is considered as the king of all manufacturing indices.

Published : Monthly and first business day.

Source : Institute of Supply and Management.

Website : http://www.ism.ws

New Home Sales : It measures the consumer spending capacity of the certain countries' economies  Condition. If existing home sales then Good understanding guesses of economic condition.

Published : Monthly and last business day.

Source : The census bureau of the department of commerce 

Personal Income and Consumption:  US consumer spends 95 cents every Dollar and their income. So Corporate profit and economic sound look good.

Published : Monthly and first business day

Source : US Department of Commerce Bureau of Economic Analysis

Philadelphia Index :  Regional manufacturing index.

Published : Monthly third Thursday

Source : The Philadelphia Federal Reserve Bank

Producer Price Index (PPI):  3 types of PPI. Industry, commodity, and stage of processing.

Effect : It is identifying  food and energy for its monthly stability and  called as Core PPI. So inflationary pressure is created when core PPI is greater then expected gains.

Source : The department of labour of the gov.

Published : Monthly 11^th.

Retail Sales : The index measuring total sales of goods.

Published : Monthly 12^th

Source : The census bureau of the department of commerce.

International Trade : The report of Export and Import different of US goods and services. About 14% GDP is involved with Export and Import.

Published : Monthly 19^th.

Source : US Department of Commerce Bureau of Economic Analysis.

Carry Trading in the Forex Market

Carry means investment. So investment where.. how...why and benefit? Let us carry trade in the Forex market. You enter into the Forex why? Because you want to profit big or small depending your trading isn't it? Yes. So if you want a large amount of profit then carry trading is right for you. But some risks have has to. And in the Forex you probably learn about this risk.

Carry trading is a trading currencies when sells currency which is low interest rate and make fund then buy a high interest rate currency. So by benefiting difference interest rate with the two currencies. Generally carry trades on the daily basis pay method means if you carry trading and your difference interest rate add/give to you by your broker daily basic. Huh...is the right?

Yes. You have gained market movement knowledge very sharply if you want to carry trading. Now attention the following example:

You find suppose AUD interest rate as 6% and USD rate at 2% then different is (6-2)=4%.The economy is good of AUD.And AUD is probably bullish today/this week/this month more than bearish.So you guess that AUD must be upward.Then you buy AUD and sell USD.If AUD is continue bullish and you hold on your position then after one day later you will be get some interest by your broker at 4% and Plus your profit of buy trading is off course still at your balancing point.So carry trading has huge profit by the end of day/week/month/year/s .In the 1990's carry trading heavily cause with jpy/usd because bank of Japan declared low interest rate or about 0%, carry trading interest given is relatively with leverage that you used on the broker.

Again suppose you enter as carry trading then interest different is 4% and you leverage is 10:1 in this case you got 45% interest by your broker.

The most disadvantage is carry trading  the currency pair quote is unstable. So if the trade is against on your favor then you have paid interest from your balance this is cause highly loses of your capital.

So be careful! Cut you lose and gain profit use  fundamental, technical, sentimental analysis for this.

Is The US Dollar Index (USDX) Helpful For Forex

The US Dollar Index is a value of the US Dollar against of  major foreign currencies. It is weighted as the geometric system that mean it's value compared with other 6 major currencies. They are

*EURO................................................... 16.50% weight
*JPY...................................................... 07.28% weight
*GBP..................................................... 03.42% weight
*CAD...................................................... 12.92% weight
*CHF (Swiss Franc).................................. 01.68% weight
*SEK (Swedish Krona)............................... 0.79% weight
*data 10th October 2012

In the March 1973, Bretton Woods System after that it starts with as 100.000 and it's high record 164.7200 in February 1985 and low record in March 2008 as 70.698.

So if you find US Dollar Index as 85.246 that means it fell (100.000-85.246) = 14.754 then you can guess that against pair may be opportunity for buy and hold on.

Formula:
 50.14348112*EURO/USD^ (-576) *USD/JPY^ (0.136) *GBP/USD^ (-119) *USD/CAD^ (0.091) *USD/SEK^ (0.042) *USD/CEF^ (0.036)

Find out index: http://www.federalreserve.gov/releases/H10/Weights

Stephen Jen an economist and former currency strategist describe a theory namely as "The US Dollar Smile Theory"
He has taken up 3 scenarios for this theory as
1. USD strengthens due to risk aversion.
2. USD strengthens due to economic growth.
3. USD weakens due to low economic growth.

Therefore you may find some interesting reaction the USDX for Forex trading. Huh.... Ready to observe it?

Market Sentiment Analysis how to approach

In the Forex market million of people are engaging with their own knowledge of economic, political, technical, fundamental analysis in order to catch pips, and understanding market for better. So after technical analysis and also fundamental you have to do work with market sentiment analysis though it doesn't show you entry and exit trade point yet but you should not ignore it. But how? Well I am now focusing on these topics.

*Analysis how many candlesticks are bullish and bearish, how much bull and bear cadlesticks average range. (H1 or H4 frame candlesticks you may count)
*Follow COT report every Friday www.cftc.gov/MarketsReports
*Mark up when price bullish at the bottom and bearish at the top price.
*Mark up if more than 3 candlesticks is about equally high and low.
*Mark up market when price on Pivot, Fibonacci level.
*Mark up how much  market price range.
*Mark up if market is squeezing.

Identify your market environment

Here Forex Schooling  you have learned some topics those are for only alphabet of currency business. Now you may want to know about how to guess market environment. Well .... The market is healthy or weak or simply move as a snail these are you must be recognized firstly for trading. It is called trade-spotting.
Forex learner called these market environments as Bull market, Bear market or sideways/ranging market.
Bull market means the Buyer is in power so market force up-warding. Bear market means the opposite of a bull market. And ranging market moves very small like  a snail.
Fibonacci and Trade line helps you to focus on the  overall market nature for a specific time and Pivot, Support and resistance just tells you if the market is ranging or not.

*Reversal trending: You may notice that the market is down trending but all of a sudden it goes up trending and this time you may cause of losing your profit since you are not still familiar this. It is called a reversal. And reverse trend is the nature of the market. So you have protected yourselves for this.
Reverse trade can occur any time but usually after a heavy bull or bear trading. And long time price reversal is common remember it.