Oil rises above US$80 in Asia

Oil rises above US$80 in Asia Friday(update)

SINGAPORE: Oil prices rose above US$80 a barrel Friday in Asia as crude investors eyed a surge in global stock markets. Benchmark crude for December delivery was up 47 cents to $80.09 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract fell 78 cents to settle at $79.62 on Thursday. Oil traders often look to stock markets for a sense of overall investor sentiment, and the Dow Jones industrial average rose 2.1 percent Thursday on better-than -expected jobless claims numbers and positive forecasts by Cisco Systems Inc. All major Asia indexes were also up in early Friday trading. Crude investors are also watching signs in recent weeks of a drop in U.S. oil supplies, which increased sharply this year as demand shrank. Some analysts forecast higher oil prices next year as the economy strengthens and demand recovers. "We expect fundamentals to improve as oil demand growth resumes," Morgan Stanley said in a report. "Until the oil market tightens, oil will be dragged in the wake of other risky asset price moves. " Morgan Stanley said it expects oil to average $85 a barrel next year. Crude has crisscrossed the $80 level for the last few weeks as investors mull weak U.S. consumer demand and a volatile dollar. In other Nymex trading, heating oil rose 1.16 cents to $2.07 a gallon.
Gasoline for December delivery gained 0.99 cent to $2.00 a gallon. Natural gas for December delivery fell 1 cent to $4.78 per 1,000 cubic feet. In London, Brent crude for December delivery rose 66 cents to $78.65 on the ICE Futures exchange. AP Earlier report Oil price slips on questions about demand NEW YORK: Oil prices slipped Thursday as investors questioned whether the U.S. would regain its appetite for petroleum. Benchmark crude for December delivery gave up 78 cents to settle at $79.62 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery fell 90 cents to settle at $77.99 on the ICE Futures exchange. While the economy has shown signs of recovery, economists, including those at Cambridge Energy Research Associates, have predicted that world energy demand will continue to slide as automakers build cars with better mileage and countries embrace alternative fuels. That assessment, combined with Energy Information Administration data that showed a drop in oil imports last week, helped push crude prices lower. "The good news we're hearing about the economy is not translating to a stronger oil market yet," said Michael Lynch, president of Strategic Energy & Economic Research. The Labor Department said Thursday that productivity increased and the number of people seeking unemployment benefits for the first time dropped to the lowest level in 10 months. Still, analysts continued to focus on weak oil imports and tepid consumer demand. The EIA also reported Thursday that the U.S. continues to sit on an ever-expanding natural gas stockpile that's the largest on record. As of last week, 3.79 trillion cubic feet of natural gas had been crammed into storage.
Natural gas is a key energy source for power plants around the country, and a large buildup in supplies provides yet another example that factories and other businesses are struggling to ramp up their operations. Oil prices had increased for several months, primarily tracking the decline in the dollar. Crude barrels are priced in U.S. currency, and they tend to rise in price as the dollar weakens and gives buyers holding international currencies the ability to buy more with the same money.
But concerns about large petroleum surpluses and poor consumer demand have raised doubts about how high oil can go. In other Nymex trading, heating oil fell 3.26 cents to settle at $2.0576 a gallon.
Gasoline for December delivery lost 2.5 cents to settle at $1.9877 a gallon. Natural gas for December delivery rose 5.7 cents to settle at $4.782 per 1,000 cubic feet.

Top 10 Myths about Forex

Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another. Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:

1. Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession it takes time, money and a lot of practice.

2. "I will make money in Forex, if I can trade stocks successfully." Success in stock market doesn’t imply that you will get success in Forex market there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.

3. "I can make profit whenever I want if Forex market is open 24 hours a day." Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours.
You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.

4. "I can be a successful Forex trader just following someone else’s signals." Many beginning traders get burned by the blind signal-following.
That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.

5. No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread?
It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.

6. Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the "brand" of Forex, that doesn’t mean that the Forex itself is a scam.
There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.

7. "I need to exactly predict the market outcome to be profitable in Forex." There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.

8. "I need to use a very complex strategy to be successful in Forex. " It’s a popular myth, in which many on-line sellers would want you to believe . The main requirement to be successful in Forex is a self-discipline and money management.
There are many traders that make consistent profits with rather simple and old strategies.

9. " I need to have a lot of starting capital to get profit in Forex." Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that) .
Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.

10. Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random.
And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck. Knowledge is power so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational this quality will help you either if you are going to trade in Forex or not.

Canadian Dollar Extends Rally Before Fed Statement

Canadian DollarThe Canadian dollar continued to gain this Wednesday versus the greenback as demand for commodities produced in Canada and stocks worldwide gained significantly, raising attractiveness for the loonie even further, after several sessions of losses during the past week.
The Federal Reserve is likely to post statements regarding monetary policy in the U.S. this Wednesday, and according to virtually all economists, rates are likely to remain unchanged, which is good for the Canadian dollar, since a Fed rate hike would decrease the appeal for the Canadian currency substantially.

The loon ie is one of the most stock linked currencies, and today, after positive bank earnings in Europe, stocks rallied worldwide, adding reasons for investors to return their positions in Canada, previously sold last week following Bank of Canada declarations that a strong currency would impact negatively the economic recovery of the North American nation, halting a rally that set the Canadian dollar to levels near parity with its U.S. counterpart.
The Canadian dollar has still further room to increase, but investors became rather skeptical to invest sharply in Canada, as the Bank of Canada has been stressing frequently that a strong currency is unwelcome in the country, fact which is likely to limit the loonie’s rally even if its fundamental outlook is bullish.

Dollar Down Before Fed Decision

US DollarThe dollar had a day of losses versus most of 16 main traders before the Fed will publish its monetary policies decisions tomorrow, as investors expect a rather dovish tone in policy makers’ statements. The greenback had its worse session in more than a week as speculations suggest that interest rates to be published tomorrow in the United States by the Federal Reserve are extremely likely to be maintained at a record low, shunning investors for dollar priced assets and pushing them towards countries with better return possibilities for their investments.

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Japanese yen and the US dollar.

Japanese yen and the US dollar were the strongest of the majors on a day when US stock indices pushed more than 2.5 percent.
This shows that market relationships and hazard aversion are active. Actually, the CBOE’s VIX instability index, one of the major market alarm measures, went up over 30 for the first time since July.
FX carry trades went down the most, as NZDJPY dropped sharply by 3.74 % whilst CADJPY and AUDJPY both lost just more than 3 %. Similarly, NZDUSD fell down 2.2 % whilst AUDUSD dropped 1.8 %, and the sour sentiment went opposite to US economic news. Certainly, personal profits and personal expenditure analysis were corresponding to anticipation for the month of September, as revenues stayed the same whilst expenditure dropped 0.5 %, the most severe decrease since December 2008.

Technical Analysis.

Technical Analysis for Major Currencies EURO The euro versus dollar pair attempted to achieve more bullish movements yesterday evening, where the pair faced resistance levels that could possibly could form a resistance line of a bearish channel channel that might prevent it from upside resumption as shown in the image above. On the other hand, we expect to see some fluctuations that could gain enough bullish momentum to support the ascending process and then breach resistance at 1.4905 and head towards the next target around 1.5000. The direction expected for today is bullish;

it will prevail if 1.4755 remains intact. The trading range for today is among the key support at 1.4600 and the key resistance at 1.5135.
The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000.

Euro Runs Out Of Steam As Japanese Yen

Euro Runs Out Of Steam As Japanese Yen Expected To Rise The yen rose for the first time in three days against the euro on concern a U.S. report today may show the nation's jobless rate climbed
to a 26-year high, boosting demand for the Japanese currency as a refuge. Japan's currency advanced to 134.55 per euro at 6:48 a.m. in London from 134.92 in New York yesterday.
The dollar fetched 90.47 yen from 90.71 yen. Trading Tactics Sell EUR/JPY on signs of a head and shoulders formation.
The buying point is at 135.80; previous resistance is the take profit at 138.50; Fibonacci 23.6% is the stop loss at 134.80 The selling point is at 134.77;
Fibonacci 50% is the take profit at 133.75; previous resistance is the stop loss at 135.75 Technical: Euro fails to make a higher high and forms a head and shoulders pattern that gives us a reversal signal. A move back lower could set up a test of 133.75 The following analysis is for information only;
Finotec is not responsible for any decisions or misinterpretations based on the given text.