Euro-Zone Economic Confidence Slumps to Record Low on Global Recession

Economic confidence in the Euro-Zone fell to its lowest level since recordkeeping began in 1985 as the index plunged to 67.1 from 74.9 in November and unemployment rate increased to a two-year high of 7.8%, which suggests that the real economy is now feeling the spillover effects from the financial crisis.

Fundamental Headlines

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• Intel, Time Warner Shortfalls Signal Further U.S. Forecast Cuts – Bloomberg

EURUSD – Economic confidence in the Euro-Zone fell to its lowest level since recordkeeping began in 1985 as the index plunged to 67.1 from 74.9 in November. As a result, the consumer confidence index slipped to -30 from -25 amid expectations for a 1 point drop to -26, while sentiment among businesses fell to -3.17 from a revised reading of -2.10 in the previous month. Meanwhile, the unemployment rate increased to a two-year high of 7.8% from 7.7% in October, which suggests that the real economy is now feeling the spillover effects from the financial crisis, and will likely push the jobless rate higher this year as financial uncertainties linger. Furthermore, the final GDP reading for the third quarter was confirmed at -0.2%, while the annual rate of growth held steady at 0.6%. Nevertheless, German factory orders plunged another 6.0% in November, which was followed by a 6.3% decline in the previous month, and conditions are likely to get worse as demands from home and abroad falter. The data reflects a dour outlook for the 16 economies operating under the euro, and may lead the European Central Bank to ease policy further over the coming months as growth prospects deteriorate at a record pace. Discuss the topic and your trade ideas in the EUR/USD Forum.

CHFUSD – Price growth in Switzerland slowed more than expected as it fell to its lowest level in 15 months. The consumer price index slipped 0.5% after falling 0.7% in previous month, which lowered the annual rate of inflation to 0.7% from 1.5% in November. The breakdown of the report showed that energy prices dropped another 8.0% following an 8.2% contraction in the previous month, while transportation costs fell 1.9% during the month. Meanwhile, Switzerland’s unemployment rate increased to 2.8% from 2.7% in November as fading demands from the home and abroad led companies to scale back production and employment. Easing price pressures would allow the Swiss National Bank to leave borrowing costs at 0.50% for a longer duration in response to the economic downturn, and may decide to ease policy further as policymakers expect economic activity to deteriorate throughout 2009.





[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Forex Trading Is Driven By Five Top Economic Indicators

Many factors affect Forex trading. It is critical to know and understand the various factors that cause the Forex to fluctuate from day to day. The foreign exchange market will change depending on the economic factors that play a role in the movement of currency.

Economic factors and indicators are released by the government or by private organizations that can look in depth at economic performances. These indicators can be used to analyse economic performances from any country. The economic reports measure a country's economic health, in addition to government policies and current events.

For the most part, a reputable broker can look at economic indicators and know which trades will be best. Reports on these indicators are released at scheduled times and can tell if a certain country is experiencing improvement in the economy or if the country's economy is on the decline. When the prices fluctuate, a great deal one way or the other, the price can be affected.
Current events and the state of the economy in any given nation is one of the top economic indicators used when analyzing the Forex. Factors such as unemployment numbers, housing statistics and the current state of a country's government can all affect changes in the Forex. When a country is feeling optimisitic about the current state of affairs in their country, prices of the Forex will reflect this. When a nation experiences political unrest, large amounts of unemployed workers and inflation, the rate of the currency will be reflected. Sometimes, this indicator tends to be overlooked, but can serve as an important gauge in the fluctuations of the Forex.

The gross domestic product,or GDP,is another economic indicator used when looking at the foreign exchange market. The GDP is considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total market value of all goods and services that are normally produced within any given country. This is usually measured in the time frame of a year, and not in weeks or months. Using a larger time period gives good statistics on the products and services that are produced in the country. This indicator is not used alone when forecasting the Forex. The GDP is considered a lagging indicator, meaning that is a measurable factor that changes after the economy has already began to follow a certain trend.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

What Makes Some Economic Indicators More Important Than The Others?

Every economic indicator has the power to influence the Forex market, it’s just the degree of influence that ranges from low to medium to high. Which ever indicator is carrying the news capturing most of markets attention gets more significance than the other ones.

News carrying high GDP data of a certain country or information about high employment rate in another is bound to make greater news than others, as these factors are directly effecting, rather boosting the economy of those countries.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Dollar Crumbled as Philly Fed Drops to 6 Year Lows

The US dollar crumbled today as it lost value against all of the other major currencies due to a decline in the Philadelphia Fed manufacturing release, and increased speculation that the Fed will resort to a 50bp rate cut in March. All of the commodity currencies posted major gains as the US economy continued to weaken, while the Euro hit a two week high against the fading dollar. The Swiss Franc and the British pound took the biggest bite out of the US dollar.

The Pound was driven up as retail sales unexpectedly surged to 5.6 percent for the year indicating that consumer spending to be holding up amid lowered growth prospects.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Successful Options Trading Strategies

When it comes to giving people the hope of becoming a millionaire overnight, the stock market excels. Every day we see evidence of stocks that have flown upwards as if they had wings, providing investors with a windfall of profits. It's inevitable that catching one of those stocks just before it takes off is an exciting possibility, inspiring the beginning trader to take the plunge. When you trade options, the stakes are raised, making those massive profits even more attainable, but the basics that underlie successful trading in the stock market are the same as those for trading options.

Once you start to look at trading stocks, you find yourself plunged into a confusing nightmare where hundreds if not thousands of people are pushing "their" system that is supposedly infallible. For a beginner, it's easy to get drawn into the complex net, believing that there must be a simple solution that will hand you the keys to stock market success. These keys will see you finding winner after winner, and making your fortune.

The reality, however, is that there are no keys that will find a winner every time. After all, if that was possible, how could anyone ever lose any money in the market? And if nobody loses, then how can someone else gain? The whole stock market would collapse.

Having said that, there are a number of very successful trading systems that work well over the long term. It's important to realize that a winning system is one that consistently delivers profit over a longer time frame - and part of the equation is that a percentage of trades will be losers. Once you learn to look at the bigger picture, rather than focusing on the individual trades, you'll be a lot more successful in the market.

There are a couple of approaches to the market that are popular across many systems. One is to take small losses when they happen, and let your winners run. So you might take six little losses, which are more than compensated for by one huge gain. This type of approach takes a lot of confidence and self-discipline, as it's very easy to give up if those six little losses all happen in a row, without a winner in sight.

Another approach is to take your profits after a certain percentage of gain, and occasionally put up with a medium sized loss. This system is nice if you like to see profits, because you don't run the risk of a stock that's risen suddenly dropping again and wiping out your profit - you took your profit early. However you also run the risk that the stock will continue to fly upwards and you miss out on that profit. This system can be risky, because you need a number of small profitable trades to cover one of the losses.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

EU Finance Ministers Address Crisis

EU estimates tax and spending plans to add 2.4 percent to growth in 2009

Europe's various stimulus plans combined with extra welfare spending and lower tax receipts should boost growth by around 2.4 percent in 2009, the European Commission said late Thursday.
Joaquin Almunia, the EU monetary affairs chief, said the European Commission estimates that the different national spending plans will add up to 0.9 percent to the 27-nation's growth rate. EU governments plan to inject a total of 200 billion euros ($292.32 billion) into their economies in a bid to ward off the gloom from the global crisis.

The EU commission also estimates a 1.5 percent boost to growth from the higher welfare spending and lower tax receipts automatically generated as the economy slows.
"Its a very important contribution to support demand and to try to make up for the reduction of activity in consumption and private investment," Almunia said after a meeting of EU finance ministers in Paris late Thursday.
European Central Bank President Jean Claude Trichet warned governments to be cautious, urging that they respect EU budget rules.
"For some countries we are arriving at levels of debt or absence of economic sustainability that prevent them from doing more than they are now," he said.

The 15 nations that use the euro entered a recession in the second quarter.

Discussions at the meeting hosted by French Finance Minister Christine Lagarde were limited by the absence of some of the EU's heavyweight finance ministers. German Finance Minister Peer Steinbrueck, Britain's Alistair Darling and Luxembourg's Jean-Claude Juncker, who also chairs meetings of euro zone ministers, did not attend.
The head of the International Monetary Fund, Dominique Strauss-Kahn, was present at the meeting, but he didn't attend the press conference as he worked on a rescue package for Latvia, Lagarde said.
Ministers discussed increasing the IMF's budget, and the possibility of establishing an early monitoring system to spot countries heading into difficulty, Lagarde said.

Lagarde also addressed recent currency movements which have seen the U.S. dollar swing wildly against the euro.
The 15-nation euro dropped to $1.4313 in late New York trading from $1.4349 late Wednesday. The euro peaked at $1.4719 in overnight trading, its highest point since late September.
"I have a special concern for the very abrupt volatility that we are observing on this matter and for European exporters in particular its going to be a competitive disadvantage that comes upon extremely suddenly."

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.