Before US bank earns, Dollar rises up against Yen

On Monday, the dollar rises up vs. yen in quiet trade with many overseas companies even now left for the Easter holiday and further to come until the US market earnings season gets into full form.

This week the US banks which includes Citigroup and Goldman Sachs JPMorgan are prepared to report Q1 results and traders are eager to look for how stock market respond to these earnings reports.

The dollar increased against the yen, last week, buoyed by a meeting in US stocks after better earnings advice from the US bank Wells Fargo.

Market spectators said the currency market has valued in positive US earnings records, so the market is more expected to react to any negative surprises.

The dollar was around 100.33 yen or Fx trading, as compare with 100.22 yen in late Tokyo trading on Friday. Last week the US currency touched 101.45 yen; it’s uppermost in six months.

On Friday, the euro was figured at $1.3144, down from $1.3186 when it also falls to $1.3090, a rank not seen since middle of the March.

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Glimpse of hope for Obama of recovering financial system, after meeting

On Friday, President Obama said that we are starting to see is ‘glimmers of hope’ across the economy to reporters after a meeting with teams of economy and regulatory also with Federal Reserve Board Chairman, Treasury Secretary and the Chairman of the Federal Deposit Insurance Corp. He also added, “We’re starting to see progress”.

Obama mentioned to improve refinancing of home mortgages, money flows from $787 billions stimulus package and 20% raise in government backed loans to small business over the previous month only. He also said we are still lots of job losses and lots of hardship.

The talks that lastly about one hour, pointed on stabilizing banks, stimulating the economy, the rising unemployed rate, falling strain in the credit markets, the health evaluation of banks and the mortgage refinancing, which also includes “stress tests” being organized by the Fed. The result of the Test, due at the end of this month, are awaited by the financial market.

He also said in the meeting that in the coming next few weeks, you will be seeing other actions by the administration but gave no details.

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Barack Obama plans meeting for bank stress tests

On Thursday, a White House speaker said U.S. President Obama plans to meet with the top financial regulators to talk about the “stress tests” being scheduled at the 19 biggest U.S. banks,

Obama will converse with Treasury Secretary, Federal Reserve Chairman and Federal deposit Insurance Corp Chairman and with top White House economic adviser, on a “wide” range of financial topics.

In an attempt to assess banks’ capital require, the government is testing how they would charge under more unfavorable conditions than are predictable. The markets are worriedly expecting the results that owe at the end of April, to see which firms will probable require more taxpayer help and which firms get a clean bill.

The regulators is expected to present Obama a progress report on what the regulatory stress tests is show the condition of the top banks.

A source well-known with the meeting said regulators plan to also converse with Obama what another steps may require after the tests.

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Forex Book

There is undoubtedly about it that forex book is very helpful for new currency trader and evenly for the traders who want to develop their skills with new strategies. Nowadays there is a huge range of currency trading training resources presented in both offline and online which includes forums, seminars, online courses, members-only websites, conferences and even one-to-one training from professional tutors. But there are times as a good traditional book is just that you require.

No matter whether your forex book is available on paper or downloads as an eBook, it can be the good method to learn in many situations. It has both the option prices and convenience.

Another benefit of forex books is that you save time by skipping more the things you already know. If you have any knowledge at all, going more than the basics, it can waste lots of your time in preparation that is based around seminars or even online audio/video sessions as you stay for everybody else to be shown the methods that you have already expert.

It is said that the currency trading market is area where you can hope to find a sure amount of publicity. Do not to be too fast to make negative decisions only because a book or eBook is promoted with the fair amount of tough sell. Keep in mind that the advertising copy is possibly written by the professionals, not any writer of the book.
So you can carefully ignore most of the publicity in the promotional advertisements and look for the thing that you really require to know. These are:

• What fields of expertise is covered in the book.
• Whether it is correct for you, i.e. whether it is meant for your experience level and skill.
• What is the pay back that you individually can expect to get from it

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Eurozone GDP Contracts

Eurozone economy has recorded a bigger shrunk in its economy than was estimated in the last three years of 2008.As per the EU's Eurostat office GDP in the 15 nation area fell 1.6%, more than the 1.5% expected.

In Fx trading, euro declined against the dollar to $1.3270 amidst fears the economy could contract even further in 2009.As of now the Eurozone includes 16 countries that use euro as their national currency. Slovakia was the 16th nation to switch to the euro at the beginning of this year.

Analysts are worried that GDP contraction in the eurozone must have been worse in the first quarter of 2009.The data and survey evidence collected has largely been gloomy. Analysts are expecting slow recovery.

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U.S. Budgt Deficit Worth 1 Trillion

The U.S. recorded a gigantic budget deficit of nearly $1 trillion in the first six months of this fiscal year which began on October 1.

The estimates released on Monday by the Congressional Budget Office said the government likely recorded $953 billion in red ink from October through March.

WHY DEFICITS MATTER

• Increased debt costs for government
• Increased risk of inflation
• Long-term pressure on dollar
• Could lead to higher taxes and spending cuts later

The CBO, the nonpartisan budget analyst for Congress, said the drop in corporate receipts was the largest in more than three decades.
In addition to dropping revenue and the bailout money for Wall Street, the government has poured more money out the door to try to jump-start the ailing economy, which has been in recession since December 2007.

An arm of the U.S. Treasury Department also loaned $10 billion to credit unions to help them address recent liquidity pressures, the CBO said.

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UK's Budget Deficit to be Worse Than Predicted

The budget deficit is at least 2.7% more than what was being expected in the pre budget announcements by the Chancellor Alistair Darling.Darling (seen in picture) who will be presenting the budget later in the month said the recession in UK has been more severe than expected.

In Fx Trading, the pound has tumbled amid these persistent economic problems here.

The £39bn (approx 58bn US dollars) deficit could be financed by either raising the tax limits or by putting a five-year real freeze in total public spending.The Institute for Fiscal Studies (IFS) estimates that taxes in Britain will have to rise by at least £20bn a year to cover record borrowing.

Noticeably, at the last week Summit of the leaders of the world's largest economies, a deal worth $1.1 trillion (£681bn) was reached at to tackle the global financial crisis.

The British Prime Minister Gordon Brown will be meeting the chancellor and the Bank of England governor to discuss about measures agreed at the concluded G20 summit.The prime Minister here is hopeful the consensus reached at the meeting will help build the dwindling confidence in the banks, and will make a difference to the lives and to the aspirations of families and businesses in the UK.


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A New World Order in the Making

The world leaders meet at the G20 Summit in London with the motto of Stability Growth and Jobs has ended marking a turning point in the world history. Overall, there have been mixed responses regarding the success of the Summit.

The distinction between the developed and the developing countries seemed to fade away as there was marked difference in the particularity of America. China Brazil and India drew as much attention.While the G20 meet did end in global settlement to boost the world growth there have been some misses. Here are some of the highlights from the Summit.

Hits

• US president Barack Obama called the Meeting Historic in its pursuit to recover from the financial quagmire.
• IMF's managing director was happy after the summit and especially enthusiastic about IMF issuing $250bn worth of its own currency, the SDR. Top jobs in the IMF will be open to people from all parts of the world which until now had only Europeans on them.
• Countries like China and India have been given bigger say in the working of this international institution.
• Leaders called the summit a "real progress" in efforts to enforce tighter regulation of the financial system.
• G20 meet succeeded in inciting cooperation on crackdown on tax havens as also greater support for the poorest countries.

Misses

• The Summit's biggest failure is being seen in its inability to settle on a global plan for recovery from the crisis.
• There have been no major deals on plans of co-ordinated global stimulus packages.
• A representative from the World Development Movement said one of the biggest misses of the summit is that leaders failed to get a consensus on a global green new deal that puts the interests of poor people and the environment as an important part of the international trade and finance.

On the whole the summit is being as mixed bag of goodies. The summit is being widely considered to have taken only insufficient measures to meet the challenges facing the global economy even while a clearer financial structure is expected to emerge out of the chaos.

It remains to seen when and how the pledges at the Summit get transformed into real worth.
The G20 Summit is best being regarded as embarking of the journey of a new beginning.

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Global leaders begin G20 summit

High Hopes from the G20 Meet:
Leaders from across the world have assembled for the G20 Summit in London to discuss about one of the worst financial crisis since the 1930s.Security is beefed up at the at the Excel Centre in London's Docklands where the summit began today. Leaders at the summit have only a few hours to reach agreement on plans to revive the world economy.

Key Issue is the Global Financial Calamity: Consensus on boosts in public spending to revive the world economy is likely to be arrived. Leaders will debate however if a target figure should be put on the size of the stimulus plans already announced.

Other Agendas:A number of other issues will also come up which require commitment of money figures from the governments One of the important ones being how much more money should be given to the International Monetary Fund (IMF), whose role in the present financial climate has increased radically.


Future of the Dollar:
Debate has been fired on the future of the US dollar as the main reserve currency in the world that will continue for some time.China's voice is likely to grow stronger on this issue as there is already agreement that it will be given a bigger say in the IMF from 2011.

Most other developing countries are eager to get a bigger influence too, and would like the US to be stripped of its veto power.Leaders are also expected to pledge additional funds to help the poorest developing countries who have been hit by the crisis

Here are Some Pictures from the Summit in London

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Forex ~ Afternoon Forex Updates

US Dollar slips:
Risk sentiment has been soured with reports that bankruptcy could a viable option for the car makers like GM. Economists have warned that the collapse of big automakers may reverberate beyond North America given the network of global supplies chains.The warning followed news from the Bloomberg that the Obama administration is looking at a prepackaged bankruptcy for GM.

In fx trading,US dollar came off highs with further news that this report is "not accurate" and that President Barack Obama's thinking on the crisis facing GM has not changed since Monday. The dollar fell about 0.1 percent against the yen.

Traders alert before key events later this week:
Forex Traders are wary of chasing prices aggressively in view of key events including the G20 Summit, later this week.Investors are treading cautiously ahead of the G20 meeting and the ECB policy announcement in the coming days.


Banks take to 'unconventional' ways:
U.S., British and Japanese central banks have turned to unconventional steps to pump funds into their economies, including outright buying of government and corporate debt. ECB is expected to follow suit.

Business confidence at record low in Japan:
A survey by the central bank in Japan has showed that business confidence among manufacturers in Japan is at a record low. Government reports yesterday showed that U.S. home prices are still plunging and consumer confidence is holding at just above record lows.In online forex trading the yen traded near its weakest level in almost a month against the greenback.

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