Gold for December

Bullion erased this year’s gains earlier this month as signs of an improving U.S. economy added to the case for higher borrowing costs. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
“With uncertainty about the timing of the Fed’s rate hike now starting to show, we feel that equities and the dollar would continue on the defensive, which would then underpin gold,” Abhishek Chinchalkar, an analyst at Mumbai-based AnandRathi Commodities Ltd., said in a report today. “Gains could be capped around $1,250 an ounce if crude continues under pressure.”
Gold for December delivery added 0.5 percent to $1,236.10 an ounce by 7:36 a.m. on the Comex in New York. It reached $1,238 yesterday, the highest since Sept. 17. Gold for immediate delivery was little changed at $1,235.81

USD/CHF Daily

 USD/CHF  Daily
13::55 GMT -Mkt. has dropped back a bit further last several hours.    overnight. We still think it needs to hold 0.9500 or better or last   week's low at 0.9467 is likely to come under pressure. If the latter fails, next sup. is at 0.9449/56. Res. is at today's    high at 0.9574. N.I.
R5: 0.9675  intraday level
R4: 0.9635  intraday level
R3: 0.9624 * Tues high
R2: 0.9592/00  Wed/Fri high
R1: 0.9574  today high
S1: 0.9500~  intraday level
S2: 0.9467  Thurs low
S3: 0.9449/56 * 25/6 Sep lows
S4: 0.9420  break area
S5: 0.9400  intraday level

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Canadian dollar is slightly higher Friday

Canadian dollar is slightly higher Friday after rallying sharply in response to unexpectedly robust jobs data for September.
The rally took the Canadian currency off its session low, but a subsequent retracement of some of its gains left it only slightly higher than Thursday's close.
The U.S. dollar was last at C$1.1184, from C$1.1185 at Thursday's close, according to data provider CQG.
The U.S. unit had climbed to C$1.1208 just before the data's release and tumbled to a session low at C$1.1159 afterwards before recovering somewhat.
Statistics Canada reported the economy created 74,100 net new jobs--the most since May 2013--and the jobless rate fell by 0.2 percentage points to 6.8%.
The gains were predominantly in full-time work, where 69,300 positions were filled, the most since March 2012. The number of part-time jobs rose 4,800.
Market expectations had been for a 20,000 job gain, and a steady jobless rate of 7.0%, according to a report from Royal Bank of Canada.
The private sector added 123,600 jobs in September, wiping out a record decline in the prior month, StatsCan reported.
While the data were strong enough to provoke an immediate strengthening in the Canadian dollar, the volatility in Canada's labor force has resulted in caution among economists, who warn against attaching too much significance to monthly fluctuations in the report.

USD/CHF Daily

USD/CHF  Daily
13::45 GMT -Recovery is underway after the mkt. bottomed out near  0.9470. Close res. is now at the day high at 0.9532 closely followed  by 0.9550/55. Below 0.9470 next target sup. is at 0.9449/56.N.I.
R5: 0.9635  intraday level
R4: 0.9624 * Tues high
R3: 0.9600  Wed high
R2: 0.9550/55  recent lows
R1: 0.9532  today high
S1: 0.9470  today low
S2: 0.9449/56 * 25/6 Sep lows
S3: 0.9420  break area
S4: 0.9400  intraday level

Britain’s economy slowed in the third quarter

Britain’s economy slowed in the third quarter of this year, according to a survey by the British Chambers of Commerce (BCC), which could raise concerns for the U.K.’s future economic growth rate.
The business lobby group’s Quarterly Economic Survey, contributed to by nearly 8,000 businesses, showed that manufacturing and export balances had fallen in the third quarter.
“The strong upsurge in U.K. manufacturing at the start of the year appears to have run its course.” John Longworth, Director General of the BCC said in a statement. “We may be hearing the first alarm bell for the U.K. economy, but this not need be the case.”

Canadian dollar is steady on Wednesday

The Canadian dollar is steady on Wednesday. Early in the North American session, USD/CAD is trading in the high-1.11 range. On the release front, Canadian Housing Starts rose slightly to 197 thousand. Over in the US, todays highlight is the minutes of the FOMC most recent policy meeting. Traders should treat this event as a market-mover.
Canadian Housing Starts continued to post solid numbers in September. The indicator rose to 197 thousand, up from 192 thousand a month earlier. This was within markets expectations, as the estimate stood at 195 thousand. Earlier in the week, Building Permits took a plunge. This key release often displays strong volatility, and this was indeed the case in the August reading, as the key indicator came in at -27.3%. This follows three months of strong gains. There was much better news on Monday, as Ivey PMI improved to 58.6 points, up sharply from 50.9 points a month earlier. The strong reading easily beat the estimate of 53.4, as the index hit its highest level in 11 months.

Gold continues to move higher

Gold continues to move higher on Friday, as the spot price is at $1217.71 per ounce in the European session. The metal has taken advantage of the US dollar losing ground this week and has recovered all of Friday’s sharp losses. In the US, today’s highlight is the minutes of the FOMC’s most recent policy meeting. Traders should treat this event as a market-mover.

Gold’s drop to 15-month lows

Gold’s drop to 15-month lows may be timely for Asian buyers, but even an army of discount-hungry Indian matriarchs won’t be enough to arrest the precious metal’s slide in the fourth quarter amid the onslaught of the resurgent dollar, a CNBC survey of strategists and traders showed.
Almost two-thirds of respondents said gold has scope to fall further in the final quarter pressured by a surging U.S. dollar, while 35 percent believe the selling is overdone and prices will recover towards year-end as Asian physical demand returns.
“The death of the Asian gold market is greatly exaggerated,” Mark O’Byrne, Founder and Executive Director of Dublin-based bullion dealer GoldCore, told CNBC in emailed comments. “Asian buyers have already begun coming back to the market and the latest data shows demand in India has picked up markedly and Chinese demand remains robust.”

Australian dollar has posted gains on Monday, as AUD/USD

The Australian dollar has posted gains on Monday, as AUD/USD is trading in the low-0.87 range. The Aussie posted sharp losses on Friday, losing over 100 points and dipping into 0.86 territory. On the release front, ANZ Job Advertisements, an important employment indicator, posted a solid gain of 0.9% last month. MI Inflation Gauge continues to post weak numbers, posting a gain of 0.1%. AIG Construction Index will be released later in the day. There are no US releases on Monday.
Early on Tuesday, the RBA will be in the spotlight. The Cash Rate is expected to remain at 2.50%, where it has been pegged since July 2013. The RBA has often stated that the Aussie is overvalued and weighing on a recovery, but the currency has lost some 500 points since the last RBA statement in September.

Trade stocks on line

Technology has outdone itself these days when it comes to trading stocks online. May it be in simple means of communicating or in much more complicated trades or money making transactions, the use of the computer has become very apparent in most traders lives. In stock trading, the rise of the market transactions online has become quite easy over many years now. Many institutional investors prefer to use sophisticated computer technology to assist them in making investment decisions. And many people argue that computers may just be better at picking stocks than traditional human brokers. Normally this is true but the brokers can trade much higher volume the average trader. Although computers may perform a lot of sophisticated utilities especially at the exchanges, you may wonder whether or not these can really be better aids for trading as compared to traditional brokers. At the end of the day, remember that what technology has to offer are mere recommendations and ultimately, the decision is still up to you.

Gold,,GBP/USD

Gold has posted slight losses on Friday, as the spot price stands at $1207.10 per ounce late in the European session. On Thursday, the ECB left interest rates unchanged but said that it would begin purchasing asset-based securities (ABS) in the fourth quarter of 2014. Over in the US, todays highlight is the Nonfarm Payrolls, which should be considered a market-mover. As well, the US will release the unemployment rate, Trade Balance and the ISM Non-Manufacturing PMI. Recent sharp gains by the US dollar are weighing on gold prices, as a stronger dollar diminishes the metal’s appeal as an alternative asset to the dollar. The dollar enjoyed a spectacular September, as gold prices have tumbled over 6% during this period. With the Fed scheduled to wind up QE and attention shifting to the timing of an interest rate hike, gold could continue to move lower.
It has been a week to forget for the pound, as GBP/USD has shed over 200 points. Early in the European session, the pair is trading at the 1.60 line, its lowest level in three weeks. On the release front, UK Services PMI dropped to 58.7 points. In the US, Nonfarm Employment Change and the unemployment rate sparkled and the pound has dropped sharply in response.
British Services PMI softened in September. The index dropped to 58.7 points, down from 60.5 points a month earlier. The estimate stood at 59.1. Earlier in the week, Construction PMI improved to 64.2 points last month, beating the estimate of 63.7 points. This marked a fourth straight increase and the indicators highest level in 8 months. However, Manufacturing PMI disappointed at 51.6 points, its lowest level in 16 months.

USD/CHF Daily

 USD/CHF  Daily
13::10 GMT - Earlier uptick was capped ahead of the 0.9596 high and prices have dropped back. Sup. is at the day low at 0.9523 closely  followed by 0.9513 and 0.9487. Res. is at 0.9580. More ranging action likely near term.N.I.

USD/CAD

 USD/CAD hovered in a tight 1.1200-1.1220 range overnight before slipping modestly in North American trading. Pair last at 1.1195 vs 1.1196 late Tuesday. Many market watchers expect the Canadian dollar to continue its retreat in the face of the broadly strengthening greenback, but BMO says it's actually trading moderately higher than where its key drivers, including the two-year and five-year swap rate differentials, predict it should. "General USD demand and interest rate differentials have basically worked in tandem to push USD/CAD higher since Monday," BMO says. Firm is of the view that the loonie is somewhat undervalued, but sees USD/CAD likely staying above strong support between 1.1200 and 1.1150.

Gold remains under pressure

Gold remains under pressure on Tuesday, as the metal continues to lose ground to the strong US dollar. In the European session, the spot price stands at $1207.40 per ounce. On the release front, todays key event is CB Consumer Confidence, with the markets expecting another strong reading above the 90-point level.The sharp gains by the US dollar is weighing on gold prices, as a stronger dollar diminishes the metal’s appeal as an alternative asset to the dollar. The dollar has enjoyed a spectacular September, and gold prices have tumbled over 6% during this period. We could see gold dip below $1200, which last occurred in December.

USD/CAD

Consolidation was the name of the game on CAD today, USD/CAD effectively contained in the 1.1250-1.1290 range, while EUR/CAD held above 1.4265. Canadian payrolls release due out tomorrow has been volatile lately, not surprising considering it's a household survey, similar to the very volatile US household employment survey. A large deviation from the expectation may send the market bouncing around but this will change little from the BoC's standpoint as the bank is all but certain to keep rates unchanged on Oct 17. The US employment report and USD sentiment will probably dominate tomorrow. We are still not fully convinced by the latest breakout and would like to see a decisive break of 1.1346 before declaring an end to the current 2-month range

EUR/USD Daily

 EUR/USD   Daily
14::10 GMT - Recovery has been capped in the 1.2700/20 res. band and  prices have settled back. 1.2685/90 should be sup. now and this should hold if the recovery is going to extend. If it fails, a retest of 1.2661 should follow.N.I.

Diverging monetary policies have fueled the U.S. dollars strength

Diverging monetary policies have fueled the U.S. dollars strength this summer, more so against the EUR than any of the other Group of Seven (G-7) currencies. On Thursday, the pressure applied to the single unit managed to push it to its weakest outright level (€1.2697) in almost two years. To date, the greenback has ridden the wave of quantitative easing (QE) tapering and the prospect of a mid-2015 rate hike, and because of that, the market has been able to ride the telegraphed last five-cent EUR freefall with very little obstruction.
Gold headed for the first weekly advance this month as a retreat in global equities and tensions in the Middle East boosted demand for a protection of wealth, countering expectations for higher U.S. borrowing costs.
Bullion for immediate delivery rose 0.4 percent to $1,226.90 an ounce at 9:46 a.m. in Singapore, extending yesterdays 0.4 percent advance, according to Bloomberg generic pricing. The metal is 0.9 percent higher this week, rebounding from a drop on Sept. 22 to $1,208.40, the lowest since Jan. 2.
Gold remains on course for the first quarterly loss this year as the Bloomberg Dollar Spot Index climbed to a four-year high. A report today may show the U.S. economy grew more than previously estimated after data yesterday showed jobless claims rose less than forecast. Saudi Arabia, Jordan, Bahrain, Qatar and the United Arab Emirates joined the first wave of U.S.-led airstrikes against Islamic State militants in Syria this week.

US dollar strength

Diverging monetary policies have fueled US dollar strength this summer, but Chapdelaine Foreign Exchange's Doug Borthwick thinks a pullback is coming. The greenback has ridden the wave of QE tapering and prospect of a mid-2015 rate hike. But further strength will need to be derived from how the Fed manages its balance sheet, and here, Borthwick thinks any wind down will be a drawn out process. Meanwhile, any ECB effort to boost its balance sheet is limited within its ABS-buying program. "This may be the point where the market digests recent comments and pulls back the excitement as recent rhetoric shows the foundation to the trade is not exactly built on stone."

EUR/USD Daily

 EUR/USD   Daily
13::40 GMT - Mkt. has broken to a new low and we should see a run down to the 1.2745/55 area next. Initial res. is at recent lows at   1.2810/20.N.I.

USD/CAD has taken a breathe

After strong gains this week, USD/CAD has taken a breather on Wednesday, as the pair trades in the mid-1.10 range in the European session.  The Canadian dollar has sagged, losing over 100 points since Monday. On the release front, today highlight is US New Home Sales. The markets are expecting the indicator to improve in the upcoming release. There are no Canadian releases on Wednesday.
It was a poor start for Canadian numbers this week as retail numbers were dismal in August. Core Retail Sales slipped by 0.6%, the indicator’s first decline since January. The estimate stood at -0.1%. Retail Sales also softened, posting a decline of -0.1%. The markets had anticipated a gain of 0.4%. The weak figures point to decreasing spending by Canadian consumers, which does not bode well for the Canadian economy, as consumer spending is a critical engine for economic growth.

U.S. dollar weakened

The U.S. dollar weakened against its major counterparts on Tuesday, as U.S. treasury yields fell amid bargain hunting, as well as on expectations that the U.S. Federal Reserve would not raise rates quickly given the recent weak economic data.
The 10-year Treasury yield fell 0.76 percent to 2.547 percent, while yields on 30-year Treasuries were at 3.271 percent, a 0.54 percent decrease. The yield falls when bond prices rise.
Data from the National Association of Realtors showed that U.S. existing home sales fell unexpectedly by 1.8 percent in August, halting four months of gains. According to a report from Chicago Federal Reserve, manufacturing activity in the U.S. weakened in August, with the national activity index based on a survey declining to -0.21 in the month from a positive reading of 0.26 in the previous month.

Japanese yen

The Japanese yen is stable on Tuesday, as USD/JPY trades in the mid-108 range late in the European session. Trade is light as the Japanese markets are closed for a national holiday. In the US, today’s highlight is the Richmond Manufacturing Index. The indicator is expected to post another strong reading.
USD/JPY enjoyed another strong week, buoyed by dollar gains after the Federal Reserve statement on Wednesday. The Fed statement reaffirmed that interest rates would remain ultra-low for a “considerable time” after the asset purchase scheme (QE) ends next month, but surprised the markets in hinting that once a rate hike was introduced, rate levels could move up more quickly than expected. As expected, the Fed trimmed QE by $10 billion/month, and the remaining $15 billion/month is scheduled to be phased out in October.

USD/JPY,,AUD/USD

The Japanese yen continues to struggle, as USD/JPY lost about 170 points last week. The pair is trading just above the 109 line in Monday’s European session, as the yen trades at its lowest level in over six years. On the release front, the only US data on the schedule is Existing Home Sales. There are no Japanese releases on Monday.
US Unemployment Claims has looked sluggish over the past two readings, but that changed on Thursday, as the key indicator sparkled, dropping to 280 thousand, down sharply from 315 thousand in the previous reading. The estimate stood at 312 thousand. Building Permits was not as strong, dipping to 1.00M. This was shy of the estimate of 1.04M.
The Australian dollar continues to head south on Monday, as AUD/USD trades in the high-0.88 range late in the European session. The Aussie has been in free fall in September, giving up about 450 points. Taking a look at Monday’s events, the US will release Existing Home Sales later in the day. There are no Australian releases on Monday.
US Unemployment Claims has looked sluggish over the past two readings, but that changed on Thursday, as the key indicator sparkled, dropping to 280 thousand, down sharply from 315 thousand in the previous reading. The estimate stood at 312 thousand. Building Permits was not as strong, dipping to 1.00M. This was shy of the estimate of 1.04M. There was disappointing news from the manufacturing front, as the Philly Fed Manufacturing Index slipped to 22.5 points, down from 28.0 a month earlier. The estimate stood at 22.8 points.

Bullish Stocks

Good traders know that there are steps that they need to prepare for trading and buying stocks that are bullish from reports and news. They are not difficult or take much time once you make it part of your trading play book. The first step is to identify the overall trend of the broad market. Many use the S&P 500 but if you are trading in other countries you can use the Nifty, the Straits Times Index, the Nikkei, the FTSE or any market index. You need to then know the probable direction for the trading day. Use your technical analysis charts to judge the strength of the trend and even see what related markets are doing.
Once you have finished that research, then you need to find the stocks that look good in the move of the market for the day. There are many  stock screeners that allow you to search for these and most brokers have them. You need to filter for stocks with good average volume to avoid being stuck in a trade or tricked by a specialist or market maker. You also want to filter for stocks with good volatility but not so much that you are at great risk. Many use average true range to find them.

Bullish Stocks

US dollar gained ground

The US dollar gained ground against gold on Wednesday following the Federal Reserve statement. The Fed statement reaffirmed that interest rates would remain ultra-low for a “considerable time” after the asset purchase scheme (QE) ends next month, but surprised the markets in hinting that once a rate hike was introduced, rate levels could move up more quickly than expected. As expected, the Fed trimmed QE by $10 billion/month, and the remaining $15 billion/month is scheduled to be phased out in October.
US inflation data was worse than expected on Wednesday. CPI, the primary gauge of consumer inflation, came in at -0.2%, its first drop since October. The estimate stood at +0.1%. Core CPI followed suit with a flat reading of 0.0%. This was the first time the index failed to post a gain since October 2010. The weak numbers follow disappointing manufacturing inflation data. PPI, a key event, dipped to just 0.0%, a 3-month low. The estimate stood at 0.1%. Core PPI slipped to 0.1%, down from 0.2% a month earlier. This matched the forecast. Low inflation continues to be a concern and could delay an interest rate hike in 2015.

Gold prices continue to fall

Gold prices continue to fall, as the spot price stands at $1219.60 per ounce on Thursday. XAU/USD is at its lowest levels since late December of 2013. On the release front, there are three key events on the calendar Building Permits, Unemployment Claims and the Philly Fed Manufacturing Index. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Washington.
The US dollar gained close to 100 points on Wednesday following the Federal Reserve statement. The Fed statement reaffirmed that interest rates would remain ultra-low for a “considerable time” after the asset purchase scheme (QE) ends next month, but surprised the markets in hinting that once a rate hike was introduced, rate levels could move up more quickly than expected. As expected, the Fed trimmed QE by $10 billion/month, and the remaining $15 billion/month is scheduled to be phased out in October.

Texas Oil

West Texas Intermediate crude fell from a two-week high after an industry group was said to report an increase in U.S. inventories.
WTI slid for the first time in three days. The American Petroleum Institute reported yesterday that supplies rose 3.3 million barrels last week, according to Bain Energy. The Energy Information Administration will release its inventory data today. Brent climbed as Libya halted its biggest oil field.The build in the API report was quite big, said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. If we get a confirmation from the EIA, I wont be surprised if WTI starts to give up more of yesterdays gains. Brent is focusing on reports that Libya has reduced production.WTI for October delivery slid 17 cents to $94.71 a barrel at 9:03 a.m. on the New York Mercantile Exchange. The volume of all futures traded was about 6.8 percent above the 100-day average for the time of day.
Brent for November settlement advanced 22 cents to $99.27 a barrel on the ICE Futures Europe exchange. Volume was 3 percent above the 100-day average. The European benchmark crude was at a premium of $5.61 to WTI on ICE for the same month. It closed at $5.24 yesterday.

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The Australian dollar,,Japanese yen

The Australian dollar briefly dipped below the 90 level on Tuesday, as AUD/USD dropped to its lowest level since March. Late in the European session, the pair is trading in the mid-0.90 range. On the release front, the RBA minutes stated that interest rates would remain at current levels and that the Australian dollar was overvalued. In the US, inflation numbers remain soft, as PPI came in at 0.0% last month.
The RBA minutes contained no surprises, as the minutes focused on interest rate levels and the value of the Australian dollar. The RBA said that rate levels would remain unchanged and took a swipe at the Aussie, noting that the exchange rate remains “above most estimates of its fundamental value.” There was further pressure on the currency as RBA Assistant Governor Christopher Kent said on Tuesday that a decline in the Australian dollar would increase demand for local producers. Perhaps the RBA policymakers are in a better mood this week, following the Aussie’s losses of over 300 points against the US dollar.

The Japanese yen remains practically unchanged this week, as USD/JPY trades just above the 107 line. On the release front, US inflation numbers remain soft, as PPI came in at 0.0% last month. In Japan, BoJ Governor Haruhiko Kuroda spoke at a press conference in Osaka.
US inflation indicators remain soft, as underscored by weak manufacturing inflation numbers in August. PPI, a key event, dipped to just 0.0%, a 3-month low. The estimate stood at 0.1%. Core PPI slipped to 0.1%, down from 0.2% a month earlier. This matched the forecast. We’ll get a look at consumer inflation numbers on Wednesday, with the release of Core CPI and CPI.

Gold prices are steady

Gold prices are steady on Monday, as the spot price stands at $1233.77 per ounce in the European session. The metal had an awful week, shedding about 3% against the surging US dollar. In economic news, there are no major US releases on Monday. The week started out on a positive note, as Empire State Manufacturing Index jumped to 27.5 points, well above expectations.
US numbers wrapped up last week on a high note. Core Retail Sales improved to 0.3%, edging above the estimate of 0.2%. Retail Sales posted a nice gain of 0.6%, well above the estimate of 0.3%. There was excellent news from the UoM Consumer Sentiment, which bounced back from a weak reading in July and improved to 84.6 points, its best showing since November 2012. The forecast stood at 83.2 points. These indicators point to an increase in consumer confidence and spending, which underscore a deepening economic recovery.

Trends in Forex and Stock Trading

Traders are using two simple moving averages on the chart of the S&P 500 Index. This helps to determine the trend even though it is delayed.
The main thing to remember is that this is not a timing technique. It is only to help traders see how strong or weak the current trend is and when an trader may want to move their money into safety or be more aggressive and add to their positions.  Moving averages are a trend following technical analysis tool.  They are created by averaging past closing prices. Thus we are using past prices, we are seeing what the trend was, not necessarily will be however it is a good indicator if the trend will continue.
To use this particular trading technique, lets look at a weekly chart of the S&P 500 Index.  It has both a forty week simple moving average (SMA) and an eighty week SMA on the chart.  If the market is bullish, price should be above the 40 SMA.  The 40 week SMA should also be higher than the 80 week SMA.  A bear market is signaled when the 40 week SMA finally crosses below the 80 week SMA.  When this happens, the forex or stock markets usually move down quickly and for an extended period of time.  A trader should look to trade those securities that thrive in bearish markets when this crossover occurs.  They can sell futures, buy puts, or even invest in inverse ETF’s.You should also keep in mind that this technical analysis technique is not a perfect science.  Nothing is perfect when trading but this can help you make winning trades.

Trends in Forex and Stock Trading

USD/JPY

The Japanese yen continues to slide, as USD/JPY pushed above the 107 on Thursday. This marks the pair’s highest level since September 2008. In economic news, US Unemployment Claims rose to 315 thousand, well above the estimate. There are no Japanese releases on Thursday.
US employment numbers continue to raise concern. Last week’s Unemployment Claims rose to 315 thousand, the largest number of claims in 10 weeks. The reading was much higher than the estimate of 306 thousand. This follows soft numbers from JOLTS Job Openings and a dismal Nonfarm Payrolls last week. The troubling job numbers are unlikely to affect the Fed’s plan to trim QE next week, but a weak labor market could postpone plans to raise interest rates by mid-2015.
Over in Japan, after some disappointing manufacturing indicators earlier this week, the BSI Manufacturing Index provided some sorely needed positive news. The index bounced back from a reading of -13.9 points in Q1, rising to 12.7 points in Q2. This surprised the markets, which had expected the indicator to fall to -10.3 points. With zero separating contraction from expansion, the indicator points to surprisingly strong optimism from large Japanese manufacturers. Earlier in the week, Core Machinery Orders came in at 3.5%, sharply down from 8.8% in the previous release. This followed a weak reading from Tertiary Industry Activity, which posted a flat reading of 0.0%.

CAD News

TORONTO--The Canadian dollar was slightly lower early Wednesday, maintaining a range-bound trade after a quiet overnight session while second-tier domestic data failed to budge the loonie.
The U.S. dollar was recently at C$1.0989 early Wednesday, from C$1.0983 late Tuesday, according to data provider CQG.
The greenback was broadly higher to start the North American trading session, moving higher against the loonie, Australian dollar and yen. The only notable data point traders focused on during the overnight session was a disappointing release of Japan's Producer Price Index in August and falling consumer confidence in Australia.
In Canada, the loonie failed to react to data that showed the Canadian capacity utilization rate increased to 82.7% in the second quarter from a downwardly revised 82.1% in the prior quarter, but was below expectations of a 82.9% increase.

EUR/JPY Daily Japanese yen

 EUR/JPY   Daily
13::30 GMT - Mon.'s run up topped in the pm. but that high has now beenexceeded as 137 is pressed- the EUR's now about half way back through last week's decline but a consolidation above 136.50 will keep the EUR bullish for later pm./ Wed.

The Japanese yen continues to shrink, as USD/JPY trades just above the 106 line in Tuesday’s European session. The last time the pair was at these levels was in October 2008. Japanese Tertiary Industry Activity continued to sputter, posting a flat reading of 0.0%. The BoJ minutes stated that policymakers were concerned with inflation levels. On Tuesday, we’ll get a look at Japanese Core Machinery Orders, an important manufacturing indicator. In the US, today’s highlight is JOLTS Jobs Openings. The employment indicator has improved over three consecutive releases, and the upward swing is expected to continue, with an estimate of 4.72M.
The BoJ minutes did not contain any surprises, coming on the heels of a policy meeting in which the BoJ unanimously decided to maintain its current monetary policy. Policy makers stated that inflation levels should be carefully assessed as to whether inflation will reach the 2% target in 2015. On an optimistic note, the minutes stated that economic growth and inflation were in line with forecasts.

Brent crude

Brent crude fell below $100 a barrel for the first time since June 2013, as a slowdown in imports into China reinforced signs of surplus oil supply. West Texas Intermediate dropped to the lowest in almost eight months.
The global benchmark slipped as much as $1.10, or 1.1 percent, to $99.72 a barrel in London. The last time it traded below $100 was June 24, 2013. China's purchases declined 2.4 percent in August, compared with a 1.6 percent drop in July, data from the Beijing-based customs administration show. Chinese exports rose by 9.4 percent.
Oil markets in the U.S. and Europe face a glut amid constrained consumption and the recovery of supplies from Libya, according to the International Energy Agency, the Paris-based adviser to 29 nations. Growth in China, the world second-biggest oil consumer, will drop to 7.4 percent this year, the weakest pace since 1990, according to economist estimates compiled by Bloomberg. It will slide to 7.2 percent in 2015.

Forex, equities or futures has its advantages

The best trades for the day trader comes when the markets enter into a trend. Next day gaps can open with a gap down that formed a major top the day before. When prices broke the last minor bottom, they also broke lows and gave a signal to enter the trend short. This is where daytrding can be tough on a new traders.  By maintaining the stops above the most recent minor top, a trader was in on most of the collapse of the markets on that day.  A daytrader was able to find the right trades to capture a larger part of the dominant trend. Thus that they will not get the absolute high or low for entry, but trading with the trend allows you safer, higher probability, lower risk trades that build the consistent profits day traders want.

Equities Day trading

USD/JPY

USD/JPY continues to lose ground on Wednesday, as the pair trades at the 105 line late in the European session. In the US, there are no major US events on the calendar. There are no Japanese releases on Wednesday, but the markets will be keeping a close eye on the Bank of Japan, as the central bank releases its monetary policy statement early Thursday.
Recent Japanese numbers have been steady, so the markets are not expecting any surprises from upcoming BOJ minutes. July’s inflation numbers were strong and met expectations, as taming deflation has become one of the government’s major economic success stories. Capital Spending hit 3.0% in August, well short of the forecast of 3.8%. Average Cash Earnings, which measures employment income, shot up 2.6% last month, crushing the estimate of 0.9%.
Despite the fact that recent Japanese data has been solid, the yen has been unable to hold its ground against the dollar, thanks to excellent US numbers. On Tuesday, ISM Manufacturing PMI impressed the markets, climbing to 59.0 points, its best showing since April 2011. The index easily beat the estimate of 57.0 points. The strong showing follows an unexpectedly strong GDP, which hit 4.2%. With the US economy moving forward at a fast clip, the US dollar has taken full advantage and has made broad gains this week against its major rivals.

Office for National Statistics

The Office for National Statistics has revised up its estimates for UK Gross Domestic Product during and after the recession.
The change comes after estimates of proceeds from charities, illegal drugs, and prostitution were included in the official figures for the first time.
Growth has been revised up by 0.1 percentage points per year between 1997 and 2012.
The ONS also suggested the recession ended in the third quarter of 2013. Previously it had suggested the recession carried on until the second quarter of 2014.The changes to the way the ONS calculates GDP show that the economy shrank by up to 6% in the recession, rather than the previous “peak-to-trough” estimate of 7.2%.The revisions for 1997 to 2012 show that the size of the economy was on average 4% – or 50bn – larger than previously thought each year.

USD/JPY Gold held losses

Gold held losses near a two-month low on speculation that the U.S. Federal Reserve will raise borrowing costs next year, strengthening the dollar and damping demand for an alternative investment. Bullion for immediate delivery fell as much as 0.2 percent to $1,274.82 an ounce, and traded at $1,276.25 at 8:18 a.m. in Singapore, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, as the minutes of the Feds last meeting signaled that policy makers may raise interest rates sooner than anticipated.

USD/JPY continues to trade at high levels on Tuesday, with the pair trading just below the 104 line. In Japan, the Services Producer Price Index posted an impressive 3.7% gain, matching the forecast. Over in the US, Core Durable Goods declined by 0.8%, but Durable Goods Orders set a monthly record with a huge jump of 22%.

When it comes to forex trading these days everyone should know the rules by now: the central banks dictate market direction. Last week’s Economic Symposium in Jackson Hole, Wyo., will be regarded as a watershed moment for the eurozone’s survival. Despite Federal Reserve Chair Janet Yellen’s “neutral or less dovish” tone, it was “super” Mario Draghi’s assertion that the European Central Bank (ECB) stands ready to act again that has quickened the pulse of capital markets.

 USD/CHF  Daily
13::15GMT - Though the mkt. broke the 0.9139 sup., downside was limited to 0.9135 before recovery back to the day high at 0.9164. Clearance  of the latter should be s/term positive and we could then see a retest of Mon's high at 0.9178. Sup. is at  0.9135.N.I.

How to Trade Gann Theory

 Making stock or Forex trades using Gann theory. This is a popular style of analysis that looks at patterns and repeatable price action based on time and is something traders need to learn. Many traders have decided it best to examine Gann Theory a bit further and learn how to trade with it. It takes time to learn but traders who learn how to use it make more winning trades.
There are three trends applicable to any timeframe which you are analyzing: Minor, Intermediate and Major. That also means that there are three types of swing highs and lows that correspond with these trends. Using the Gann swing highs and swing lows we can labeled Gann Swings are actually intermediate swings. In Gann trend analysis, a downtrend occurs when price breaks a swing bottom. If price moves downward in a defined uptrend but does not break a swing bottom, it is called a correction and the trader has no need to exit their long. A break of a swing bottom would constitute an exit signal.

USD/JPY Daily

13::20 GMT - Step back this am. is a bullish test of Fri value; it  follows Fri.'s spike test of 103.50 which easily retained the 103~ breakout. With last week's rise, the USD has moved decisively out of the YTD apex- now a hold above 104.10/ the start-Aprhighs confirms & points further up (to 105.45/ the YTD high.)

price of spot gold

The price of spot gold edged towards a two-month low on Friday morning as analysts weighed up the many factors that have been causing the commodity to trade in a tight range in recent months. Gold slipped to $1,279 per ounce in morning trade. It had been on a five-day losing streak and was headed for its worst week in five. That trend had turned around by midday London time with the price moving higher as tensions re-emerged in eastern Ukraine. But this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term.In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.

USD/JPY

The US dollar continues to gain ground against the Japanese yen, as USD/JPY flirts with the 104 range early in the North American session. On the release front, Japanese Manufacturing PMI improved to 52.4 points, beating the estimate. US Unemployment Claims beat the estimate, coming in at 298 thousand. Later in the day, we’ll get a look at the Philly Fed Manufacturing Index. The markets are braced for a sharp drop in the July reading.
In a highly anticipated event, the Federal Reserve released its policy meeting minutes on Wednesday. The minutes were hawkish in tone, with the Fed saying that an interest rate hike could come sooner rather than later if employment numbers continue to improve. The Fed said that the economy continues to improve, but the QE program, which is scheduled to wind up in October, will not be accelerated. The US dollar was broadly higher after the release of the minutes and gained about 80 points on Wednesday at the yen’s expense.

Gold prices are lower on Wednesday, as the metal has slipped to two-month lows. The spot price stands at $1281.34 per ounce in the European session. On the release front, it’s a busy day in the US, led by two key events Unemployment Claims and the Philly Fed Manufacturing Index. On Wednesday, the Federal Reserve released its minutes, and the hawkish tone gave a boost to the US dollar and pushed gold prices lower.

Gold and French Preliminary GDP

Gold is stable in Wednesday trading, as the metal continues to stay close to the key $1300 level. The spot price stands at $1297.16 per ounce in the European session. It’s a quiet day on the release front, highlighted by the Federal Reserve minutes, which should be treated by traders as a market-mover. Inflation numbers in the US remain at very low levels. On Tuesday, CPI and Core CPI, the primary gauges of consumer inflation, both posted paltry gains of 0.1%. These weak readings come on the heels of PPI, a manufacturing inflation index, which also came in at 0.1% last month. Weak inflation is one reason why the Federal Reserve is in no rush to raise interest rates, as low inflation points to slack in the economy.
Despite broad interest rate cuts by the ECB in June, the Eurozone continues to limp along, including Germany, the region’s locomotive. Inflation and growth levels remain weak, as underscored by last week’s GBP and inflation releases. French Preliminary GDP remained flat at 0.0%, unchanged from a month earlier. German Preliminary GDP slipped to -0.2%, the first contraction in the German economy since Q4 of 2012. Eurozone Flash GDP also weakened to -0.2%, down from 0.0% in the previous release. All three GDP releases missed their estimates, and the weak numbers could push the euro even lower. On the inflation front, the news is not good, as deflation is a growing concern. Last week, Eurozone Final CPI dipped to 0.4%, down from 0.5% a month earlier. As well, German and French inflation numbers remained weak.

Price and Profits in Trading

No matter what you trade stocks, Forex, Futures price movement is called a trend you have up trends and down trends.  As traders we identify the trend as the main direction of price movement.  The faster movements in the same direction of the trend are called the impulses.  The opposite movements against the trend are corrections it just depends on the buyers and sellers.  Most traders trade in the direction of the trend and attempt to enter into the impulses or at support areas.  The hardest part is realizing that how and why prices turn and move in markets has never changed, no matter how far technology advances it can change with news and volume. Faster and better number crunching will never be more important than knowing where banks and brokers are buying and selling.  Keeping things simple is the single greatest challenge for the average trader since they cannot place such large orders as they can.

Price and Profits

Gold rose 8.4 percent

Gold rose for the first time in three days in New York as investors weighed the standoff over Ukraine against a stronger dollar. Palladium was near a 13-year high.
Gold rose 8.4 percent this year partly as unrest helped fuel demand. Ukrainian government forces took control of one of four districts in the pro-Russian separatist stronghold of Luhansk, as the Red Cross said its working toward agreement on details of a safe-passage plan for a Russian aid convoy. Talks on a halt to the fighting stalled yesterday. Israel and Palestinian militants agreed to extend their five-day truce for 24 hours in another attempt to reach a long-term accord.
The dollar was near a nine-month high versus the euro amid signs of economic recovery that support the case for the Federal Reserve to raise interest rates. The Fed releases minutes of its July 29-30 policy meeting tomorrow and Chair Janet Yellen is due to deliver a speech on Aug. 22 at an annual symposium in Jackson Hole, Wyoming. Prospects for higher borrowing costs may support the greenback, and gold usually moves inversely to the currency.

GBP/USD Daily USD/JPY

 GBP/USD   Daily
13::10 GMT - After starting a bit higher today, the mkt. has leveled  off into a flat trade-still capped below the recent lows at  1.6750/60. Latter is res. followed by the 1.68 area. To the downside, very close sup. is at 1.6695/00 then 1.6654. N.I.
Despite broad interest rate cuts by the ECB in June, the Eurozone continues to limp along, including Germany, the region’s locomotive. Inflation and growth levels remain weak, as underscored by last week’s GBP and inflation releases. French Preliminary GDP remained flat at 0.0%, unchanged from a month earlier. German Preliminary GDP slipped to -0.2%, the first contraction in the German economy since Q4 of 2012. Eurozone Flash GDP also weakened to -0.2%, down from 0.0% in the previous release. All three GDP releases missed their estimates, and the weak numbers could push the euro even lower. On the inflation front, the news is not good, as deflation is a growing concern. Last week, Eurozone Final CPI dipped to 0.4%, down from 0.5% a month earlier. As well, German and French inflation numbers remained weak.

The US dollar has posted slight gains on Monday, as  trades in the mid-102 range late in the European session. On the release front, there is only one US release on Monday, NAHB Housing Market Index. The markets are not expecting any change from the previous release. Japan starts off the week with no releases on the schedule.
With the US continuing to suffer from low inflation levels, markets expectations have been low for key inflation indicators. On Friday, PPI, the primary gauge of inflation in the manufacturing sector, slipped to 0.1%, down from 0.4% a month earlier. This matched the estimate. Weak inflation is one reason why the Federal Reserve is in no rush to raise interest rates, as low inflation points to slack in the economy. On the manufacturing front, the Empire State Manufacturing Index plunged to 14.3 points, down from 23.6 points in the previous release. This marked a three-month low and was well of the estimate of 20.3 points.

AUD/USD

AUD/USD has edged higher on Thursday, as the pair trades in the low-0.93 range early in the North American session. On the release front, Australian MI Inflation Expectations dropped to 3.1% in July. In the US, Unemployment Claims climbed to 311 thousand, above expectations.
In the US, Unemployment Claims fell short of expectations. The indicator climbed to 311 thousand, marking a six-week high. The estimate stood at 307 thousand. Employment indicators are under the market microscope, as the strength of the labor market is one of the most important factors influencing the Federal Reserve regarding the timing of an interest rate hike. A rate increase is expected by mid-2015, but stronger economic data, especially on the employment front, could hasten a move by the Fed. Earlier in the week, JOLTS Job Openings hit its highest level in 13 years, although it too missed expectations.

Gold, USD/CAD and USD/MXN

Gold crossed above the $1300 level last week, climbing as high as $1322 on Friday. The precious metal has benefited as the crises in Ukraine and Iraq have worsened. The US has accused Russia of massing troops on its border with Ukraine, and tensions are high as the EU has slapped stronger sanctions on Russia, while Moscow has retaliated by banning many food imports from the West. In Iraq, Islamic State militants, who have captured large parts of Iraq, have attacked and displaced thousands of ethnic Kurds, which has resulted in a growing humanitarian crisis. US President Barak Obama has authorized air strikes against the militants in order to protect the Kurds and safeguard US interests. The situation in Iraq is volatile and could quickly destabilize even further. In Gaza, a 72-hour ceasefire is holding as negotiations between Israel and Hamas are being conducted in Cairo.

The Japanese yen is flat on Tuesday, as the pair trades slightly above the 102 line late in the European session. In economic news, today’s US highlight is JOLTS Job Openings, with the markets expecting a strong reading. In Japan, Revised Industrial Production posted a sharp decline of 3.4%, well short of expectations. Later in the day, we’ll get a look at GDP, one of the most important economic indicators, as well as the minutes of the last BOJ policy meeting.
Is the Japanese manufacturing sector in trouble? Japanese manufacturing indicators continue to post declines this week. Tertiary Industry Activity came in at -0.1%, short of the estimate of a 0.2% gain. Revised Industrial Production dropped 3.4% last month, its steepest fall since October 2012. Meanwhile, markets eyes on Japanese GDP, which will be released later on Tuesday. The markets are braced for a decline of 1.7%, in Q2, which would mark the first drop in economic activity since Q4 of 2012. Traders should be prepared for the yen to lose ground if GDP posts a weak reading.

 USD/CAD and USD/MXN are trading as a Nafta bloc as the Canadian dollar and Mexican peso take their cue from the greenback, says Camilla Sutton, chief currency strategist at Scotiabank. The pairs tend to trade in tandem when the US is the "epicenter," she says. "Right now, we have that because we have the improvement in U.S. data spurring a tremendous focus on the Fed and when they will start to enter a hiking cycle."