| Yen Options Volatility to Fall After G-7, Credit Suisse Says
Feb. 9 (Bloomberg) -- Investors should use options to wager that volatility in the yen will drop and the currency will trade in a range versus the dollar after this weekend's meeting of Group of Seven nations, according to Credit Suisse Group. A so-called butterfly options strategy, which profits if the exchange rate remains in a narrow span over the next month, is the best bet because the G-7 will probably refrain from any measures to stem the yen's slide, said Joe Prendergast, head of currency research and strategy at Credit Suisse in London. The yen last month touched a four-year low versus the dollar and a record low against the euro. It briefly pared the losses in the past week as European officials said Japan's currency may be a topic when the G-7 meets in Germany starting today.
Day Trading The Forex Market
The foreign exchange market (the forex) can be a treacherous market to trade especially if you are not properly equipped for the job. You will need to give attention to the following: the equipment and type of internet connection you have; the overall amount of capital you can put at risk on this enterprise, as well as the amount of capital you are prepared to risk on any one trade;your broker and the reliability of the trading platform; charts and technical analysis; good entry and exit signals; being aware of news releases affecting this market; the need to use a stop loss on each trade to protect your position; the cutting of losses if a trade goes against you; and the compounding of profits. .
Forex Mid-Day Technical Report Dollar Edges Lower after ...
Dollar edges lower in early US session as ISM Manufacturing index fell back to sub 50 contractionary level and reached 49.3 in Jan, lowest reading since Apr 03. This matches yesterday's weakness in Chicago PMI which triggered the dollar sell off. The sub-indices are mostly lower with new orders fell to 50.3 from 51.9; employment rose marginally to 49.5 from 49.4, inventories fell to 39.9 from 48.5, order backlog index 43.5 after 45.0, production index fell to 49.6 from 52.4. However, prices paid index rose to 53.0 from 47.5. December personal income report was released earlier today. The quarter figures were already released in the advance GDP report yesterday and there is nothing special on growth or inflation revealed by today's release. Personal income in US rose 0.5% Dec while spending rose 0.3%.
RTS index climbs to new record high in Tuesday as power cos lead market
MOSCOW. Feb 7 (Interfax) - The benchmark RTS stock market index hit a new high in Tuesday trading and exceeded the 1920 mark as most blue chips posted gains on the back of growing oil prices. Power companies led by Unified Energy System (UES) were the market leaders. Benchmark stocks grew 0.2%-2.9% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index grew 0.9% to a new record high of 1923.27. The previous record high was set on December 29, 2006 when the index soared to 1921.92. The MICEX also hit a new high and gained 1% to 1730.73. UES common shares hit a new high and climbed 4% to 33.383 rubles a share. Almost all territorial and wholesale generation companies soared -TGK-9 - 43.8%, TGK-5 - 33.4%, TGK-6 - 33.3%, TGK-2 - 21.6%, TGK-8 - 18%, OGK-6 - 8.6%, OGK-4 - 8.1%, OGK-5 - 5.3% and OGK-3 - 4.8%.
State St. will buy currency trade firm
State Street Corp. said it will pay $564 million to buy a foreign exchange trading system, reflecting the fast growth in currency trading driven by globalization and the rush of hedge funds to invest directly in the area. State Street, the big Boston financial services company, said it will combine the New York firm it is buying, Currenex, with its own foreign exchange trading platform known as FX Connect. While FX Connect has a strong base of customers, State Street said Currenex will serve hedge funds and other specialized investors who want to make direct bets such as whether the dollar will rise or fall against other currencies like the euro or the Japanese yen. "Foreign exchange is becoming an asset class on its own," said Joseph L. Hooley, State Street vice chairman.
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