Forex News

The Federal Reserve kept interest rates at current levels, but extended the long-term debt purchasing program, to the tune of $300 Billion. The move helped vault the higher yielding currencies in a display of risk appetite and gave caution to traders who were thinking that all was well in the US economy. While the Fed did say that the situation was much improved, and essentially gave no negative economic comments, the fact that they are extending the bond buying program signals that the US economy is still vulnerable and at risk of turning negative very quickly.In the past few treasury sales, the Federal Reserve has been the primary bidder, essentially printing money in order to accomplish the purchases. The US economy, according to many analysts, is at risk if inflation as a result of the aggressive spending and debt issuance. Year to date, the US debt has increased by $1.27 Trillion in the fastest and most expensive spending spree on record.At 3:00AM GMT, the US Dollar was down .25% to the Euro to 1.4221, down .22% to the British Pound to 1.6507, down .15% to the Canadian Dollar to 1.0895, down .4% to the Australian Dollar to .8361, down .35% to the New Zealand Dollar to .6737 and down .16% to the Swiss Franc to 1.0763.Other news…Norway's central bank held rates at a record low, but opened the door for increased borrowing costs sooner than expected as the economy continued to recover. Chinese stocks sank on Wednesday on fresh worries that this year's equity rally was running ahead of an economic recovery and bank lending was showing signs of cooling.

Chinese making an Impact on US Dollar

According to other sources I read after my curiosity was peaked, it seems as if the Chinese government is spread a bit too thin right now – having increased their feverish purchase plan of almost every natural resource in the Eastern hemisphere while investing heavy in mineral and oil excavation Africa as well.In an economy that thrives on exports to be spending as large as they have been under conditions that are being equated with the Great Depression is just plain crazy – and culturally it was probably not easy for them to stop when they realized this.Culturally, the Chinese are all about not making mistakes or miscalculations and while they were saying things were fine, they were really not.The theory here is that the Chinese need to unload some of the 3 Trillion greenbacks they have to raise cash – by no means am I saying that China is in trouble, but they are not as well off at this point as everyone thought.If this is the case, Forex traders can worry if they are long Dollar positions. The fact is, the Chinese have so much impact on the Forex at this moment based solely on their reserve levels, that the hint of a selloff would panic the market.I don’t believe the Chinese want to hurt the Dollar, I will say this a thousand times, it is not in their interest to do so. I just think that their needs might inadvertently lead to this and there is nothing anyone can do about it.For now, I will keep my nose in the online Forex world and ears to the whispers – perhaps I can help make more sense of this as the weeks go by.

Forex News: Euro Update

Data reported on Friday showed that manufacturing activity contracted at a far slower pace than expected, and that the services sector decline seen over the past 11 months was flat in July, lifting the Euro a bit. Forex Online Investors have still not picked up on the good news from the Eurozone despite positive growth reports from France and Germany and this signals the insecurity with the reported growth on behalf of the investors due to conflicting statements from EU officials. The next few weeks can go a long way to shedding more light on the economic situation in Europe.At the close the Euro was up .71% to the Japanese Yen to 135.2, up .5% to the British Pound to .8676, down .03% to the Canadian Dollar to 1.5487, up .1% to the Australian Dollar to 1.7155 and up .1% to the Swiss Franc to 1.5159.

ENGLAND FOREX BANK

Dollar Lending Rates RiseDollar lending rates rose on the interbank forex market despite the announcement of plans for the US government to bailout the failing Citigroup bank. The LIBOR (London Interbank Offered Rate) rate for three month loans in dollars rose slightly from 2.16% Friday to 2.17 on Monday, Nov, 24th, 2008.Increase in LIBOR RateThe increase in the LIBOR rate is important for the interbank forex, the financial sector, and the wider economy. The LIBOR determines rates for loans to households, and businesses. Many mortgages and student loans are tied to the LIBOR rate and can have wide ranging effects on the day to day economy. The rate increase suggests that banks are worried that other financial institutions could collapse in a chaotic global economy.

Section 3 - The Role of the Central Bank

The final area of the Museum is devoted to the role of the Bank and takes an interactive approach in providing visitors to the Museum with information on the mission and core functions of the Bank. In addition to the collection of historical objects relating to Central banking, the multimedia and interactive elements in this section include a Question and Answer Quiz, a money game, an audio visual presentation on the Central Bank, and real-time information on key economic developments in Trinidad and Tobago.

Central Bank Money Museum

The first section of the Museum looks at the origins of money and examines various representations of money on the global continents, including cowrie shells, a Katanga cross, gold bars and paper money. Find out about money, old and new, from Spanish Doubloons to credit cards and e-money.The Museum occupies an area of 350 sq. metres and is situated on the ground-floor of the Central Bank building. It utilises modern design concepts and contains a mix of showcases, graphics, interactive elements and multi-media experiences that aim to give visitors a memorable and rewarding experience.The Museum tells a story about the global history of money, the history of money in Trinidad and Tobago and the role that the Bank has played and continues to play in shaping the economic and financial landscape of Trinidad and Tobago. The three aspects of the story-line of the Museum is represented in a separate physical but well-integrated area.

FOREIGN EXCHANGE MARKET !

Exchange market is the largest financial market in the world. This market has a daily average turnover of US$1.9 trillion dollars a day which is greater than the combined volume of all U.S. equity markets.Foreign Exchange is a cash market in foreign currencies made by large banks. In this market, currencies are bought and sold and exchange rates are determined. Unlike the Stock Market, Forex works on a 24 hour clock allowing for after hours trading. The Forex Market allows you the freedom and flexibility to build your portfolio on your timetable not the Stock Exchanges.Forex market trading does not occur on the Stock Exchange and is considered an Over The Counter market as is the NASDAQ. These transactions can occur electronically or over the phone.