[INTRODUCTION] Forex financial market

Forex – the foreign exchange market – is the World's most interesting financial market. It is one of the 

few markets whose sheer size makes it almost impossible for any one person, institution or government 

to control. Unlike other Financial Security markets, Forex has no centralized market. 

There is no single location where transactions are placed.  

Forex is the largest financial market in the world. The market is open 24 hours a day from Monday to 

Friday and it records trading volumes of more than $3.5 trillion per day. 

The massive trade volume in the Forex market – three times greater than the sum of all US financial markets combined - makes the Forex market the most liquid market in the World. 

Your trades will always be carried out immediately.

In the Forex market, the transactions that are undertaken are necessary because large institutions, 

governments, businesses and individuals need foreign currency to buy and sell goods and service. 

The foreign exchange market allows fund managers, banks, companies and individuals to buy and sell 

foreign exchange globally.

The market was previously an Inter Bank market. It was generally conducted between large financial 

corporations, brokers and even governments. The market has now moved to such a state that anyone 

can participate. However, the market still gets its prices from the largest participants in the market, 

based in financial centers such as London and New York.

Market and analysis overview / Forex daily analysis 26th September 2013

Despite dovish ECB rhetoric, actual monetary policy conditions are still tightening within the Euro area as 

excess liquidity is withdrawn which is preventing any significant Euro selling for now.
The dollar’s vulnerabilities were generally perceived as the greater market threat during Wednesday.
The situation will, however, need to be watched very closely as the Euro-zone economy will be vulnerable to fresh deterioration as policy tightens.
In this context, there will also be the risk of growing political tensions. 

The ECB will need to take this threat very seriously and overall risk premiums are liable to increase.

Forex daily analysis 23rd September 2013

Friday’s main focus was on Federal Reserve speakers, especially with no significant Forex data releases. 

Regional President Bullard continued to press his case for the Forex  Fed to be on alert for inflation being too low and he stated that he would vote for additional quantitative easing if the inflation rate fell to below 1%.

EUR

The euro (sign: €; code: EUR) is the currency used by the Institutions of the European Union and is the official currency of the euro zone, 

which consists of 17 of the 28 member states of the European Union : 

Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

The currency is also used in a further five European countries and consequently used daily by some 332 million Europeans.

Additionally, more than 175 million people worldwide—including 150 million people in Africa—use currencies pegged to the euro.

USD

The United States dollar (sign: $; code: USD; also abbreviated US$), is referred to as the U.S. dollar or American dollar. 

It is the official currency of the United States and its overseas territories. 

It is divided into 100 smaller units called cents. The U.S. dollar is the currency most used in international transactions and is one of the world's most dominant reserve currencies.

Several countries use it as their official currency, and in many others it is the de facto currency. 

It is also used as the sole currency in two British Overseas Territories: The British Virgin Islands and the Turks and Caicos islands.

Forex Foreign Exchange market

Which fits the word  " Foreign Exchange market " in the English language.

And speculative by buying and selling major currencies which holds the share of basic operations in the Forex market is ;

U.S. dollar (USD)

Euro (EUR) 

Pound sterling (GBP) 

Swiss franc (CHF) 

Japanese yen (JPY).

Forex daily analysis 20th September 2013 / Market and analysis overview

As far as the Euro-zone is concerned, the main focus was on politics rather than economics. There was a

further raft of opinion polls ahead of the German Federal election on Sunday. The CDU/CSU held a

comfortable lead in polls, but there was uncertainty surrounding both the FDP and anti-Euro AfP party

with both hovering around the 5% threshold needed to gain seats in parliament which could force a grand

coalition.

Forex daily analysis 9th September 2013

Markets were generally optimistic surrounding the US employment release following a run of strong data

over the previous few days. In the event, there was a weaker than expected report with a headline nonfarm

employment increase of 169,000 for August compared with an expected 180,000. The damage from

the headline could have been contained, but there was also a substantial downward revision to July’s

figure at 104,000 from 162,000 previously. There was a decline in the unemployment rate to 7.3% from

7.4% which provided only limited relief as workers had left the labour force.

Forex daily analysis 6th September 2013

As expected, the ECB left interest rates on hold at 0.50% following the latest policy meeting, ensuring

that the main focus would be on President Draghi’s press conference. He remained generally cautious

surrounding the economic outlook as he reinforced the message that recovery would come only very

slowly while inflation would remain low.

Forex daily analysis 4th September 2013

The US data was stronger than expected with the ISM manufacturing index rising to 55.7 for August from 55.4 previously and contrary to expectations of a modest retreat. 

This was the strongest reading since May 2011 and the second successive outcome above expectations. 

The components were also broadly favourable with a strong rise in new orders and a solid employment reading.

Forex daily analysis 2nd September 2013

The US personal income and spending releases were marginally weaker than expected on Friday which did not have a major impact while there was a subdued reading for the core PCE defoliator. 

There was a small gain in the Chicago PMI index to 53.0 from 53.3 previously and an upward revision to the final University of Michigan consumer confidence index which had some positive dollar impact. Expectations of at least a measured tapering were important in sustaining US currency yield support.

Short-term strategy highlights

Sterling can maintain a firm tone initially with higher bond yields, but overall valuations are unattractive at current levels

Medium-term strategy highlights

The dollar should be able to maintain a solid overall tone given expectations of a solid payroll release at the end of this week.