New York Session - February 8, 2010 6:15 PM

The NY session was lacking in news and economic events and it looked as if short-covering (taking profit on short positions) was the flavor. Risk went on an absolute rollercoaster and US equities would eventually falter into the close, settling -0.9% lower. EUR/JPY was tied close to the risk hip and the cross was taken for a ride from a NY open by 122.10 to a session high around 122.50 and back down towards 121.80 by the time the dust settled. EUR/USD, meanwhile, was well bid early on (good buying interest) and rocketed to a high near 1.3712 before collapsing to the 1.3650/40 lows as the close neared. Ostensibly the market failed to take out notable stop loss orders that had been lurking above the 1.3720 zone. We would expect the prior overnight lows around 1.3620 to attract now. Full text »

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Online traders challenged to test how they rate against the world’s best

social networking to connect contestants in a unique way

A worldwide online trading contest that started Sunday, Feb. 7, set new benchmarks for the extent of cash and other prizes offered, and linking traders globally through social networking, as well as  giving market speculation expertise greater recognition.

The “GFT Trading Challenge” sets a benchmark for prizes, trading strategies and social networking in a market where the three have never come together such as this.

“We expect a truly worldwide rivalry of thousands of traders to challenge each other for the top prizes, which include prestige, recognition and rewards beyond their profits,” said Gary L. Tilkin, president and CEO, GFT.

With a grand prize of ,000 cash, GFT hopes to bring a heightened sense of excitement to the financial markets that once were open to very few people. Now, almost anyone can trade forex and other financial derivatives, which is why the company has designed the competition based on profit margin.

“Since the contest is based on an overall percentage, it really levels the playing field for all traders participating. They could start with several thousands of dollars or tens of thousands, but all traders will have a shot to win the cash grand prize,” said Tilkin.

The cash prizes are not the only thing making this competition one for the record books – social networking will be used for the first time in an online contest of this nature, bringing traders around the world together in a way that hasn’t happened before.

All Twitter ‘followers’ of @gftforex, @gftuk or @fx360 who use the hashtag #tradeGFT will be entered to win weekly prizes – to the value of ,000. As interactive components of the Twitter contest, GFT will deliver a wide range of tweets, including trading tips, questions to spark a dialogue for traders to share ideas, prize clues as well as other breaking news related to both the trading and Twitter contests.

To go even further with prizes, participation and sharing news with the public, GFT plans to offer traders in the challenge an opportunity to win prizes each week they are in the contest (at random). Five others who remain eligible throughout the contest will receive consolation prizes (together, the total value of weekly and consolation prizes is over ,000).

In the U.S., the contest will involve trading forex in an attempt to profit from exchange rate differences. Outside of the U.S., in Europe, Asia, Australia or the Middle East, traders will compete in forex or CFDs – the popular derivatives used for trading stocks, indices, commodities and other common financial markets.

“This is the type of competition that will bring traders out into the mainstream and give them the full recognition they deserve as they see how their skills match up against other traders,” said Tilkin.

All worldwide contestants are able to track their position, as well as competitor locations, on an official Challenge leaderboard as they compete against fellow traders for big winnings. The leaderboard will be updated daily, reflecting the individual’s total percentage gain

GFT will award three cash prizes: ,000 for first place; ,000 for second place and ,000 for third place. Fourth- and fifth-place winners will receive upgrades applied to their GFT trading account, each worth over ,500–combined with the weekly consolation and giveaway prizes the total prize payout is over 0,000 (USD).

The GFT Trading Challenge kicks off today and runs until April 30, 2010 (ET), giving traders and tweeters nearly three months to compete for prizes, prestige and cash. Visit the official “GFT Trading Challenge” website by clicking here.

See Also

• Learn more about the GFT Trading Challenge here

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Euro Rebounding in Forex Trading Today

EUR/USD moves higher in currency trading

The euro is rebounding in forex trading on the currency market today. The 16-nation currency is showing some strength after a couple weeks of taking a beating. Indeed, even with sovereign debt concerns of euro zone nations, EUR/USD is moving higher in currency trading.

GFT’s Boris Schlossberg offers some insight in FX360 as to why the euro is showing some strength in forex trading:

As we noted earlier,” Although the euro remains pressured by the political and fiscal upheaval in the union, the currency is now grossly oversold after declining for 12 out of the last 15 days. The latest data from CFTC shows that euro positioning has turned strongly negative with shorts growing to 43.7K contracts from 39.5K the period prior. The increase in shorts is now at a record in the series and argues for some sort of technical bounce as late comers get squeezed.” The push higher was led by Russians, who are typically very adroit traders of inflection points in the FX market and suggests that for now the EUR/USD may have found a temporary bottom at the 1.3600 level.

With the U.S. dollar expected to fall back some this week, and with the euro being oversold to the point where a correction is needed, it looks like things could change — at least temporarily — for the euro in forex trading.

See Also

• Euro in Forex Trading
  Currency trading on the FX market

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Forex Trading Forecast: U.S. Dollar

Lack of major economic data means quiet week for dollar in currency trading

The forex trading forecast for the U.S. dollar looks to be a bit staid for the coming week. With very little economic data set to be released, it is small surprise that the greenback is expected to be reasonably quiet in currency trading on the FX market.

Another issue is the fact that the U.S. dollar has been doing so well recently, thanks to its safe haven status. Dollar bulls may be pleased, but the fact is that it is probably time for some sort of correction as investors explore their options.

It will be interesting to see what the coming week brings. Already the euro is showing signs of life in forex trading, and that may mean a bit of a drop in the forecast for the U.S. dollar.

See Also

• Looking for Trends in Currency Trading
  Forex trading forecast

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London Session - February 8, 2010 6:05 AM

The EUR has managed a decent correction higher in London hours supported by a better tone in equity markets.  Spain’s IBEX has managed to push almost 1% higher, the Athen’s Composite is still out of favour its decline has been limited to just 0.19% at present.   Cleary the issues surrounding the budgets in Spain, Greece and Portugal have not disappeared over the weekend but the G7 Finance Ministers meeting did prompt European officials to show solidarity over Greece.  ECB President Trichet said he believed that Greece would meet tough new targets, French Finance Minister Lagarde said the Eurozone countries would make sure the Greek plan was implemented with Chairman of the Group of Eurozone Finance ministers Juncker indicated that Greece would not be forced to go cap in hand to the IMF.  While it is the interest of Eurozone officials to keep the markets calm, it is too early to say with conviction that Greece will ultimately not be forced to seek out support from the IMF.  Entrenched difficulties connected with collection of taxes in Greece and a system of accounting that can not presently be trusted mean that this morning’s reprieve will likely be short-lived.  This week the European Commission is expected to give its opinion on the Spanish budget.  In essence this is likely to be supported, but given the Spanish economy is likely to shrink again this year and unemployment could hit 20%, the implementation of budget austerity promises to be stormy.  EUR/USD bounced from the USD1.3625 area in Early London hours to an intraday high near 1.3712.  Full text »

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Asia Session - February 8, 2010 1:56 AM

After the not stop action Asia saw in the currency markets last week, today’s rather calm trading session was a welcome reprieve to weary traders. With many investors wondering how low the Euro can go amidst the uncertainty of not only Greece, but also Portugal and Spain, risk pairs were slightly offered despite a symphony of reassurances from the weekend’s G7 meeting that looked to quell fears about Europe’s sovereign fears. After earlier highs near 1.3665, the EUR/USD looked to end the day closer to its lows near the 1.3620 mark. The GBP/USD posted a low not seen since May of 2009 as the pair touched bottom near 1.5550. The fear of a possible sovereign default has kept the US Dollar and the Yen well bid over the past few weeks. Full text »

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U.S. Dollar Gains in Forex Trading on Safe Haven Status

Currency market in risk aversion mode

The currency market is in risk aversion mode, sending the U.S. dollar higher in forex trading this morning. The greenback is up against the sterling and the euro in forex trading, as well as against the Japanese yen.

Yesterday, risk aversion settled in big as the U.S. stock market joined a global equity rout. Today, concerns about the U.S. economy, the euro zone economy and the fact that China is putting a lid on growth, are affecting investors. Risk aversion is high, and that is prompting gains by the U.S. dollar.

The greenback is being used as a safe haven as uncertain investors favor capital preservation to the risk of higher returns on the currency market.

See Also

• U.S. Dollar in Forex Trading
  Looking for trends on the currency market

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GFT has been sending very cryptic tweets lately

Some people in the Twitterverse have wondered if they are real

Of all forex traders who follow GFT’s Twitter accounts, quite a few have been wondering about the recent mysterious tweets from the company.

There’s buzz about prizes, winning and if the tweets are fake or spoofs. After several inquiries from those interested in winning cash, prizes and trying to find out what GFT is up to, we’ve confirmed the tweets are real.

Recent tweets include:

Tweet. Win prizes. Trade. Win BIGGER prizes. 2 more days. #tradeGFT

Anyone can tweet. Anyone can trade. Anyone can win. 2 more days. #tradeGFT

Sounds like GFT is planning a big announcement this weekend. Watch Twitter for GFT’s exciting announcement…simply follow @gftforex or check out #TradeGFT

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London Session - February 5, 2010 5:52 AM

 
After yesterday’s 5.9% drop, the Spa Full text »

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Asia Session - February 5, 2010 1:47 AM

The trade day in Asia can pretty much be defined by one currency pair, the EUR/CHF. The day began as routine as any other, but the calm was broken as EUR/CHF slipped from 1.4645 levels to drop to 1.4560 levels in a stop driven move that subsequently pulled risk lower. The EUR/USD was pummeled on this move, sinking from 1.3745 through a reported option barrier at 1.3700 to eventually hit bottom at 1.3670 levels. The moves were violent for Asia, but hardly that bad compared to the moves that transpired over the past 24 hours. Full text »

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