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Foreign exchange market 
USDJPY Outlook
EURUSD: Intraday Outlook
Experts: EURUSD Will Drop Down To 1,15
Japanese Yen: Market Outlook
Trichet: Situation In Eurozone Gets Worse
Larson and Holtz: How to Trade with Zero Spreads?
USDJPY Outlook
EURUSD: Intraday Outlook
Experts: EURUSD Will Drop Down To 1,15
Japanese Yen: Market Outlook
Trichet: Situation In Eurozone Gets Worse
Larson and Holtz: How to Trade with Zero Spreads?
Stock and commodities markets
Asian-Pacific Indices Go Red
European Stock Indices Go Red On Poor Reports
Brent Comes Close To $105/b.
Investors Should Get Ready For Further Monetary Stimuli
European Stock Indices Break Records
Asian-Pacific Stock Indices Close Bullish
Asian-Pacific Indices Go Red
European Stock Indices Go Red On Poor Reports
Brent Comes Close To $105/b.
Investors Should Get Ready For Further Monetary Stimuli
European Stock Indices Break Records
Asian-Pacific Stock Indices Close Bullish
Business And Politics News
FBS: FX Bazooka – Analytical Portal of New Generation
Schools of Managers: Why Brokers Need Successful Managing Traders
The Washington Post On European Crisis and Euro
Trust In EU Declines. Will Euro Collapse?
ForexContest 2013 – New Contest, New Opportunities
Tusar Forex: Open an Account and Get 8 Dollars!
FBS: FX Bazooka – Analytical Portal of New Generation
Schools of Managers: Why Brokers Need Successful Managing Traders
The Washington Post On European Crisis and Euro
Trust In EU Declines. Will Euro Collapse?
ForexContest 2013 – New Contest, New Opportunities
Tusar Forex: Open an Account and Get 8 Dollars!
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Market Leader Free Newsletter
Business And Politics News
Latin America Sees Flight Of Capital: Consequences For US Dollar
12 July 01:50 PM
Shortly after withdrawing funds from the eurozone (which contributed to the weakening of the common Euro currency against the US Dollar, the British Pound and other major currencies), investors started withdrawing funds from Latin America. What are the major reasons for this massive flight of capital? How serious is it? What may be the consequences for the national economies of Brazil, Argentina, Chile, Peru and Mexico?
Bolivia Nationalizes Its Biggest Power Plant. Argentina Does The Same With YPF, Is Biggest oil Companies.
The nationalization of Bolivia’s biggest power plant and Argentina’s biggest oil company YPF caused a wave of concerns over the reliability of foreign investments in Latin American economies. The nationalization of Spanish companies - Red Electrica and Repsol – only intensified the concerns and added more questions without giving answers.
How reliable is investing in Latin America? Are Latin American economies really worth investing? What effect may it have on the US Dollar?
As you probably know, the US Dollar has a negative correlation with stock indexes (Down Jones, S&P 500 etc), stocks, commodities (oil, gold etc).
Eugene Olkhovsky, Masterforex-V Academy’s leading expert in financial markets form Canada, explains that when you invest in the Brazilian economy you exchange the US Dollar (as the world’s major currency) for the Brazilian Real, thus investing it in one of the country’s economic sectors (banks, oil industry, stocks etc.) As a result, the Brazilian currency appreciates against the US dollar.
And vice versa, when foreign investors withdraw their capital, they exchange the Brazilian Real back for the US Dollar. In this case, the domestic currency depreciates versus the world’s major currency. The same holds true for any other country.
Investing In Latin America Is Risky. Flight of Capital Contributes To US Dollar Strengthening
After nationalizing Yacimientos Petroliferos Fiscales (YPF), Argentina’s biggest oil company, Masterforex-V Academy predicted considerable worsening of investment climate in the country and the entire region, attended by flight of capital.
The direct foreign investments in the economies of Latin America and Caribbean Basin reached the record-high level of $153 bn in 2011, which is 10% of the global investment flow.
The 1990s can be called the golden time for Latin America. This is when the direct foreign investments was record-high. The inflow growth was steady till 1999 when it reached the peak of $90 bn. South America accounted for 80% of the sum.
In 2001 the investment market of Latin America collapsed. The major political and financial crisis in Argentina and the situation in Venezuela busted the myth about the possibility of a Latin economic miracle within a couple of years. In 2003 the overall volume of foreign investments shrank by 50%.
However, the investment inflow in several countries like Brazil and Chile remained relatively stable as these economies kept showing tiny economic growth.
The central banks of LA5 are some of the strongest in the region. They look much stronger than the central bank of many other countries:
According to NordFX, several years later, Latin America regained investors’ love. In 2005, when Argentina and Venezuela almost came out of the crisis, foreign investors started coming back while the overall level of direct foreign investments reached $77 bn. In 2008 it was $90 bn. Brazil was the leader in terms of attracted investments. It was followed by the Caiman Islands, Columbia, Argentina, Peru, the Virgin Islands, Costa Rica and Panama.
At the same time, Latin American countries invested nearly $50 bn in foreign economies, which was a record as well.
However, the global economic crisis seen in 2009 couldn’t but affect the level of foreign investments. South American received only $38 bn while Central American got $ 25 bn.
The following chart represents the economic dynamics seen in the region over the last 3 decades:
The recovery period was painful. In summer 2010 several countries in the region started showing some economic progress. Within a year it initiated a new investment boom. In particular, the growth of direct foreign investment in Brazil was around 87% ($48 bn), in Peru – 17% ($15.095 bn), Uruguay - 29% ($1.627 bn), Argentina – 51% ($6.193 bn), Mexico – 17% ($17.726 bn), Honduras – 52%, Guatemala – 18%, Nicaragua – 17%.
Currency Outlook
The Brazilian Real
According to Masterforex-V Academy, USDBRL is forming a major upswing – wave C of wave level Daily2 inside wave C of level Weekly. It has already reached the psychological level located at 2.10. If the price breaks and consolidates above it, 2.20 will become the next major level of resistance. A trend reversal will become probable only after the price breaks below the MF pivot (as shown above).
The Mexican Peso
According to Masterforex-V Academy, USDMXN has overcome a major level of resistance, which located at 14,0412. The price is currently forming wave C of level Weekly, a major upswing. The closest major level of resistance is located at 14,3087, last year’s high. A trend reversal will become probable only after the price breaks below the MF pivot (as shown above).
Who Invests In Latin America? Which Industries Are Popular And Promising?
The following countries invest in Latin America:
USA (17%), Netherlands (13%), China (9%), Canada, Spain ,UK (4% each), Switzerland and Australia. The internal LA investments account for 10%.
The following economic sectors of South America are considered promising:
· mining sector (43%)
· service sector (30%)
· refining sector
· construction sector
· agriculture (mostly by China)
In Central America the situation is slightly different:
· manufacturing production (54%)
· service sector (41%)
· refining and mining sectors (5%)
What factors contribute to the investment growth in the region? According to Eugene Olkhovsky, Masterforex-V Academy’s leading expert in financial markets from Canada, these are the following factors:
· high commodity prices ( oil, natural gas, coal)
· higher domestic demand and consumption
· economic growth
Is Latin America Worth Investing?
The region is rather heterogeneous. It is full of unstable and unpredictable political regimes. However, they are not widespread. Another thing is that even stable governments can sometimes make unexpected decisions like those in Argentina and Bolivia. These factors can result in investors’ prejudiced attitude towards the region in general.
So what is the bottom line? We should not treat all the LA countries alike. When it comes to investing, we should consider every single country separately. Don’t fall prey to the overall panic. When some country surprises, investors start panicking and fleeing the entire region even the promising economies that would stay promising for them but for the panic and the flight of capital. However, when it comes to investing in Latin America, investors should think twice and make a thorough and comprehensive analysis of the political and economic situation and prospects in the country they are going to invest in.
Market Leader and Masterforex-V Academy would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
In your opinion, is Latin America worth investing?
You are free to discuss this article here: forum for traders and investors
FBS: FX Bazooka – Analytical Portal of New Generation
As the Internet is brimming with financial information, it is generally hard for a trader to focus on its continuous stream. Many get lost in the abundance of offered possibilities and often make mistakes. It is a paradox, though truth, that the greater amount of information provokes hasty actions.
Publication date: 21 May 01:59 AM
Schools of Managers: Why Brokers Need Successful Managing Traders
These days many traders show rather average results at forex market. According to statistical data, only 5% reach real success, thus gaining regular profit. How are these 5% different from others?
First of all, they have the skill of taking wise trading decisions, based not on emotions, but on thorough analysis of all nuances, as well as all technical and fundamental results for present and future perspective. They are also characterized by systems of effective money and risk management, skill of waiting or acting when such is required by trading system.
Publication date: 20 May 10:21 AM
The Washington Post On European Crisis and Euro
Over the last few years, the word collocation “European crisis” has turned into a set expression. It’s been almost 5 years since it began. Europe seems to have suffered most of all form the global crisis. 2 years ago a new wave of crisis broke out, thereby turning into a severe debt and banking crisis in the EU and the eurozone.
Good news are scanty while bad news keep coming from Europe almost every day. Yet, the world cannot ignore it because Europe accounts for nearly 20% of the entire global economy. Even though everyone seems to get used to unexpected (sometimes shocking) and controversial news from the area, they are still worried about the destiny of the Old World? A complete downfall or a renaissance?
Publication date: 13 May 12:48 PM
Trust In EU Declines. Will Euro Collapse?
The latest opinion polls conducted in the EU show that more and more European citizens show distrust in the EU and the eurozone. The biggest decline was seen in the EU’s 6 biggest countries. In particular, in Spain , the distrust increased up to 72%. For comparison sake, it used to be just 23% 5 years ago.
Publication date: 02 May 11:43 AM
ForexContest 2013 – New Contest, New Opportunities
The purpose of fighting is to win, as the well-known saying goes. At Forex market traders, no matter whether they want it or not, have to fight not only for profits, but also... between themselves. In order to succeed, one has to manage his emotions, resisting panic, act on the basis of competent full-scale analysis of current and perspective situations, know and understand own trading strategies, based on numerous technical and fundamental components.
Publication date: 26 April 09:49 AM
Tusar Forex: Open an Account and Get 8 Dollars!
Today anyone may earn money at international currency market Forex, provided that a trader has the necessary knowledge and, what is more important, has good understanding it. As far as this financial market is the largest according to daily money turnover (several trillion dollars), as well as one of the most progressive ones (there regularly appear innovative technologies), opportunities of successful work at it are available even for people that do not possess a considerable capital.
Publication date: 18 April 10:22 AM
USA vs China: Can H7N9 Virus Be Biosychological Weapon?
China is reporting about another epidemic of the so-called bird flu (also known as virus H7N9). It has already suspended the domestic poultry trade. Numerous markets are closed in Shanghai, Beijing and other big cities. Chinese bloggers keep posting shocking footage showing dead birds.
At the same time, top-ranking Chinese military officials put the blame on the USA. They say this is some kind of a secret biotechnological weapon developed and used by the Americans.
Russia takes urgent steps to prevent the epidemic from spreading over its territory. Russia’s chief medical officer urges people to abstain from visiting the neighboring Asian country. There are temporary limitations for those who arrive from China. Russia may eventually close the border with China until the situation stabilizes.
At the same time, top-ranking Chinese military officials put the blame on the USA. They say this is some kind of a secret biotechnological weapon developed and used by the Americans.
Russia takes urgent steps to prevent the epidemic from spreading over its territory. Russia’s chief medical officer urges people to abstain from visiting the neighboring Asian country. There are temporary limitations for those who arrive from China. Russia may eventually close the border with China until the situation stabilizes.
What is really happening in China? How dangerous is the current epidemic? Can the USA be involved?
Let’s try to answer these questions together…
Let’s try to answer these questions together…
Publication date: 17 April 07:08 AM
Will Global Shale Boom Affect Russia’s Oil Industry By Dropping Oil Prices?
The USA seems to threatening Russia not only with a shale revolution but also with a shale war. The North-American shale boom seen in the region over the last few years, has been treated as the end of Russia’s oil and gas industry. Everything started from shale gas, which allowed the USA to turn from an NG importer into a net exporter of this energy carrier.
Yet, US officials do not conceal the fact that they are going to use this trump card to free Europe from the dependence on Russian energy carriers. Now American observers and analysts are discussing the gloomy prospects of Russia’s export of energy carriers caused mainly by the shale boom in the USA and worldwide.
What is really happening inside the US shale industry? Is Russia’s export of energy carriers to Europe doomed? Let’s have a closer look at the situation.
Publication date: 16 April 02:58 PM
Forbes On Putin’s External Policy
Western mass media are actively discussing Russia’s external policies. There is a lot of information published on this topic recently. There are countless articles devoted to Putin and Russia.
If to try to sum up all the information on this topic, it turns out that there are 2 groups with different attitude towards Russia’s external policies.
If to try to sum up all the information on this topic, it turns out that there are 2 groups with different attitude towards Russia’s external policies.
The bigger group thinks that Russia’s external policies are unpredictable and may be dangerous to the West. Therefore, they urge Western politician to exert pressure on Moscow in effort to restrict its tough external policies.
The minor group views Russia as a potential partner, thereby calling its external policy rational and pragmatic.
The confrontation between the 2 groups can be considered on the example of an article written by Mark Adomanis and published by Forbes. It is called Is Vladimir Putin's Foreign Policy Unpopular? Not So Much.
Publication date: 16 April 11:07 AM
What Stands behind Zbigniew Brzezinski’s Idea to Unite the West and Russia?
These days it is difficult to surprise people. However, there are exceptions. In particular, Zbigniew Brzezinski, a Polish American political scientist, geostrategist and statesman, managed to surprise us.
Some 15 years ago, he used to diminish Russia’s role in the international arena, thereby calling it a defeated opponent of the West. This is not a long time in historical terms. However, Mr. Brzezinski seems to have changed his mind and attitude towards Russia and its geopolitical and economic role in the world.
In his recent book called “Strategic Vision: America and the Crisis of Global Power” (2012), Zbigniew Brzezinski ponders upon the ways of uniting Russia and the West. Moreover, he tries to prove the inevitability of this process. He assumes that the world’s center of gravity is shifting “from the West to the East.” Therefore, the West will have to unite with Russia in order to avoid global isolation.
The West may well avoid the destiny of the frontrunner. However, it is necessary to work out a new strategy. The new strategy should imply the plan aimed at integrating Russia and Turkey into the international system of the West. This sounds strange if to consider the fact that this was told by a Russophobe and a Pole. This looks like a major change in his views. What are the real reasons behind his sudden love for Russia?
Publication date: 15 April 07:03 PM