QE2 is over, but US FRS is ready to ease monetary policy again – will there be QE3? QE2

US news. US Federal Reserve System has finished the program of 600 billion dollars US Treasuries purchase, which is referred to in press as the second round of “quantitative easing” (QE2).
FRS is currently ready to take steps to ease monetary policy further if the slow rate of US economy growth remains, and inflation risks get weaker. This was announced by the FRS Chairman Ben Bernanke in a semiannual report before the Committee of Financial Services of US House of Representatives.

"The possibility remains that the recent economic weakness may prove more persistent than expected and the deflationary risks might reemerge, implying a need for additional policy support," said B. Bernanke in his statement, published by the Federal Reserve. FRS head indicated that Central Bank possessed the resources for such support, although the use of some possible means will bear experimental character.

Intervention in crude oil market: reasons, results and perspectives

The global market of crude oil recovered to its high created 2 weeks ago. Consequently, the recent intervention in the market (advertized by the Western media and the IEA) failed. What is it: the IEA’s unprecedented failure or somebody’s game and good reckoning? If we find the answer to this question we can understand the market perspectives.

Nokia vs Apple: who will win?

In June Nokia and Apple –2 tech giants – finally ended the continuous patent dispute started in 2009 by signing a patent license agreement. Most details of the treaty weren’t made public. Is it the real end of the clash or just an “armistice”? Not only the users of Nokia and Apple’s devices want to know the answer to this question. The investors are worried as well.

According to Igor Zuev, an analyst for Rietumu (a Latvian bank and one of the biggest financial institution in the Baltic region), over the last few years Apple’s products has been increasingly popular around the world but Nokia outpaces the U.S. corporation in terms of proceeds.

Less than 3 weeks to possible US default: President VS Congress

The info-analytic service of Market Leader and the U.S. Association of Trader and Investors under Masterforex-V Academy previously wrote about the problem of the USA’s budget deficit for a couple of times. They considered the reasons, possible consequences and tried to anticipate the future succession of events.

Of course, Masterforex-V Academy experts have recently been focused on the measures taken by the U.S. Government, Congress and President in order to solve the problem.

It is obvious that there is no need to explain once again why investors around the world are seriously concerned about the current condition of the world’s biggest economy. That is why any speech made by Barack Obama or any political piece of news from Washington are paid special attention to. We remind you that in order to avoid a technical default the U.S. Congress will have to lift the debt ceiling until August 2^nd.

If the USA defaults on its debt, that will be a real shock for the entire global market and global economy.

How will the Retail Sales data influence the US Dollar exchange rate?

The USA’ Retail Sales data declined in May for the first time over the last 11 months.

 

Car sales declined dramatically after the earthquake in Japan. May’s sales declined by 0,2% while in April there was a 0.3% increase. Nevertheless, the data turned out to be better than expected as the index had been expected to show a 0.7% decline.

In general, the Retail Sales report shows an unfavorable picture in the US consumer market. The population is trying to cut spending in response to the recent economic decline. However, the Core Retail Sales value (excluding the sales of cars, gasoline and building materials) gained 0.2% in May after growing by 0.35 in April.

S&P500: overview in terms of volatility trading

During the last week the US stock market kept declining. The main reasons were the weak macroeconomic statistics and the threat of default (the Republicans still refuse to increase the debt limit). By now the futures of S&P500 have come close to the cluster of support levels – the 200-day MA (1255), the option barrier 1250 and the local low 1241.25 – which may weaken the bearish sentiments. However traders should bear in mind that the forthcoming movement direction will be determined mainly by political and macroeconomic factors, not by technical ones. If S&P500 starts a rally it will encounter resistance around 1300, 1350, 1400(the 50-day MA) and 1373.5 (the high of the year).

For investors: how close are scientists to creating alternatives to oil?

Investment news, USA. American scientists have recently announced to the world a sensational piece of news, which was at once picked up by leading news agencies: an effective and, more importantly, cheap way of generating hydrogen from water has been developed. Fuel received as a result of experiments may well be used for everyday energy needs.

The main point of the breakthrough, made by a group of specialists under the guidance of a professor of Massachusetts Institute of Technology (MIT) Daniel Nocera, is that being exposed to sun rays, immersed into water and covered with a special cobalt and phosphates solution artificial silicone “sheet” favours generating hydrogen from water. Hydrogen is the source of energy as such:
• conducted research. Experiments on breaking water molecules have been conducted earlier, but they were very labour-consuming and costly, plus absolutely pure water was required for this. At the same time Nocera claims that he can “make” hydrogen quickly, cheaply, and from any quality water. In other words, invented by his team installation can operate at any private household.
• trialsample. However, scientists, as they personally admit, still need to update their device for some time in order to make it more compact (at least to make it of the size of a refrigerator) and improve the mechanism of waste gases disposal.

A.Lukashenko confirms Masterforex-V’s forecast. Will the world see the next wave of the global crisis?

The 2^nd wave of the global crisis has been discussed in the world media for 2 years. In this respect Masterforex-V’s forecast look fairly interesting. According to the forecast, which was made in late 2009, the 2^nd wave of the global crisis will probably start shortly after the devaluation of the Belarusian Ruble. The sensation is that 1.5 later Alexander Lukashenko, President of Belarus, practically confirmed the thesis. After the sharp devaluation of the Belarusian Ruble and considerable price hikes he said that Belarus was hit by the 2^nd wave of the crisis.

What did Masterforex-V Academy and Market Leader warn the world about?

Traders: how will the prices of meat change at stock exchange?

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Stock exchange news. The prices of cattle continue to fall, the seasonal tendency lasts. Last Friday a very “hospitable” report on heard condition “Cattle on Feed” was released. It put the prices under additional pressure.

 

Currently June futures bargains below the price level of spot market, which signals about a descending tendency. Additional pressure is provided by strong dollar and liquidity of long positions to non-commercial traders.

Who will become the new head of IMF: thoughts and expectations

News of Europe. World’s news media have informed that on Thursday, May 19, the managing director of International Monetary Fund Dominique Strauss-Kahn, who is currently under arrest in New York, announced his intention to quit his post. This step of the influential financial expert could be easily predicted. Expert community had no doubts about imminent resign of the present head of IMF from the moment of his custody in Kennedy airport.

How will Strauss-Kahn’s resignation affect Euro currency?

According to the BBC news, “the head of the International Monetary Fund, Dominique Strauss-Kahn, has been charged by New York police over an alleged sex attack on a hotel maid”. It seems that now his participation in the forthcoming presidential elections is doomed despite the fact that most of the French support (or at least used to support) Dominique Strauss-Kahn.

Yet the most terrible thing about the incident is unpredictable economic consequences. Most analysts are sure that his arrest is going to ruin the fragile stabilization process recently seen in the EU. For Greece, which desperately needs more extra financial aid, it may be a fatal blow.

Europe increases natural gas consumption

Not so long ago Gazprom held another meeting on natural gas supplies. Aleksey Miller, the head of Gazprom, said that the gas export had increased by 20% in April 2011 as compared to April 2010. It is May but the gas supplies to Europe are at the same level as in winter.

According to Miller, the pace of the gas supplies is growing. In Q1 2011 Gazprom exported to Europe 12% more gas than in Q1 2010 while in April 2011 the company provided 20% more gas than in April 2010. The current increase is 27,8%.

Obama calls for opening America for emigrants: what does this mean to investors?

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USA news. On May 10 American president made a really sensational claim. This has undergone immediate circulation in the world’s leading media.

 

Barack Obama, while delivering a speech in a near-border town El-Paso, Texas, announced to its citizens about his intention to seriously reconsider those points of national legislation that concern emigration.

 

Judging from the announced claim, the scope of the intended reform is unlikely to yield to the reforms in health sector, which are currently considered almost a “business card” of the first tenure of Obama‘s presidency. Nowadays, in anticipation of his election for the second term, US leader calls for more dramatic changes.

Option Selling: How Unlimited are Its Risks?

Options are among the most interesting instruments in financial markets. It is believed that the trader takes on unlimited risks when selling an option. Head of the Derivatives Trading Department within the Masterforex-V Trading Academy successfully shattered the myth of 'unlimited risks of option selling'.

Most classical authors on option trading have no practical experience of trading. This is why often theory is far from practice, including the myth of unlimited risks of option selling. In fact, risks are not limited only if we don't limit them ourselves! Indeed, most classical writers don't say that the option you sold could be bought back... this way annulling your obligations.

Let's look at a situation with purchase of futures:

Countries of BRICS refuse dollars. What shall investors expect?

Normal 0 false false false MicrosoftInternetExplorer4 Normal 0 false false false MicrosoftInternetExplorer4 During the last summit of BRICS (Brazil, Russia, India, China, and the Republic of South Africa) the countries with dynamically developing economies that comprise the fifth announced about their decision to refuse from mutual payments in US dollars. This means that the abovementioned countries will give credits to one another in their national currencies solely. The development banks of these countries have signed an agreement about a further gradual withdrawal from loans in American dollars.

Normal 0 false false false MicrosoftInternetExplorer4 Why have the countries of BRICS initiated such action?

Some Citigroup analyst is said to spread rumors about Greek default.

Yesterday some Citigroup analyst, referring to “some market rumors”, sent someone an e-mail saying that on April 24^th Greece is going to announce a default and the necessity to restructure its debt.

Somehow the message has been made public and consequently shocked the Greek bond market, causing a share increase in the bond yield.

What will be the price on crude oil this week?

The unrest in the Middle East keeps influencing the global market of crude oil. Since the beginning of the year crude oil has gained in value 18% against the background of the political conflicts spreading over Tunis, Egypt, Syria, Libya, Bahrain and Yemen. Analysts are currently focused on the situation in Syria, saying that the tense situation in the Middle East is not improving.

Is the world really under the threat of another global economic crisis?

The World Bank, which is famous for its rather cruel and straightforward forecasts, has just made another “revelation”: the world is a few steps away from a global economic disaster.

Previously there were many similar forecasts predicting another global economic crisis. They were made by numerous economists, politicians, bankers and even journalists. In particular we reported about Charles Nenner’s prediction of market collapse and major war. Yet there is still no global crisis. However, we cannot say that it is not going to happen in the future. Probably the steps taken by the governments around the world have eventually had a temporary positive effect, which will definitely end at some point in the future. Masterforex-V Academy analysts say that the positive effect is about to be exhausted and that the world seems to be unprepared for another global depression.

What factors influence the price of soybeans?

Market Leader informed

The main factors that should be taken into account when considering the price of soybeans are global production, exports, imports, consumption, seasonality, weather conditions and stocks.

Production. On April 8^th the USDA released another report, according to which the global consumption of soybeans in the 2010/11 marketing year is expected to reach 260,972K tons, which is 2,570K tons more than was predicted in March and almost 1M tons more than it was in 2009/10.

A production increase is anticipated in Brazil and Paraguay. The forecasts for the US, Argentina, China, India and Canada remain the same: 90,6M, 49,5M, 15,2M, 9,6M and 4,35M tons correspondingly.

The US market of natural gas: what prices will it show to investors?

Market Leader informed

 At the moment the US market is accumulating natural gas in advance of the summer season of “conditioning” (The consumption of electricity grows during summer as conditioners consume a lot of energy).

 

Unexpected First Results of Broker Ratings by the Masterforex-V Academy

Market Leader informed

Forex news. Selecting a reliable forex broker is something even experienced traders face real difficulty in. One should analyze dozens of parameters the broking company in question is characterized by – from its licenses and country of registration to order execution time, technical support and client services.

 

How can one select 2-3 best forex brokers from hundreds? One should evaluate quality of order execution, price accuracy, request details of trading terms and conditions, particularly spreads for traded forex pairs which are often posted in quite an inconspicuous place, to put it mildly. Their value is given with a very small note ‘this is the minimum spread’.

6EН1 Futures (Euro) and EUR/USD: an Expected Breather

Market Leader informed

The single European currency expectedly took a breather and corrected a little against the main uptrend. The corrective move reached about 70 pips. So far, there are no serious reasons for the Euro's fall. However, there is some interest in selling, especially given that buyers demonstrate some uncertainty while debt issues of most European countries still remain high on the agenda. The market dynamics are additionally adjusted by end of the financial year and profit-fixing before outcomes become known.

09.30 GMT today: Great Britain publishes its banking data; 15.00 GMT – US Wholesale Inventories.

GBPUSD volatility preview in advance of BoE interest rate decision

Market Leader informed

March 10th

09:30 GBP - Manufacturing Production

12:00 GBP - Asset Purchase Facility

12:00 GBP - Official Bank Rate

Tentative GBP - MPC Rate Statement

13:30 USD - Trade Balance

13:30 USD - Unemployment Claims

March 11th

09:30 GBP - PPI Input

13:30 USD - Core Retail Sales

13:30 USD - Retail Sales

14:55 USD - Prelim UoM Consumer Sentiment

20:45 GBP - BOE Gov King Speaks

The news background is not so rich in significant news releases. This week’s key event is Official Bank Rate (the decision is made by the Bank of England).

Confession of Bernard Madoff: what did the USA’s major swindler say to shock the entire financial world?

Market Leader informed

The greatest financial swindler of modern times Bernard Madoff gave New York Magazine another phone interview from his comfortable prison cell in North Carolina. The world media instantly spread around numerous quotes about the US government and their efforts to curb the crisis phenomena in the country.

According to the media, Bernard Madoff called the US government a financial pyramid while the efforts of Washington and the Federal Reserves were called ridiculous. The decisions made by the SEC are terrible while the new US regulatory reform is an anecdote.

Of course, the US authorities have given no comments on the matter so far. And they are not going to do it. So, only time will prove or disprove his worlds.

For investors: how much will crude oil cost?

Market Leader informed

 During the reporting week the US refineries used 80.9% of their production capacity, refining 13,8M barrels a day on average, which is 263K barrels less than during the previous week. The production of gasoline and fuel distillates grew during the week, reaching 9.2M and 4.1M barrels a day correspondingly.

Last week’s US import of crude oil made up 8M barrels a day on average, which is 96K barrels less than the week before. Over the last 4 weeks the import of crude oil has made up 8.3M barrels a day, which is 480k barrels a day less than the average value for the last 4 years. Last week the import of gasoline didn’t change and stayed at the level of 808K barrels a day. The import of distillates declined by 170K barrels a day.

What causes the economic growth of Australia?

Market Leader informed

In its latest GDP report the Australian Bureau of Statistics showed that the country’s economy is in healthy condition and there are no reasons for concern. The GDP has grown by 0.7%, which is 0.1% better than expected.

The main source of the economic growth is the continuous investment inflow in the mining and energy sectors of the Australian economy. The unsatisfied demand shown by Asia, especially by China, makes numerous Australian companies expand their production while the growing export revenues have a positive impact on the overall economic situation in the country. Positive GDP value, high employment and significant capital inflow put Australia at the same level with the world’s most developed economies.

The New York Times and Wall Street Journal: What Countries Should Expect the Next Revolution?

Market Leader informed

The virus of color revolutions that has taken over the Muslim world drives leading news media of the world to start publishing their own forecasts of how this trend will evolve in the future.

 

These forecasts are absurd inasmuch as western analysts are unclear about the nature of these revolutions, as explain experts of the US Land Association of the Masterforex-V Trading Academy. They still cannot understand why the Middle East and North Africa are 'in a fever'. If they understood this key thing (revolution criteria are unclear, so, they feel neither the strength of the trend nor its vector), serious western media would have already started publishing forecasts... as to where the next revolution will take place.

The market of precious metals: what are the intraday movement targets?

Market Leader informed

The market of precious and industrial metals started the trading week with an increase.  

The continuous conflict in Libya and the financial and political instability seen in different parts of the world keep supporting the precious metals. There is also some information that Saudi Arabia is on the verge of unrest and that the King Abdulla has even allocated $36B for public payments to prevent a revolt. At the moment it is geopolitical factors that influence various markets most of all, including the market of precious metals.

Corn market: change of trend of correction?

Market Leader informed

In the light of the critical situation at the food market, onJan 26^th the Food and Agriculture Organization of the United Nations (FAO) urged the countries of the world to study the consequences of the high prices on food and to abstain from any strategic actions, which may seem helpful in the short run but may worsen the situation in longer-term perspective.

On Feb 18^th at the G20 summit the Argentinean Minister of Economy reminded that the price at the market of crops (like any other market) is based on the supply-and-demand ratio. According to him, any intervention may cause some imbalance. 

What Salaries Are Paid to Doctors in Russia, Ukraine... and Elsewhere in the World?

Market Leader informed

By definition, the doctor is one of the most respectable professions in any society. Respectable, but not always and everywhere adequately paid and, as a result, appreciated by the government. How are medical practitioners doing in the CIS area and should they envy their foreign colleagues - the subject of another analysis carried out by experts of the Masterforex-V Trading Academy.

Salaries of Doctors in CIS

 Russia and Moscow. There are over 600,000 doctors working in Russia - it is one of the highest per capita figures (there are about 800,000 doctors in the US with a population more than double of that in Russia). So, per one doctor, there are:
* 199 patients in Russia;
* 294 people in France;
* 238 people in Belgium;
* 1,246 people in Belarus.

Gas Prices: Why did Demand Decline?

Market Leader informed

Relatively warm weather in the US during the reporting week pushed down demand for gas used for domestic heating and by power stations. According to the National Weather Service, during the reporting week air temperature in the territory of the USA was below the norm for the third week at a go and lower than in the same period last year staying at an average of 30.3F, which is 2.1F lower than last year and 4.9 lower that the five-year average. However, the temperature rose last week, including by 12.6F or 16% in some southern and central regions.

The market of corn: what price attracts investors most of all?

Market Leader informed

The price of corn has grown up to the record 30-month high. And there are no preconditions for the price to stabilize. The closest resistance level is at $0.779/b, the high of June 2008. Last month the production volume (which turned out to be lower than expected) was the major market driver. This month it is the increased demand for corn that influences the price. A decline (by 4Mtons) in the crop yield in Mexico expected this winter keeps influencing the market as well.

Exclusive trading system TS4ET.

Market Leader informed

Strange as it may seem, but the famous Pareto rule (also known as the “80/20 rule” or the principle of the “vital few and the trivial many” is applicable anywhere. 20% of the world population uses 80% of all the available recourses (if it was vice versa then 80% of efforts would only be 20% efficient).

Trading is based on statistics, which is a terrible thing. It is impossible to deceive it. Figures reveal everything. Out of 100% of traders only about 5% (professionals) earn. They make 20% efforts to achieve 80% results – profit. If you are one of them, just take a break.

The remaining 95% of the traders do not take the rule into account. They are busy deceiving themselves and losing their deposits, time and effort but getting their own “golden” experience.

Out of all those hordes of “traders” who once came to the market planning to conquer it, only those reached success, who:

·         Lost their deposits within the first 1-1.5 years

·         Stopped trading to reconsider everything and then came back

·         Spent money to study 4 or 5 different trading system but didn’t understand anything and decided to create their own TS

·         Started using timeframes H1 and higher during the trading process

·         Forgot about the super-profitability of 100% a month and higher

·         Do not allow the total risk for all the trades to exceed 2.5-5% of the capital.

·         First place a stop loss order then open a trade.

Crude Oil: what are last week’s results for the US?

Market Leader informed

The production of gasoline grew up to 9.1M barrel a day on average. The average daily production of fuel distillates, on the contrary, declined in volume down to 3.4M barrel a day.

·         The US crude oil inventories (excluding the strategic reserves) increased by 1.9M barrels as compared with the previous week, reaching 345,1M barrels, which is above average for this time of the year. Last week the gasoline inventories gained 4.7M barrels. Now the value is at the top of the average range. The distillate inventories lost in volume 0.3M barrels. The inventories of propane/propylene declined by 3.1M barrels, which is below the average value. The net inventories of oil products grew by 3.2M barrels.

·         Over the last month the oil product supplies have reached 19.1M barrels a day on average, which is 0.8% more than during the same period of 2010. Over the last month the average daily demand for gasoline has made up 8.6M barrels a day, which is 0.3% less than over the same period of 2010. The average demand for distillates over the same period of time (4 weeks) has been 3,7M barrels a day, which is 0.1% lower than in 2010.

For investors: will coffee grow in price?

Market Leader informed

In the near-term perspective the pieces on coffee will depend on the problems affecting the production volume (low reserves, unfavorable weather conditions and sick coffee plants) in numerous coffee-exporting countries around the world (for details read the article “Coffee market: perspectives for investors”).  Consequently, the coffee prices are expected to see further growth, showing a delicate balance of supply and demand.

The average monthly value of the ICO Composite indicator price grew from $184,26 per pound in December 2010 up to $197,35 per pound in January 2011 (a 7.1% increase). The ICO Composite indicator price is equal to the arithmetic mean value of the daily prices for some specific kinds of coffee (like Mild Arabicas and Robusta), calculated in accordance with the export share of each type determined by the ICO (the calculations are based on the values shown by the coffee markets of the US, France and Germany). The current value is the highest since September 1994. The index value has already gained 55% as compared to the value seen in January 2010. Moreover all the 4 kinds of coffee (Colombian Milds, Other Milds, Brazillan Naturals, Robustas) have seen their prices growing. The given statistics confirm the bullish tendency at the global market of coffee.

USDCHF: how will tax hikes affect Swiss Franc currency rate?

Market Leader informed

The Swiss government is going to increase tax incomes through raising transport fares in order to support the Swiss transport infrastructure.

The DETEC (Swiss Department of Transport) supports the government, saying that the allocated funds to maintain the transport sector are not enough.

The mentioned factor may cause the national currency (Swiss Franc) to decline in value.

The Department of studying Masterforex-V trading system notes that the mid-term sentiment of USDCHF is bearish. The price is currently finishing the formation of a 5-wave pattern а(С)/Сн4 started from the reference point of wave Вн8. If the strong resistance level (MF pivot) is broken trough with forming an upward fractal-zigzag reversal (FZR), the currency pair will initiate a full-grown correction against the bearish wave а(С)/Сн4. If the resistance level stays untouched and the price breaks through the base of the wave, the wave level will be increased through “the Hound of the Baskervilles by MF”.  Consequently, the price will initiate a downward wave с(С)н4.

S&P500: investors take profit. What will be the price?

Market Leader informed

Despite the fact that last week the S&P500 futures updated another high of the year the trading week ended with retracement as the resistance level at 1.300 turned out to be too strong.

Chinese President says the Era of Dollar is over.

Market Leader informed

In advance of the official visit of the Chinese President Hu Jintao to the US, scheduled for Jan 19th 2011, the US performed a massive info assault on China in terms of criticizing the Chinese monetary policy.

The main newsmaker appeared to be Timothy Geithner, Secretary of the US Treasury. Not long ago he blamed Beijing for its rejection to accelerate the revaluation of the Chinese Yuan. The undervalued Chinese currency, he says, is the main reason for the bilateral trade imbalance and growing inflation in China. American experts consider the unwillingness of China to revalue its national currency as the main barrier restraining the global economy from recovering from the crisis. Mr. Geithner’s speech arose numerous comments around the world (read the article called “Will the Chinese Yuan win the trade war?”).

UN warns about 2nd wave of European crisis. Was George Soros right?

Market Leader informed

The EU countries – France, Italy, Germany, Romania, Estonia and others – welcomed the World Bank’s report called “World Economic Situation and Prospects 2011”, predicting a stable (but less active than in 2010) growth of the global economy at the level of 3.3%.

Against the optimistic report made by the WB, the UNCTAD expressed serious concerns over the future situation in Europe in 2011, being afraid of a new cycle of the EU economic crisis. If it happens the crisis will affect other countries all around the world. 

 

What does the UNCTAD forecast in its report?

 Masterforex-V Academy experts note that the UNCTAD report called “World Economic Situation and Prospects 2011” contains the following info:

What is Forex: a fair opportunity to profit from currency rates or a scam arranged by brokers and dealing centers?

Market Leader informed

Is Forex a scam or a fair game at the interbank currency market?

It is one of the top discussed questions on the net. The internet portal called “The secrets of Masterforex-V trading” was among those who raised and developed the topic. The essence of numerous disputes on the matter can be reduced to the following issues:

·         Many traders have lost their deposited money trading with the very Forex brokers or dealing centers (DCs) and blame them for arranging “the Forex scam”.

·         In response to that the brokers/DCs say that 97% of traders lose at Forex. That is why it is the losing traders themselves that should be blamed for their losses, not the brokers or dealing centers. On the other hand, they say that all brokers/DCs are different, and that is why traders shouldn’t think that all of them are swindlers. There are both scam brokers and fair brokers providing services for many years.

How to tell a fair broker/DC from a scam one?

Masterforex-V Academy members offer their own methods of doing it basing of many years of successful trading:

Investments – a Profitable and Reliable Source of Your Income!

Market Leader informed

 The modern world is amazingly wide and diverse. It has great prospects and horizons open to focused and talented people for personal development in different areas of professional activity. Investments are one of them.

Rapid economic development in the 20^th century offered a host of very interesting areas and facilities for investment, from exotic investments to large-scale financial and economic projects. However, there is rueful statistics in the forex and other markets: the number of successful investors is negligible as compared to those who lost their lifetime savings in an attempt to make money on different investments. People invest money where and how they like and their decision-making is based only on personal preferences and motives and later lose the invested capital. What the investor needs to make professional investments decisions is not only good awareness but also an ability to independently evaluate the current situation and make forecasts.

Market of precious metals: where will the trend go?

Market Leader informed

During the previous trading week the market of precious metals continued its bearish tendency.

The US Dollar was strong versus most global currencies. The EU unemployment rate in November reached 10.1%, confirming the forecasts. The European GDP in the 3^rd quarter of 2010 was 1.9% higher, coming up to the expectations. The German trade balance in November made up €11.8B, lower than expected.

 

The downtrend of gold results from the following macroeconomic peculiarities: the US Dollar strengthens, the US economic recovery accelerates, investors leave the “heaven” precious-metal market for riskier assets (like currencies or stocks), making gold lose in value.

Gold was also undermined by the fears of more complicated speculative activities. Last week the gold sales were suspended by the employment change release. The private sector created only 113k new jobs in December against expected 200K. The only positive thing was a 0.4% decline in the unemployment rate from 9.8% to 9.4%.

Boeing – Global Leadership in Aviation and Space

Market Leader informed

Boeing (The Boeing Company) (NYSE: BA) is the largest aerospace company in the world. The company’s official website is at http://www.boeing.com. Its headquarters are in Chicago (Illinois).

Boeing’s history reflects the entire path of global aviation and astronautics.

The company was founded by William Boeing (1881-1956), graduate of Yale University. He worked in timber industry for some time to get rich and knowledgeable about wood structures. This appeared invaluable for further development and production of airplanes.

On 15 June 1916 William Boeing and George Konrad Westerwald sent the first ever B&W plane for a flight, and a month later they registered a new company, Pacific Aero Products. In 1917 its name was changed to Boeing Airplane Company.

In the 1920s Boeing Airplane Company made military and civilian aircraft used by the American armed forces. In 1928 Boeing Co. became part of United Aircraft & Transport Corporation which was reorganized into three companies in 1934 as a result of President Roosevelt’s antitrust laws - Boeing, United Aircraft and United Transport.

Boeing was involved in bomber manufacturing during the Second World War.

In the 1950s Boeing designed the first jet bomber, B-47 Stratojet, and B-52 Stratofortress, one of the symbols of the Cold War. On 15 July 1954 an experimental plan, Boeing 367-80, had its first flight. Later it showed the path for the 700 series of commercial Boeing jets.

Boeing today

Experts say British Pound may fall down to 1.53 against US Dollar

Market Leader informed

Experts warn: GBPUSD may decline in the short run down to 1.5300.

It is mainly connected with the weak and slow recovery of the British economy and growing inflation in the country. Such a situation makes the Bank of England unable to toughen its monetary policy.

Experts underline that in the short run we should get ready for the GBP decline against USD because of the declining forecasts for the UK economy in general. Moreover, the US treasury bonds have become more attractive for investors while the sentiments concerning the US economy remain positive.

Movement scenarios: markup. Daily-H1-M15. GBPUSD. Jan 4^th 2011

1. Upward scenario (CP1)

Support level: 1.5470 is critical for this variant of movement. A breakout of it cancels the scenario.

Resistance levels:

Volatility indicator “Saks Channel”: 1.5483 - 1.5565 - 1.5647.

Local highs: 0.9964 - 1.5582. Buy target grid of the basic indicator: 1.5566 - 1.5598 - 1.5647.

Global Financial Crisis Helping to Sink?

Market Leader informed

The search for ways out of the crisis in the western world hasn’t yielded any clear answers to what path to escape will be appropriate. Many western economists offer demand stimulation from the state budget and tough monetary policy as an urgent measure. Such steps might have a softening effect in the near term but, given long-term prospects of development of western countries they have to increase productivity in order to ensure large-scale emergence from the crisis. Today’s situation shows quite clear similarities between the economic position that European countries and the US have ended up in and the situation that emerged in Japan as a result of the 1992 crisis.