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: