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Oil Moves Higher

Editorial Team — Wed, 10 Mar 2010 07:45:20 +0000

Crude prices are likely to hold above $80 a barrel in the near term if Wednesday’s inventory data shows continued improvements in U.S. energy demand, said analysts at Credit Suisse in a note to clients.

Oil futures rose on Wednesday, boosted by strong economic data from China, as investors awaited a report on U.S. petroleum inventories. Crude oil for April delivery gained 36 cents to $81.85 a barrel in electronic trading on Globex.

“The oil price is being supported by robust import data from China and an upward revision to the U.S. Department of Energy’s oil demand projections,” said analysts at Commerzbank AG in a note to clients.

China’s trade surplus narrowed to $7.6 billion in February because of soaring imports, official data showed on Wednesday. Compared to the same month last year, both exports and imports grew at a higher-than-expected rate.

China imported 4.83 million barrels of crude oil per day in February, the second-highest rate on record on a daily basis, Reuters reported on Wednesday, citing official data.

Also boosting oil prices, the U.S. Energy Information Administration raised its outlook for oil demand on Tuesday. It now expects oil consumption to grow by 1.5 million barrels a day this year, up from 1.2 million barrels a day previously.

The American Petroleum Institute reported late Tuesday a much bigger-than-expected increase in crude supplies for the week ended March 5.

China Limits Gold

Editorial Team — Tue, 09 Mar 2010 01:43:14 +0000

For years most countries used the dollar as the major currency in its foreign currency reserves, but after the economic changes through the years countries started to shift their assets to more of diversified portfolios.

Taking China as a leading emerging country, we find that it has already started to give up the dollar for other currencies. What was most remarkable about China’s attempts to diversify its foreign currency reserves is that it has shifted its tendency to keep more of Gold reserves and it has started to limit those reserves.

China’s appetite for gold is limited because of the metal’s poor returns over the past 30 years; the nation’s foreign-exchange regulator was cited as saying in a report Tuesday.
Yi Gang, director of China’s State Administration of Foreign Exchange, said China’s gold reserves, at 1,054 metric tons, were the fifth-largest in the world, Dow Jones Newswires reported.

“Gold is not a bad asset, but currently a few factors limit our ability to increase foreign-exchange investment in gold,” Yi was quoted as saying.

Calculations by the Dow Jones showed China’s gold holdings amounted to 1.6% of its total forex reserves, based on reported bullion holdings at the end of last year.

Yi acknowledged that China’s arrival as a gold buyer has had an impact on world markets for the precious metal, adding that moves by Beijing to purchase gold would “certainly” increase prices, according to the report.

Market Shows a Bid Tone

Editorial Team — Mon, 08 Mar 2010 06:39:59 +0000

European markets have opened the week on a slight bid tone on a more positive climate affected by the two major factors that were driving the market through the previous months.

As the concerns about Greece dept crisis are easing along with a rise of optimism trend about US economic recovery after a better than expected US Non-Farm payrolls report.

Last week, the Greek government announced further cuts by 4.8 billion Euros in an active attempt to try to solve its economic deficit problem. The measures were welcomed by the EU and Trichet. The ability of the EU to co-operate in order to solve the Greek issue has risen the investors optimism even more.

Last Friday, the world’s leading economy has released the Nonfarm Payrolls report, showing that the labor sector’s conditions are trying to stabilize. The number of lost jobs in the month of February reached 36 thousand jobs only, compared with the previous reported estimate of 20 thousand that got revised to -26.0 thousand lost jobs.

Moreover unemployment that continues to play a major role in stalling economic recovery, it remained unchanged at the previous 9.7 percent, coming in better than market expectations of 9.8 percent.

On the market side, EUR/USD recovery from 1.3530 low on Friday extended. The pair reached 1.3700 breaking above 1.3690 resistance levels.

GBP/USD recovery from 10-month low at 1.4780 on Mar 1 extended. The pair reached its highest point at 1.5195. In other words, Euro and Pound are struggling below resistance levels.

Offer Extended - Get the 100% Again

Editorial Team — Sun, 07 Mar 2010 16:38:47 +0000

After a tremendous success of FIG’s valentine offer back in February, we are very glad to announce that our 100% deposit bonus will be extended and even enhanced with new terms. Check out the complete details..

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Terms an Conditions

Offer is valid for fully verified accounts only
Offer is valid until April 1st 2010 (00:01 CET)
There is a minimum deposit requirement of $25
Fund transferred between accounts are not eligible
Internal account transfers does not qualify them to get the bonus
Bonus cannot be transferred between accounts
Bonus cannot be combined with any other promotions
Only one account per person is eligible to receive the bonus
Participant must make a minimum lot round turn transactions, see table below
Bonus will be applied to an account as usable credit bonus
Bonus does not apply for managed accounts.
Bonus is not withdraw-able until the required round turn lot transactions are completed
Bonus will be removed from an account after 45 days of account inactivity
Offer available in All countries except Iran, South Korea, Cuba, Kuwait and Saudi Arabia

Bonus Award Table

For deposits $25-$250 || Bonus: 100%
For deposits $251-$2000 || Bonus: 50%
For deposits $2001-$10,000 || Bonus: 30%
For deposits $10,001-$25,000 || Bonus: 10%
For deposits $25,001-infinte || Bonus: 5%

Minimum Lot Round Turn

10 Lots required for deposits of $25-$250
15 Lots required for deposits of $251-$500
30 Lots required for deposits of $501-$1,000
45 Lots required for deposits of $1,001-$1,500
60 Lots required for deposits of $1,501-$2,500
90 Lots required for deposits of $2,501-$5,000
120 Lots required for deposits of $5,001-$10,000
200 Lots required for deposits of $10,001-$25,000
320 Lots required for deposits of $25,001-infinite

Bonus Withdrawal: Fair Usage Policy

Profits can be withdrawn anytime
Bonus can be withdrawn after completing the minimum required lot round turn
Bonus will be removed from your account upon withdrawal of profits before completing minimum lot round turn

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If your average pips per trade > 3 pips, your bonus is equal 10% only of declared bonus above
If your average pips per trade > 5 pips, your bonus is equal 15% only of declared bonus above
If your average pips per trade > 10 pips, your bonus is equal 20% only of declared bonus above
If your average pips per trade > 15 pips, your bonus is equal 30% only of declared bonus above
If your average pips per trade > 20 pips, your bonus is equal 50% only of declared bonus above
If your average pips per trade > 35 pips, your bonus is equal 75% only of declared bonus above
If your average pips per trade > 50 pips, your bonus is equal 100% only of declared bonus above

You can check your pip/trade average here anytime

Example:
A user completed the required minimum and wants to withdraw his bonus. FIG backoffice assistant will check user’s average pip/trade before making the withdrawal to the trader. If the average pip/trade is 7 pips, only 20% of the bonus value will be withdrawn. If user’s average pip/trade is 22 pips, 50% of the bonus will be withdrawn, and so on.

FIG believes this measure will put an end to people using our offers as a way to cheat by entering hundreds of trade positions and exiting them before even making any profit or loss in order to claim the bonus money for free. Decent users/trades are no way affected by this limitation. Multiple account opening & bonus claims is also strictly forbidden.

Additional Terms

FIG reserves the right, at our sole discretion, to disqualify any individual that tampers or attempts to tamper with the operation of the Promotion, or breaches the Promotion Terms or Our Terms.

FIG reserves the right to alter, amend or terminate this Promotion, or any aspect of it, at any time and without prior notice.

FIG may make changes to these Promotion Terms and will notify you of these changes by posting the modified terms on the FIGfx Brokers website.

FIG recommends you to revise these Promotion Terms regularly and, by your continued use of the FIGfx Brokers website and services you accept any such modified terms.

Any dispute or situation not covered by these Promotion Terms will be resolved by our management in a manner it deems to be the fairest to all concerned. That decision shall be final and/or binding on all entrants. No correspondence will be entered into. If these Promotion Terms are translated into a language other than English, then the English version of the Rules shall prevail where there is an inconsistency.
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China Lost Control Over Growth

Editorial Team — Fri, 05 Mar 2010 03:50:31 +0000

The rising demand for the Chinese goods all over the world raised economists expectations that China’s GDP growth could be over 10% this year. It seems that China’s has concerns about the increasing inflation and more boosts in the manufacturing sector would expose its economy to the threat of soaring prices.

The increased demand for consumer goods among China’s growing middle class and a potential rising demand for China exports which is boosted by the recovery of the economies in Japan, the US, and the EU.

One of the Wall Street reporters claimed that China’s senior leaders want to mute those expectations. The country’s Premier Wen Jiabao said that they target GDP growth of only 8% this year.

Worries about inflation have been expressed by economists since China’s $585 billion stimulus package showed signs of improving production and a demand for consumer goods. Factory output in China is up sharply and has risen since the middle of last year.

But, the liquidity pumped into the marketplace also cause a surge in bank lending and probably a rise in real estate and equity prices. China has begun to cut access to capital for both individuals and companies, a process that will slow growth.

In other words, capital availability has become so great that the government has lost control of the growth rate of the economy.

Gold Retreats Sharply From Its High

Editorial Team — Fri, 05 Mar 2010 01:52:33 +0000

Gold turned lower on Thursday, pulling back after having touched a high at $1140.80, as the euro may face further selling pressure as the European Central Bank’s kept the interest rates steady at 1% record low.

That would work to boost the dollar and in turn reduce the role of gold as an alternative investment. Gold for April delivery lost 0.4%, surrendering at $1,132.20.

In foreign-exchange trading, the euro slipped to $1.3633 from $1.3708 late on Wednesday, as currency traders awaited more commentary from Jean-Claude Trichet, president of the European Central Bank.

Also, Sterling was traded at the same level so far today even after the announcement of the BOE keeping the interest rates unchanged. The Sterling is trading between a high at $1.5118 and a low at $1.5025.

“The metal still has to overcome resistance around $1,146 and $1,162 and is still vulnerable to E.U.- and euro-related pressure, particularly as the threat of a ratings downgrade for Greece remains,” said analysts at TheBullionDesk.com

On the U.S. news, the number of people filing for initial unemployment benefits declined by 29,000 in the week ending Feb. 27 to a seasonally adjusted 469,000, the Labor Department reported Thursday.

MPC Keeps Record Low Rates

Editorial Team — Thu, 04 Mar 2010 04:56:25 +0000

The Monetary Policy Committee left their interest rates at 0.50% - a record low. Also, improvements in economic conditions and higher inflation were main factors that caused the central bank to pause the APF program for the second month.

As yearly inflation in January rallied to a 14-month high of 3.5%, the MPC paused its program, yet it left the door open in case the program has to be extended depending on the conditions of the United Kingdom.

Meanwhile, the economy expanded in the fourth quarter by 0.3%. Although this is a slight expansion versus the third quarter contraction of 0.2%, but it shows that the sectors behind economic growth are doing their part into providing solid grounds for the UK to step out of the recession.

We cannot ignore the fragile labor market which is having a negative impact on economic conditions, since it is considered one of the main poles of the economic cycle; high unemployment rates means lower levels of spending and demand in the nation.

Jobless claims rose in January to the highest since 1997, while companies are still dealing with eroded profits and therefore still remain in no rush to begin hiring. Moreover, the widened budget deficit which means that the government has to start cutting their spending, while increasing their income, while instability dominates the financial and banking system.

Crude Oil is Around $80

Editorial Team — Wed, 03 Mar 2010 12:07:17 +0000

Crude oil is trading around $80 a barrel after rising anticipations that Greece’s budget problems will be solved out and as an industry report showed a decline in distillate supplies in the U.S.

Oil gained 1.3 percent yesterday as equity markets gained on speculation that the European Union will bail out Greece as the nation prepares further plans to cut its deficit.

Crude oil for April delivery traded at $80.06 a barrel. Yesterday, the contract rose 98 cents to settle at $79.68.

U.S. stockpiles of distillate fuel, a category that includes heating oil and diesel, dropped 4.07 million barrels last week, according to the industry-funded American Petroleum Institute. This has a great effect on energy prices as U.S. is the world’s biggest energy user.

“U.S. inventories are still high, but not as high as they were in the first half of 2009,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney.

Oil also increased as the dollar weakened for a second day against the euro, increasing demand for commodities as an alternative investment. The Euro reached a high at $1.3661, from $1.3625 yesterday.

Brent crude for April delivery was at $78.13 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. Yesterday it rose $1.29, or 1.7 percent, to $78.18 a barrel.

BOC Keeps rates

Editorial Team — Tue, 02 Mar 2010 13:05:35 +0000

Bank of Canada left today the benchmark interest rates steady at 0.25 percent in line with estimates, as the Canadian economy is still recovering from recession.

The BOC highlighted that economic activity in Canada rose above the bank’s projections, where the Canadian economy grew by an annualized 5.0% during the last quarter of 2009, which was driven mainly by rising domestic spending and rising exports.

The BOC also signaled that “the ongoing global economic recovery is being driven largely by strong domestic demand growth in many emerging-market economies”.

The BOC highlighted that monetary and fiscal policy easing indeed helped in boosting economic growth all around the globe, in addition to the “extraordinary” measures taken by central banks to support the financial system.

This policy stimulus has a major role specially that the rising value of the Canadian dollar and low demand levels from the United States continue to weigh down on economic activity.

Moreover, the BOC signaled that core inflation rose slightly above expectations due to momentarily factors alongside rising economic activity.

The BOC expects interest rates to remain unchanged through the second quarter of 2010, given that the outlook for inflation doesn’t change, as though the BOC are still focused on reviving economic growth, but they also want to keep inflationary pressures within the acceptable limits.

The BOC expects the economy to continue its recovery process well into this year before growing around its long term growth potentials in 2011.

More Pound & Euro Losses

Editorial Team — Tue, 02 Mar 2010 00:50:05 +0000

In assuring the importance of political stability on any country’s economy, the market has been driven the past weeks by several political factors and dynamics. On top of the list is the pound, which dropped for a sixth day versus the dollar amid concern U.K. citizens will struggle to elect a government strong enough to reduce the country’s debt.

The U.K. currency weakened against all 16 of its most- active counterparts after polls showed Britain may have its first minority administration since 1974. The pound slid to $1.4854 from $1.4991 in New York yesterday when it dropped to $1.4784, the lowest level since May 1. It weakened to 90.79 pence per euro from 90.47 yesterday.

The U.S. dollar rose for a second day against the yen after Philadelphia Federal Reserve Bank President told the Wall Street Journal the central bank should back away from its pledge to keep interest rates low for an “extended period.”

The dollar strengthened 0.2 percent against the yen to 89.37 also driven by on speculations that the U.S. policy makers may start to remove emergency measures introduced to revive the economy.

Speaking about the euro, it slid a second day against the dollar on speculation Greece will have to outline further spending cuts as Prime Minister George Papandreou prepares to meet Germany Chancellor Angela Merkel on March 5.

This made the Euro reach a low at $1.3436 and most reports state that the Euro may not survive and will experience further losses along the way. Investors will prefer the safer haven of the dollar in this type of environment.