Last ditch efforts to avoid “fiscal cliff”

Democratic and Republican leaders pushed the United States to the edge of the “fiscal cliff” on Sunday as they struggled to reach a last-minute deal that could protect the world largest economy from a politically induced recession. Senate lawmakers are still hoping to clear the way for swift action thereby avoiding sweeping tax increases and spending cuts due to tick in on Tuesday, January 1st. The two sides are, however, still at loggerheads in talks. Senate was adjourned yesterday and meet again today for a last ditch effort to reach a compromise.
Senate Democratic leader Harry Reid last night postponed any possible votes; “There are still significant differences between the two sides”, Reid stated. President Obama had originally proposed a USD 250 000 income threshold for increased taxes. The Republicans are in principle against all tax increases, but has voiced a compromise threshold on USD 1 million. The parties are also wide apart on possible budget spending cuts.
As hours ticked away it appeared increasingly unlikely to avoid a USD 600 billion hammer blow to the fragile US economy recovery. Americans could see a bigger bite taken out of their pay checks starting on 1st January as payroll and income tax cuts expire. Two million unemployed Americans could see their jobless benefits run out. The uncertainties have weighed in on global, financial market. Investors are likely to sell off stocks at the beginning of the new year expressing their displeasure with a no deal.
In a rare appearance on Sunday’s NBCs “Meet the Press”, president Barack Obama warned against the immediate negative effects on markets and blamed the Republicans for rejecting significant presented compromises. His accusations were flatly refused by Republican spokesmen.
Due also to Christmas and the New year holidays investors have been sitting on the side lines waiting for Washington to act. US markets were down for a fifth straight session on Friday, and there were small changes in the currency and commodity markets. Euro/USD is trading around 1.3215 up from last week’s low on 1.3175. USD/JPY is stabile on 86 yen to a dollar. Oil prices are high with Brent crude above USD 110 a barrel. No major changes in commodity and precious metal prices. Gold is at USD 1660 an ounce.
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Last talks on “fiscal cliff” strengthen EURO

President Barack Obama and lawmakers are launching a last chance round of budget talks just days before a New Year’s deadline to reach a deal to avoid a “fiscal cliff”: an increase of USD 600 billion of taxes and budget cuts to be automatically executed from January 1st if politicians fail to find a budget compromise. Obama and Vice President Joe Biden will meet with congressional leaders from both parties in the afternoon today. The news has for now strengthened risk appetite and Euro/USD is up.
The two political parties remained far apart particularly over plans to increase taxes on the wealthiest Americans to help close the US budget deficit. The coming days are likely to see intense bargaining over numbers or political theatre as each side attempt to avoid blame if a deal looks unlikely.
US stocks sharply cut losses and rose on news of the House reconvening as investors clung to hopes of an 11th –hour deal. Even a partial agreement on taxes that would leave tougher issues like entitlement reform and the debt ceiling until later could be enough to keep markets calm. US stocks recovered, but fell for a fourth day after a jittery session which saw a one % fall after Senate Majority leader, Henry Reid, initially warned that a deal was unlikely. Stock markets recovered and ended flat on news on new negotiations. Dow Jones ended down 0,14 % to 13 096 after a one percentage free fall in the opening of yesterday’s session.
Asian shares inched higher on signs that Washington is making a last ditch effort to reach a budget compromise. The USD/JPY fell to its lowest level in 2 years trading at 86,64, and Japanese stocks to 21 months high on expectations of drastic monetary easing. Australian shares rose to a 19 month high and are on track to post its strongest annual gain since 2009. Oil prices rose on hopes of a US political deal. Brent crude reached USD 111 a barrel.
EURO/USD has recovered to 1.3240 after falling to 1.3170 before Christmas on news of failed budget negotiations. A budget settlement will create renewed optimism for continued US economic growth and increased risk appetite which will strengthen the Euro and smaller currencies. Australian dollar hit a 20-month peak against the yen at 89,93 and is also up against the USD.
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Markets wait for news from Washington

The European stock exchanges were closed yesterday, but American indexes showed not so positive dynamics and were closed with a decrease. Dow Jones lost 0.18%, but Nasdaq and S&P500 were closed with a fall of 0.74% and 0.47% accordingly. Fears of the American investors are again connected with a dependence of the main problem of year - "fiscal cliff", and also with a ceiling of the public debt which limit, according to the Minister of Finance - Timothy Geithner, will be reached already on December 31 of the current year.

Also oil to fire was added by data on retails which were record-breaking low, their volume from October 28 till December 24 grew only by 0,7% in comparison with the similar period last year. Master Card also specifies that many people show today restraint in the purchases, being afraid of "fiscal cliff" which can come on January 1 and bring with itself increase of taxes.

Futures for WTI brand oil yesterday jumped up for $2,37 to $90,98 for barrel. Today WTI oil is traded on a level of $91,18 for barrel, Brent is decreasing less than 0,2%, bargaining at the level of $111,05 for barrel.

Gold loses the positions in one of the last days of 2012, trading passes very inertly as many participants of the market already left for holidays. Gold is losing 0.25% and traded on a level of $1656.50, silver is bargaining around level of $30.00 second day in a row.

Absolutely other situation is observed in copper futures which add more than 1.3%. Quotations break through a level of $7900 after the National bureau of statistics of the People's Republic of China reported that the profit of the industrial companies in the country grew in November by 22.8% in comparison with the similar period last year. China is the largest consumer of copper therefore investors hope that recovery of the Chinese economy will positively influence demand for metal.

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Serious set-back for “cliff” negotiations

In a statement to the House late yesterday, Republican Speaker, John Boehner, announced that there was not enough support to have “Plan B” to avoid the fiscal cliff voted through. Two options seem to remain: The Republicans can wash their hands on the entire matter or try negotiate a compromise with Democrats that could secure support from a sufficient number of Republicans. Plan B involved increased taxes on incomes above USD 1 million. President Obama’s proposals set the threshold at USD 400 000.

Dow Jones and Nasdaq gained on new expectations for a budget solution within year-end before the news announcement. A solution seems for the moment unrealistic. A possible compromise would mean that a substantial member of Republicans give up their bedrock resistance to all tax hikes. The non-vote in the House represents a serious set-back for the prospects to avert the “fiscal cliff”, automatic spending cuts and tax increases set to start in January. The news had an immediate effect on Asia. Asian shares slid. The MSCI index for the Asian Pacific dropped 0,7 %. Nasdaq and Dow Jones futures are down 1,7 %.

Risk assets from shares, oil to currencies as the Australian dollar and EURO, were sold off in the morning hours. Euro/USD is falling below 1.32 losing 60 basis points. The USD/JPY is slightly firmer at 83,93 down from 84,50 yen a dollar yesterday. The market uncertainty has generally strengthened the dollar. The DXY index where the USD is weighed against a basket of major currencies, gains 0,2%. The steep fall in precious metals continue. Gold is USD 1640 an ounce and silver has dropped two dollars during the last day trading to 29,72.

The Republican-led House of Representative which abruptly recessed late Thursday may return with a not yet decided new plan on December 27th. Markets see the event yesterday as major set-back for a fiscal compromise. The chance for a deal is downscaled from 60 to 30 %. Markets are extremely volatile and will continue to be swayed by the budget negotiations over the next days.

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21 December 2012 | UWCFX Daily Market Review

Stalled negotiations turn markets

After reaching a 18-month high Asian stocks eased and commodities fell in morning trade on stalled budget negotiations in Washington. President Barack Obama accused his opponents of holding a personal grudge against him and threatened to use his veto power. The top Republican negotiator branded the President “irrational”. The mutual accusations came after substantial progress to avert the so called “fiscal cliff” had been obtained during the last days. The personal taunts put a timely solution at risk and threaten the world largest economy with recession.

The harsh rhetoric had an immediate effect on markets. After a flat opening Dow Jones plunged 0,78 while Nasdaq lost 0,33 %. Financials and retailers, the big winners earlier in the week, were hardest hit. General Electric, Alcoa, Home Depot and the Bank of America were among the big losers. The Asian indexes with exception for the South Korean Kospi which rose 0,3 % on news of the election of its first female president, lost ground. Australia is still up. It is expected that European and US markets today will open lower on profit taking and risk aversion. Decreased risk appetite shall probably hit also smaller currencies.

Bank of Japan (BOJ) has according to expectations expanded its asset-buying program by 10 trillion yen to fight deflation. USD/JPY which saw 84,50, has fallen to below 84 as result of the stalled budget negotiations. Euro/USD peaked to 1.33085 on Wednesday has fallen back trading at 1.3210. Smaller currencies are due to the changed risk sentiment atmosphere losing ground.

Oil prices which rose on growth optimism, has retreated somewhat in early Asian trading. Brent crude stands at 110.08 with NYMEX just below USD 89 a barrel. Copper is down. Gold and silver are at the lowest levels seen for months.

US prosecutors have charged two former UBS (Union Bank of Switzerland) traders for participating in a scheme to manipulate Libor and other benchmark interest rates. This is the first individuals criminally accused in the Libor scandal. UBS has agreed to pay a fine of USD 1,5 billion to regulators in the US, UK and Switzerland. The Hong Kong Monetary Authority has simultaneously stated that UBS is under investigation for similar fraud in Hong Kong.

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20 December 2012 | UWCFX Daily Market Review

Euro outperforms on increased risk appetite

The Euro reached multi-months high against dollar and Japanese yen on Wednesday extending recent gains. Signs of progress in the US fiscal talks bolstered demand for riskier assets. Euro/USD is trading at 1.324655. USD/JPY stands at 84,282. The Scandinavian currencies, Norwegian, Swedish and Danish krones have gained substantially against the dollar over last week.

The US House of Representatives Majority Leader, Eric Cantor, said yesterday that he expected a vote on a Republican offer to avert the “fiscal cliff” on Thursday. Republicans plan a vote on a bill to raise taxes on income above USD 1 million while extending low rates on other tax payers. The White House has proposed a compromise USD 400 000 threshold. Cantor said he expected to have enough votes to pass the measure.

In spite of the big distance between the two parties’ stock markets all over the world rose on expectations of a compromise. Gains in Asia this morning came after Wall Street S&P 500 index for the biggest 500 companies rose more than one percent completing the best two-day rally in a month. The US market is higher driven by the fact that the parties now at least are engaged in constructive negotiations striving to find a middle ground.

Tokyo’s Nikkei rose 1,3 percent topping 10 000 points for the first time since April as Bank of Japan (BOJ)started their two day meeting. BOJ is expected to take measures for monetary easing and a more expansionistic fiscal policy. The Yen continues to fall against most currencies. Australian shares rose to a 17-month high led by miners and banks. Australian dollar, however, barely budged in part because currency speculators were already holding record long positions.

Boosted by optimism on a US budget compromise analysts predict that EURO/USD might reach the 1.33 level year-end targets. Oil prices are steady with Brent crude trading at 108,88 on better economic outlook. Copper is flat in the morning after falling Tuesday. Both Gold and silver fell rather dramatically yesterday slowly recovering somewhat this morning. Gold fell from a 1705 peak down to a 1660 bottom. It is now trading at 1670.

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19 December 2012 | UWCFX Daily Market Review

18 December 2012 | UWCFX Daily Market Review

“Cliff” optimism boosts markets

Both US and Asian shares inched higher as optimism grew for a “fiscal cliff” deal as President Barack Obama yesterday met with his Republican counterpart, House of Representative Speaker, John Boehner. Obama presented a counter-offer to the Republicans that is said to include a major change in position on tax hikes for the wealthy in efforts to hammer out a compromise to avert steep tax hikes and indiscriminate spending reductions set for the beginning of 2013.

According to informed sources the White House in a dramatic change of position has proposed leaving lower tax rates for everyone except for those earning above USD 400 000. That is up from the former threshold of USD 250 000 proposed by the President, but still far from the Republican proposal of USD 1 million. Obama is also said to be willing to compromise on budget cuts and revenue figures.

The rumors on movement in the negotiations had the US stock indexes to soar led by financials and other growth-orientated sectors. Bank of America jumped by 3,97 % followed by other major blue chips as Home Depot, JP Morgan, General Electric and Sisco. Dow Jones were up 0,76 % to 13 235. Nasdaq rose 1.32 % and ended at 3010 again passing the 3000 threshold. The positive trend continued in Asia this morning where Australian shares outperformed with a 0,7 percent increase. Also Nikkei, Shanghai and the MSCI index for Asian Pacific rose.

The more optimistic market attitude had a positive impact on commodities and precious metals. Oil prices led by Brent crude are up to 108,18 and gold again passed the USD 1700 ounce level after falling back to below 1690. The pressure on Yen following the Japanese elections continues. USD/JPY is trading at 83,98 after reaching 84,48 on Monday. The dollar has probably still an upside against yen prior to the Central Bank of Japan’s meeting later this week. Prime Minister Abe’s comments yesterday strengthened the assumption that BOJ would initiate monetary easing. EURO/USD stands at 1.3170, in line with the new higher level seen established in relation between USD and Euro. The Euro countries principle decision to establish a banking union has positively impacted the strength of the Euro.

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17 December 2012| UWCFX Daily Market Video Reviews

USD/JPY at 20-month low after elections

The yen slumped to its lowest level against the dollar after Japan’s conservative Liberal Democratic Party (LDP), which is committed to aggressive monetary easing, won a landslide victory in Sunday’s Japanese elections. The LDP surged back to power giving ex-Premier, Shinzo Abe, another chance to push through his agenda which includes outspoken active steps towards deflation, possibly revival of Japan’s nuclear energy program and a more nationalistic policy that might cause more tense relation towards China.
The dollar rose to 84,18 yen reaching its highest level since April 2011 from around 83,50 yen on Friday. There has been active profit taking in the morning, but USD/JPY is still trading above the 84 level. The Euro jumped to 111.30 yen from 109,81. The Australian dollar climbed above 89 for yen for the first time since May 2011. The Bank of Japan meets later this week and most analysts expect the central bank will ease policy further by asset buying and lending program which will continue to put downward pressure on the yen.
The open question is whether Prime Minister Abe shall follow up on his tough talk. Strategists at Barclays bank recommend long positions in three-month dollar/yen call options on estimates suggesting that a 10 percent multilateral nominal yen depreciation would be needed to get a one-off inflation boost of just 1,5 percent. Other analyst and market participants warned that the yen might be poised for a rebound as Abe’s actions are likely to fall short of tough intentions.
In the US House of Representative Speaker, John Boehner’s offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican obstacle to deal with the revolving year-end “fiscal cliff”. Boehner shall presumably have offered extended tax hikes for everyone who has less than one million in net annual income. Taxes for all income above USD 1 million shall rise. President Obama’s reaction on this presumed offer is going to be decisive for a possible solution within the 31st December deadline.
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The problem of "fiscal cliff" again came to the forefront

After decisions coming from meeting of FRS nothing distracts investors from a problem of "fiscal cliff", especially, taking into account that till Christmas there is less than two weeks, and gleams in negotiations between democrats and republicans aren't observed yet. For example, the speaker John Beyner noted that the president Barack Obama “isn't serious" concerning a question of decrease of expenses which republicans consider as the main priority. Even successful data on a labor market according to which the number of primary requests for unemployment benefits fell in one week to 343 thousand at being expected 370 thousand couldn't affect moods of investors. Dow Jones and S&P500 ended up with loosing 0.56% and 0.63% accordingly.
In the last day of the current working week the index of China SSE again shows growth almost for 3%, practically coming back to the autumn maximum levels. As occasion to such positive became preliminary statistics on the production index PMI from HSBC bank according to which the index grew again and reached level of 50,9. It is a maximum level since October of last year, besides value of an index increases the second month in a row that testifies about growth of business activity in production sector.
Important news were coming from Europe where Ministers of Finance agreed to give a right to European Central Bank to regulate the main European banks of the Euro zone, however while it isn't known when the regulator will be able to start new duties. Besides, today the Euro group approved allocation of the following monetary tranche to Greece as it estimated efforts of the country on national debt reduction. This factor is a positive moment for the EU markets. 34 billion euro will be available to Greece immediately, and total amount for a repayment of a debt will be 49.1 billion euro.
The European currency still keeps above a level of 1.30 in relation to dollar, however today it was corrected from 1.3090 to 1.3045 points, and now reached a level of 1.3105.
Meanwhile the Japanese currency continues to fall. Today USD/JPY pair bargains at the level of 83,9, against yesterday's level of 83,5. On this background the exporters sensitive to fluctuations of exchange rates, still are leaders of growth, Sharp rises in price for 4,4%, and Toshiba and Pioneer for 1,8%.
Prices of oil following the results of last trading session showed negative dynamics against decrease in the majority of world stock markets. Further weakening of dollar in case of resolution of a collision around the budgetary agreement in the USA can become a key factor of growth of the oil prices. Today this morning Brent crude is traded on a level of 107.01.
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Bernanke undermined enthusiasm of bulls

Investors finally got the most awaited news of a December after FRS announced its decisions. Results of meeting were quite expected: was made the decision on repayment of state bonds with longer circulation periods for $45 billion. Plus to it will remain the QE3 program of $40 billion a month. Total $85 billion a month.
And the markets fell into thoughtfulness: in fact, FRS finally undersigns that constant injections is the only thing that can help economy and a financial system. The debt market reacted to it with the sales of treasures - rates on 10-year bonds grew to 1,7%. Dow Jones, Nasdaq and S&P500 could not continue its upward development and were closed practically at a zero level.
EUR/USD tested a reasonable demand from the very beginning of trading day though it is impossible to tell that movements had large-scale character. The British positive data gave optimism; however confusion with the Greek debt and expectation of the next meeting of Ministers of Finance of Europe limited growth, but further publication of the accompanying statement of FOMC which has coincided with expectations of the QE expansion led the prices to a maximum of 1,3097. This morning EUR/USD is traded on a level of 1.3082.
Today the Japanese yen is again sharply weakening and bargains on the minimum levels since spring of the current year against euro and dollar. Dynamics of yen also gives support to the Japanese market, helping to show a steady growth. Pair yesterday from levels of opening 82,53 broke through higher than 83,00, reached a maximum 83,29 and was rolled away to the area 83,20 on closing. This morning, we can already see USD/JPY traded on a level of 83.61. There is not much time left till elections, so movements will be warmed up upward not only with USD strengthening, but also on expectations on political change in Japan.
Prices of oil following the results of last trading session showed positive dynamics. The OPEC countries following the results of the meeting on Wednesday, as expected, kept a quota of oil production at former level - 30 million barrels a day. At the same time, the OPEC plans to reduce gradually raw materials production to correspond to the designated quota. Today Brent crude bargains with fall, losing 0,23% to level of closing of previous day.
Prices for metals and precious metals are strongly falling, gold is losing more than 1% and traded on a level of 1699.38; silver is on a level of 32.97 and decreasing for 2.40%.
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WEEKLY WINNERS OF THE FOREX DEMO CHAMPIONSHIP FOR THE WEEK 3-7 DECEMBER

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World stock markets grow on positive expectations from FRS meeting

The stock market in the USA has finished trading session rising on positive expectations concerning results of negotiations of politicians about reduction of state expenses and a country budget deficit. Index Dow Jones reached level of 13248.44 and added 0.59%, S&P increased for 0.65%.
Today in Vienna the next meeting of the countries of exporters of oil of OPEC will take place. Main question: discussion of quotas of oil production. According to Platts agency the cartel extracts 31,08 million barrels per day at a quota in 30 million. There will not be eventual influence on an environment of the oil market. This morning the oil futures are adding in price with Brent traded on 106.90 and Light on 86.35.
In India industrial production in October grew by 8,2%, increase for 4,5% was expected. In the last three months the government of India undertook a number of measures for attraction to the country of foreign investments, and also developed the steps directed on maintenance of internal demand and export. The reserve bank of India also tries to support economic growth and, in particular, gave a feeling that can reduce the main rates in the next quarter.
Democratic People's Republic of Korea carried out Ynkha-3 rocket start with an artificial Earth satellite "Kvanmenson-3". This is the second attempt then North Korea was trying to send the satellite on orbit, the rocket firing which taken place in April has ended with a failure. Japan regarded rocket start as violation of the international norms and decisions. Special session of UN Security Council on start of "Ynkhi-3", which Japan demanded to carry out, can pass already today.
Euro grows the second day in relation to dollar after the report showed that the trust of the German investors grew in December to a 7-month maximum. The German index of economic expectations of ZEW in December unexpectedly jumped up from -15,7 points to positive value in 6,9 points though -12 points were expected. This morning EUR/USD managed to stabilize above level of 1.30 and is traded on a level 1.3001.
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11 December 2012| UWCFX Daily Market Video Reviews

European leaders urge Monti to stay

EU leaders urged the next Italian government to stick to Mario Monti’s reform agenda after the Prime Minister’s surprise decision to resign earlier than expected. Silvio Berlusconi’s return to front-line politics rattled the financial markets in Europe. Ten year Italian bonds, a good barometer on investor’s confidence, fell to 4,75 percent. EURO/USD also fell well below 1,29 on Monday, but has since recovered and trades at 1.2942 in early Asian trading.
Monti’s surprise weekend announcement came after Berlusconi’s People of Freedom Party withdraw its support for his technocrat government which over the last year has brought some predictability back to Italian politics. Monti, a former EU-Commissioner, has been seen as Brussels’ man and enjoy strong support from Germany’s Angela Merkel. Monti is a strong supporter of the Euro in contrast to Berlusconi who is seen as a Euro skeptic. Italian shares fell along with bonds yesterday. New elections are scheduled for February.
In the US political haggling over the “fiscal cliff” continues with no solution in sight as the clock is ticking closer to the 31st December deadline. US indexes ended flat with low turn-over. Asian stocks are marginally up. Australian stocks gained 0,4 percent on stronger commodity prices and better prospects for China. The Japanese Nikkei dropped after successive days of gain. A 10 % rally over the last month has worried investors as see signs of over buying.
The dollar firmed against Yen trading at 82,40. JPY is also under pressure by expectations of monetary easing by the Bank of Japan (BOJ). Oil prices were up during yesterday’s trade. Brent crude reached USD 108 a barrel, but has as gold and precious metals fallen back in early Asian trade. Brent trades at 107,25 and gold has dropped from 1715 to 1708.
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10 December 2012| UWCFX Daily Market Video Reviews

Asian shares firm on US optimism

Asian stocks stayed firm at its 16-month high Monday morning as better growth outlook for US and China gave raise to modest optimism.  This came  after US consumer confidence plunged in early December as fear over imminent  tax raises and spending cuts, the fiscal cliff, outweighed the better than expected raise in non-farm payrolls job data. Unemployment fall from 7,9 to 7,7 % in November adding 146 000 new jobs suggests a modest momentum in  US economy. The drop in unemployment figures is, however, mainly due to 350 000 people leaving the labour market.
The Asia Pacific share index  rose 0,3 percent.  The index  was up 1 percent last week for its third successive weekly gain. Regional Asian market was Sunday further boosted when China reported a pick-up in factory output and retail sales after stagnating for seven quarters.  Chinese exports and imports were, however, delivering below forecast presenting a mixed picture.
The Euro/USD continues to slide. Euro  reached a two week low of 1.2876 on Friday after the German central back warned that Germany,  the biggest economy inside the euro zone, might soon enter into recession.  The Euro  is at present trading at 1.2893. The pro Euro Italian Prime Minister, Mario Monti, announced during the weekend that his government will withdraw. That will put the Euro under increased pressure. The development in ten-year Italian bonds which are seen as a main confidence barometer for investors,  shall be closely followed today.
The American dollar  is up  0,3 percent against a basket of major currencies. Commodity markets led by copper, are generally firmer on expectation of stronger Chinese industrial demand. Oil prices are stabilizing after falling steeply last week.  Brent crude trades at USD 107,40 a barrel. Gold (1706) and silver (33,14) are up from Friday.
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07 December 2012| UWCFX Daily Market Video Reviews

Euro falls on bleak outlook

The European Central Bank, ECB’s, bleak outlook for the euro zone presented at a press conference yesterday, created turbulence in the currencies markets. The euro/USD fell to its lowest level in one week at 1.2969, down 150 basis points from its high on Wednesday. The fall in the Euro has worsened by the political development in Italy where Silvio Berlusconi’s Freedom Party withdrew its support for the technocrat government of Prime Minister Mario Monti. This immediately put pressure also on Italian bonds. 

The main trigger for the sharply negative euro reaction was the mention of a “wide discussion over rate cuts. ECB President Mario Draghi said policymakers had considered cutting its main 0,75 % policy rate before deciding to leave it on hold. Draghi added that the ECB also “operationally was ready for negative rates”. This caused the euro to tumble and led biggest one-day loss in the single currency in one month. 

The Euro fell steeply also against yen and other currencies. USD/JPY is urging up at 82,48. The slid in the Euro helped push the dollar index, DXY, up to 80,236 rebounding from a six week low of 79,58. Investors’ eyes are now on US non-farm payrolls report to be published later today. A sharp slowdown in employment growth IS expected due to the disruptions caused by super storm Sandy.

Asian shares touched fresh 16-months on Friday following modest gains in global equities as investors watched progress in US budget talks. Recent indicators suggesting stabilized growth in China has helped improve sentiments in Asia. The MSCI index for Asia-Pacific shares rose 0,6 percent and has gained 17 percent during 2012. Hong Kong shares reached a 16-month high. In the US a rebound in Apple helped boost technology shares on quiet exchanges. 

Oil prices fell heavily yesterday. Brent crude tipped below USD 107 a barrel, but has recovered somewhat. Gold is again trading above USD 1700 an ounce. 

Follow up with or daily market reviews on The European Central Bank, ECB’s, bleak outlook for the euro zone presented at a press conference yesterday, created turbulence in the currencies markets. The euro/USD fell to its lowest level in one week at 1.2969, down 150 basis points from its high on Wednesday. The fall in the Euro has worsened by the political development in Italy where Silvio Berlusconi’s Freedom Party withdrew its support for the technocrat government of Prime Minister Mario Monti. This immediately put pressure also on Italian bonds. 

The main trigger for the sharply negative euro reaction was the mention of a “wide discussion over rate cuts. ECB President Mario Draghi said policymakers had considered cutting its main 0,75 % policy rate before deciding to leave it on hold. Draghi added that the ECB also “operationally was ready for negative rates”. This caused the euro to tumble and led biggest one-day loss in the single currency in one month. 

The Euro fell steeply also against yen and other currencies. USD/JPY is urging up at 82,48. The slid in the Euro helped push the dollar index, DXY, up to 80,236 rebounding from a six week low of 79,58. Investors’ eyes are now on US non-farm payrolls report to be published later today. A sharp slowdown in employment growth IS expected due to the disruptions caused by super storm Sandy.

Asian shares touched fresh 16-months on Friday following modest gains in global equities as investors watched progress in US budget talks. Recent indicators suggesting stabilized growth in China has helped improve sentiments in Asia. The MSCI index for Asia-Pacific shares rose 0,6 percent and has gained 17 percent during 2012. Hong Kong shares reached a 16-month high. In the US a rebound in Apple helped boost technology shares on quiet exchanges. 

Oil prices fell heavily yesterday. Brent crude tipped below USD 107 a barrel, but has recovered somewhat. Gold is again trading above USD 1700 an ounce. 

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06 December 2012| UWCFX Daily Market Video Reviews

Nokia causes fall in Apple

US stocks ended mostly higher on Wednesday. Dow Jones gained 0,64 percent and is again trading above 13 000. Nasdaq ended in red after the largest US company by market capitalization, Apple, swallowed its biggest fall In share prices in four years. Apple fell 6 percent and is down more than 20 percent from an all-time high reached in late September. Market participants cited a host of reasons for the drop; the company is losing share in the tablet market and NOKIA joining ranks with China’s biggest smart phone maker will give Apple a tough fight on the Chinese market.
Banking shares went higher led by Citigroup which jumped 6,3 % on a 10 000 employees or 4 % cut in its workforce. Cyclical shares closely tied to economic growth, also rallied on optimism on progress on a solution to avoid the fiscal cliff. Obama met with business chief executives in Washington and stressed readiness for a compromise if Republicans acknowledged the need to raise taxes on the wealthiest Americans. If the Republicans demonstrate such willingness, a budget deal can be reached within a week. The Republican is under strong pressure not at least from their own constituencies and; cracks in the ranks and possible “defectors” are likely to appear.
In England the Finance minister, George Osborne presented a new austerity budget to the House of Commons admitting that to have fallen short to obtain former set targets set. The budget proposal is most probably going to raise a new heated debate on whether austerity measures as practiced in England, Greece and other Western European countries are the right medicine to fight sovereign debt, trade and budget deficits. “Osborne has no more tricks to play”, commented one of the biggest British dailies.
Obama’s “fiscal cliff” comments created optimism in Asia where shares rose to a 16-month high. The Japanese Nikkei climbed 0,8 percent helped by a weaker yen. USD/JPY trades at 82,45. Euro/USD eased to 1.3054 after reaching a seven-week high of USD 1.3127 Wednesday. A disappointing Spanish bond auction reminded investors of the fragile fiscal health both of Spain and inside the euro zone and prompted a sell-off in the single currency. The markets are today waiting for the European Central Bank’s policy decision and US labor market report tomorrow.
Oil prices have fallen over the last 24 hours. Brent crude is one dollar down and trades below USD 109 a barrel. Gold is under downward pressure and tested the lows for the week at USD 1685 an ounce yesterday.
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Weekly winners of the Demo Championship

United World Capital is pleased to announce weekly winners of the Forex Demo Championship for the week 19th -23th November 2012.
1st Place - Prize $1000 Goes to: hamid , acc. 444914
2nd Place - Prize $800 Goes to: mozzy, acc. 445002
3rd Place – Prize $500 Goes to: megatron27, acc. 429266

Most Active Trader Award- $100 Goes to: araishkhan, acc. 428621
Congratulations to all winners!
We would like to take this opportunity to thank all participants and to warmly invite all of our clients to take part in our weekly Forex Demo Championship.
Remember the Earlier You Join the Contest- the Bigger the Chance You Have of Winning! Sign Up Now! http://www.uwcfx.com/en/forex-trading-championship.html

05 December 2012| UWCFX Daily Market Video Reviews

Obama stays firm on taxes for rich

President Barack Obama held his ground on the “fiscal cliff” Tuesday. In an interview with Bloomberg Television Obama stressed that no budget compromise was possible without the wealthiest Americans paying their fair share of common expenses. With less than a month left to confront budget cuts and tax increases that will take effect from January 1st unless Congress acts, Republicans seem increasingly in disarray over how far to go to compromise with Obama’s demands. In the interview Obama took a conciliatory tone, but excluded any further tax burdens on an embattled middle class.
The insecurity over whether total budget cuts and tax hikes amounting to USD 300 billion would be implemented in some few weeks’ time, has severely affected markets. Wall Street finished slightly lower in a quiet session with thin trading volumes. Hewlett Packard recovering from last week’s onslaught when its share prices dropped 15 % in one day, was together with Intel who announced a buy-back of own shares, the winners.
Asian shares rose Wednesday led by surging Chinese equities. The MSCI index for Asia-Pacific shares outside Japan were up 0,6 percent. Shanghai shares surged 3 percent to reclaim the 2000 point level. Hong Kong shares jumped 1,3 percent. Nikkei also inched up on a statement from Bank of Japan confirming willingness for more aggressive monetary easing. USD/JPY which during yesterday’s trading strengthened substantially and reached 81,75, fell back in morning trade to 82,25 supporting exporters.
Better than expected terms for Greek bonds buy-back plan raised optimism that Athens will secure much needed emergency aid to avert a default. The news took the euro/USD above 1.32 levels for the first time in months. The Euro was also helped by Obama’s statements that weakened the dollar and increased risk sentiments. Gold saw a new set-back and fell to 1685. It has recovered to 1701 in morning trade. Oil prices have as well recovered from yesterday’s lows. Brent crude is up 0,2 % trading above USD 110 a barrel.
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CHRISTMAS SPECIAL OFFERS FROM UWC

United World Capital (“UWC”) is happy to announce the launch of three new Christmas promotion programs. Starting from 3 December 2012 all UWC clients will be able to enjoy the following:
- “Christmas Trading Fever”
- “40% Bonus Promotion”
- “Money Box”
For more information please visit our website http://uwcfx.com/en/news/1348/news-1348

04 December 2012| UWCFX Daily Market Video Reviews

Wall Street falls on weak data

Manufacturing activity in the United States surprisingly contracted in November, dropping to its lowest level in three years. The fiscal cliff remains, however, investors’ primary focus. The political haggling over how to deal with large automatic spending cuts and tax hikes scheduled to kick in at the beginning of the new year, threatens to threw the US economy into new recession. Both Dow Jones and Nasdaq fell back after three straight winning days for the US indexes. The S&P index which composes an average of US stocks, are in spite of yesterday’s weakness still up 12, 1 percent in 2012, making stocks one of the assets classes winners.
Asian bourses and the Japanese Nikkei edged down in early Tuesday trading when the weak US data triggered profit-taking on exporters. The US economy is key to the fortunes of Japanese exporters which rely heavily on consumption in the world biggest economy. Asian markets got a boost over the weekend when the Chinese economy demonstrated healthy manufacturing data and strong signals for a rebound. Yesterday’s gains were eaten by a new cold shower from the US. The Japanese yen which recently has fallen against the USD, fluctuated heavily yesterday. After USD/JPY had traded at its lowest levels in weeks, JPY recovered strongly on the weak US manufacturing data. It is now trading at 82,10.
The Euro/USD is still strong. It rose to 1.3076 during yesterday’s trading, the highest level seen since October 22. The Euro dropped against yen after rising to a seven-month high on 107,67 on Monday. A Greek bond buyback scheme at 65 – 70 % reduction of nominal value has attracted interest and also strengthened the common currency. There are small changes in other currency pairs. Australian dollar is stabile against yen and USD, and the Scandinavian currencies are demonstrating strength both against USD and Euro. EURO/USD is trading at 1.3054 at present.
Oil prices are down. Brent crude has tipped down a dollar to 110,54. Precious metals are also trading lower. After recovering from end of last week’s steep fall from 1750-level to 1707, gold traded at 1721 yesterday. This morning gold has dropped down to 1703, a fall of 15 dollar an ounce.
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03 December 2012| UWCFX Daily Market Video Reviews

Euro and Asia rise on Chinese manufacturing

Euro/USD rose to 1.3048 and Asian stocks jumped to a nine-month high on further signs of a stabilizing Chinese economy boosted investor’s risk appetite. China’s vast manufacturing sector quickened in November for the first time in 13 months. HSBC bank’s Purchasing Managers’ Survey, PMI, rose to 50,5. A further evidence that the Chinese economy is picking up after quarters of slowing growth. China’s official PMI was even higher at 50,6. An official PMI for the non-manufacturing sector reached 55,6 led by construction services.
The upbeat Chinese manufacturing data helped the Euro reach a six-week high against the dollar. The Euro was also strengthened by Angela Merkel’s careful remarks that Germany, in a medium, longer term perspective, might consider to write off Greek’s debt if the country succeeds in getting its house in order.
The rhetoric on the “fiscal cliff” increased during the weekend when Democrats and Republicans went on the air to trade accusations on whom are mostly to blame for the budget stalemate. This also helped the euro. In spite that there still seem to be a huge distance to cross before any budget deal sight is in sight, markets nevertheless seem to have discounted a compromise. All asset classes posted gains in November with higher appetite for securities. Security markets except the Shanghai composite rose.
The Japanese Nikkei continues to rise on a lower yen and expectations for monetary easing after the parliamentarian elections in mid-December. The dollar steadied at 82,40 yen not far from the 82,84 yen touched on November 22. Speculators have over the last weeks boosted a short yen position which was at its highest since May 2007.
US, NYMEX crude and Brent futures are inching up at 89,16 and 111,57 respectively. Copper gained 0,3 percent to USD 8018 a metric ton. Gold is slightly up to 1719 on a weaker dollar. The DXY dollar index against a basket of major currencies are down 0,2 percent.
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30 November 2012| UWCFX Daily Market Video Reviews

Asian stocks and euro trade stronger

Telecommunications and health stocks were the winners in New York last night as Dow Jones and Nasdaq rose marginally. The Dow Jones industrial average passed the 13 000 mark and seems to end the week in positive territory. Investors were buying on sporadic dips roiled by conflicting comments from Washington about negotiations on a budget compromise to avoid the “fiscal cliff”, fear for a combination of budget cuts and tax hikes. Wall Street reversed early gains and fell after the Speaker of the House, leading Republican John Boehner, dashed hopes that lawmakers were getting closer to a deal. It picked up at greater optimism for a compromise at the end of the session. The extreme volatility in the markets is probably continuing as long with the stalemate in Congress.
Stock markets in Europe ended in positive territory yesterday on initial compromise optimism from both President Obama and the House Speaker Wednesday night. The exchanges in Asia started the trading day on a positive note. Asian shares rose to a nine-month peak Friday morning. Japan’s industrial output rose unexpectedly 1,8 percent in October, up for the first time in four months. This along with a new announced stimulus package from the Japanese government helped Nikkei win 0,8%. Also the Shanghai and Taiwan bourses produced healthy gains. The mining giant Rio Tinto is up 3 percent upon presenting savings and restructuring measures worth USD 5 billion.
Japanese yen is losing on the stimulus plans after gaining against the dollar earlier in the week. USD/JPY is trading at 82,45 well inside the newly established 81 – 83 corridor. Euro/USD is again stronger at 1.2999 up 50 points from yesterday’s start. The euro reached 1.3015 on Thursday, the highest level seen since 31st October. The euro is helped by the bail-out package for Greece. It is expected that a skeptical German parliament will approve the support for Greece in a vote today. This will probably give the euro a new temporary boost.
The US government said yesterday that third-quarter gross domestic product expanded at a 2,7 percent annual rate, the fastest pace since late 2011. Export growth help offset weakest consumer spending and the first drop in business investment in more than a year. Brent crude is trading at USD 110, 49 a barrel marginally up from Thursday. US crude futures, NYMEX, is falling 0,4 percent. Increased tensions and escalating violence in Syria and Egypt are stoking permanent fear of oil supply disruptions. Gold has gained back 20 dollars from yesterday’s steep fall and trades at 1727. Silver is at USD 34,20 an ounce, the same level as seen at the peak earlier in the week.
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29 November 2012| UWCFX Daily Market Video Reviews

Bipartisan statements turn markets around

“The fiscal cliff” seems over the last couple of days to have taken over completely as the dominant theme in the market. Statements on Tuesday from the Democratic Senate leader, Henry Reid, expressing disappointing progress towards a budget compromise with the Republicans had the markets to tumble. Yesterday it was the other way around. When president Obama expressed hope for a deficit deal by Christmas markets made a sharp U-turn. Dow Jones and Nasdaq which had started in red territory, ended 0,83 and 0,81 percent up with Hewlett Packard, Chevron, American Express and Pfizer showing the way as cracks seemed to surface in the Republican front against any tax rises. Stocks rallied when House Speaker and leading Republican, Joe Boehner, stated that a compromise was possible to avoid the “fiscal cliff”.
Whether these remarks reflect the reality of the negotiations is another story. The “fiscal cliff” of budget cuts and tax hikes dominate the discussion and influence a world market driven by psychology. Optimistic statements are immediately given a positive spin regardless of realities. The markets are going to live with these sentiments in the coming weeks and we are most probably going to see volatility and big day-to-day changes in stocks as well as commodities and currencies. Yesterday gold was hardest hit and fell 40 dollar an ounce during the session. It has recovered and trades at present at 1722. Also oil and silver took a hard punch to normalize around USD 110 a barrels for Brent crude and 33,70 for silver.
Euro/USD fell 70 points during one session and saw a low on 1.2875 before climbing back to 1.2955 and the same level as last Friday when the common currency was strengthened by the prospects of a debt deal on Greece in Brussels. By finalizing the deal Monday night the Euro reached 1.3010 to plunge back to yesterday’s low levels. The comments from US policy makers rekindled hopes of avoiding a crash landing on the US budget; and strengthened the Euro.
USD/JPY has also demonstrated great volatility during the last week. It is now trading at 82,14 bouncing back from a week high on 81,68 against the dollar on Wednesday. The dollar has corrected after reaching a 7 ½ month high of 82,84 last week. The yen has been under pressure over the last couple of weeks on speculations about aggressive monetary easing in Japan after the elections in mid-December. It is expected that USD/JPY is going to continue to trade in a range between 81 and 83 till we have seen the outcome of the elections.
Asian shares touched their highest levels in more than three weeks. The MSCI-index for Asia-Pacific jumped 1 percent after ending a seven-day winning streak on Wednesday. Also commodities are up on “optimism” for reaching a compromise on the US-budget. Nikkei in Japan and Australian shares were up as the Shanghai composite index as yesterday saw its lowest level since January 2009.
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28 November 2012| UWCFX Daily Market Video Reviews

Focus shift back to “fiscal cliff”

Budget talks and the “fiscal cliff” is back in focus after leaving the euro finance ministers agreement on Greek debt cuts on the agenda in the very start of the week. The euro’s short won gains against the USD were eaten up during yesterday. Euro/USD is trading at 1.2939 after falling fifty basis points in the afternoon of yesterday. The Japanese Yen strengthens versus dollar. After USD/JPY has traded in the interval between 82.15 to 82,65, yen is this morning below 82 at 81,95. Asian shares ended a seven-day winning streak this morning. The share index for Asia-Pacific stocks, MSCI, fell 0,5 % and commodities eased as lack of progress in talks on US budget threatened to threw the US economy back in recession.
President Barack Obama launched yesterday a public relations push for his bid to raise taxes on wealthy Americans. US lawmakers remained, however deadlocked over dramatic year-end tax increases and spending cuts known as the “fiscal cliff”. Obama met with small business leaders in the White House. They urged Obama to keep the tax cuts for the middle class to increase consumption and job creation. The US tycoon, Warren Buffet, simultaneously, called on the rich to pay more and proposed a minimum tax on 30 % on incomes between USD 1 and 10 million and 35 % on incomes above.
Senate majority leader Harry Reid expressed last night disappointment over modest progress in the budget negotiations. The remarks had US stocks to slide. Dow Jones lost 0,69 percent and Nasdaq 0,30. Statistics could on the other hand report on record high Thanksgiving sales and the highest US-consumer optimism in 5 years. The Shanghai composite Index slid 0,7 % and the Chinese stock markets to its lowest in nearly four years extending earlier losses and closing below 2000 points for the first time since January 2009. The weak Chinese stock market along with increasing doubts over US ability to resolve the fiscal crisis have over the last weeks strengthened demand for sovereign debt. Japanese government bond futures rise to a 9 and half year high.
Digesting the Greek debt deal comments on Twitter dismissed it as another exercise in kicking the can down the road. A degree of kicking is obvious. There is, however a critical element in the new deal which goes further than any step taken so far to get Greece back on its feet. There is an implicit understanding that Greece will undergo some form of official-sector debt restructuring with euro zone countries at some point in the future forgiving a portion of Greece’s debt. This sort of last-ditch measure is usually reserved for impoverished states in Africa and Latin America. German finance minister Wolfgang Schaeuble came close to acknowledging such an eventuality on a later press conference.
Oil prices are down a dollar since yesterday. Brent crude is trading at 110. Gold is also down from 1750 to 1741 breaking the good upward trend seen over the last days. Silver at USD 34 is also down.
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UWC SITE IS NOW AVAILABLE IN CHINESE

United World Capital (“UWC”) is excited to announce that our site and client cabinet are now available in Chinese language.
We make every effort to assist our clients in a best possible way. Since the re-launch of our site in June 2012, we have been working non- stop on further developments and advancements of our products services. As of today, our site and Client Cabinet are available in English, Russian, Spanish, German, Portuguese, Malay and Chinese with more languages coming soon.
http://www.uwcfx.com/en/news/1333/news-1333

27 November 2012| UWCFX Daily Market Video Reviews

Euro ministers finally agree on Greek debt

Euro zone finance ministers and the International Monetary Fund, IMF, finally reached a deal on Monday to reduce Greece’s debt. After 12 hour of negotiations Greece’s international lenders agreed on measures to reduce Greek debt by 40 billion euro, cutting the debt ratio between debt and GDP (gross domestic product) to 124 percent by 2020. Urgently needed loans to keep the bankrupt economy afloat were simultaneously released. In a significant new pledge ministers committed themselves to lower Greece’s debt below 110 percent by 2022. This is so far the most explicit recognition that some loans have to written off from 2016 when Greece is supposed to reach a primary budget surplus.
After two weeks of haggling, markets reacted with relief on the aid package. Stock markets in Asia continued up. The MSCI index for the south Pacific region outside Japan gained 0,6 percent, and the Euro/USD is trading at its highest level in weeks at 1.2985, marginally up from yesterday. Upon the release of the news from Greece, the euro reached 1.3010. Also the Australian dollar is trading at its highest level in two months versus dollar. USD/JPY was falling in early Asian trade, but has recovered at 82,15. Dow Jones was down and Nasdaq marginally up yesterday waiting for the outcome from Brussels.
Oil prices are steady. New York crude (NYMEX) is USD 88 a barrel. Brent crude is 111,04. Commodity prices are up helped by news on big infrastructural programs in China. Gold keeps around 1750 after reaching 1754 on Friday. Silver is slightly up in the morning trade in Asia at 34,20.
The agreement in Brussels has given the market a breathing spell. Investors focus is now likely to shift back to another major concern hanging over the markets, the looming US fiscal crisis. Republicans asked on Monday president Barack Obama to detail long term spending cuts to help solve the countries fiscal crisis. The Republicans are holding firm against any income tax rate increases for the wealthy that Democrats seek. If a compromise deal on the budget drags out, new focus on the “fiscal cliff” would for sure create nervousness and dampened investors risk appetite.
With big funds winding down their positions ahead of the new year-end, many analysts see it unlikely with major changes in the currency markets. The euro which has gained two percent over the last days is not set for major new gains in the short term. Any further rise in the Euro will likely be countered by selling to cap the euro’s upside. USD/JPY has fallen considerably over the last weeks and no major development is expected before the Japanese elections in mid-December and an eventual new government’s likely monetary easing.
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26 November 2012| UWCFX Daily Market Video Reviews

EURO rises on Greek hopes

The Euro hit a seven-month high against the yen and held a one-month peak versus dollar when the trading week opened in Asia this morning. The Euro was supported by hopes that Greece will finally secure more emergency loans when EU Finance ministers meet in Brussels today. Euro/USD is trading at 1.2963 after reaching 1.2969 on Friday bringing its weekly gain to 1,75 percent and above the 1.2945 level which it began 2012.
Asian shares inched up on Monday on hopes that Greece can avoid a near term bankruptcy. A regional Spanish vote favoring separatist parties capped gains. The stock futures for US suggest a soft opening while European futures are falling. The Asian Pacific index, MSCI, rose 0,2 percent marking advance for the sixth consecutive day. There is market optimism on the euro area’s ability to reach a deal on Greece, but worries about the vote of Catalonian independence from Spain and its implications for Spain’s austerity measures and bond rates remain high.
Oil, commodities and precious metals saw gains on a weaker dollar last week. Brent crude is trading above USD 111 a barrel in Asia, and gold surpassed the 1750 level on Friday as central banks boost reserves. Both gold and silver fell somewhat back in early Asian trade. Gold dipped below 1750 and silver trades at 34,05. Gold saw its five week high helped by a weaker dollar and investor confidence. Both pension funds. Sovereign wealth funds and private investors have been buying gold along with central banks in Brazil, Russia, Mexico, India, South Korea and Thailand. The buying has also been prompted by devaluation concerns of major currencies.
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23 November 2012| UWCFX Daily Market Video Reviews

Good week for Asian shares and EURO

Stock indexes continued to rise Friday morning as Asian shares were on course for a weekly gain of more than 2 percent. The Asia Pacific MSCI rose 0,4 percent and reached the highest level seen in two months after manufacturing surveys from China and the United States raised hopes for an improving global growth outlook. Japan and US were closed due to public holidays and Thanksgiving.
EURO/USD is trading at 1.2887 with the Euro enjoying a one percent lift since last Friday’s close. This in spite of yesterday’s data pointing to the Euro zone sliding into its deepest recession since 2009. The Euro has, however, been helped by optimism that a funding deal for Greece will ultimately be found when euro finance ministers meet in Brussels on Monday.
USD/JPY eased 0,1 percent to 82,39 pulling back from Thursday’s high of 82.84 which is the dollar’s strongest level since early April. The dollar has gained 3,7 percent versus yen over the last two weeks. The yen has been weakened on expectations that the Bank of Japan shall implement more drastic monetary stimulus.
Commodity markets were quiet with oil, copper and precious metals staying course to end the week higher than they started. Brent crude is trading at USD 110, 25 and Gold is flat around 1730. Last day’s markets have been subdued by Thanksgiving and enters a new week once again with major focus on the debt crisis in Europe. While a lot of ink has been spilled on the US fiscal cliff the biggest challenge for the global economy rests with the euro zone.
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22 November 2012| UWCFX Daily Market Video Reviews

Greek expectations takes EURO higher

German Chancellor Angela Merkel breathed new life into the Euro yesterday when she stated that a deal on the Greek emergency package was still within reach when Euro finance ministers meet on Monday. The Euro hit a 6-1/2 month high against the yen which continue to fall on expectations of more forceful monetary easing in Japan. Euro/USD is also stronger trading at 1.2844. 

Investors initially dumped the Euro after Euro finance ministers and IMF, International Monetary Fund, failed to reach a compromise on release of emergency aid for Greece Tuesday night. Merkel’s comments turned the downward trend around. Euro last traded up 1 percent at 105,94 yen. The dollar has over the last seven trading sessions gained 3,9 percent against yen. USD/JPY stands at present at 82,38 giving Japanese exporters a welcomed boost. Yen is broadly falling against other currencies including the Australian dollar. 

Analysts are expecting the yen to continue weakening into the Japanese elections in the middle of December. Bank of Japan’s (BOJ) firm intention for asset purchases and forceful monetary easing makes it likely that the yen shall remain vulnerable in the near term.

After relatively quiet equity sessions in Western Europe and the US Asian stocks rose Thursday morning after a survey showed that China’s manufacturing sector in November expanded for the first time in 13 months. Along with US factory data it raised optimism that the global growth slowdown is turning. MSCI broadest index of Asia-Pacific shares outside Japan raised 0,8 percent to a one week high. 

Market sentiments were also boosted by the truce between Hamas and Israel on Gaza. Brent crude trades above USD 110 a barrel. Precious metals and commodities show a firmer upward trend. Gold stands at 1730 and silver trades at 33,40. 

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WEEKLY WINNERS OF THE FOREX DEMO CHAMPIONSHIP FOR THE WEEK 12-16 NOVEMBER

United World Capital is pleased to announce the following weekly winners of the Forex Demo Championship for the week 12th -16th November 2012.

1st Place - Prize $1000
Goes to: tradeexpert, acc. 443630
2nd Place - Prize $800
Goes to: win points, acc. 443759
3rd Place – Prize $500
Goes to: Ehis, acc. 428272

Most Active Trader Award- $100
Goes to:sundas, acc. 431011

Congratulations to all winners!

We would like to take this opportunity to thank all participants and to warmly invite all of our clients to take part in our weekly Forex Demo Championship. Remember the Earlier You Join the Contest- the Bigger the Chance You Have of Winning