Jun 12, 2011

Euro Back Under Pressure

The Euro has come back under some intense pressure over the past few sessions with the market reacting in “sell the fact” fashion following the latest ECB rate decision and Mr. Trichet’s signaling of imminent rate hikes after using the “strong vigilance” language. Also seen weighing on the single currency have been a number of developments which include; news of a worse than forecast Greek GDP, concerns from Moody’s over a Greek default, and indications from the ECB that they are not planning to roll over their holdings of Greek debt.
While some of the other currencies have held up relatively well, we believe that most currencies will be more exposed against the US Dollar going forward as the risk off/global slowdown themes continue to materialize. The latest rate hike from the Bank of Korea lends more reason for concern, while market participants continue to anticipate another round of tightening from China. One of the currencies that we feel could be most vulnerable is the New Zealand Dollar which trades by multi-year highs on some more encouraging local fundamentals, but would seemingly be at risk of coming off significantly should global risk appetite continue to wane. RBNZ Bollard has even clearly stated that the local currency is overvalued and we would expect to see any additional gains from here as limited.
Looking ahead to the European session, Eurozone and UK inflation data and UK industrial production are the main releases and could very well inspire some additional volatility in the markets. Canada employment data, US import prices and the US monthly budget statement are the standouts in North American trade. US equity futures and commodities prices are back to showing offered following mild recoveries on Thursday.
Opening_COmment_body_Picture_5.png, Euro Back Under Pressure on Local Concenrs and Global Slowdown Fears
Opening_COmment_body_eur.png, Euro Back Under Pressure on Local Concenrs and Global Slowdown Fears
EUR/USD: Rallies have stalled out just ahead of the 78.6% fib retracement off of the major 1.4940-1.3970 move, and the market could finally be in the process of carving out a fresh lower top by 1.4700 ahead of the next major downside extension back towards the 1.3970 recent trend lows. From here, look for a daily close below 1.4400 to confirm bias and accelerate declines, while only back above 1.4700 delays and gives reason for concern. Look for intraday rallies to be well capped ahead of 1.4650.
Opening_COmment_body_jpy2.png, Euro Back Under Pressure on Local Concenrs and Global Slowdown Fears
USD/JPY: After undergoing a fairly intense drop off from the 85.50 area several days back, the market looks to have finally found some support in the 80.00 area and could be in the process of carving out some form of a base. Look for setbacks to continue to be well supported around 80.00 with only a close back below 79.50 to give reason for concern. From here we see the risks for a fresh upside extension back towards the recent range highs at 85.50 over the coming weeks and a break and close back above 81.00 will help to confirm.
Opening_COmment_body_gbp2.png, Euro Back Under Pressure on Local Concenrs and Global Slowdown Fears
GBP/USDRallies have been very well capped in the 1.6500’s with the market looking like it wants to carve out a fresh lower top by 1.6550 ahead of the next downside extension below 1.6060. A daily close back below 1.6285 will reaffirm outlook and accelerate declines, while only back above 1.6550 negates and gives reason for pause.
Opening_COmment_body_swiss1.png, Euro Back Under Pressure on Local Concenrs and Global Slowdown Fears
USD/CHF: The latest minor recovery has proved to be just that, with the market finding a fresh lower top ahead of 0.9000 in favor of a drop to yet another record low below 0.8400. Daily studies are however still looking quite stretched to us, and we continue to like the idea of taking shots at buying in anticipation of a major base. Look for a break and close back above 0.8450 to encourage bullish reversal prospects, while only a drop below 0.8300 delays.
Written by Joel Kruger, Technical Currency Strategist

Nov 23, 2010

Islamic Forex Accounts – Islamic Forex Trading with TDFX

Islamic forex accounts are a specific category of forex trading accounts also known as interest free or swap free forex accounts.
Islamic forex trading accounts permit clients of Islamic religion to trade on interest free accounts (SWAP free or Roll Over fee) with no extra charge or penalty for the ability to trade in adherence with Islamic religious principles. Clients can open and close positions at any time within the Tadawul FX Metatrader 4 system without being constrained to holding them for a defined period.
Some common Islamic forex trading account conditions include:

No Riba Policy:
Clients benefiting from the Tadawul FX No Riba policy may hold positions for an undetermined time at the original opening price until they are closed and no charges will occur. Tadawul FX may revoke the ‘No Riba’ policy in case of abuse with a 48 hour notice by email.

Musharaka or commonly called joint venture:
This refers to a partnership or joint venture for a specific business with a profit motive, whereby the distribution of profits will be apportioned according to an agreed ratio. In the event of losses, both parties will share the losses on the basis of the agreed ratio.

Hibah (Gift or Donation): The term ‘hibah’ refers to gifts awarded voluntarily in return for a loan given. Tadawul FX will select different organizations in order to enable investors to donate a percentage of their profits to them.
At Tadawul FX, we offer clients the possibility to choose Islamic Forex Trading conditions for any of our Forex account types including Mini, Standard or Premium accounts, regardless of base currency or leverage offered. Islamic trading accounts may also be used for Managed forex accounts, as the only determining factor is the religion of the client that the trading account belongs to. TDFX enables its clients to trade with no swap charges and with no other additional charges, spread or hidden fees, ‘simply fair and ethical trading conditions for all’.
The Islamic Accounts offered by Tadawul FX are not the same as the Islamic Accounts generally offered by other Forex companies. They differ based on the fact that TDFX offers SWAP free accounts with no other additional charges, whereas most other companies transfer this fee by widening the spread on Islamic Accounts. In order to abide by Islamic religious beliefs, one must not pay interest but if that interest charge is transferred to a different type of fee, it is basically still a charge to cover the interest. This is also referred to as a SWAP fee in disguise. Tadawul FX does not do this, again demonstrating that TDFX offers fair and ethical trading conditions.
To open an Islamic Forex account with TDFX, simply complete our online forex trading account opening form and select the 'swap-free' option.

Islamic Forex Account

MFFX offers the possibility of Islamic or swap-free accounts with no rollover charges. Swaps or roll over charges will not apply to such accounts. For this service MFFX offers one pip spread higher on all currencies per trade.

MFFX offers all clients the opportunity to maintain islamic trading accounts (swap free forex trading accounts) whereby no roll over interest will be charged or incurred to positions held overnight which is in compliance of the Islamic Shariah Law. A small fee of $8 dollar per standard lot is charge daily for positions held overnight. Traders can hold the positions for unlimited time.

In order to maintain an Islamic (swap free) Forex trading account a Request For Islamic (Swap Free) Forex Trading Account has to be filled & signed by the client and sent to us by Fax or e-mail to admin@mffx.com. MFFX offers Islamic (swap free) Forex trading account to all clients no matter what their religion. Clients can open the account in any of the available currencies base.

s MFFX Trading system adhering to Islamic Shariah Law?