The US Dollar or American Dollar is the official currency of the United States and all of its territories! It may also be used as other countries de facto and reserve currency. It originates from the Spanish milled dollar. The unit or currency actually had been referenced in the Constitution of the United States.
The US Dollar contract as we know it began in 1973 as a measurement of strength in comparison to a basket of currencies. Those making up the US Dollar were:
The Euro FX (EUR) weighted at 57.6 %
The Japanese Yen (JPY) weighted at 13.6 %
The Pound Sterling (GBP) weighted at 11.9 %
The Canadian Dollar (CAD) weighted at 9.1 %
The Swedish Krona (SEK) weighted at 4.2 %
The Swiss France (CHF) weighted at 3.6 %
The Dollar has traded as high as $164.72 in 1985 and as low as $70.69 in 2008. It has retained a premier status against many world currencies as a safe-haven currency used in import/export trade, swaps, hedges and carry trades. The quantitative easing programs that have been introduced over the past few years have pressured the US Dollar weighing on its strength. Now, after US Fed Chairman Ben Bernanke has thought that an end date may be in sight some time perhaps September of 2013 through perhaps Mid-2014, the US Dollar may rise and retain its strength.
Read more analysis at: http://www.futuresknowledge.com/featured/the-us-dollar-reigns-as-the-premier-currency/
Monday, July 15, 2013
Friday, May 20, 2011
The Learn About Futures Insider for May 19, 2011: Euro Currency
Named in 1995, and introduced in 1999, the euro is the official currency of more than half of the member countries of the European Union. According to the International Monetary Fund (IMF), the euro zone may represent the second largest economy in the world, a likely driving force behind the apparent interest in the exchange of this currency. The following contract specifications will refer to the Euro/US Dollar contract from the foreign exchange futures listings from the CME Group.
Contract Size: 125,000 euro
Price Quote & Tick Size: $.0001 per euro increments ($12.50/contract). $.00005 per euro increments ($6.25/contract) for EUR/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.
Contract Months: March, June, September, December
Trading Specs: Open outcry is 7:20 a.m.-2:00 p.m. and Globex hours are Sundays: 5:00 p.m. - 4:00 p.m. Central Time (CT) next day. Monday - Friday: 5:00 p.m. - 4:00 p.m. CT the next day, except on Friday - closes at 4:00 p.m. and reopens Sunday at 5:00 p.m. CT.
Daily Price Limit: Consult exchange.
Trading Symbols: EC, 6E on Globex
http://futurespress.com/imgndoc/laf/5-19-11%20ec.jpg
Past performance is not indicative of future results.
***chart courtesy of Gecko Software
Euro Facts
The euro replaced the European Currency Unit on the world financial market in January of 1999; however, the euro banknotes and coins did not enter circulation until three years later. It is divided in a similar fashion to dollars with each euro divided into one hundred cents. To distinguish these cents, the moniker euro-cents is occasionally applied. The euro is currently the sole currency of the following member states of the European Union (EU) and these are collectively referred to as the "eurozone":
* Austria
* Belgium
* Cyprus
* Estonia
* Finland
* France
* Germany
* Greece
* Ireland
* Italy
* Luxemburg
* Malta
* The Netherlands
* Portugal
* Slovakia
* Slovenia
* Spain
http://futurespress.com/imgndoc/laf/eurozone_2011.jpg
Other nations have pledged to adopt the euro at some point. To participate in the currency, member states had to meet certain criteria. These criteria included strict debt ratio and inflation parameters, as well as having to have an interest rate close to that of the EU average.
Euro administration and management fall to the European Central Bank (ECB) which is based out of Frankfurt. Like many central banks, the ECB sets monetary policy. The euro is the second most common reserve currency, meaning it is held as part of foreign exchange reserves by many governments and institutions. It is also considered a hard currency, one which is perceived as a reliable store of value and is globally traded. Several countries outside the Eurozone have pegged their currency directly to the euro.
As with many other central banks, the ECB sets interest rates, attempts to maintain price stability, and promote smooth operation for member banks. Key information is frequently updated on the ECB's official website.
The EU is often represented as a single entity in terms of its economy. Many official statistics for this area come from Eurostat, including agricultural, financial, energy, and labor themes. Many of these releases are offered free of charge on their official website.
Among the key economic notes for the EU, it may be important to bear in mind the following:
- The EU has large coal, oil, and natural gas reserves. The North Sea Oilfields may be of primary interest.
- The EU is the largest exporter in the world.
- It is also the second largest importer.
- Manufacturing makes up roughly 28.4 percent of the GDP and the services sector accounts for 69.4 percent. Agriculture comes in at 2.3 percent.
- Tourism is an important part of the EU's economy
Key terms for this market include:
EMS - European Monetary System - simplified, this refers to an arrangement in which countries linked their currencies to try to prevent large relative fluctuations.
EFSF - European Financial Stability Facility - a creation aimed at providing loans to Eurozone countries facing financial crises following the global economic downturn.
Key Uses
Besides the obvious implications and uses for currency, the euro has investing applications as well. As a financial instrument, euro futures are often used as a means to hedge currency exchange risk. Since the euro is such a huge part of international trade, this can be a significant market for other businesses as well.
Key Concerns
Several factors within a nation can have a significant effect on the currency exchange rates and the relative importance of each is the subject of debate, however, it is important to be aware of some of the key fundamentals.
Inflation: It is generally believed that countries with consistently lower inflation exhibit a rising currency value while countries with higher inflation may see currency depreciation.
Interest Rates: High interest rates may attract foreign investors and that can lead to an exchange rate increase while the opposite scenario is possible in a country with low interest rates.
Overall Economic Conditions: Everything from a country's balance of trade to the size of their deficit or surplus can serve as a barometer of the condition of the country and the likelihood of default. Investors look for countries with stronger economic foundations and the better the economic foundation of one country versus another may increase the value of the country's currency.
Perception: The so called "flight to quality" exists within foreign currencies as investors will often seek what they perceive as "safe haven" currencies during times of political or economical instability.
_______________________________________________________________________________________
Disclaimer: There is a substantial risk of loss in futures trading and it is not suitable for all investors. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some trading strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Fundamental factors, seasonal and weather trends, and current events may have already been factored into the markets. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.
Contract Size: 125,000 euro
Price Quote & Tick Size: $.0001 per euro increments ($12.50/contract). $.00005 per euro increments ($6.25/contract) for EUR/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.
Contract Months: March, June, September, December
Trading Specs: Open outcry is 7:20 a.m.-2:00 p.m. and Globex hours are Sundays: 5:00 p.m. - 4:00 p.m. Central Time (CT) next day. Monday - Friday: 5:00 p.m. - 4:00 p.m. CT the next day, except on Friday - closes at 4:00 p.m. and reopens Sunday at 5:00 p.m. CT.
Daily Price Limit: Consult exchange.
Trading Symbols: EC, 6E on Globex
http://futurespress.com/imgndoc/laf/5-19-11%20ec.jpg
Past performance is not indicative of future results.
***chart courtesy of Gecko Software
Euro Facts
The euro replaced the European Currency Unit on the world financial market in January of 1999; however, the euro banknotes and coins did not enter circulation until three years later. It is divided in a similar fashion to dollars with each euro divided into one hundred cents. To distinguish these cents, the moniker euro-cents is occasionally applied. The euro is currently the sole currency of the following member states of the European Union (EU) and these are collectively referred to as the "eurozone":
* Austria
* Belgium
* Cyprus
* Estonia
* Finland
* France
* Germany
* Greece
* Ireland
* Italy
* Luxemburg
* Malta
* The Netherlands
* Portugal
* Slovakia
* Slovenia
* Spain
http://futurespress.com/imgndoc/laf/eurozone_2011.jpg
Other nations have pledged to adopt the euro at some point. To participate in the currency, member states had to meet certain criteria. These criteria included strict debt ratio and inflation parameters, as well as having to have an interest rate close to that of the EU average.
Euro administration and management fall to the European Central Bank (ECB) which is based out of Frankfurt. Like many central banks, the ECB sets monetary policy. The euro is the second most common reserve currency, meaning it is held as part of foreign exchange reserves by many governments and institutions. It is also considered a hard currency, one which is perceived as a reliable store of value and is globally traded. Several countries outside the Eurozone have pegged their currency directly to the euro.
As with many other central banks, the ECB sets interest rates, attempts to maintain price stability, and promote smooth operation for member banks. Key information is frequently updated on the ECB's official website.
The EU is often represented as a single entity in terms of its economy. Many official statistics for this area come from Eurostat, including agricultural, financial, energy, and labor themes. Many of these releases are offered free of charge on their official website.
Among the key economic notes for the EU, it may be important to bear in mind the following:
- The EU has large coal, oil, and natural gas reserves. The North Sea Oilfields may be of primary interest.
- The EU is the largest exporter in the world.
- It is also the second largest importer.
- Manufacturing makes up roughly 28.4 percent of the GDP and the services sector accounts for 69.4 percent. Agriculture comes in at 2.3 percent.
- Tourism is an important part of the EU's economy
Key terms for this market include:
EMS - European Monetary System - simplified, this refers to an arrangement in which countries linked their currencies to try to prevent large relative fluctuations.
EFSF - European Financial Stability Facility - a creation aimed at providing loans to Eurozone countries facing financial crises following the global economic downturn.
Key Uses
Besides the obvious implications and uses for currency, the euro has investing applications as well. As a financial instrument, euro futures are often used as a means to hedge currency exchange risk. Since the euro is such a huge part of international trade, this can be a significant market for other businesses as well.
Key Concerns
Several factors within a nation can have a significant effect on the currency exchange rates and the relative importance of each is the subject of debate, however, it is important to be aware of some of the key fundamentals.
Inflation: It is generally believed that countries with consistently lower inflation exhibit a rising currency value while countries with higher inflation may see currency depreciation.
Interest Rates: High interest rates may attract foreign investors and that can lead to an exchange rate increase while the opposite scenario is possible in a country with low interest rates.
Overall Economic Conditions: Everything from a country's balance of trade to the size of their deficit or surplus can serve as a barometer of the condition of the country and the likelihood of default. Investors look for countries with stronger economic foundations and the better the economic foundation of one country versus another may increase the value of the country's currency.
Perception: The so called "flight to quality" exists within foreign currencies as investors will often seek what they perceive as "safe haven" currencies during times of political or economical instability.
_______________________________________________________________________________________
Disclaimer: There is a substantial risk of loss in futures trading and it is not suitable for all investors. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some trading strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Fundamental factors, seasonal and weather trends, and current events may have already been factored into the markets. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.
Tuesday, April 26, 2011
PITGURU Weekly Report: Financial Review
Violence in the Middle East and Africa could affect the stock market today as oil rises. Saudi Arabia announced that production will not be raised which may keep oil at current levels or higher. One million barrels of oil are still not making to production because of the unrest in Libya. Oil is up over 23%, unrest has spread to Algeria, Bahrain, Oman, Iran, and Syria. Also, let’s not forgot thousands have died that could be tied to oil. (1)
New home sales will be announced at 10:00 a.m. Eastern Time. The market is expecting 280k which would be rise from the 250k at the prior announcement. Tomorrow the Case-Shiller 20-city Index and consumer confidence will be announced. Towards the end of the week GDP numbers and continuing jobless claims could move the markets. (2) Kimberly-Clark earned $350 million down from the $ 384 million last year. The company is blaming a rise in material costs and believes costs will rise from $450 million to $550 million by the end of 2011. The company makes Huggies and Kleenex and believes oil based materials and pulp may rise even higher. (3)
Source:
http://pitguru.com/Article.aspx?cmd=archive&day=25&month=4&year=2011
Tuesday, October 27, 2009
COMMODITY NEWS AND COMMENTS
U.S. Economy
The U.S. Treasury sold $44 billion of two-year T-notes at a median yield of .98%. The bid to cover ratio was 3.63, the most demand in over two years. The December 2010 eurodollars closed up .145 at 98.34.
The Conference Board's index of consumer confidence fell from 53.4 to 47.4 in October, weaker than expected.
The Richmond Federal Reserve's regional index of manufacturing fell from +14 to +7 in October, weaker than expected, but still a sign of expansion.
The Standard and Poor's/Case-Shiller index of home prices in 20 cities was up 1.2% in August, but down 11.3% from a year ago. It was the fourth consecutive monthly increase.
Grains and Cotton
The southeastern U.S. is getting hit with more rain today. Late yesterday, the USDA said that the corn, soybean, and cotton harvests all remained well-behind their normal paces. December cotton finished down .36 at 67.05.
Today's U.S. Palmer Drought Map shows excessively moist conditions throughout major portions of the Midwest. December corn closed down 7.25 cents at $3.707.
Livestock
Is the pork market finally losing its fear of "swine" flu? December hogs closed up 1.97 at 55.42, the highest close in three months.
Orange juice January orange juice ended up 2 cents at $1.1740 with ongoing support from this year's smaller Florida orange crop.
Metals Has there been a change of heart in the metals? December gold fell $7.40 to $1,035.40, the fourth consecutive day lower and the lowest close in three weeks.
Currencies
The European Central Bank said that commercial bank lending in the Eurozone was down an annual rate of .3% in September, the first decline on record. The December euro closed down .0051 at $1.4806.
The Confederation of British Industry said that retail sales in October were at their best levels in almost two years.
How's Your Trading? Today's news might be interesting, but did it help your trading? For more practical insights, read the chart comments in "The Markets" section.
Don't miss out... Have our daily futures news emailed to you everyday. Sign up at the top of the left-hand column.
(Possible) Market-Moving News of 2009:
October 9 - USDA: Florida's 2009-2010 orange crop estimate at 136 million boxes, less than expected.
October 9 - Canada's unemployment rate unexpectedly improved from 8.7% to 8.4% in September, the first decline since last fall.
October 8 - ICSG est.: World copper production surplus of 539,000 tons in 2010, up from their April estimate of 400,000 tons.
September 18 - USDA: 492,529 acres of commercial orange trees in Florida, down 1% from a year ago and the lowest total since 1986.
September 11 - First mention of severe drought conditions affecting China's corn crop.
August 21 - This week, Warren Buffett, Joseph Stiglitz, and PIMCO's El Erian all made negative comments about the U.S. dollar.
August 19 - The World Gold Council said that central banks bought 14 tons of gold in the second quarter of 2009 - "the first net purchase by central banks for a considerable length of time."
August 13 - France and Germany surprise markets with .3% positive growth in the second quarter.
August 7 - First improvement in the U.S. unemployment rate since April of 2008.
July 27 - U.S. new home sales up 11% in June, much better than expected.
July 24 - Lowest U.S. cattle inventory in 36 years and lowest cattle on-feed available in 10 years.
June 30 - USDA: 87.04 million planted corn acres, +1% from a year ago, the second most acres since 1946, and much more than expected.
May 26 - India bans futures trading in sugar contracts.
May 21 - USDA estimates that 2009-2010 world ending stocks of sugar will total 19% of annual use, the lowest in 16 years.
May 4 - China's manufacturing index confirms first expansion in nine months.
April 27 - World Health Organization declares swine flu outbreak an international health emergency.
April 22 - China imports record high 296,843 tons of copper in March.
March 18 - Fed will buy $300 billion in Treasuries and $750 billion of mortgage securities.
March 10 - Surprise profit at Citigroup.
source: dailyfutures.com
The U.S. Treasury sold $44 billion of two-year T-notes at a median yield of .98%. The bid to cover ratio was 3.63, the most demand in over two years. The December 2010 eurodollars closed up .145 at 98.34.
The Conference Board's index of consumer confidence fell from 53.4 to 47.4 in October, weaker than expected.
The Richmond Federal Reserve's regional index of manufacturing fell from +14 to +7 in October, weaker than expected, but still a sign of expansion.
The Standard and Poor's/Case-Shiller index of home prices in 20 cities was up 1.2% in August, but down 11.3% from a year ago. It was the fourth consecutive monthly increase.
Grains and Cotton
The southeastern U.S. is getting hit with more rain today. Late yesterday, the USDA said that the corn, soybean, and cotton harvests all remained well-behind their normal paces. December cotton finished down .36 at 67.05.
Today's U.S. Palmer Drought Map shows excessively moist conditions throughout major portions of the Midwest. December corn closed down 7.25 cents at $3.707.
Livestock
Is the pork market finally losing its fear of "swine" flu? December hogs closed up 1.97 at 55.42, the highest close in three months.
Orange juice January orange juice ended up 2 cents at $1.1740 with ongoing support from this year's smaller Florida orange crop.
Metals Has there been a change of heart in the metals? December gold fell $7.40 to $1,035.40, the fourth consecutive day lower and the lowest close in three weeks.
Currencies
The European Central Bank said that commercial bank lending in the Eurozone was down an annual rate of .3% in September, the first decline on record. The December euro closed down .0051 at $1.4806.
The Confederation of British Industry said that retail sales in October were at their best levels in almost two years.
How's Your Trading? Today's news might be interesting, but did it help your trading? For more practical insights, read the chart comments in "The Markets" section.
Don't miss out... Have our daily futures news emailed to you everyday. Sign up at the top of the left-hand column.
(Possible) Market-Moving News of 2009:
October 9 - USDA: Florida's 2009-2010 orange crop estimate at 136 million boxes, less than expected.
October 9 - Canada's unemployment rate unexpectedly improved from 8.7% to 8.4% in September, the first decline since last fall.
October 8 - ICSG est.: World copper production surplus of 539,000 tons in 2010, up from their April estimate of 400,000 tons.
September 18 - USDA: 492,529 acres of commercial orange trees in Florida, down 1% from a year ago and the lowest total since 1986.
September 11 - First mention of severe drought conditions affecting China's corn crop.
August 21 - This week, Warren Buffett, Joseph Stiglitz, and PIMCO's El Erian all made negative comments about the U.S. dollar.
August 19 - The World Gold Council said that central banks bought 14 tons of gold in the second quarter of 2009 - "the first net purchase by central banks for a considerable length of time."
August 13 - France and Germany surprise markets with .3% positive growth in the second quarter.
August 7 - First improvement in the U.S. unemployment rate since April of 2008.
July 27 - U.S. new home sales up 11% in June, much better than expected.
July 24 - Lowest U.S. cattle inventory in 36 years and lowest cattle on-feed available in 10 years.
June 30 - USDA: 87.04 million planted corn acres, +1% from a year ago, the second most acres since 1946, and much more than expected.
May 26 - India bans futures trading in sugar contracts.
May 21 - USDA estimates that 2009-2010 world ending stocks of sugar will total 19% of annual use, the lowest in 16 years.
May 4 - China's manufacturing index confirms first expansion in nine months.
April 27 - World Health Organization declares swine flu outbreak an international health emergency.
April 22 - China imports record high 296,843 tons of copper in March.
March 18 - Fed will buy $300 billion in Treasuries and $750 billion of mortgage securities.
March 10 - Surprise profit at Citigroup.
source: dailyfutures.com
Wednesday, March 25, 2009
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Futures Press, Inc. is proud to present CurrencyRateCalculator.com! Our goal is to offer our users unique and innovative ways to get the latest currency exchange and conversion rates - no matter how they'd like to implement them. With the action in today's markets and the exponentially-growing demand for instantaneous information, we believe whole-heartedly that tools such as our Currency Converter Cross Matrix, Quick Currency Rate Calculator, Currency Rate Calculator Widget, Currency Exchange Rate Gadget, and Mobile Currency Exchange Rates are exactly what the active and knowledgeable currencies traders and speculators need to keep up with these fast-paced markets.
Tuesday, March 3, 2009
Currency Rate Calculator
Futures Press presents CurrencyRateCalculator.com. Our goal is to offer our users unique and innovative ways to get the latest Currency Exchange Rates and Conversions. Whether you need to check on the USD Rate to the EUR, or you need to convert GBP into USD, or even if you needed today's exchange rate on the RUB you found the right site. We offer 5 easy ways to get the latest information on currencies and their exchanges, and best of all they are all FREE! Be sure to also fill out our form and we will email you daily alerts on the top ten exchange rates every day the currency market is open.
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