News Economics USD the dollar cede against the majority of currencies, while the stock markets rebound the dollar he suffered great volatility, while several factors drove the purchase of higher risk assets, and as a result, demand for refuge currencies fell. The American stock market rallied, while several American companies reported results that exceeded expectations. In the banking sector, Bank of America and Citigroup shares advanced strongly. On the other hand, the American Consumer Confidence which was published on Tuesday, continued to show its positive effects.The American currency lost 130 pips against the euro during the day yesterday, and closed at 1.3322. Much of this phenomenon was due to the fall in demand for coins refuge, since apparently, the American economy is already showing signs of strengthening. And this despite the figures for GDP were announced yesterday.
Against the pound, the dollar also gave ground, and ended up losing approximately 125 pips, reaching the 1.4830. However, against the yen, the dollar advanced 0.6%, about 60 pips. A phenomenon that was due in part to the economic situation in Japan, China and the United States both, apparently, begins to improve.Unemployment Claims, Personal Spending and Personal Income will now be published at 12: 30 GMT. It is estimated highly volatile after such publications. However, considered that the market digested today newly published GDP figures. Several analysts estimate that the dollar will regain lost ground during the day yesterday given that several investors could return to seek refuge in dollars.
It may that the EUR/USD pair reached the 1.3200 to day. EUR euro advances against the dollar yesterday the euro developed an uptrend, especially by the result of the Consumer Confidence indicator, European that showed a rise after 11 months in baja. This added to the rumor that both Japan and the United States, the worst of the crisis already happened. The upturn in the stock market in the Euro area and in England was due in large part to what happened in the United States, and also by the fall in demand for coins refuge.
At the beginning of this module you learned that most of the interbank trade is done with the dollar. But suppose that a client of the Bank wants to change directly from pounds sterling to Swiss francs. In the jargon of the corridor, this trade not dollar is called currency against the currency. The Bank usually (or actually) handles this transaction for its client selling British pounds for U.S. dollars.UU. and then you will sell U.S. dollars.UU. by the Swiss francs.
Do not think this ridiculous? Why not selling the British pound directly by the Swiss francs? Here is why do it this way. Look at the table below changes crossed main $US
The stochastic is an oscillator that compares the current price of a currency with the prices of the same currency in a given period if we are in the presence of an upward trend, closing of a currency prices obviously tend to be close to the maximum values of that currency. Conversely, when the trend is downward, closing prices tend to be near the minimum prices of that currency. These oscillators identified a couple of lines, %k and % D, being the last % D, indicating the probable signs of purchase or sale. In General almost all the different houses Broker trading platforms have this indicator, which is reflected in the graphs of each currency pair. There is a point of reference for each line, establishing a kind of channel in which both move. The upper part of the channel displays the value 70 and the bottom shows the 30 value these stochastic advantage is the identification of a divergence with respect to the price of a currency pair series.When the line % D stands above 70 and shape Max increasingly lower while prices are higher and higher lows, is produced what is known as a bearish divergence.When the line %d is below 30 and is increasingly higher lows, while prices are increasingly low maximums, there is what is called a bullish divergence.Signals of purchase or sale can occur when the % K line cut to the % d lineThese single signals will be significant if they occur in the Maxima or minima of the stochastic, always pierced the 70 line (up) or (down) 30. The best results can be obtained in the weekly charts. We recommend using these oscillators as complements of other indicators, since the signals that can give must be confirmed and not be taken in isolation.