US Dollar (Part I)

By Ahmad Hassam

It is important for the currency traders to have a good grasp of the general economic characteristics of the most commonly traded currencies. US Dollar is the most heavily traded currency in the global economy.

Traders need to also know the difference between the expected and the actual data. Some currencies tend to track commodity prices while others may move in complete contrast.

The correlation between the currency markets and news is very important. News or data that is in line with the expectations has less of an impact on currency movements than unexpected news or data. Therefore short term traders need to closely monitor the expectation of the currency markets.

US GDP is approximately five times the size of Germany, three times the size of Japan and seven times the size of UK. United States is the worlds leading economy. The US economy is now a service oriented economy with almost 80% of GDP coming from real estate, finance, health care, transportation and business services.

United States capital markets are the most efficient markets in the world. United States has the worlds most liquid and deep equity and fixed income markets in the world. The manufacturing sector is still formidable and US Dollar is particularly sensitive to the development within the sector. Cheap capital formation is what drives any company or any economy and United States capital markets help in cheap capital formation.

The import and export volume of US also dwarfs the countries. This maybe due to the sheer size of US as true import and export represent only 12% of the GDP. Foreign Direct Investments (FDI) into the US is equal to almost 40% of the total net inflows for United States. Investors from all over the world purchase US assets due to their liquidity and safety.

US economy is facing the paradox of the twin deficits. One is the Budget Deficit and the other is the Current Account (CA) deficit. US is running a large CA deficit for more than a decade now.

Due to the high CA deficit; United States need to attract a few billion dollars of capital inflows daily in order to prevent the decline in the value of US Dollar. In other words, the Current Account (CA) deficit is being financed by the Capital Account (KA) surplus. The large CA deficit makes the US Dollar highly sensitive to changes in the capital flows.

US is a member of the World Trade Organization (WTO). A weaker US Dollar will help boost US exports whereas a stronger US Dollar makes the US exports expensive and US imports cheap. United States is the trading partner of many countries across the globe. US trade is equal to roughly 20% of the world trade.

Leading export markets for United States are: Canada, Mexico, Japan, EU and UK. Leading import sources for United States are: Canada, China, Mexico, Japan and EU. The growth and political stability in countries that are leading export markets for US are important. For example, should Canada growth slow; its demand for US exports will fall that will have a ripple effect on US growth. - 23223

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Should GM Go Through A Corporate Name Change?

By Jennifer McClelland

There have been quite a lot of corporations that have replaced their names subsequent to coming under attack and falling into bankruptcy. Some of the companies that have done that include ValuJet or now known as AirTran, Altria or as you may have once known it, Philip Morris, and Xe, which was once known as Blackwater. Even electronics maker LG has changed its name from Lucky Goldstar to just LG and claimed that it stood for Lifes Good and now its performing superbly with its sales of consumer electronics and appliances.

These corporations have done well with the name modification; it is as if they are cracking what they once were and becoming a another company with a polished, pure representation.

Marketing professionals nationally agree that the rebranding of GM could be a good thing. If the goal is to try and put this company on a massive diet and just turn it into a smaller car manufacturing company, Im not certain thered be that much harm in rebranding, said Jean-Pierre Dube, a University of Chicago marketing professor. The name isnt in good shape, he said, so they have not much to lose.

The General Motors brand has already grown to be a stained brand, with a reputation of constructing poor quality cars and now with a gigantic bankruptcy filing under its belt, not to mention what everyone thinks about the business taking all that national cash to keep from having to file for the vast bailoutwhich they filed nonetheless.

Certainly, at the moment many GM officials are sticking to what they know and not wanting to rebrand the business. CEO Fritz Henderson stated that rebranding wasnt awfully high on his list of things to do in the business. Which is probably a good thing to do considering all the troubles he inherited, but couldnt rebranding be handed off to the marketing section? After all, GM still has one of those and it really doesnt have the money to be throwing into high-cost tv spots at present.

Bits and pieces of GM have already begun to be rebranded; GMAC financial services has changed its name to Ally Bank and General Motors Asset Managemnet is now known as Promark Global Advisors.

But, with a business that is as well identified as GM might it work?

I dont think anything wrong with attempting to perhaps advertise the company in a different way than previously, but an entire new brand could be difficult to pull off for the corporation. I believe that the best implementation of rebranding could come from if it were to rebrand some of its brands such as Chevy or Cadillac. - 23223

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Things To Keep In Mind While Investing Online

By Micheal Jones

There are certain things every investor should keep in while investing online. They are as below:

If you are new to online investing it is important that you start in small steps, it is advisable not to put the entire life saving in the single online account. Start investing the small amount of money, which can be easily handled.

Do not keep all the apples in the one basket. Most of the investors after getting online invest in shares. It is recommended not to invest all your money on one type of security. Understand your goals and then invest in different types of securities.

Keep a track of your online buying and selling since it would add up to your online brokerage costs at the end of the month.

Learn to use various tools online to cut off your losses. Make use of tools such as heat maps to keep an eye on different stocks. Learn about stock comparison tools.

If you get to online do not expect that there would be no problems or issues at all, while dealing with technology, there would be problems, and you should keep yourself prepared for that. Expect different types of problems such as server could crash down, your computer or internet may not work, some other issues. Learn about alternative means to trade so that you are not stuck in case of technology failure.

While investing online information and research is extremely important. Try and be well informed as possible about the market and its conditions. Do not believe the rumors about the favorite stock and invest in them, learn about them from various sources, get your facts and figures correct and then make a decision to invest in them. Your money is worth all the effort. - 23223

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Know The Facts About After Hour Trading

By Micheal Jones

Online trading provides us the option of after hour trading. This enables us to buy and sell shares after the market closes at our own convenience. So you can look at the market trends of the day, see the performance of the market in different parts of the world and at night make a more informed decision away from work and personal stress.

The market generally closes at around 4: pm EST. But when trading after hours certain things should be kept in mind such as the opening and the closing price of the stock. Because in actual reality through the market closes for public at around 4:OO PM, it never closes in operations because there are other world markets that are affective and there are political and other events taking place in different parts of the world when Americans go to sleep.

The different events taking place around the world has the impact on the American market. You may buy a share for $2 but when the market opens in the early morning its price may have changed.

There is a way to keep a price range within which your after hour orders should be executed. If the price of a certain stock goes beyond your range then your order would be cancelled. This can be done through limit ordering.

Another meaning of after hour trading is some small exchanges with stretched hours. They are open than the normal 4:00 Pm exchanging timing to allow investors take benefit of extended hour trading.

But these small exchanges may be more risky than the normal exchange market with greater price change and volatility. They are for specialized traders who know the in and out of the market. They are complex and not easy to understand for normal investors. So if you?re a newbie then either stay a way from these or learn all you can before attempting this kind of trading. - 23223

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If you want to get the edge over everyone else and learn how to invest online then check out this site today.

Forex Trading With Forex Phantom

By Stan Skyler

The internet is a tool used by many people to make money with online businesses. The internet can deliver cash right to your doorstep if you know how. What kind of online business can ensure you will earn some cash? One way is by becoming a Forex trader.

Although Forex trading has been around for a few years now, it has to be considered one of the new ways to generate income from the internet. In the past, the Forex market was closed only to multinational corporations and banks. They were the only ones allowed to trade in this vast and very liquid market.

Thanks to the internet, the Forex market is now open to everyone who has access to the internet. In Forex, currency is traded against one another. If people want to become successful in Forex, they must know when to trade specific kinds of currencies and which currency they should trade it against with.

With just a hundred dollars you can start trading currency in this very large market. Even if you don't have a million dollars to spare, you too can now become a Forex trader.

It is great that the Forex market is almost always open. You will be able to trade anytime of the day and anytime you want. In a single trading day, hundreds of billions of dollars are exchanged.

With this kind of market, you will definitely be able to make some cash and a lot of it if you know how to trade in Forex. Basically, all you need is a computer or a laptop with an active internet connection. So, just how do you get started trading in the Forex market?

I can truly recommend a system that was developed by a team of seasoned trading experts. The Forex Phantom is an automated trading robot that automatically buys and sells for you. It will help you create proven profits even if you know absolutely nothing about Forex trading.

The phantom is unlike most systems. It is designed to autopilot and help newbies as well as experienced traders alike. The Forex Phantom is the most advanced trading analysis system on the market. Created with the current financial and economic markets in mind so it has an advantage over any other software available. - 23223

About the Author:

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