USD Dollar (USD) – The Dollar declined against most majors as global stocks rallied strongly on the outlook for U.S. retail sales, reducing safety demand for the world’s main reserve currency.  NASDAQ and Dow Jones jumped by 3.13% and 2.82% respectively, crude oil rose by 2.9 closing at 74.07$ a barrel, Gold (XAU) strengthened  by 0.3% closing at 1198.9$ an ounce. Today, Unemployment Claims are expected to weak from 472K to 461K.

EURO (EUR) – The Euro erased early losses and climbed to a six-week high against the Dollar in Forex Trading. This came after it had weakened during the day as German factory orders unexpectedly fell for the first time in five months in May, the report came out at -0.5% vs. 0.5% forecast. In the end, it closed almost unchanged after stock markets became positive. The EUR/USD has been trading upwards since last week and broke its resistance levels on the daily chart at 1.2500, therefore the momentum is bullish, as long as the price is above 1.2500 a long position is preferred. Overall, EUR/USD traded with a low of 1.2553 and with a high of 1.2664. Today, the interest rate decision is expected to remain unchanged at 1.0%, this will be announced at the ECB Press Conference.

EUR/USD – Last: 1.2664

British Pound (GBP) – The Pound rose for a second day as market sentiment turned positive after U.S. stock markets rallied, which led investors to buy risky assets instead. The GBP/USD has been trading upwards since June, and therefore the momentum is clearly bullish. The main resistance level on the daily graph is located at 1.5260. Overall, GBP/USD traded with a low of 1.5081 and with a high of 1.5219. Today, the interest rate decision is expected to remain unchanged at 0.5%, Manufacturing Production is expected to become positive from -0.4% to 0.4%.

GBP/USD – Last: 1.5211

Japanese Yen (JPY) –The Yen strengthened against the Dollar and the Euro during the day after bad news was released, which supported safety currencies like the Yen. At the end of the American session, the Dollar rebounded nicely and closed positive, successfully weakening the yen. The main resistance of the USD/JPY is at the 89.0 level. As long it’s trading below this level a short position is preferred, the 10 moving average supports a downward trend as well. Overall, USD/JPY traded with a low of 87.02 and with a high of 87.77. No major news expected today.

USD/JPY-Last: 88.36

Canadian dollar (CAD) – The Canadian Dollar strengthened to the highest level in more than a week against the Dollar as stocks rallied and crude oil climbed, improving the outlook for currencies tied to growth. As long the USD/CAD is below 1.0550 levels a short position is preferred. Overall, USD/CAD traded with a low of 10467 and with a high of 1.0606. No major news expected today.

USD/CAD – Last: 1.0448

USD Dollar (USD) – The Dollar weakened across the board in Forex Trading, after a report showed slower growth in the U.S. The ISM Non – Manufacturing Index came out at 53.8, worse than the expected 55. Stock Markets in the U.S jumped more than 2% as investors came back to trade after the holiday, but hardly managed to hold gains with Dow Jones increasing by only 0.59% and the NASDAQ rising by a mere 0.1%. Crude Oil almost reached the 74$ but failed to hold and fell back to 72$ a barrel. Gold (XAU) fell below the 1200$ and closed at 1193$ an ounce. No economic data is expected today.

Euro (EUR) – The Euro advanced versus the Dollar to a 6 week high as reports in the US showed slower economic growth than expected. Breaching the 1.2670 level might extend the positive momentum in the pair. Overall, EUR/USD traded with a low of 1.2479 and with a high of 1.2660. Today, the GDP is expected to remain unchanged at 0.2%. German Factory Orders are expected at 0.5% vs. 2.8% previously.

EUR/USD – Last: 1.2585

British Pound (GBP) – The Pound advanced against the Dollar as stock markets climbed, decreasing demand for the safest assets. Another attempt to breach the resistance level at 1.5220 failed and the Sterling declined below the 1.52 zone. Breaching the 1.5220 level might extend the positive momentum in the pair. Overall, GBP/USD traded with a low of 1.5080 and with a high of 1.5224. No economic data is expected today.

GBP/USD – Last: 1.5120

Japanese Yen (JPY) – The Dollar fell against the Japanese Yen but still the pair capped in a narrow range. Breaching the 87.8 level will turn the momentum positive for the pair. Overall, USD/JPY traded with a low of 87.33 and with a high of 87.96. No major economic data is expected today.

USD/JPY-Last: 87.40

Canadian dollar (CAD) – The American Dollar was weakened by economic data and Canada’s Dollar appreciated for the first time in 3 days. Breaking the support level of 1.0530 turns the momentum to negative for the pair. Overall, USD/CAD traded with a low of 1.0484 and with a high of 1.0675. Today, the Ivey PMI is expected at 64.2 vs. 62.7 previously.

USD/CAD-Last: 1.0563

USD Dollar (USD) – The Dollar weakened against most of the major currencies after the NFP report showed worse than expected data while job losses came out -125k vs. expected -100k. The Unemployment Rate came out 9.5% better than expected 9.8%. Stocks in the US fell with NASDAQ and Dow Jones falling by -0.46% and -0.47% respectively. Crude oil fell for a fifth day in a row hardly managing to close at 72.2$ a barrel. Gold (XAU) recovered a little from its previous losses and closed at 1211$an ounce. Today, US banks will be closed in observance of Independence Day, low liquidity might cause to irregular volatility in the market.

Euro (EUR) – The Euro rose further against the Dollar after the release of the US employment report hitting a 6 week high and extending its rally. The Unemployment Rate came out 10% better than expected 10.1%. The PPI came out unchanged at 0.3% as expected. Trading above the support level of 1.2470 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2480 and with a high of 1.22610. Today, the Retail Sales are expected at -0.1% vs. -1.5% previously.

EUR/USD – Last: 1.2544

British Pound (GBP) – After the NFP data came out in US the Sterling has reached 8 week fresh high at 1.5228 but shortly fell below the 1.52 zone. The Construction PMI came out 58.4 worse than expected 58.6. Trading above the support level of 1.5120 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5148 and with a high of 1.5228. Today, the Service PMI is expected at 55.2 vs. 55.4 previously.

GBP/USD – Last: 1.5179

Japanese Yen (JPY) – The Dollar recovered versus the Yen after the NFP data came out while attempting to rise back above the 88 zone. Breaching the 87.8 level will turn the momentum to positive for the pair. Overall, USD/JPY traded with a low of 87.31 and with a high of 88.20. No economic data is expected today.

USD/JPY-Last: 87.90

Canadian dollar (CAD) – The US Dollar rose in Forex Trading versus the Canada’s Dollar as investors observed contrarian figures in the US Labor sector. The loss on jobs but decrease in unemployment rate added upside momentum to the pair. Trading above the support level of 1.0530 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0554 and with a high of 1.0666. No economic data is expected today.

USD/CAD-Last: 1.0606

USD Dollar (USD) – The Dollar lost gains across the board after weak economic data as the Initial Jobless Claims came out 472K worse than expected 460K. The ISM Manufacturing Index came out 56.2 worse than expected 59. Stocks in the US fell moderately with NASDAQ and Dow Jones falling by -0.37% and -0.42% respectively. Crude oil plummeted by 3.7% closing at 72.7$ a barrel. Gold (XAU) collapsed by 3.2% and fell below 1200$ an ounce. Today, the Nonfarm Payrolls is expected at -100K vs. 431K previously. The Unemployment Rate is expected at 9.8% vs. 9.7% previously.

Euro (EUR) – The Euro climbed in Forex trading amid signs that funding pressures are easing on Europe’s financial institutions. The Euro breached above 1.25 and jumped to 6 week high against the dollar. The Manufacturing PMI came out unchanged at 55.6 as expected. Trading above the support level of 1.2470 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2192 and with a high of 1.2539. Today, the Unemployment Rate is expected unchanged at 10.1%. The PPI is expected at 0.3% vs. 0.9% previously.

EUR/USD – Last: 1.2512

British Pound (GBP) – The Pound has made considerable gains against the Dollar and reached a fresh 8 week high at 1.5189. The Manufacturing PMI came out 57.5 worse than expected 57.6. Trading above the support level of 1.5120 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.4871 and with a high of 1.589. Today, the Construction PMI is expected at 58.6 vs. 58.5 previously.

GBP/USD – Last: 1.5179

Japanese Yen (JPY) – The dollar tumbled to a 7 month low against the yen on speculation the world’s largest economy may be slow to recover. Trading above the support level of 86.8 might cause to rebound in the pair upside. Overall, USD/JPY traded with a low of 86.95 and with a high of 88.54. No economic data is expected today.

USD/JPY-Last: 88.10

Canadian dollar (CAD) – The Canadian Dollar retreated from its 3 week low level as the Dollar weakened across the board. The pair broke below 1.06 level and trimmed part of losses. Trading above the support level of 1.0530 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0576 and with a high of 1.0672. No economic data is expected today.

USD/CAD-Last: 1.0588

USD Dollar (USD) – The Dollar advanced against the other majors as risk aversion and Dollar bullish momentum continued after US disappointing ADP Non-Farm Employment Change that came out 13K worse than expected 58k. Another negative day was in US Stock Markets with NASDAQ and Dow Jones falling by -1.21% and -0.98% respectively. Crude oil slightly declined closing at 75.25$ a barrel, Gold (XAU) rose by 0.2% closing at 1242.4$ an ounce. Today, the Initial Jobless Claims is expected at 460K vs. 457K previously. The ISM Manufacturing Index is expected at 59 vs. 59.7 previously.

Euro (EUR) – The Euro jumped against the Dollar in Forex Trading to 1.23 zones after the ECB said it would lend banks less than analysts estimated; spurring optimism that funding pressures among financial institutions are lowering, but erased part of the gains after the decision of Moody’s to put Spain’s rating on review for a potential downgrade. The CPI came out 1.4% worse than expected 1.5%. Breaking the 1.2170 support level might push the pair lower. Overall, EUR/USD traded with a low of 1.2165 and with a high of 1.2303. Today, the Manufacturing PMI is expected unchanged at 55.6. EUR/USD – Last: 1.2209

British Pound (GBP) – The US negative employment data pushed the Pound to a 3 day low against the dollar breaking down the 1.5 level. The Nationwide HPI came out 0.1% worse than expected 0.3%. Breaking below the 1.4880 support level might push the pair lower. Overall, GBP/USD traded with a low of 1.4930 and with a high of 1.572. Today, the Manufacturing PMI is expected at 57.6 vs. 58 previously. GBP/USD – Last: 1.4930

Japanese Yen (JPY) – The Japanese Yen gained versus the dollar as US stock markets declined and a potential downgrade of Spain was discussed. The Tankan Manufacturing Index came out 1 better than expected -3. Breaking below the 87.80 support level might push the pair lower. Overall, USD/JPY traded with a low of 88.34 and with a high of 88.75. No major economic data is expected today. USD/JPY-Last: 88.16

Canadian dollar (CAD) – Canada’s Dollar fell against the American dollar to the lowest level in more than three weeks after the GDP reports came out 0% worse than expected 0.2%. Breaching the 1.0710 might push the pair higher. Overall, USD/CAD traded with a low of 1.0465 and with a high of 1.0647. USD/CAD-Last: 1.0670

USD Dollar (USD) – The Dollar advanced against the other majors in Forex trading after confidence among U.S. consumers sank in June more than forecast and Stocks plunged as the confidence data combined with conference board figures showing China’s economic outlook improved less than previously estimated, added to concern the global economy is slowing, leading the investors to sell risky assets. NASDAQ and Dow Jones fell by 3.85% and 2.65% respectively. Crude oil fell by -3.0% closing at 75.94$ a barrel, Gold (XAU) rose by 0.3% closing at 1242.4$ an ounce. Today, ADP Non-Farm Employment Change is expected to rise from 55k to 59K.

Euro (EUR) – The Euro tumbled to a 2-week low against the Dollar, amid market concerns ahead of Thursday’s expiration of a Euro zone refinancing program. The main support on the daily chart of the EUR/USD is located at 1.2120 levels, if it breaks this level the Euro is likely to decline sharply. Overall, EUR/USD traded with a low of 1.2151 and with a high of 1.2291. Today, German Unemployment Change is expected at -23k vs. -45k prior, CPI Flash Estimate is expected at 1.5% vs. 1.6% prior, ECB President Trichet Speaks. EUR/USD – Last: 1.2209

British Pound (GBP) – The Pound declined against the Dollar and extended its gains versus the Euro as fears that the global economic recovery is faltering continued. Mortgage Approvals came out worse than expected, leading the investors to sell the Pound versus the Dollar and the Yen. As long as the GBP/USD trades above 1.5000 the momentum is still bullish, the RSI and 10 moving average support an increased trend as well. GfK Consumer Confidence came out at -19 vs. -20 forecast. Overall, GBP/USD traded with a low of 1.5011 and with a high of 1.5119. Today, Nationwide HPI is expected at 0.3% versus 0.5% prior. GBP/USD – Last: 1.5060

Japanese Yen (JPY) –The Yen strengthened against all majors on speculation the global economic recovery will slow .The main resistance of the USD/JPY is at 89.50 and as long as it’s trading below this level a short position is preferred, the next support is located at 88.00 level. Overall, USD/JPY traded with a low of 88.28 and with a high of 89.41. Today, Tankan Manufacturing Index is expected with -3 versus -14. USD/JPY-Last: 88.54

Canadian dollar (CAD) – The Canadian Dollar weakened to the lowest level in 3 weeks versus the Dollar as concern over Europe’s fiscal woes and signs of a global slowdown drove investors away from higher yielding assets like stocks and commodities. As long as the USD/CAD remains above 1.0500 a long position is preferred. Overall, USD/CAD traded with a low of 1.0342 and with a high of 1.0577. Today, GDP is expected at 0.2% vs. 0.6% prior. USD/CAD-Last: 1.0538

USD Dollar (USD) – The Dollar was mixed against other major currencies after official data showed that U.S. consumer spending rose at a faster rate than expected in May. Moreover, the leaders of the world’s biggest economies agreed on a timetable for halving their budget deficits within three years at the Group of 20 summits in Canada. NASDAQ and Dow Jones weakened by -0.05% and -0.13% respectively. Crude Oil declined by -0.9% closing at 78.25$ a barrel, Gold (XAU) fell by -1.4% closing at 1237.80$ an ounce. Today, CB Consumer Confidence is expected to weaken from 63.3 to 62.8.

EURO (EUR) – The Euro fell against almost all of the majors, dropping the most in 3 weeks versus the Dollar after U.S. data showed inflation remains muted and Group of 20 leaders agreed on a target for cutting budget deficits. The main support on the daily chart of the EUR/USD is located at 1.2200 levels, if it breaks this level the Euro probably will decrease. Overall, EUR/USD traded with a low of 1.2265 and with a high of 1.2397. No economic data expected today. EUR/USD – Last: 1.2266

British Pound (GBP) – The Pound rose to its highest level against the Dollar in 7 weeks as Group of 20 leaders endorsed budget-deficit targets, said they’ll focus on nurturing growth and avoided taxing banks in England. As long as the GBP/USD trades above 1.5000 the momentum is likely to remain bullish, the RSI and 10 period daily moving averages support an upward trend as well. Overall, GBP/USD traded with a low of 1.5016 and with a high of 1.5129. No major economic data expected Today. GBP/USD – Last: 1.5100

Japanese Yen (JPY) –The Yen gained slightly versus the Dollar as more signs the global economic recovery is slowing raised risk aversion and demand for the safety of the Yen. Japan’s retail sales rose at the slowest pace since January, coming out at 2.8% vs. 4.7% forecast, a sign that the Japanese economic has not recovered yet. Prelim Industrial Production came out at -0.1% vs. 0.1% forecast and the Unemployment Rate at 5.2% vs. 5.0% forecast .The main resistance of the USD/JPY is 90.0 level as long it’s trading below this level a short position is preferred, the next support is located at 89.00 level. Overall, USD/JPY traded with a low of 89.06 and with a high of 89.46. No economic data expected today. USD/JPY-Last: 89.09

Canadian dollar (CAD) – The Canadian Dollar swung between gains and losses in Forex Trading, as stocks fell and Crude Oil declined, damping demand for riskier assets. As long the USD/CAD below 1.0400 levels a short position is preferred. Overall, USD/CAD traded with a low of 1.0320 and with a high of 1.0372. No major economic data expected Today. USD/CAD-Last: 1.0358

US Dollar (USD) – The Dollar weakened against most major currencies after Friday’s Q1 U.S GDP revision was lower than expected at 2.7%, instead of 3.0%, indicating slower growth and decreasing the currency’s stability. NASDAQ strengthened by 0.3% on Friday and Dow Jones weakened by -0.1% and S&P rose by 0.25%, concluding a negative week in U.S markets. Crude Oil rose by 3.1% to 78.86$ a barrel and Gold prices closed at 1256.2 per ounce (+0.85). G20 meetings took place in Canada over the weekend. In those meetings, finance ministers and bankers from 20 industrialized nations are meeting to decide on general policies regarding the global economy. Official press releases can impact the currency markets. Conclusions are planned to be published at the beginning of the week. Today, Personal Spending (0.1% forecast) and Personal Income (0.5% forecast) data is due to be released.

Euro (EUR) – In Forex Trading, the Euro strengthened on Friday against the USD for the 3rd day in a row, as the German Import Prices came out higher than expected, rising for the 8th consecutive month (0.6% VS 0.1% forecast). The EUR/USD has been recovering the past couple of weeks, with a weekly high of 1.2467, also being a resistance for the uptrend. Breaking this level upwards will reinsure the pair’s movement towards a recovery in the short term. The main support remains at around 1.1876, the monthly low. On Friday, EUR/USD traded between 1.2253 and 1.2395, closing at 1.2375. No major economic data expected today. EUR/USD – Last: 1.2379

British Pound (GBP) – The Pound strengthened against most major currencies on Friday, alongside the Euro’s recovery for the past week. The GBP/USD closed at 1.5060, after trading between 1.4855 and 1.5077. The next foreseen resistance on the daily chart is located in the 1.53 area, and the main support levels remain at 1.4450. The overall trend for the past weeks is upwards. No major economic data expected today. GBP/USD – Last: 1.5059

Japanese Yen (JPY) – The Yen has been strengthening against major currencies for the past week, with the USD/JPY closing around the low of the day at 89.20 on Friday. Tokyo Core CPI was released on Friday showing a slower pace of declining consumer prices, indicating a moderating deflation. Japanese Retail Sales came out with 2.8% worse than 4.7% expected. The USD/JPY has been trading on Friday between 89.16 and 89.77. The main support on the daily chart is around 88.95, and the resistance remains above 91.5. Today, Household Spending is expected with 0.4% versus -0.7% prior. Prelim Industrial Production is expected with 0.1% versus 1.3% prior. USD/JPY – Last: 89.37

Canadian Dollar (CAD) – The Canadian Dollar strengthened against the Dollar on Friday as Crude Oil, Canada’s largest export, prices rose by 3.1%. On the daily chart, USD/CAD has encountered a downtrend trend line from previous highs, and has a resistance at 1.0470. The support is at 1.0140 levels, and if the pair breaks it, the downtrend is likely to continue. On Friday, the pair was trading between 1.0340 and 1.0442. No major economic data expected today. USD/CAD – Last: 1.0342

Forex trading transactional dealings of a bank with its customer is called as merchant business and the rate of exchange at which the transaction takes place is the rate of merchant.  The merchant business in which the contract with the customer to buy or sell Forex trading is agreed to and executed on the same day is called as ready or cash transactions.  As in the case of transactions of interbank, a value next day contract is deliverable on the next business following the date of the contract.  Most of the transactions with customers are on ready basis.  The terms spot and ready are utilized synonymously to refer to transactions concluded as well as executed on the same day.  At first, the concept of transactions of exchange that was discussed under trading Forex markets is repeated here in the perspective of merchant transactions to reorient as well as reinforce the learning.

Trading Forex dealing is a business in which foreign currency is the commodity.  Trading online was seen earlier that foreign currency is not a legal tender.  The United States dollar cannot be used for settlement of debts, nevertheless, it has value.  The value of United States dollar is like the value of any other commodity. Therefore, the foreign currency can be considered as the commodity in Forex trading dealings.

Any trading online has two aspects are purchase and sale.  A buyer has to buy goods from his dealers which he sells to his customers.  Similarly, the bank that is approved to deal in real trading online sells as well as purchases its commodity.  The points need to be constantly kept in mind while talking of a real trading online transaction.  The business deal is always talked of from the bank’s point of view and the item termed to is the foreign currency.  Therefore, we can say a purchase, we imply that the bank has purchased and it has purchased foreign currency.  Similarly, when we say a sale, we imply that the bank has sold and it has old foreign currency.

We have seen that the rates of exchange can be quoted in either of the two ways.  They are direct quotation and indirect quotation.  The quotation in which rate of exchange is expressed as the price per unit of foreign currency in terms of the home currency is called as home currency quotation or direct quotation.  The quotation in which the unit of home currency is kept stable and the rate of exchange is expressed as so many units of forex currency is called as foreign currency quotation or indirect quotation.

Therefore, when the bank buys Forex online from the customer, it expects to sell the same in the market of interbank at a better rate and this make a profit out of the deal.  Thus, the interbank buying rate forms the bass for quotation of buying rate by the bank to its customer.  Similarly, when the bank sells Forex online to the customer, it meets the commitment by purchasing the required foreign exchange from the interbank market.  It can acquire foreign exchange from the market at the market selling rate.

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