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Perodua expects to pay an average of 100 yen per dollar for parts from Japan in its 2009 financial budgeting, he said, versus 106 yen in 2008. The ringgit has gained 4.6 per cent to 3.6548 per 100 yen this year, paring a 22.9 per cent slump in 2008, according to data compiled by Bloomberg. The local currency gained 3.8 per cent against the greenback in the second quarter to 3.521, paring a 5.3 per cent loss in the first quarter. The company is assuming an average ringgit rate of 3.6 per dollar this year, compared with 3.3 in 2008, he said.
“Import costs increased by 12 to 15 per cent, depending on the car model, in the first quarter,” Syed Abdull Hafiz said.
Perodua, started in 1994, produces compact cars based on Toyota’s models such as the Mira and Passo. The manufacturer is 25 per cent-owned by Daihatsu Motor Co, a unit of the Toyota-city,
he country’s foreign exchange reserves increased to $11.770 billion on the week ending on June 20, 2009 as compared with $11.643 billion last week, data released by the State Bank of Pakistan showed on Thursday. The total reserves witnessed an increase of $127 million during the week. The reserves held by the State Bank of Pakistan witnessed an increase of $151 million as the reserve reached to $8.452 billion, as compared to $8.301 billion last week. Similarly, the reserves held by the banks other than SBP recorded a decline of $25 million to reach $3.317 billion as compared to $3.342 last week. staff report
Shen Chong who has no business in the country was arrested last week Wednesday by Fiscal police as he was trying to leave the country through Chileka International Airport for Hong Kong with US$39,151 (about K5.4million) loaded in seven Benson and Hedges cigarette packets. Economist Association of Malawi President (Ecama) Thomas Munthali said the move by government is good as most culprits are financing black market business which is not benefiting the country. “This Chinese is not even a business person in the country which means our forex is being used elsewhere which is unfortunate. We should lack forex due to other reasons and not that because some people are hording it and externalising it illegally. “While we appreciate government’s effort, we also feel that this exercise could have started way back but still this could be a lesson to others who are in practice,” said Munthali. Mulli Group Company Managing Director Leston Mulli said a lot of traders are taking advantage of the trade loop holes in the country. “The traders are misusing the trade agreements and taking advantage of the loop holes that are there. It is good that the President Bingu wa Mutharika has warned these business people and the police have immediately acted by arresting the Chinese national,” said Mulli. Mulli further said the act of hoarding forex is a disadvantage to the business community as it might lead to the devaluation of the Kwacha.
“The President vowed that he will not devalue the Kwacha, but this trend might result in the Kwacha being devalued and our businesses will suffer and not only us but the consumer as well will suffer,” he said. He then cautioned the police to be on the look out and arrest more of the culprits if the shortage of forex through illegal acts has to be dealt with. The kwacha is said to be overvalued against scarce foreign exchange a situation that has pushed importers of goods and services into a fix.
Official exchange rate for the Kwacha against the US dollar is firm K140 and according to Malawi Savings Bank Financial and Economic report for May, the country’s import cover was at 1.78 months up from 1.4 months in March. President Bingu wa Mutharika said during the official opening of this year’s international trade fair he would not hesitate to deport any trader siphoning forex out of the country. “Last year we produced and exported a lot of tobacco but where is the money? I repeat, I’m angry with you and you are enemies of the state,” said Mutharika as quoted in our sister paper Malawi News. Forex vendors have taken advantage of the foreign currency shortage to sell the US dollar at around K200 to the dollar over the official rate of K140. Big manufacturing companies such as Packaging Industries Malawi Limited have also cried foul saying they were having difficulties sourcing the now illusive forex to import.
The ringgit closed almost flat against the US dollar Wednesday amid further liberalisation announcement forex yesterday which is expected to woo more foreign trade investments, dealers said. At 5pm, the ringgit changed trading marginally at 3.5170/5210 against the greenback from yesterday's 3.5170/5200 yesterday. "The market is generally forex steady, boosted by the market liberalisation announcement yesterday," a dealer said. She said the announcement managed to address the ringgit decline which has taken place over the last few months. However, the forex dealer expects the ringgit's direction to be dictated by developments in the US economy. The ringgit was traded mostly higher against other major forex currencies at today's close. The local unit was almost flat against the Singapore dollar at 2.4289/4340 from yesterday's 2.4289/4335 and strengthened against the British pound at 5.7788/7864 from 5.8502/8566. Compared with the Yen, the ringgit appreciated at 3.6325/6374 from 3.6847/6887 and also rose against the Euro at 4.9488/9555 from 4.9565/9618 previously forex.
stagnant situation can be boring for some, yet very profitable for others’
The U.S markets continued trade within range last week, closing Friday’s session at critical levels. News headlines had a major impact on the trading sessions, as U.S officials mentioned that they could be ready for round two, using further stimulus to combat the economic situation.
Tuesday’s session turned out to be the most volatile one, as the government released its PPIP program, another scheme which derives from the TARP program to help clear the toxic assets off bank’s balance sheets. Furthermore, President Barak Obama mentioned that another stimulus package could not be ruled out, especially due to the slow rate of recuperation.
The news had an immediate effect on the markets sending traders into safe-haven, as according to some further stimulus could be devastating for the U.S economy. On one hand, further stimulus would increase the U.S’s debt and could devaluate the Dollar sending it to lower levels. On the other hand a weaker Dollar could be the U.S’s solution; especially as President Obama mentioned that he intends to turn the economy around, diversifying its structure. As mentioned by the President at the start of his cadency, one of his major aims is to build an economy, that’s profits are not only through its financial sector, either through exporting real goods.
One must note that a weak Dollar might not be so good for financial investments yet it can be good for the U.S economy, because it makes American exports cheaper and therefore helps close the trade deficit.
The uncertainty regarding the economic recovery was characterized by lackluster sessions for the remainder of the week, as the broader market presented doji like candlesticks, closing just above critical support levels. The S&P500 finished the week with a mild loss of -1.93%, while the Dow Jones closed it’s forth week down, with a loss of -1.62%.
At the moment I am rather busy. Moving to a new place and house. The house still needs a lot of work. As a result, I do not have time to update this blog. Trading is still going on but on a shorter timeframe. Result is consistent now. AudUsd is very kind at the moment with no sudden movement. In the next few weeks I will show you how to trade using only MA. As usual what works for me may not work for you. This is because some of you may not be able to follow the rules of the game.
RULES OF THE GAME 1. Trade based on your capital and the time that you have. The bigger your capital the longer the TF. The more time you have the longer the TF. Vice versa. 2. Only trade at the direction pointed by the MA pairs. If the MA pairs is showing mixed direction, do not trade. The MA pairs must be pointing at the same direction. 3. If a trade suddenly change direction, do not hesitate to close it at a loss and turn the trade. This is the hardest part where most of you failed. Free your mind or become a loser all your life. 4. Keep in mind, there is no such thing as winning all the time. Just make sure you win a lot more than you lose. In the end your profit will grow along with your confident. Simple system with simple rules. I like to keep it simple. No point of having the most complex system when simple system can have the same result. With this system you will be out of the market most of the time. This is because you will only be taking the big move and avoiding the small move and market noise forex. Last advise. Do not anticipate. Forex is not a game of inteligence eventhough this system at full swing will show you possible turning point. I am having a possible turning point for audusd at 0.7200 but I will not take it coz there will be market swing before the actual turn. Why wast time waiting for the big move when you can actually see when its going to move.
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While many forex traders are technical traders and institute their trades based on technical indicators from a price chart, there are some traders who are basically pure forex news traders.
What is actually forex news trading?
The forex news trader is basically a forex trader who makes his decisions to trade based on news and reports that are released daily. He does not depend on any technical indicators at all.
Why is news trading possible?
The forex market is a 24 hours market, and there are 8 major currency pairs available for trading with well over 17 derivatives, therefore allowing the economic news releases almost daily from any one or more of these currency pairs to impact on their movements.
What are these 8 major currencies that forex traders often watch for economic news releases that impact on their value?
The eight major tradeable currencies are
1. U.S. dollar (USD)
2. British pound (GBP)
3. Euro (EUR)
4. Japanese yen (JPY)
5. Australian dollar (AUD)
6. Swiss franc (CHF)
7. Canadian dollar (CAD)
8. New Zealand dollar (NZD)
The availability of these currency pairs and their derivatives such as the USD/JPN, Euro/USD, AUD/USD and several others means that you can trade some currency or its derivative pair at any time as these currencies span the globe!
So for the forex trader who trades on the news, he will have his eyes and ears set on the release of economic news and data that affect currency values.
Generally, we will watch out for news regarding the interest rates or direction of interest rate such as the FOMC rate decisions, release of retail sales figures, indications of inflation which can be gauged from consumer price index or the producer price index, unemployment figures, news on industrial production, news that indicate a boost in business such as business sentiment surveys and consumer confidence surveys,manufacturing sector surveys and news on the country's trade balance(such as foreign purchases of US Treasuries).
Different new releases impact upon currencies, and often lead to breakouts in volatility.
The key to trading on news is to take advantage of these movements in volatility which can last a few minutes or hours, and even days into the future.
Trading purely on news release is harder than it seems, but the task is made easier and more profitable with the use of indicators, such as a breakout indicator as a bollinger band or a breakout of a candlestick or a price bar. Statistics have shown news release can trigger movements that range in size from 33 to 124 pips, leading to trading opportunities.
By studying into high probability trade setups that has occurred consistently with the release of historical economic data, the forex news trader can devise strategies that can allow him to extract fast profits from volatile movements arising from news releases. The potential gains can be massive where the forex news trader can react quickly.
Forex options markets show that professional traders remain remarkably indecisive, and the lack of clear-cut sentiment on the US Dollar makes it difficult to set short-term expectations with any sense of certainty. More medium-term to longer-term options broadly favor US Dollar weakness. Yet it is important to point out that the currency recently set a bearish sentiment extreme across a broad swath of indicators, and we will be on the lookout for a turnaround in short-term USD expectations.
The yen declined to a two-week low against the euro and lost versus several other currencies as a report in China indicated an increase in manufacturing, helping investors to be confident to purchase high-yielding assets throughout the world.
The Japanese yen had a very negative performance this Wednesday losing ground against all main 6 currencies traded globally, after China post the fourth manufacturing expansion in a row, suggesting that the Asian nation is recovering quickly from the global slump and may lead other countries on their way out of recession, raising confidence among traders to sell their assets in Japan in order to purchase riskier assets, since the yen is the lowest yielding currency option and often referred as a refuge in stormy economic times. The euro posted the sharpest gains versus the yen as European stocks had a positive day generally, adding to the already favorable scenario for the euro to rally against the Japanese currency.
Mr Khorakiwala also said that Wockhardt would be divesting more of its non-core assets in 3-6 months. “We will also consolidate our business. This, however, will not impact either our topline or bottomline. In fact, we see profitability improving,” he said.
At present, over 70% of Wockhardt’s turnover is from its international operations and sales. The company is also believed to be looking for a buyer for its Irish facility Pinewood and its French subsidiary Negma Laboratories, though Mr Khorakiwala declined to comment on the issue.
Quashing speculations that it was looking at selling its hospital business, Mr Khorakiwala said that the company was in discussions with various players to sell a minority stake in Wockhardt Hospitals. “We are in talks with a number of strategic investors, including Fortis Healthcare, for our hospital business. We will retain majority stake,” he said. “We are also looking for partners for our biotech business, but that will take 12-18 months,” he added.
Perodua expects to pay an average of 100 yen per dollar for parts from Japan in its 2009 financial budgeting, he said, versus 106 yen in 2008. The ringgit has gained 4.6 per cent to 3.6548 per 100 yen this year, paring a 22.9 per cent slump in 2008, according to data compiled by Bloomberg. The local currency gained 3.8 per cent against the greenback in the second quarter to 3.521, paring a 5.3 per cent loss in the first quarter. The company is assuming an average ringgit rate of 3.6 per dollar this year, compared with 3.3 in 2008, he said.
“Import costs increased by 12 to 15 per cent, depending on the car model, in the first quarter,” Syed Abdull Hafiz said.
Perodua, started in 1994, produces compact cars based on Toyota’s models such as the Mira and Passo. The manufacturer is 25 per cent-owned by Daihatsu Motor Co, a unit of the Toyota-city, Japan-based Toyota. Overseas shipments account for less than 1 percent of total sales, Syed Hafiz said. -- Bloomberg
Euro Gains on the Dollar
The euro gained on the dollar rising to 1.4067 dollars from 1.4032 dollars at the close in New York yesterday. The European Central Bank is scheduled to make an interest rate decision tomorrow where it is widely expected that the bank will hold interest rates at the current 1 percent benchmark. More
US Mortgage Applications Fall 30%
The US-based Mortgage Bankers Association said today that applications for new mortgages plunged by 30 percent in June to the lowest level in seven months, indicating that earlier signs of a housing recovery may be short-lived. More
UK Purchasing Managers Index Slows Losses
In a sign that the British economy could be nearing the bottom of the recession, the Purchasing Manager’s Index (PMI) contracted at its slowest pace in over a year last month, and for the first time in fifteen months, the output index was positive. More
Yellen Says US Rates Could Remain Near Zero For Several Years
Janet Yellen - a voting member of the Federal Open Market Committee - said talk of a rate increase later this year are “jumping the gun”, noting that the US jobless rate will likely continue to increase for the rest of the year and even into 2010. More
KARACHI: The country’s foreign exchange reserves increased to $11.770 billion on the week ending on June 20, 2009 as compared with $11.643 billion last week, data released by the State Bank of Pakistan showed on Thursday. The total reserves witnessed an increase of $127 million during the week. The reserves held by the State Bank of Pakistan witnessed an increase of $151 million as the reserve reached to $8.452 billion, as compared to $8.301 billion last week. Similarly, the reserves held by the banks other than SBP recorded a decline of $25 million to reach $3.317 billion as compared to $3.342 last week. staff report
Business experts have commended government for its action on forex hoarders which led to the arrest of a Chinese national last week after President Bingu wa Mutharika openly said that some businessmen were responsible for the shortage of forex in the country.
Shen Chong who has no business in the country was arrested last week Wednesday by Fiscal police as he was trying to leave the country through Chileka International Airport for Hong Kong with US$39,151 (about K5.4million) loaded in seven Benson and Hedges cigarette packets.
Economist Association of Malawi President (Ecama) Thomas Munthali said the move by government is good as most culprits are financing black market business which is not benefiting the country.
“This Chinese is not even a business person in the country which means our forex is being used elsewhere which is unfortunate. We should lack forex due to other reasons and not that because some people are hording it and externalising it illegally.
“While we appreciate government’s effort, we also feel that this exercise could have started way back but still this could be a lesson to others who are in practice,” said Munthali.
Mulli Group Company Managing Director Leston Mulli said a lot of traders are taking advantage of the trade loop holes in the country.
“The traders are misusing the trade agreements and taking advantage of the loop holes that are there. It is good that the President Bingu wa Mutharika has warned these business people and the police have immediately acted by arresting the Chinese national,” said Mulli.
Mulli further said the act of hoarding forex is a disadvantage to the business community as it might lead to the devaluation of the Kwacha.
“The President vowed that he will not devalue the Kwacha, but this trend might result in the Kwacha being devalued and our businesses will suffer and not only us but the consumer as well will suffer,” he said.
He then cautioned the police to be on the look out and arrest more of the culprits if the shortage of forex through illegal acts has to be dealt with.
The kwacha is said to be overvalued against scarce foreign exchange a situation that has pushed importers of goods and services into a fix.
Official exchange rate for the Kwacha against the US dollar is firm K140 and according to Malawi Savings Bank Financial and Economic report for May, the country’s import cover was at 1.78 months up from 1.4 months in March.
President Bingu wa Mutharika said during the official opening of this year’s international trade fair he would not hesitate to deport any trader siphoning forex out of the country.
“Last year we produced and exported a lot of tobacco but where is the money? I repeat, I’m angry with you and you are enemies of the state,” said Mutharika as quoted in our sister paper Malawi News.
Forex vendors have taken advantage of the foreign currency shortage to sell the US dollar at around K200 to the dollar over the official rate of K140.
Big manufacturing companies such as Packaging Industries Malawi Limited have also cried foul saying they were having difficulties sourcing the now illusive forex to import.
Trade data indicates that Malawi’s import bill for 2008 hit the US$1 billion mark since the country is highly dependent on imported goods.
The Reserve Bank of Malawi has for close to two years been operating a directive that all forex earnings should be routed through its system.
KUALA LUMPUR, July 1 (Bernama) -- The ringgit closed almost flat against the US dollar Wednesday amid further liberalisation announcement yesterday which is expected to woo more foreign investments, dealers said.
At 5pm, the ringgit changed marginally at 3.5170/5210 against the greenback from yesterday's 3.5170/5200 yesterday.
"The market is generally steady, boosted by the market liberalisation announcement yesterday," a dealer said.
She said the announcement managed to address the ringgit decline which has taken place over the last few months.
However, the dealer expects the ringgit's direction to be dictated by developments in the US economy.
The ringgit was traded mostly higher against other major currencies at today's close.
The local unit was almost flat against the Singapore dollar at 2.4289/4340 from yesterday's 2.4289/4335 and strengthened against the British pound at 5.7788/7864 from 5.8502/8566.
Compared with the Yen, the ringgit appreciated at 3.6325/6374 from 3.6847/6887 and also rose against the Euro at 4.9488/9555 from 4.9565/9618 previously.
