Rescuers reach Chinese epicentre, todays news.

Chinese rescue teams have reached the epicentre of Monday's devastating earthquake, Wenchuan county, where an estimated 60,000 people remain missing.
A few hundred soldiers and police finally made it through late on Tuesday after being hampered by broken roads and bad weather.
They found 500 bodies within a few hours - but have still not searched many devastated areas.
The official death toll is more than 12,000, and looks set to rise sharply.
Thirty Chinese troops in the town of Yingxiu, in Wenchuan, rescued 300 injured residents, state news agency Xinhua said.

But of an estimated population of around 10,000, only 2,000 residents were found alive, a local official said.
"They could hear people under the debris calling for help but no one could, because there were no professional rescue teams," He Biao said. Read full story on this site..


source: bbcnews.co.uk

Todays Forex News..

Data On Consumer Price Inflation Set For Wednesday
It was a mixed session on Wall Street, with the Dow closing down around 44 points, but the Nasdaq closing up nearly 7 points. A slew of Federal Reserve officials spoke Tuesday, noting some improvements in financial markets but warning that it may be a while before normal functioning is restored. Wednesday, additional Federal Reserve officials will speak, and investors will be given access to data on consumer price inflation.

Crude Oil Adds To Record High
Oil soared again on Tuesday and added to its record high. Light sweet crude moved to $125.80, up $1.57 on the session. Oil moved as high as $126.98 at around 11:35 a.m. ET, a fresh record intraday high. In intraday trading, crude had touched as low as $123.10.

Dollar Gains On Euro and Sterling As Retail Sales Rise Ex-Auto
The dollar extended its multi-month highs against the sterling and firmed up a bit versus the euro as traders weighed a slew of economic data and speeched from Fed officials.


source: RTTNews.com

Todays News..MMDA pushes single ticket system for Metro Manila

Noting that the Metro Manila Development Authority (MMDA) is the only government agency vested with the power to implement a Single Ticketing System (STS) in the metropolis, the agency’s legal department chief yesterday opposed the idea of letting Metro Manila mayors enact a Uniform Traffic Management Code (UTMC) just so they could impose their own version of the scheme.
Lawyer Emmanuel de Castro said the Metro Manila Council (MMC), a group composed of Metro Manila’s local chief executives and MMDA Chairman Bayani Fernando as chairman, said a so-called Unified Ticketing System using Ordinance Violation Receipts (OVR) is not the same as an STS. Read full story on this site..

source: By Michael Punongbayan /philippine star

All Eyes On GDP, FOMC Wednesday - Economic Preview

April 29, 2008 4:28:32 PM - The Dow closed lower for the second session of the week Tuesday, as investors geared up for the much-anticipated FOMC announcement scheduled for Wednesday.
There will be several economic reports released tomorrow, including the ADP employment report, advanced GDP for the first quarter and Chicago PMI. At 8:15 am ET, the ADP employment report for April will be made public.
Analysts expect a loss of 60,000 jobs, compared with a meager gain of 8,000 in March. At 8:30 am ET advanced GDP for the first quarter 2008 will be released, giving a more concrete indication of whether or not the U.S. economy is in a recession.
Analysts are looking for a meager growth rate of 0.5 percent, compared with the fourth quarter 2007 growth rate of 0.6 percent. At 9:45 am ET, the Chicago PMI for April will be released. Analysts are expecting the index to shrink to 47.5 from March's 48.2.
Any reading below 50 indicates a contraction in the sector.
Also grabbing attention Wednesday is the FOMC decision on whether or not to change the federal funds rate. The Fed will announce their decision at 2:15 pm ET.
The Federal Reserve has cut the federal funds rate at 6 consecutive meetings, chopping 300 basis points off the rate bringing it from 5.25 percent to 2.25 percent. Investors are looking for the Fed to cut an additional 25 basis points, bringing the rate to a flat 2 percent.


source: © RTTNews.com

Trades around first support level 1.5584


Trades around first support level 1.5584 . Immediate support seen at 1.5483 while resistance seen at 1.5842 . Fri, 25 Apr 2008, 12:00 GMT
Moves down below opening price level 1.5684 , below pivot level 1.5741 . Immediate support seen at 1.5584 followed by 1.5483 , while resistance seen at 1.5842 . Fri, 25 Apr 2008, 06:58 GMT
Continues to move down below third support level 1.5690 . Immediate support seen at 1.5600 while resistance seen at 1.5974 . Thu, 24 Apr 2008, 16:07 GMT

Forex Top Story

Flurry Of Economic Reports Including GDP, FOMC, And Employment Situation On Tap For Next Week - Economic Preview
Friday, April 25, 2008 4:29:46 PM - It was a session of modest gains on Wall Street, with the Dow closing up around 42 points. Next week, a plethora of economic reports will be released, a stark contrast to this week`s quiet economic front.

Canadian Dollar Mixed Against Major Counterparts [USD/CAD]
Friday, April 25, 2008 4:05:54 PM - The Canadian dollar was mixed in trading against other major currencies on Friday in New York. The loonie was lower against the greenback, higher against the euro and range-bound with the yen.

Oil Closes Above $118 Again
Friday, April 25, 2008 3:41:48 PM - Crude oil climbed above the $118 a barrel mark on Friday in U.S. trading. Light sweet crude for June delivery finished at $118.52, up $2.46 on the session. Prices touched a high of $119.54, an intraday high for the June contract.

Dollar Mixed As Consumer Mood Worsens [EUR/USD]
Friday, April 25, 2008 3:30:54 PM - The dollar levelled off from multi-week highs against most majors on Friday following weaker than excepted consumer sentiment figures.

Economic Round Up -- US Consumer Mood Sours, UK Economy Grows Slightly Slower Than Expected
Friday, April 25, 2008 3:04:45 PM - The lone economic release from the US proved to be a market mover, as the University of Michigan`s reported on consumer sentiment revealed the consumers mood darkened to levels not seen since the early 1980`s.

Gold Closes Up 30 Cents
Friday, April 25, 2008 3:03:29 PM - The price of gold closed modestly higher on Friday in U.S. trading after extending a 3 1/2 week low earlier in the day. Gold for June delivery moved to $889.70, down 30 cents for the day. The metal reached as low as $880.00 in electronic trading, its lowest level since April 1.

Yen Mixed Versus Major Counterparts [USD/JPY]
Friday, April 25, 2008 2:39:09 PM - The yen was mixed against other major currencies on Friday in New York. The Japanese currency fell to a short-term low against the pound and also moved to a multi-week low against the dollar before rebounding. The yen moved to a short-term high against the euro.


source: RTTNews.com

Forex News..


New York Stock Exchange traders gather as Wall Street rally Wednesday after quarterly results from JPMorgan Chase & Co., and two other Dow Jones industrials raised investors' hopes that companies and the economy are recovering from the protracted global credit crisis.
source: AP/gmanews.tv

Rice... todays news.


A young girl tries to pick up a pack of rice she bought at the NFA warehouse on Visayas Avenue in Quezon City on Tuesday.



source: GMANews.TV

Forex News Headlines....

Pair Of Fed Officials, Data On Consumer Price Inflation Highlight Wednesday - Economic Preview
Tuesday, April 15, 2008 4:51:01 PM - With a pair of conflicting economic report released earlier in the session, stocks experienced choppy trading throughout the day on Tuesday, although they ultimately closed modestly higher. Wednesday a series of economic reports, including the sensitive consumer price index as well as comments from two Federal Reserve officials should keep investors busy.

Oil Soars To Record Levels Again
Tuesday, April 15, 2008 3:37:24 PM - Crude oil prices soared to record levels again on Tuesday. Light sweet crude for May delivery closed at $113.79, up $2.03 on the session. Oil hit as high as $113.99, another intraday all-time high. The old record of $112.21 was set last week.

Dollar Gains On Most Majors After Wholesale Prices Rise More Than Expected [EUR/USD]
Tuesday, April 15, 2008 3:14:00 PM - The greenback was stronger versus most of its major counterparts on Tuesday, rising to a new multi-week high versus the sterling and firming up slightly against the euro. Traders took in data showing wholesale price growth in March came in well above expectations, with significant increases in food and energy prices contributing to the faster than expected growth.

Gold Closes Moderately Higher
Tuesday, April 15, 2008 2:56:24 PM - Gold closed mildly higher on Tuesday after giving back a good chunk of its earlier gains. Gold for June delivery climbed to $932.00, up $3.30 on the session. The metal moved as high as $939.80, challenging last week`s record high crossing of $943.40.

Japanese Yen Mixed Versus Major Rivals [USD/JPY]
Tuesday, April 15, 2008 2:33:14 PM - The Japanese yen was mixed against the other majors on Tuesday in New York. The currency was lower against the dollar, higher against the pound and even with the euro. Trading took place amid the release of a monthly statistical report from the Japan Real Estate Institute that said condominium sales in Tokyo fell 17.8% on an annual basis in March.

Global Round-Up -- J&J-Led Rally Dissipates On Inflation Surprise, Record High Crude Prices
Tuesday, April 15, 2008 1:54:18 PM - Wall Street muddled through another lackluster session on Tuesday, with traders sifting through inflation data and a report on manufacturing as oil prices rose to record highs. A positive quarterly result from Johnson&Johnson fueled strength at the opening bell, but higher oil prices eventually ate into the gains. Many Americans finished filing income-tax returns Tuesday.


source: © RTTNews.com

EUR/USD Moves up above first resistant level 1.5782 Todays Tips


Moves up above first resistant level 1.5782 . Immediate resistance seen at 1.58551 while support seen at 1.5658 . Wed, 9 Apr 2008, 16:01 GMT
Continues to trade around pivot level 1.5727 . Immediate resistance seen at 1.5782 while support seen at 1.5658 . Wed, 9 Apr 2008, 12:04 GMT
Moves up above pivot level 1.5727 . Immediate resistance seen at 1.5782 while support seen at 1.5658 . Wed, 9 Apr 2008, 06:55 GMT
source: fxstreet.com

Todays News..

US stocks fall as oil jumps; UPS warns
NEW YORK - Wall Street extended its losses Wednesday as a rise in oil prices and a profit warning from shipping concern UPS stirred concerns about the well-being of the economy. More

American Airlines cancels more than 1,000 flights
DALLAS - American Airlines canceled more than 1,000 flights Wednesday, more than one-third of its schedule, as it spent a second straight day inspecting the wiring on some of its jets — the same issue that caused it to scrub hundreds of flights two weeks ago. More

Toyota recalling Corolla, Matrix cars in US because of power windows
WASHINGTON – Toyota Motor Corp. is recalling 539,500 Corolla and Matrix passenger cars in the United States because the bolts in the power window system can become loose and ultimately cause a window to shatter. More

source: gmanews.com

Todays News..


People in search of cheap NFA rice form a line at the Transfiguration of Our Lord parish church in Murphy, Quezon City, on Wednesday.



by: Charlie Magno/gmanews.com

Todays Forex News

Yen Slips Versus Other Majors [USD/JPY]
Wednesday, April 02, 2008 2:47:04 PM - The Japanese yen saw weakness against the other major currencies on Wednesday in New York. Traders considered data showing the monetary base in Japan was virtually unchanged in the month of March, the Bank of Japan said today, standing at 88.38 trillion yen.

Dollar Eases To Euro, Extends Gains Versus Yen After Jobs Report [EUR/USD]
Wednesday, April 02, 2008 2:29:36 PM - The dollar went back on the defensive versus the euro but extended its recent gains versus the yen on Wednesday, with traders reacting to data signalling resilience in the US jobs market.

Global Round-Up For Wednesday -- Bernanke Signals Economy May Contract In 1H 2008
Wednesday, April 02, 2008 2:06:00 PM - Federal Reserve Chairman Ben Bernanke took to Capitol Hill on Wednesday to deliver testimony`s on the US economy to a joint Congressional committee. Market watchers worldwide were seeking insights about the health of the world`s biggest economy and on the Fed`s role in brokering the takeover of Bear Stearns by rival JP Morgan Chase.

Sterling Gains Ground Versus Majors [GBP/USD]
Wednesday, April 02, 2008 11:21:54 AM - The sterling gained on the other major currencies on Wednesday in New York. The British currency was up for the day against the euro, dollar, yen and others. The statistical office Destatis said Tuesday that German retail sales declined 1.6% month-on-month in February, while economists had forecasted a 0.5% rise.

Europe Round Up - Producer Price Inflation Accelerates In Euro Zone
Wednesday, April 02, 2008 10:46:58 AM - A report on producer price inflation in the Euro zone was the major news on Wednesday. Outside Euro zone, several reports were released from the UK.

Factory Orders Fell More Than Expected In February
Wednesday, April 02, 2008 10:31:28 AM - Orders for manufactured goods fell more than economists had been excepting in February, according to a report released by the Department of Commerce on Wednesday, with orders for both durable and non-durable goods showing notable declines.


source:RTTNews.com

Todays Forex News

Loonie Gains Versus Other Majors [USD/CAD]
Wednesday, April 02, 2008 4:12:34 PM - The Canadian dollar saw strength against its major counterparts on Wednesday in New York. The loonie hit a weekly-high against its neighboring counterpart from south of the border and also rallied to short-term high against some others.

Crude Oil Surges To Challenge $105
Wednesday, April 02, 2008 3:49:33 PM - Oil prices surged higher on Wednesday as Fed chief Ben Bernanke`s remarks to congress that a recession is possible led traders to turn to the hedge of commodities. Light sweet crude for May delivery closed at $104.83, up $3.85 on the session on the session. Prices dropped to as low as $99.84 after the Department Energy released its report on oil inventories in the week ended March 28, showing that crude oil inventories rose much more than expected while gasoline inventories fell more than expected.

Gold Rises After Bernanke`s Remarks
Wednesday, April 02, 2008 3:14:10 PM - Gold prices gained on Wednesday after Fed chief Ben Bernanke said that he believed the economy may see further weakness, boosting gold`s hedge value. June gold finished the session at $900.20, up $12.40 on the session. With the rally, the metal took back a portion of its sharp losses from the three previous sessions.

source:RTTNews.com

Trades above first resistant level 1.5720, EUR/USD


Trades above first resistant level 1.5720 . Immediate resistance seen at 1.5814 while support seen at 1.5470 . Wed, 26 Mar 2008, 16:33 GMT
Moves up above first resistant level 1.5720 . Immediate resistance seen at 1.5814 while support seen at 1.5470 . Wed, 26 Mar 2008, 12:04 GMT
Trades above pivot level 1.5564 . Immediate resistance seen at 1.5720 while support seen at 1.5470 . Wed, 26 Mar 2008, 07:52 GMT

Todays Forex News..

Yen Mixed Versus Other Majors
Wednesday, March 26, 2008 2:32:46 PM - The Japanese yen saw mixed results against the other major currencies in trading on Wednesday in New York. The currency gained against the dollar and sterling, although the pound was able to bounce back and make up some ground. The yen was lower against the euro and franc.

Global Round-Up -- Durable Goods Signals Economy In Trouble, ECB`s Trichet Maintains Hawkish Tone
Wednesday, March 26, 2008 2:26:01 PM - Wednesday`s economic data painted a picture of an economy that may have slipped into recession, causing jittery Wall Street investors to sell-off stocks.

Paulson Calls For Review Of Financial Regulations
Wednesday, March 26, 2008 12:16:09 PM - Noting that it is the job of regulators to come together to promote the stability and orderliness of financial markets, Treasury Secretary Henry Paulson said Wednesday that the Bush administration will soon release a blueprint for regulatory reform that will more effectively promote orderly markets and foster financial sector innovation and competitiveness.

Pound Weakens Versus Other Major Currencies [GBP/USD]
Wednesday, March 26, 2008 11:21:16 AM - The British pound moved lower against other majors on Wednesday in New York. The sterling hit a weekly-low against the euro and aussie and turned away from a weekly-best against the greenback.

Europe Round Up Unexpected Improvement In German IFO Business Sentiment, Central Bankers Grab Attention
Wednesday, March 26, 2008 10:44:58 AM - Wednesday was rich with significant announcements and newsworthy events. German IFO business confidence report came out today. Other major events of the day include ECB chief Jean-Claude Trichet`s testimony before the European Parliament and Bank of England Governor Mervyn King`s opening statement at the Treasury Committee Hearing. Further, three central banks announced their monetary policy decisions.


source: rttnews.com

Todays Forex News..

Inventory Data Pushes Oil Above $105
Wednesday, March 26, 2008 3:49:07 PM - Crude oil prices surged above $105 on Wednesday following the release of the weekly inventory report that showed stockpiles unexpectedly remained the same. Light sweet crude for May delivery closed at $105.90, up $4.60 on the session. Prices touched as high as $106.22 in the mid-afternoon, after falling below $100 for a short time on Tuesday.

Loonie Slips Versus Other Majors
Wednesday, March 26, 2008 3:39:40 PM - The Canadian dollar saw weakness against other majors on Wednesday in New York. The loonie fell to its lowest mark in nearly three years against the euro, and also dropped lower against the greenback after an early rally.

Dollar Nears Record Low Versus Euro As Data Signals Economy In Recession [EUR/USD]
Wednesday, March 26, 2008 3:14:26 PM - The dollar weakened versus other major currencies on Wednesday as central banks came into focus and US data provided further evidence that the economy has slipped into recession.

source: rttnews.com

Todays Forex News....

Pound Generally Flat Versus Other Majors [GBP/USD]
Friday, March 21, 2008 3:05:13 PM - The British pound saw little change on Friday in New York after seeing mixed results earlier in the week. Markets in Europe and North America are closed today in observance of Good Friday. Early next week, pound traders will watch for Rightmove House prices data for the month of March.

Euro Little-Moved Against Counterparts [EUR/USD]
Friday, March 21, 2008 1:20:10 PM - The euro was little-changed in trading on Good Friday in New York. Traders considered data showing French household consumption expenditure on manufactured goods increased 1.2% month-on-month in February, reversing a revised fall of 1.3% in January.

Greenback Stable Versus Other Majors [EUR/USD]
Friday, March 21, 2008 11:38:47 AM - The dollar remained range-bound against other majors during trading on Good Friday in New York with the markets closed for the holiday. The buck kept much of its weekly gains against the euro, pound, loonie and others after the 75-basis point rate cut on Tuesday.

Europe Round Up -- Rising French Consumer Spending, Tumbling Italian Consumer Confidence In Focus
Friday, March 21, 2008 8:56:47 AM - Despite the Good Friday public holiday in most European countries, some nations reported data. France, Italy and the Netherlands were among the few that had news on Friday.

source:forex-markets.com

The Federal Reserve cuts rates by 0.75% to 2.25%

The Federal Reserve’s Monetary Policy Committee has decided to cut interest rates by 0.75 basis points to 2.25%, after their monetary policy meeting.
The rate cut, which has been approved by 8 votes against 2, and it follows a 25 basis points surprise rate cut approved on Sunday.
This decision was widely expected by the analysts, although there were differences about the extent of the rate cut, as the Bank has taken a strong commitment to help the Banks to avoid a major scale liquidity crisis, as it has been seen earlier this week when the Bank supported financially the acquisition of the Bear Sterns Bank by JP Morgan Chase & Co.
The Central Bank has already cut interest rates from the 5.25% level in September to the actual 2.25% in order to mitigate the effects of a crisis in mortgages that has already turned into a great scale credit crisis, which has made the major figures of US economy swift their language from the “economic slowdown” speech to openly acknowledge that US economy is going through a serious recession.

source:FXstreet.com (Barcelona)

US Crude Oil stocks rise by 0.2M barrels in March 14 week

Crude inventories have increased in the US by 200,000 barrels in the week of march 14th, instead of the 1.9 mln barrels expected by market analysts, according to figures released by the US Energy Information Administration.
Distillate stocks fell by 2.9 mln barrels, while gasoline stocks declined by 3.5 million barrels. Refineries operated at 83.8% of their capacity, down from the 85% registered in the previous week, read more....

source:fxstreet.com

Moves down toward first support level 1.9935, todays forex tips..


Majors: GBP/USD

Moves down toward first support level 1.9935 . Immediate support seen at 1.9935 followed by 1.9786 , while resistance seen at 2.0253 .

Wed, 19 Mar 2008, 12:03 GMT
Moves up above pivot level 2.0104 . Immediate resistance seen at 2.0253 while support seen at 1.9935 .

Wed, 19 Mar 2008, 08:04 GMT
Moves down back below pivot level 2.0056 . Immediate support seen at 1.9883 while resistance seen at 2.0343 .

Tue, 18 Mar 2008, 20:18 GMT

GBP/USD Continues to move down below second support level 2.0033


Continues to move down below second support level 2.0033 . Immediate support seen at 1.9891 while resistance seen at 2.0335 . Mon, 17 Mar 2008, 11:55 GMT
Moves down below opening price level 2.0180 , below pivot level 2.0255 . Immediate support seen at 2.0033 while resistance seen at 2.0335 . Mon, 17 Mar 2008, 07:58 GMT
Moves down below pivot level 2.0322 . Immediate resistance seen at 2.0462 while support seen at 2.0252 . Fri, 14 Mar 2008, 16:40 GMT

EUR/USD Continues to trade around second resistant level 1.5786




Continues to trade around second resistant level 1.5786 . Immediate resistance seen at 1.5950 while support seen at 1.5574 . Mon, 17 Mar 2008, 11:54 GMT
Back around second resistant level 1.5786 . Immediate resistance seen at 1.5950 while support seen at 1.5574 . Mon, 17 Mar 2008, 07:57 GMT
Back above pivot level 1.5598 . Immediate resistance seen at 1.5721 while support seen at 1.5550 . Fri, 14 Mar 2008, 16:40 GMT

Philippine Finance Undersecretary Mendoza Resigns, todays news

The top official of the Department of Finance's campaign against erring tax officials has tendered his resignation, sources at the agency said Monday.
Finance Undersecretary Gaudencio Mendoza's resignation will take effect April 1.
In a text message to reporters by mobile phone, Finance Secretary Margarito Teves effectively confirmed Mendoza's resignation.
Teves said he has tasked Finance Undersecretary Gil Beltran to oversee the operations of the agency's revenue operations group that Mendoza heads so as not to derail its campaign against corrupt tax officials and employees.
"The Revenue Integrity Protection Service of the DOF will continue to vigorously run after erring revenue officials. We will not let up in the fight against corruption in order to improve revenue collection and hence sustain economic growth and reduce poverty," Teves said.
Mendoza's resignation comes amid delays in the confirmation of Teves' appointment as Finance Secretary.
Several lawmakers have questioned a ruling by Mendoza that reduced the excise tax slapped on Pall Mall cigarettes, which are produced by British American Tobacco.

-By Cecilia E. Yap, Dow Jones Newswires

Peso seen weak ahead of holiday

The peso is expected to remain weak, moving between the range of P41.50 and P41.90 per US dollar, on continued risk aversion concerns.
Investors are also expected to cut back on trading ahead of the long Holy Week holiday. "Investors ... are keeping a close watch on fresh developments in the US economy.
But there are many other factors causing risk aversion. Oil prices are at record high, fueling inflation. Other Asian currencies also suffer from these...," a trader said.
The peso on Friday closed at P41.54:$1, nine centavos weaker. Meanwhile, yield offers for the P6.5 billion worth of treasury bills up for bidding on Monday are expected to go 10-15 basis points higher ahead of the long weekend, bond traders said.
"Banks are ... risk averse on the move made by the central bank to tweak on the SDAs (special deposit accounts)," a trader said.
The central bank on Thursday kept its key rates unchanged but removed the two-, three-, and six-month maturities on its high-yielding SDAs and cut the rates on the one-week, two-week, and one-month maturities.

source: CSSV, BusinessWorld

Peso at '08 low vs $ as oil nears $112/barrel

The peso slid to the years lowest level versus the US dollar on Monday as uncertainties in the financial markets drove investors to held on to their greenbacks, one of the most acceptable currencies in the world, analysts said.
The local currency closed P41.72 to a dollar, lower than Friday's close of P41.54.
Jonathan Ravelas, BDO chief market strategist, said that with the more than 400-point decline in Wall Street on Friday and the local stock market dropping by almost 4 percent, people are looking at the dollars as “safe haven."
High oil prices are also prompting investors to play it safe, he said.
Oil prices jumped to an all-time trading high near $112 a barrel Monday in Asia as the tumbling US dollar and plunging stock markets prompted investors to seek shelter in commodities.
Light, sweet crude for April delivery spiked to a record $111.80 a barrel, up $1.59 from Friday's close, in electronic trading on the New York Mercantile Exchange, midafternoon in Singapore. It later slipped back to $111.61 a barrel.
“With what's going on in the markets today, people tend to focus on staying on the sidelines. This is not uncommon, there is a near-term risk aversion," he said.
Throughout the session, the peso traded between P41.60 to P41.72.Total volume traded reached $794.225 million.
Earlier, the 30-company Philippine Stock Exchange index plummeted 112.85 points or 3.88 percent to 2,793.68 while the all-share index slid 57.92 points or 3.25 percent to 1,726.52.
Jason Lagrimas, analyst at online stockbrokerage firm 2TradeAsia, said there was no good news to prop up the local equities market."
Basically, the market is reacting to the weakness in Wall Street and other regional markets. Last Friday Dow Jones went down by 194 points, crude oil went up to $110 a barrel and gold is now at $999.8 per ounce.

source: Cheryl Arcibal, GMANews.TV, with AP

Portfolio inflows hit $ 370 M

The Bangko Sentral ng Pilipinas (BSP) said foreign portfolio investments or "hot money" inflows totaled $ 370.9 million in February, higher than what was recorded in the previous month of $ 237 million. The BSP in a report yesterday said the "net inflow reflected renewed investor confidence owing to positive economic reports such as the better-than-expected fiscal deficit (R9.4 billion in 2007), expansion in exports (21.4 percent in December 2007),
and the strong earnings performance of several blue chip companies last year." BSP Governor Amando M. Tetangco Jr. said, however, that in the next few weeks, net inflows could be affected by the negative reports on the US economy, soaring oil prices — which triggered fears of rising inflation, and domestic political concerns.
In February, BSP said registered foreign portfolio investments in gross total, reached $ 1.2 billion, of which 53 percent or $ 623.7 million went to the listed shares in the Philippine Stock Exchange (PSE). In the meantime, investments in peso-denominated government securities, primarily Fixed Rate Treasury Bonds or FXTBs and placements in peso time deposits accounted for 22 percent and 25 percent, respectively, of registered investments.
Net outflows, on the other hand, totalled $ 814.1 million during the period. BSP said this came from the divestments from PSE-listed shares (48 percent) and government securities (23 percent); and withdrawals of peso deposits (29 percent).

P/$ rate closes at P41.54/$ 1

The peso exchange rate closed lower at P41.540 to the US dollar yesterday at the Philippine Dealing & Exchange Corp. (PDEx) from R41.45 the previous day. The weighted average rate depreciated to P41.491 from P41.417. Total volume amounted to $ 640 million.

DBS sees ’08 inflation above central bank target

Inflation this year is expected to exceed the 3.0-5.0 percent target of the central bank, Singapore-based investment bank DBS said.
The central bank, Bangko Sentral ng Pilipinas (BSP), bases monetary policy principally on inflation.
Philippine headline inflation, based on movement of the consumer price index, averaged 2.8 percent in 2007. The official target was 4.0-5.0 percent.
In February it rose to 5.4 percent year-on-year in February, and for the year it is “unlikely to fall within the central bank’s target range,” DBS said in its latest economic assessment of selected countries.
The February inflation rate was the highest in 16 months.
Following that and the 4.9 percent recorded in January, the BSP has no room for monetary policy easing at the moment, DBS said.
If current price movements are sustained, it wouldn’t be a surprise if inflation reached 6.0 percent this year, it said.
Last year’s low inflation rate came despite record-high oil prices, and was due partly to the strengthening of the peso that tempered the rise in commodity costs.
Some analysts say inflation rates below 3.0 percent are a thing of the past, as price increases are seen accelerating this year especially with a volatile external environment.
The spike in inflation early in 2008 is blamed on continually rising world oil prices and disruptions in food supply.
The Monetary Board, the policymaking body of the BSP, last Thursday kept the central bank’s overnight borrowing rate at 5.0 percent. Its decision was expected by analysts and economists in view of projections of higher inflation this year.
DBS noted that interest rates on the 10-year Treasury bonds had risen 100 basis points from the 6.05 percent recorded early this year, indicating expectations of a rise in inflation.
Investors in government securities normally factor in their inflation outlook so that bond yields will not be eaten up by price increases.

Filipino VIPs join Pacquiao frenzy

LAS VEGAS--The VIPs are joining the Pacquiao-Marquez II frenzy.
Speaker Prospero Nograles is already in this glitzy city, along with Senators Jinggoy Estrada and Bong Revilla and former Sen. Robert Jaworski.
And Vice President Noli de Castro is also on his way here.
From available information, only De Castro, thus far, is sure to climb into the ring if Manny Pacquiao demolishes Mexican legend Juan Manuel Marquez.

As pre-fight excitement builds up in Las Vegas and in the Philippines, ring experts say they expect Pacquiao to rely on his punching power and relentless energy to try and dethrone Marquez in an expected 12-round battle of attrition at Mandalay Bay hotel in Las Vegas Saturday (Sunday morning in Manila) .
Marquez will defend his World Boxing Council super featherweight crown against the pride of the Philippines.

De Castro is expected to be joined at the $600 ringside section by a host of Filipino politicians.
They include Environment Secretary Lito Atienza, Rep. Monico Puentevella, Rizal Gov. Ito Ynares, former Ilocos Sur Gov. Chavit Singson, Bacolod City Mayor Bing Leonardia, former Rep. Prospero Pichay, former Gov. Faustino Dy, Palawan Gov. Joel Reyes, Nueva Ecija Gov. Oyie Umali and wife Czarina, 3rd district congresswoman.

Last fight
Sunday's bout, backed by Golden Boy promotions, is a rematch of a 2004 draw, also in Las Vegas, in which Pacquiao knocked Marquez to the canvas three times in the first round. One judge scored the fight for each boxer and the third had the matchup even.
The four-year gap between their fights is an oddity in boxing these days where instant rematches have almost become the norm.
And this could be Pacquiao's last fight at 130 pounds. He is expected to move up to the 135-pound weight class where he could face David Diaz next.

Better fighter now
The 29-year-old Pacquiao is in the prime of his career while 15-year veteran Marquez is nearing the end of his.
Pacquiao, of General Santos City, is his country's ultimate warrior and a much better fighter than when he first faced Marquez.
"I think he is a 90 percent better fighter," said trainer Freddie Roach. "He is smarter, more experienced and he sets things up with two hands now."
Marquez, 34, is 48-3 with one draw and 35 knockouts while Pacquiao is 45-3 with two draws and 35 knockouts.

Marquez is 19-1-1 since 1999, the lone defeat a unanimous decision loss to Indonesian Chris John in March of 2006.
Pacquiao is 19-1 with two draws in the same span, losing only a unanimous decision to Mexican Erik Morales in 2005.

Via Vegas
Pacquiao has won six fights in a row, the most recent a 12-round decision over Marco Antonio Barrera.
In Manila, De Castro's staff said that, should his schedule permit, the Vice President might join the gang of government officials who would see the fight.
De Castro left Friday on a trip to the United States and Canada for official engagements in several North American cities, according to his staff.
Airport staff said De Castro boarded the 4:50 p.m. Philippine Airlines Flight PR-106, which stops over at Vancouver before pushing on to Las Vegas.

De Castro's staff said the Vice President was scheduled to attend to mostly "official matters" during his trip to Canada and the United States, including meetings with Filipino communities in Los Angeles.

'Special Day'
Short of calling for a ceasefire from political bickering even for a day, Malacañang Friday urged Filipinos to treat the Pacquiao-Marquez fight as a "special day."
In a press briefing, Press Secretary Ignacio Bunye joined the nation in expressing full support for Pacquiao.
"You know, when Manny Pacquiao has a fight, there's almost no traffic and almost no crime ... (there's) zero crime rate. And, that's a very special day for the Philippines," said Bunye.
He said he was saying prayers for the champ.

By Roy LuarcaPhilippine Daily Inquirer

Oil Closes Modestly Lower

Crude oil closed slightly lower on Friday after again extending its record high. Light sweet crude for April delivery moved to $109.16, down 12 cents on the session. After starting lower, prices touched as high as $112.75, hitting a record high for an eighth straight day. Prices added $5.06 to last week's close, which was a record high.

Oil closed a choppy session higher on Thursday. Light sweet crude for April delivery moved to $110.33, up 41 cents on the session. Oil touched a record $111.00 at around 10:50 a.m. ET before coming back lower. Traders continued to consider the weekly inventory report from the Energy Information Administration from Wednesday that showed a much bigger than expected increase in crude oil inventories in the week ended March 7.

The report showed that crude oil inventories increased by 6.2 million barrels after showing an unexpected decrease in the previous week. The increase came in well above analyst estimates of an increase of about 1.6 million barrels. With the increase, crude oil inventories rose to 311.6 million barrels, although they remain in the middle of the average range for this time of year.

The greenback continued to slide, further enhancing gold's hedge value.

The dollar plunged to a new record low of 1.56750 versus the euro just after 10 am ET. The buck also hit a new 12-year low versus the yen, slipping to 99.60. Friday morning, JP Morgan Chase & Co. (JPM) said that in conjunction with the Federal Reserve Bank of New York, it has agreed to provide a secured loan facility to troubled investment bank Bear Stearns Companies, as necessary, for an initial period of up to 28 days.

In addition, JPMorgan said it was working closely with Bear Stearns on securing permanent financing or other alternatives for the company. On Friday morning, the Department of Labor released its closely watched report on consumer price inflation in the month of February, showing that prices unexpectedly came in unchanged compared to the previous month. The Labor Department said that its consumer price index was unchanged in February following an unrevised 0.4 percent increase in January.

Economists had been expecting consumer prices to increase by about 0.3 percent. The report also showed that the core consumer price index, which excludes food and energy prices, also came in unchanged following a 0.3 percent increase in the previous month. Core prices had been expected to increase by about 0.2 percent.
Also, the Reuters/University of Michigan Consumer Sentiment Index edged down to 70.5 in March from 70.8 in February. Still, consumer sentiment was better than analysts expected.




© RTTNews.com

UK's Trade Deficit Remains Stable In January

UK's trade deficit remained unchanged in January, official data showed Wednesday.
The Office for National Statistics, or ONS, announced that the trade deficit totaled GBP 4.1 billion in January, same as in December. The trade deficit for December was revised from GBP 4.7 billion initially estimated.
Economists were expecting a deficit of GBP 4.6 billion. Meanwhile, visible trade deficit remained stable at GBP 7.5 billion in January. The original trade deficit estimate was GBP 7.6 billion for December. January's visible trade deficit matched economists' expectations. Export of goods rose 6.3% to GBP 19.99 billion in January, while imports climbed 4.4% to reach GBP 27.49 billion.
Excluding oil and erratic items, the volume of exports was 6% higher in January than in December and the volume of imports rose 1% in January. The trade in goods with EU nations resulted in a deficit of GBP 3.2 billion compared with GBP 3.4 billion in December. Exports of chemicals and cars climbed in January, however oil exports were lower. Exports increased GBP 0.6 billion and imports rose GBP 0.4 billion.
Meanwhile, the visible trade deficit with non-EU nations stood at GBP 4.3 billion, larger than the GBP 4.1 billion deficit recorded in December. Exports of chemicals, intermediate goods, semi-manufacturers other than chemicals and cars to non-EU countries increased, while exports of consumer goods declined in January.
The surplus on trade in services was GBP 3.4 billion in January. The surplus was in line with December as surplus for December was revised up from GBP 2.9 billion. In three months to January, the total trade deficit narrowed to GBP 12.5 billion from GBP 13.2 billion registered in the previous three months. Import prices rose 2.5% on month in January.
Excluding oil and erratic items, import prices were up 2.2%, the highest growth since July 1993. A report released on Monday showed that output price inflation for February increased from the prior year at the fastest pace since July 1991. Meanwhile, input prices surged 19.4%, logging the largest annual growth since records began in 1986.


by: RTTNews.com

Pound Mixed Against Other Majors [GBP/USD]

The sterling was mixed with its major counterparts on Wednesday in New York. Traders pondered a report showing the UK's trade deficit remained stable in January.
The report showed that the UK's trade deficit totaled GBP 4.1 billion in January, same as in December. The trade deficit for December was revised from GBP 4.7 billion initially estimated. Economists were expecting a deficit of GBP 4.6 billion.
The pound rose against the dollar on Wednesday, moving further away from Tuesday's 5-day low.
The sterling peaked at 2.0214, up from 2.0090 earlier in the morning. Investors digested US mortgage applications declined as interest rates climbed to a 5-month high.
The sterling fell to a weekly low versus the euro on Wednesday. The pound dropped to .7680 by 10:00 am ET, down from an early morning high of .7626.
Traders considered two separate reports showing Euro Zone January industrial output growth accelerated and French annual inflation remained high in February.Against the yen on Wednesday, the pound lacked direction.
The pair bounced between 207.97 and 206.33 throughout the morning, just above Monday's weekly low.
Investors mulled news that Bank of Japan Deputy Governor Toshiro Muto was officially rejected on Wednesday by the upper house of parliament, ending for the moment his bid to become the bank's next governor and a report showing Japan's consumer confidence sunk to a 5-year low in February.

source: RTTNews.com

Employment Shows Substantial Decline In February

Employment unexpectedly fell for the second consecutive month in February, according to a report released by the Labor Department on Friday, although the report also showed a modest decrease in the unemployment rate.
The report showed that non-farm payroll employment fell by 63,000 jobs in February following a revised decrease of 22,000 jobs in January. The drop in employment marked the biggest decrease in jobs since March of 2003.
On average, economists had been expecting employment to increase by about 25,000 jobs, although there had been a wide range of estimates. The unexpected drop in employment reflected weakness in the goods-producing sector, which came amid notable decreases in both construction and manufacturing jobs.
The goods-producing sector lost a total of 89,000 jobs. Employment in the service sector increased by a modest 26,000 jobs, as decreases in retail and business services jobs partly offset increases in education and health services, leisure and hospitality, and government jobs.
At the same time, the report showed that the unemployment rate edged down to 4.8 percent in February from 4.9 percent in January. The decrease came as a surprise to economists, who had expected the unemployment to increase to 5.0 percent. However, the drop in the unemployment rate came as hundreds of thousands of people left the civilian labor force.
The report also showed that average hourly earnings increased by $0.05 or 0.3 percent to $17.80 following an increase of $0.05 in January.
On a year-over-year basis, average hourly earnings were up 3.7 percent. The disappointing employment data is likely to add to recent concerns about the possibility that the U.S. is already experiencing a recession.
On the other hand, the data is likely to add to expectations that the Federal Reserve will continue to cut interest rates.

Dollar Nearing 1990's Levels Versus Yen, At Record Low Versus Euro Ahead Of Jobs Report [EUR/USD]

The dollar stayed on the defensive versus other major currencies Friday morning morning in New York, dropping to new long-term lows against the euro and yen while losing further ground to the sterling. At 8:30 am ET, the Labor Department releases its monthly employment report for February.
Nonfarm payroll employment surprisingly fell for the first time in over four years in January, while the unemployment rate edged down to 4.9 percent from 5.0 percent in December. More recently, initial unemployment claims suggest that employment is continuing to soften but not dramatically.
Analysts expect nonfarm payrolls to increase by 25,000, although there is a wide range among analysts ranging from -50,000 to + 50,000. The unemployment rate is expected to edge back up to 5.0 percent.
The dollar plunged to a multi-year low against the yen after the Bank of Japan's Board of Governors voted to leave the overnight call rate unchanged at 0.5 percent for the 15th consecutive month.
Most analysts believe that the bank will not be able to raise interest rates for at least the remainder of 2008 - and it is becoming increasingly likely the bank may trim the rate within the next couple of months.
The dollar hit a fresh 3-year low of 101.90 versus the yen. A weak jobs number could send the dollar below 101.67 to its lowest level since 1999. A move below 101.23 would take the dollar to its lowest since 1995.
The dollar sank to another record low versus the euro overnight, dropping to 1.5429 before stabilizing ahead of the US jobs numbers. The greenback slipped to its lowest point since just before Christmas versus the sterling Friday morning. The buck eased to 2.0158, extending its dramatic month-long decline.
The European Central Bank and Bank of England left interest rates unchanged on Thursday, with inflation concerns overriding evidence of economic weakness.

Employment Shows Substantial Decline In February

Employment unexpectedly fell for the second consecutive month in February, according to a report released by the Labor Department on Friday, although the report also showed a modest decrease in the unemployment rate.
The report showed that non-farm payroll employment fell by 63,000 jobs in February following a revised decrease of 22,000 jobs in January. The drop in employment marked the biggest decrease in jobs since March of 2003.
On average, economists had been expecting employment to increase by about 25,000 jobs, although there had been a wide range of estimates. The unexpected drop in employment reflected weakness in the goods-producing sector, which came amid notable decreases in both construction and manufacturing jobs.
The goods-producing sector lost a total of 89,000 jobs. Employment in the service sector increased by a modest 26,000 jobs, as decreases in retail and business services jobs partly offset increases in education and health services, leisure and hospitality and government jobs.
At the same time, the report showed that the unemployment rate edged down to 4.8 percent in February from 4.9 percent in January.
The decrease came as a surprise to economists, who had expected the unemployment to increase to 5.0 percent. However, the drop in the unemployment rate came as hundreds of thousands of people left the civilian labor force.
The report also showed that average hourly earnings increased by $0.05 or 0.3 percent to $17.80 following an increase of $0.05 in January. On a year-over-year basis, average hourly earnings were up 3.7 percent.
The disappointing employment data is likely to add to recent concerns about the possibility that the U.S. is already experiencing a recession. On the other hand, the data is likely to add to expectations that the Federal Reserve will continue to cut interest rates.

Fed's Kohn Warns That Rising Oil Prices Could Impact Inflation Outlook

Federal Reserve Governor Donald Kohn spoke Friday along with Fed officials Richard Fisher and Janet Yellen at the International Symposium of the Banque de France in Paris. The conference focused on globalization and its impact on inflation, trade, and monetary policy.
Kohn focused on monetary policy and the belief by some that central banks should look at a more coordinated approach to monetary policy as globalization increases interdependence in a global economy.
“Central banks should continue to conduct monetary policy in the same forward-looking manner as they have for the past twenty years or so, adjusting policy rates in response to current and expected future movements in output and inflation, taking account of the lags in monetary policy,” he said.
He discussed the soaring cost of oil and other commodities and their relationship with inflation. Currently, the Federal Reserve is forecasting a stabilization of rapidly rising oil prices, which allows them to forecast moderating inflation. However, Kohn noted that the forecast could be very different if oil prices continue to rise.
“If we were to project a continued significant rise in energy prices over the medium run, we would need to factor that expectation into the outlook for overall inflation,” he said. “Doing so could have important implications for the stance of monetary policy--all the more so if we expected rising energy costs to lead to higher inflation expectations and elevated wage gains.”
Though they still believe in a “leveling out in oil prices,” Kohn recognized that climbing oil prices were not something the Federal Reserve had been expecting. “Surprised as we have been by the rapid, extended run-up in energy costs over the past few years, one would think that the price of a storable commodity such as oil should already embody expectations of continued rapid growth in the developing economies,” he said. Recent spikes in energy prices have added a reason for pause in the Fed's outlook, Kohn suggested.
“The large run-up in spot and futures prices in recent weeks indicates that market participants are still revising their views of long-term demand-supply conditions,” he said. “In these circumstances, policymakers must be mindful of the uncertainties surrounding the outlook for commodity prices and the risk that past or future increases in these goods could yet embed themselves in higher long-run inflation expectations and a persistently faster rate of overall price increases.”
Kohn stated that it is difficult for different central banks to agree on a common policy, adding that perhaps the best and safest bet is for individual countries to focus on their own mandates.“Policies agreed to under one set of circumstances may no longer be appropriate when circumstances change, as they inevitably will,” Kohn told the panel. “Monetary policy should be able to adjust quickly to such changes; agreements that must be renegotiated can tie policymakers' hands.”
His comments were a contrast with the emphasis of some other Fed officials, who encouraged taking into account other central banks when making Federal Reserve policy decisions. Kohn acknowledged that there are some circumstances in which working with other central banks to determine monetary policy would be beneficial, but added that such instances would likely be few and far between.
“Ultimately, global stability depends on good performance in individual countries, and the record of recent decades suggests that, in general, good performance is most readily achieved when central banks focus on their own mandates for domestic price stability and growth,” Kohn said.

Determining Position Size

Before beginning any trading program, an assessment should be made of the maximum account loss that is likely to occur over time, per lot (see "Drawdown" in "Glossary of Terms"). For example, assume you have determined that your worse case loss on any trade is 30 pips. That translates into approximately $300 per $100,000 position size. Further assume that the $100,000 position size is equal to one lot.

Five consecutive losing trades would result in a loss of $1,500 (5 x $300); a difficult period but not to be unexpected over the long run. For a $10,000 account trading one lot, this translates into a 15% loss. Therefore, even though it may be possible to trade 5 lots or more with a $10,000 account, this analysis suggests that the resulting "drawdown" would be too great (75% or more of the account value would be wiped out).

Any trader should have a sense of this maximum loss per lot, and then determine the amount he wishes to trade for a given account size that will yield tolerable drawdowns.

Cutting Losses

Too often, the beginning trader will be overly concerned about incurring losing trades. He therefore lets losses mount, with the "hope" that the market will turn around and the loss will turn into a gain.
Almost all successful trading strategies include a disciplined procedure for cutting losses. When a trader is down on a positions, many emotions often come into play, making it difficult to cut losses at the right level. The best practice is to decide where losses will be cut before a trade is even initiated. This will assure the trader of the maximum amount he can expect to lose on the trade.
The other key element of risk control is overall account risk. In other words, a trader should know before he begins his trading endeavor how much of his account he is willing to lose before ceasing trading and re-evaluating his strategy. If you open an account with $2,000, are you willing to lose all $2,000? $1,000? As with risk control on individual trades, the most important discipline is to decide on a level and stick with it.

Controlling Risk, todays forex tips..

Controlling risk is one of the most important ingredients of successful trading. While it is emotionally more appealing to focus on the upside of trading, every trader should know precisely how much he is willing to lose on each trade before cutting losses, and how much he is willing to lose in his account before ceasing trading and re-evaluating.

Risk will essentially be controlled in two ways: 1) by exiting losing trades before losses exceed your pre-determined maximum tolerance (or "cutting losses"), and 2) by limiting the "leverage" or position size you trade for a given account size

Swiss Currency Rises Against Euro, Dollar And Yen Wednesday Morning [USD/CHF]

Wednesday, March 05, 2008 8:49:50 AM - The Swiss currency was strong against the yen, dollar and euro in morning trading on Wednesday in New York. Meanwhile, the franc saw little direction versus the sterling. The currency moved with little economic news from the area to guide movement.
The Swiss currency rose against its American counterpart on Wednesday. The franc reached a mark of 1.0353 against the dollar in the mid morning action. The pair moved as in the US, the final revision of Q4 Non-farm Productivity came in at +1.9% and Unit Labor Costs were 2.6%. Both figures were expected to remain unchanged from the original report: Productivity at +1.8% and Labor Costs at +2.1%. Meanwhile, the ADP said private sector jobs fell by 23k in Feb versus the consensus estimate of a gain of 18k.
It's the 1st job decline in their survey data since June '03 and it's the weakest since April '03. Factory orders for January will be released at 10:00 am ET, along with the ISM services index for February.
In trading against the pound on Wednesday, the Swiss franc saw little overall direction. By the mid morning, the franc had bounced between a high of 2.0528 and a low of 2.0628. The pair moved as the UK's services Purchasing Managers' Index rose to 54 in February. In January, the index stood at 52.5. Economists expected a level of 52 for February.
The Swiss franc rose sharply against its European counterpart on Wednesday's mid morning. The advance took the currency to 1.5774 against the euro. The pair moved as German services Purchasing Managers' Index rose to 52.2 in February from 49.2 in January. The index reading was the highest for three months.
Though the indicator stayed above the neutral level of 50, the reading remained below the long-run survey average. Meanwhile, Euro zone retail sales rose 0.4% month-on-month in January, reversing a 0.1% fall in December. Economists were looking for 0.3% growth in January.
Versus the yen on Wednesday, the Swiss currency saw strength into the mid morning. The rise brought the franc to 99.80 against its Japanese counterpart. The move brings the franc up off its recent weekly low and is closer to reaching a multi-year high against the yen.

Euro Rises Versus Majors [EUR/USD]

Wednesday, March 05, 2008 10:59:52 AM - The euro advanced against its major counterparts on Wednesday in New York. Investors digested a report showing Euro zone retail sales rebounded slightly in January.
Euro zone retail sales rose 0.4% month-on-month in January, reversing a 0.1% fall in December. Economists were looking for 0.3% growth in January.
The euro rose against the dollar on Wednesday, moving back towards Monday's record high. The euro reached 1.5256 by 10:30 am ET, up from 1.5144 earlier in the morning.
Traders considered a report showing US service sector activity contracted less than expected in February.
Versus the pound, the euro pulled back from a record high on Wednesday. After reaching .7689 just after 4:00 am ET, the euro slipped to .7662 later in the morning.
Investors mulled a report showing UK services Purchasing Managers' Index unexpectedly improved in February.
Against the yen on Wednesday, the euro rose to a weekly high. The euro climbed to 158.53 by 10:30 am ET, up from an early morning low of 157.00.

Yen Slips Against Majors [USD/JPY]

Wednesday, March 05, 2008 1:24:08 PM - The yen fell versus its major counterparts on Wednesday in New York. Investors had an increased risk appetite as a better than expected report on the US service sector.
Traders considered a report showing US service sector activity contracted less than expected in February. The report showed that that the non-manufacturing index rose to 49.3 in February from 44.6 in January, although a reading below 50 indicates continued contraction in the sector. Economists had been expecting the index to edge up to a reading of 47.5.
The yen slipped against the dollar on Wednesday, moving further away from Monday's 3-year high. The yen tumbled to 104.17 by 11:30 am ET, down from 103.37 earlier in the morning.
Versus the euro, the yen dropped to a 5-day low on Wednesday, dipping further away from Monday's multi-week high. The yen reached 159.21 by 11:30 am ET, down from an early morning high of 157.00. Investors mulled a report showing Euro zone retail sales rebounded slightly in January.
Against the pound on Wednesday, the yen tumbled to a 5-day low, sliding further away from Monday's 2-year high. Traders weighed a report showing UK services Purchasing Managers' Index unexpectedly improved in February.

Crude Oil Hits Another Record

Wednesday, March 05, 2008 3:49:09 PM - Oil soared on Wednesday and extended its record highs after the Department of Energy reported a surprising decline in weekly inventories. Light sweet crude closed at $104.52, up $4.67 on the session. Oil reached as high as $104.95 in mid-day trading, a dollar better than the previous record reached earlier in the week. Traders also considered reports that the Organization of Petroleum Exporting Countries has agreed to leave production levels alone.
The report from the Energy Information Administration showed that crude oil inventories in the week ended February 29 fell by 3.1 million barrels following seven consecutive weekly increases. The decrease came as surprise to analysts, who had been expecting inventories to increase by about 2.3 million barrels. The EIA also said that distillate fuel inventories decreased by 2.4 million barrels and are in the lower half of the average range. Analysts had expected inventories of distillate fuels, which include heating oil, to fall by about 1.9 million barrels. At the same time, the report showed that gasoline inventories increased by 1.7 million barrels and are above the upper limit of the average. The increase exceeded analyst estimates of an increase of about 900,000 barrels.
Oil cartel OPEC reportedly agreed Wednesday to leave output targets unchanged at its 148th meeting in Vienna, Austria. The 13 ministers said that the record high oil prices had been drive by factors beyond their control. Currently, the production limit for 12 of the 13 members is 29.67 million barrels a day. The decision to keep output targets unchanged was widely expected by the market. The next meeting is planned for Sept. 9, also in Vienna. Prices plunged on Tuesday and dropped below the $100 a barrel mark. Light sweet crude for April delivery moved to $99.85, down $2.60 on the session. Crude fell as low as $99.30, a little more than $4 less than its daily high from electronic trading. Stochastics and the RSI showed over-bought status for April oil. With the rebound, prices re-crossed the 10-day moving average. If prices turn lower, a support level sits at Tuesday's low crossing of $98.87.
On the economic front on Wednesday morning, Automatic Data Processing, Inc. (ADP) released its report on private sector employment in the month of February, showing that employment unexpectedly decreased compared to the previous month. The report showed that non-farm private employment decreased by 23,000 jobs in February following a downwardly revised increase of 119,000 jobs in January. The decrease came as a surprise to economists, who had been expecting an increase of about 15,000 jobs. ADP said that the decrease in jobs in February reflected a deceleration of employment growth across businesses of all sizes.
Meanwhile, the pace of productivity growth in the fourth quarter was unexpectedly revised upwards, according to a report released by the Department of Labor on Wednesday, although the report also showed an upwardly revised increase in unit labor costs. The report showed that the fourth quarter productivity increased by 1.9 percent compared to the 1.8 percent growth that was reported last month. Economists had been expecting productivity growth for the quarter to be unrevised at 1.8 percent. The unexpected upward revision was partly due a revision in hours worked, which decreased 1.6 percent compared to the previously reported 1.5 percent decrease. Output growth was revised down to 0.3 percent from 0.4 percent.

Australia's Trade Deficit +41% In Jan

Wednesday, March 05, 2008 10:34:15 PM - Registering its second-largest trade deficit ever, Australia's seasonally adjusted balance on goods and services showed a deficit of A$2.723 billion in January, the Australian Bureau of Statistics said Thursday, marking an increase of 41 percent and A$786 million over the revised December figure. Exports were up 2 percent, while imports jumped 5 percent.
The provisional trend estimate of the balance on goods and services was a deficit of A$2.521 billion in January, an increase of $109 million or 5 percent on the revised deficit in December 2007.The increase in the seasonally adjusted deficit was due to the rise in goods and services debits, mainly intermediate and other goods, outweighing the rise in goods and services credits, mainly non-rural and other goods.
Among exports, goods and services credits rose A$322 million to A$19.020 billion. Non-rural and other goods rose 2 percent or A$296 million, while rural goods were up 1 percent or A$25 million. Services credits jumped by A$1 million.
The rise in non-rural and other goods was driven by non-monetary gold, which rose A$316 million or 36 percent - and by metal ores and minerals, which rose A$312 million or 10 percent.
The value of imports was inflated by weather-affected demand as goods and services debits rose 5 percent or A$1.106 billion to $21.742 billion. Intermediate and other goods rose 13 percent or A$984 million and consumption goods rose 3 percent or A$144 million, while capital goods fell 3 percent or A$105 million. Services debits rose 2 percent or A$82 million.
The rise in intermediate and other goods was driven mainly by non-monetary gold, which rose A$410 million or 120 percent and fuels and lubricants, which rose A$372 million or 16 percent.
Also on Thursday, the trend estimate for total dwelling units approved fell by 0.6 percent in January, the ABS said. The seasonally adjusted estimate for total dwelling units approved rose 1.9 percent in January following a revised fall of 11.3 percent in December.
The trend estimate for private sector houses approved fell 0.4 percent in January following a revised fall of 0.2 percent in December. The seasonally adjusted estimate for private sector houses approved rose 2.7 percent in January following a revised fall of 4.8 percent in December.
The trend estimate for the value of total building approved rose 0.9 percent in January. The trend estimate for the value of new residential building approved rose 0.7 percent and the value of alterations and additions rose 0.1 percent. The value of non-residential building approved rose 1.5 percent.
The seasonally adjusted estimate for the value of total building approved rose 15.7 percent in January. The seasonally adjusted estimate for the value of new residential building approved fell 1.4 percent in January. The seasonally adjusted estimate for the value of alterations and additions rose 8.1 percent and the value of non-residential building rose 40.9 percent.

Oil prices steady at mid-$104 after surge to record high

SINGAPORE - Oil prices steadied Thursday after rising to a trading record near $105 a barrel after a surprising drop in US crude oil supplies.

Also supporting oil prices were OPEC's decision to hold its output steady, an escalating crisis involving three oil-producing South American nations, and as the US dollar sank to another record low against the euro.

"The primary factor causing the surge in oil prices is the surprising drawdown in crude inventories, which caused traders to really react quite dramatically," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Most analysts had expected the US Energy Department's Energy Information Administration to report oil stocks rose last week for the eighth straight time. Instead, the stocks fell 3.1 million barrels.

In Vienna, the Organization of Petroleum Exporting Countries said Wednesday it would hold production levels steady, at least for now. OPEC ministers cited falling demand in announcing their decision to hold production steady.

The EIA report and OPEC announcement fed a new frenzy of investing in oil futures, which have risen to new inflation-adjusted records this week as the falling dollar drew investors to the market.

Light, sweet crude for April delivery slipped 12 cents to $104.40 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore.

The contract jumped $5 to settle at a record $104.52 a barrel on Wednesday and later rose to $104.95 in post-settlement electronic trading.

Earlier this week, oil prices broke the previous inflation-adjusted price record of $103.76, set in 1980 during the Iran hostage crisis.

"Five dollars is an incredible gain," Shum said. "The overall oil market fundamentals are supportive of strong oil prices but not at this level, above $100. I would expect some profit taking to put a temporary halt to this rather large surge in pricing.

"Analysts noted that US oil inventories are at historic highs despite last week's decline in crude supplies. Meanwhile, demand for gasoline is falling, and several forecasters have cut their oil demand growth predictions for this year.

Other aspects of the EIA's inventory report were roughly in line with expectations. Gasoline supplies grew by 1.7 million barrels last week, more than the 900,000 barrels analysts expected, and are at record levels.

"The traders focus on the crude oil drawdown but they did not pay as much attention to the continuing build in gasoline inventories," Shum said. "Gasoline inventories are way above the five year historical average. It's an indication of a demand slowdown in the US."On the other hand, inventories of distillates, which include heating oil and diesel fuel, fell by 2.4 million barrels, more than the expected 1.9 million barrel decline. Distillates stocks as of Feb. 29 were nearly 10 million barrels less than they were at the end of January.

Traders also worried about the escalating of tensions between oil producing countries in Latin America. Colombia's weekend attack on leftist rebels hiding in Ecuadorean territory has sparked a growing crisis as Venezuela moved tanks and soldiers to the Colombian border Wednesday. Ecuador said Monday it had sent 3,200 soldiers to its border with Colombia.

In other Nymex trading, heating oil futures fell 0.39 cent to $2.9392 a gallon (3.8 liters) while gasoline prices were a tad lower at $2.642 a gallon. Natural gas futures added 5.5 cents to $9.796 per 1,000 cubic feet.In London, Brent crude fell 22 cents to $101.42 a barrel on the ICE Futures exchange. - AP

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BPI Forex Corporation can also transact in other major currencies such as the Australian Dollar, Canadian Dollar, Euro, Japanese Yen, and many other foreign currencies.To view the complete list of currencies that are accepted, click here.

How do I avail of the services of BPI Forex Corporation?
You may call or visit our main office or any of our forex stations strategically located in the major commercial centers and financial districts in Metro Manila. Our friendly forex officers and tellers would be glad to serve you. You may also avail of our services at any of the BPI and BPI Family Savings Bank branches located around the Philippines..

Are there any restrictions as to the amount I can deal with BPI Forex?
There are no limits to the amount one can convert into pesos. For non-trade sales, one can purchase up to the maximum amount as prescribed by BSP, cumulative within 20 calendar day period. Only an application to Purchase Foreign Exchange is required to be accomplished. For trade-related sales, there are no limits to the amount and frequency that a client can transact. However, submission of additional documents per BSP is required..

Are there any documents required before transacting?
When converting funds to pesos, you need to accomplish an FX slip form. For non-trade purchases of foreign exchange currencies, a duly accomplished application to Purchase Foreign Exchange form shall be required. In both occasions, presentation of 2 Valid IDs is required. For trade purchases, the following requirements should be submitted to BPI Forex Corporation:
· Certified true copies of supporting documents
· Commercial Invoices
· Shipping Documents
· Duly accomplished and notarized application to Purchase Foreign Exchange form

The fundamental and/ or technical analysis part 2 of 2

At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.
In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).
The main merits of the FOREX market are:
  • The biggest number of participants and the largest volumes of transactions;
  • Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes;
  • The market works 24 hours a day, every working days;
  • A trader can open a position for any period of time he wants;
  • No fees, except for the difference between buying and selling prices;
  • An opportunity to get a bigger profit that the invested sum;
  • Qualified work in the FOREX market can become your main professional activity;
  • You can make deals any time you like.

articles provide by: VIGRI Ltd.

The fundamental and/or technical analysis part 1 of 2

In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.
A technical analysis is founded on three suppositions:
Movement of the market considers everything;
Movement of prices is purposeful;
History repeats itself. That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices.
A number of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading.
Fundamental analysis is an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.

Margin trading


Margin trading is trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.
For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405).

Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.
In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).