Euro rises following the postponement of Spain by Moody

Euro arrived earlier to its highest level during the month against the U.S. dollar after the confirmation and Moody's credit rating Spanish rather than reduced to the level of "undesirable" as it was expected. This helped to lift sentiment as it refuted immediate risks related to the high costs of borrowing by the Spanish bond auction tomorrow.

As reported from Tokyo at 12:50 Japan time, trading the EUR / USD at higher by 0.3% at $ 1.3091, down from $ 1.3125, the highest level for the pair through nearly a month. Traders say they will remain cautious in the short term, where there are no reasons for any great optimism.

Even with the approaching summit and EU finance ministers and leaders of the European Union, the expectations low and you think that majority will produce little of value. Real hope is to make Spain formal request for assistance during the summit, but most analysts agree that this is unlikely.

The euro was also up against the Japanese yen, as the euro against the yen to its highest level during the month yesterday, when it reached 103.51 yen. The pair is currently trading at 102.99. Yen continues in being flexible with the advent of expectations BOJ intervention again.

What are the expectations of the price of gold for the year 2012?

What are the expectations of the price of gold for the year 2012

Note that the volatility in equities remains exist permanently, especially in the midst of earnings season. But fluctuations in the price of gold has subsided. In 99.9% of cases, the approach taken bottom - Investment Summit. I personally do ignoring the macroeconomic picture most of the time, and I ignore the speakers on the TV, and also ignore the peaks and valleys of Preference, and focus on companies. Focus on their chances, and focus on value and growth and then baited between vendors frightened, investors who are afraid at every decline in the market. And I large corporate Baltalq when low prices, watching the returns and is flowing. This is the reason that my favorite time of the year is the month of August and September and October - the broad market disaster months. Now, this is on the vast majority of the market. And a few exceptions is the price of gold.
Case with gold completely flipped. It Investment from top to bottom, where its value is tied in the overall economy. The addition to your situation when declines - as is the case now - and benefit when boarding.
During the month of August, gold price bounced back from 1.900 $ per ounce. Today, hovering around 1.590 $. This nearly falling by about 16%, ie by 16% discount.
A lot of people think that the luster-filled days on new heights for gold are gone. And have heard claims that the price of gold will reach $ 1.100 and so it will drop down to $ 700 ... But I ignore these extremists. Will tell you something, we may see the price of gold drops to lower levels - this is possible;, but a lot of these Altdeghin forget that the price of gold is also seasonal, although this is not seasonal and clear like other commodity prices lighter.
If the truth is, we are in a regressive phase seasonal inside what I believe to be more progressive wave. We are in a holding pattern - the pattern of retention, or rest, and we have seen this same stop since April to July of last year when the price of gold hovered around $ 1,500 and dropped to the level of 1.400 $ sometimes.
In fact, over the past five centuries, gold prices weakened from mid-February until the summer, and again in the month of October. And the biggest gains are in the period of November to the beginning of February, the annual movement of the mouse before you buy Asian high.
You will notice that the volatility in the stock continues permanently astray, especially that we are the center of the earnings season, but volatility in the price of gold has subsided. And gone are the days when the price moves by $ 150 per ounce. Now, the big movement is to be between 30 and $ 40. And most of the days are less movement than that.
The months of November and December of the strongest months for gold. But this year we had the U.S. presidential elections in November, and continue macroeconomic picture in being weak. We are still worried about Europe. Greece is a small problem compared to what is revealed in Spain, and Spain has negligible compared to the situation in Italy.
If dominoes began falling, the end of the a large euro will experience fun moving from discussion during dinner to a very large probability.
I expect to take six months before a big rise last in the price of gold. And $ 2,000 for gold looks much more prominent than the triple digits. Choose your area over the next six months, and the expectation of rising gold price in the latter half of the year. Of course, at least, should have investments by 5% in precious metals such as gold.

Rate of exchange

The exchange-rate mechanism (in English: Exchange rate) the central element in the international financial economy, is also considered a pole in the modern financial thought, and is of extreme importance in the amendment and the settlement of the balance of payments of the state, especially those of developing countries.
What is the exchange
Each state has its own currency used in the payment of the Interior, and appear necessary to use currency Foreign When you trade relations or transaction between companies operating within the state with companies operating abroad, and companies need imported into the currency of the exporting country to pay for imported goods, and have thus to Go to exchange market to buy the currency of the exporting country to this process is done, and in fact are not companies that trade with the outside world is just that you need to international currencies, but each person traveling outside the country of residence needs to be the currency in which wish to go even if tourists and finds himself then forced to carry out exchange operations.
Types of exchangeThere are two types of exchange: exchange cash and futures exchange.
Exchange cash
Is the process of delivery and receipt of currency exchange contract moment, and apply the exchange rate prevailing for the moment of conclusion of the contract. The exchange rate changes continuously during the day depending on the currency supply and demand. And there are two prices for the exchange: Price (value in national currency required by the Bank for a particular unit of foreign currency) and the purchase price (value in national currency paid by the bank to you for a specific unit of foreign currency), and the price they sell normally higher than the purchase price.
Quotes intersecting

    When exchanging currency in a particular financial center, it may be the price two opposite Bedeihma other currencies is not available and the need to exchange must determine their exchange rate, and is based on the relationship the two currencies in a third currency, called the price calculated in this way intersecting prices.
Different prices in different currencies and financial centers arbitrations
    Changing prices of a particular currency against another currency down, this may lead to the emergence of different prices for currency compared to another currency in various financial centers. This difference in the price paid and exchange agents to carry out arbitration between prices in different financial centers, and then swap buy in the financial center where the currency rate is low, and resale in the financial center where the high price of the currency. And benefit agents exchange of price differentials.
View exchange rates
Exchange for
If delivery and receipt of Whitman currencies after a certain period from the date of conclusion of the contract Mtbakan exchange rate prevailing moment of the conclusion of the contract. And used the companies operating in foreign trade this kind of exchange to avoid risks arising from potential fluctuations in currency exchange rates, where the exchange rate prevailing moment of the conclusion of the contract which Sarabv regardless of the exchange rate to the moment of execution of the contract.
Drainage systemsDrainage system knew several developments of the gold standard began and ended the day to the floating system. The Bretton Woods system is based on the U.S. dollar linked to gold. States were linked their currencies at a fixed rate with the dollar. But it soon changed after the announcement by President Nixon in 1971 to prevent the dollar's convertibility into gold. And such a declaration in the eyes of many collapse Bretyon system Woods. It's that time knew the drainage system two major patterns:
Fixed exchange systems

    And it is installed currency exchange rate either to a single currency is characterized with certain specifications Kalqoh and stability. And either to a basket of currencies from currencies of key trading partners, currency or constituent unit Special Drawing Rights (SDRs).
Flexible exchange systems

    Characterized by its flexibility and usability of the amendment on the basis of certain criteria, such as economic indicators. The state track managed float regime where the authorities to amend their exchange rates based on the frequency level has a reserve of foreign exchange and gold balance of payments. Or use free-floating, which allows for the currency value to change up and down as the market, this system allows the economic liberalization policies of exchange rate restrictions.
Exchange market
Is a convergence place offers and requests various currencies, and which is the identification of the exchange rate of the national currency against other currencies. It is also a container that is where all global deals. The specific exchange markets is important, but is distributed in all financial centers across computer networks, banks and financial institutions.

What is Forex

Currency marketThe word "Forex" refers to the foreign exchange market or the global stock of foreign currency, an abbreviation of the term economic Foreign Language "Foreign Exchange Market" any "foreign exchange market", a market extends across the world, where the disposal of currency by several participants, such as international banks and international institutions and financial markets and individual traders.
Date currency marketSome researchers say that the Forex market is due to the Babylonians of the foundations and principles of hand. In those times traders were exchanging their goods compared to other materials. And when he entered the world into the age of metals, gold and silver became the most heavily traded commodities. With the entry of regimes and governments that made coins, mineral-commerce has become the most important economic means by States. Because of the magnitude of the metals market and the participation of governments which have enacted laws Fadt traders in this market which was Refine the causes of the American economic crisis in twenty and thirty years of the twentieth century.In these years (1931 in particular) Born the foreign exchange market or Forex is known today. Despite the passage of so many years but the word Forex FOREX)) still does not mean a lot of people in the world and particularly for traders and businessmen, and ignorant they fall under the branch of stock trade in the global economy.Stock markets exist in all countries of the world, and each specialization Stock Exchange and its field. In addition to the currency market there are other types of exchanges such as: gold and silver, Petroleum Exchange, stocks, bonds, agricultural and energy.There are two types of exchanges: Exchanges direct exchange Exchange
Trading and trading in the currency marketIs the buying and selling of different currencies in U.S. dollars or other currencies among themselves so-called currency pairs and against the U.S. dollar or any other currency against another currency in value. The currency trading earn from trade on the stock market
The large currency changes, multiple which helps to do some business operations in a single day. It is known that the large declines influence on financial markets, which could lead to the collapse of stocks or bonds. The forex market decline in the U.S. dollar (for example) means the price rise second currency and there is no breakdown such as stock markets or bonds.
Forex market combines four regional markets: Australian and Asian, European and American. And continue trading operations which every working day and the market closes on Saturday and Sunday, and market works around the clock 24 hours a day. The relative calm of the notes at 20:00 until 01:00 GMT, due to the closure of the New York Stock Exchange in the eighth pm and the start of the Tokyo Stock Exchange work at one o'clock in the morning. With the entry of technology and the Internet has become possible to use open accounts and trading in international markets with companies and banks did not go to them, even in all countries of the world including London and Hon Kong and the United Arab Emirates and Dubai.
Of the most important advantages of trading in the forex market as well as for rapid variability is trading on margin or aspiring Margin trade. That this trade deal with so-called (trade margin) ie you book a small amount of your account (1000 dollars) for the purchase of (100000) dollars and called Purchasing Unit (Lott) and win or lose by the movement of currency or commodity or metal you have purchased or sold it and this kind of trading (though it sounds simple) is profitable types of trading where you can earn a substantial profit within a few seconds as a result of economic news or upload and download rate of interest or a natural disaster or other causes and other economic.
One of the important characteristics of the currency market is a property of balance despite the fact that this seems strange. Everyone knows that the fundamental property of the financial market is the sudden decline. But the forex market is different from the stock market in that it does not fall. When stocks lose value this collapse. If the dollar collapsed, for example, it means only that another currency has become stronger - for example the Japanese yen, which has become in just a few months of 1998, the strongest quarter almost for the dollar. This has reached the falling dollar for some days in that period of tens of per cent. Although it did not happen the collapse of the market transactions continued as usual, in this confined to the stability of the currency market and its associated work. This is because the currency is a commodity full liquidity can be bought or sold at all times.
Some terms
- Per unit of goods Unit: a minimum can be traded item. Called "Lute" Lot- Dealing institutions that operate the system with marginal things can be traded and fixed units each unit called Lute lot.- The size of the contract Contract Size: is the actual value of the commodity company that allows you to trade him.- Double Leverage: a ratio between the value of the item that you want to be traded between the value of the bond that asks you to pay (used margin) to allow you to trade this item.The multiplier can be calculated by the following formula: multiplier = number of contracts * contract size per / user margin- Used Margin Used Margin: an amount that is deducted from your account temporary token Recovered from the item that you choose to be traded, this amount represents a small percentage of the value of the item you temporary institution Bhdzh to until the completion of the transaction. The obligation to return to your account after completion of the transaction, regardless of the result of the deal, both ended with a profit or loss.
 Used margin is calculated according to the following equation: Used margin = number of contracts * the value of the contract / multiplier ratio -
 Margin Usable Margin: an amount that is left in your account after the deduction used margin of it,Which is the maximum amount that allows you to defeat the deal.

The interest rate

The interest rate is the price paid by the central bank to commercial banks deposits, whether for investment for one night or for a month or more. This price is an indication of the interest rates of commercial banks, which should not be less than central bank rate, Also helps the central bank interest rate in the control of the money supply in circulation by changing this price up and down over the medium term. The rate hike means to curb borrowing and thus reduce the level of liquidity in the market thereby reducing the rate of inflation (rising prices).
Factors that determine the interest rateInterest rates are determined based on the forces of supply and demand, if rates increased demand for what is on offer from the funds will lead to higher interest rates at the same time will reduce lending rates in the economic sphere. Interest rates are influenced by the scale height
The decline in capital markets different, where interconnected financial markets as a result of the movement of funds within these markets, the market is financial characterized prices usefulness rise attracts capital in search of higher profitability standing, the supply of these funds, and this in turn leads to reduced price any interest rate responsive to the forces of supply and demand, at the same time expel low-interest markets capital resulting in a decrease in the supply of a factor in a high interest rate. As well as the consequent flourishing economic situation rise in interest rates, where interest rates tend to rise in each period where economic institutions need to finance in response to increasing production if the economic recovery takes the demand rises on capital, which works to raise the price

Economic inflation

Economic inflation: is one of the largest economic common terminology is that despite the widespread use of this term, it does not have an agreement among economists on its definition and due to the split opinion on defining the concept of inflation where this term is used to describe a number of different situations, such as:

    The excessive rise in the general price level.
    Rising incomes in cash or a component of cash income such as wages or profits.
    Rising costs.
    Excessive creation of cash balances.
It is not necessary to move these different phenomena in one direction at a time, in the sense that it could happen a rise in prices without accompanying increase in cash income, as that could happen the increase in costs without be accompanied by a rise in profits, is likely happen excessive money creation without being accompanied by a rise in prices or cash incomes.
In other words, the different phenomena that can be given to each of them "inflation" are phenomena independent of each other to some extent, and this independence is the one who raises the confusion in defining the concept of inflation.
The term distinguishes inflation phenomenon called this group consists of expressions include:

    Price inflation: any excessive rise in prices.
    Inflation income: any high cash incomes such as wage inflation and inflated profits.
    Cost inflation: rising costs.
    Inflation: any over-issued currency.
    Bank credit inflation: inflation in credit.
Hence Some writers believe that when he uses the term "inflation" without discrimination case called this term is intended to be inflated prices because the excessive rise in prices is the sense in which he finishes immediately to mind when he mentions the term inflation.

Standard & Poor's

Standard & Poor's is a financial services company based in the United States. , A subsidiary of McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is also one of the three credit rating agencies adults, which also includes the classification
 Both Moody's and Fitch Group.

 Company History
The company dates back to the year 1860 with the release of Henry ڤaarnm Port book on "The History of railways and canals in the United States." This book was an attempt to collect full information on the financial and operational status of railway companies in the United States. Has established Henry ڤaarnm with his son, William Henry HV and H.W. Poor Co.
In 1906 the foundations of Luther Lee Blake Standard Statistics Bureau Census Bureau standard in order to provide financial information for companies outside the railway, has merged both the Port Company and Standard Stadtacetk consisting of Standard & Poor's and that was in 1941.
 In 1966 acquired McGraw Hill Group of Companies and is now include the financial services sector.


 Credit Ratings
As a credit rating agency is issued classified to measure the ability of a government or a company or an institution borrowed to meet their financial obligations to the lender, that this category is a testament on the financial position of the authority concerned. , One credit rating agencies classified by the Board of the American Stock Exchange "as a national statistical standards recognized." They are issued credit ratings short-and long-term.


 Stock Market Indexes
Standard & Poor's publishes several stock market indices, covering all regions of the world, and the level of capital market and the type of investment (eg: real estate investment trust indicators and preferred stock).
Among these indicators:- S & P 500Index weight - for free capital - prices for more than 500 shares trading in the United States.- S & P 400- S & P 600