Canadian Dollar Reaches Seven-Week Low as Fed Maintains Stimulus

The Canadian dollar fell to a seven-week low after the Federal Reserve maintained its $85 billion in monthly bond purchases while leaving open the possibility for future reductions by saying economic growth persists.

The currency weakened versus most of its 16 major peers as the U.S. central bank removed a sentence from the previous policy announcement that had said tighter financial conditions could slow the improvement in the economy, Canada’s largest export market. Canada’s dollar posted its biggest weekly drop against the greenback in four months last week after the Bank of Canada lowered economic growth estimates and removed language about the need for higher interest rates it had kept in every policy statement for more than a year.

“In view of the fact they see growth continuing without any major red lights, it’s conceivable they could look to cut back on the bond buying in December,” said Don Mikolich, executive director of foreign exchange sales at Canadian Imperial Bank of Commerce, by phone from Toronto. “So where the market really started to push off tapering into the new year, the suggestion it could happen sooner did evoke a bit of a reaction.”

The loonie, as the currency is known for the image of the aquatic bird on the C$1 coin, fell 0.1 percent to C$1.0479 per U.S. dollar at 5 p.m. in Toronto. It rose as much as 0.3 percent before falling C$1.0497, the weakest level since Sept. 6. One loonie buys 95.43 U.S. cents.

Fed Reaction

The market has been running a bit short-dollar ahead of the meeting, and there was nothing obviously more dovish than expected, so we’re seeing a bit of a squeeze up in dollar-CAD,” Shaun Osborne, chief currency strategist at Toronto-Dominion Bank’s TD Securities unit in Toronto, said by phone. “With the Fed out of the way now, we may see more U.S. dollar strength coming through.” A short position is a bet that an asset will decline in value.

The Canadian currency is down 1.6 percent this month and off 5.3 this year versus the greenback, according to data compiled by Bloomberg. Against its 16 most-traded counterparts, the loonie lost the most this month against Norway’s krone and gained the most this year versus the South African rand.

Canada’s benchmark 10-year government bonds fell, pushing the yield up two basis points, or 0.02 percentage point, to 2.42 percent, after touching the lowest level since July 22. The 1.5 percent security maturing in June 2023 lost 13 cents to C$92.16.

The Bank of Canada will provide details tomorrow about a five-year note auction scheduled for Nov. 6.

Price Swings

Implied volatility for one-month options on Canada’s dollar versus its U.S. counterpart fell to 5.6 percent from this year’s high of 9.4 percent in June. The measure is used to set option prices and gauge the expected pace of currency swings. The average for this year is 6.6 percent.

Trading in over-the-counter foreign-exchange options on the U.S.-Canada dollar exchange rate amounted to $1.4 billion or about 4 percent of trades, according to data reported by U.S. banks to the Depository Trust Clearing Corp. and tracked by Bloomberg. Yesterday, U.S.-Canada dollar trades were $9.7 billion, or 20 percent of volume.

A report tomorrow is projected to show economic growth in Canada slowed in August to 0.1 percent from 0.6 percent the previous month, according to the median estimate of a Bloomberg survey of 18 economists.

“I think GDP will get some interest, but anything that at least shows a positive number will, I don’t think, get too much of a market reaction,” CIBC’s Mikolich said. “But if we’re negative on growth for a particular month, that could push Canada a bit weaker.”

The Canadian dollar has posted the second biggest drop the past six months among nine developed nation currencies tracked by the Bloomberg Correlation Weighted Index. The loonie has fallen 3.9 percent, compared with the Australian dollar’s 9.1 percent loss. The U.S. dollar has increased 0.4 percent.

GBP/JPY little changed after solid Japanese data, BoJ decision

The GBP/JPY is trading under very slight pressure after the well expected unanimous BoJ decision to keep its monetary policy monetary policy unchanged and the solid Japanese data.

The GBP/JPY is hovering around 157.58 area the last couple of hours but since the solid Japanese data released it seems to gain an uptrend momentum, even a soft one. Briefly, the Japanese construction orders, as well as the Annualized Housing Starts were released at much better levels than forecasted, giving credit to the “Abenomics”. On the other side, the cross decline from opening as of 158.00 area to the 157.60 zone, can be partly attributed to the soft Nikkei decline, but mostly to the heaviness of the cable.

Technical Aspects on the GBP/JPY

The cross is under heavy pressure but can be mostly attributed to the heaviness in the GBP/USD coupled with Nikkei decline, lingering Chinese liquidity fears and other factors. Markets participants interested in the cross should realize that as long as the pair is well above the 50-daily EMA at 156.46 and the 21-daily EMA (157.49), if it manages to overcome the handle as of 157.87 where the 10-daily MA lies as well the 158.20 (the 24th October daily high), then the road to the 2009 highs as of 163 it can be maybe achievable. Briefly, traders in favor of the bullish above depicted scenario, point out that between 158.20 area and the 2009 high as of 163.00, there are no resistances to be found, apart from tiny ones. On the other side, if the 50-daily EMA at 156.46 is breached, then the cross might kick off a downtrend shift.

Dollar Gains After FOMC Meeting, Shrugs Off Poor Employment

The US dollar was firm after the meeting of the Federal Open Market Committee as the resulting statement was less dovish than market participants have expected. The greenback retained strength despite poor employment data.

The employment report from Automatic Data Processing showed growth by just 130,000 jobs in October that trailed the forecast of 151,000. Such data indeed does not give incentive for the US central bank to change policy, yet the dollar was not bothered by it.

EUR/USD fell from 1.3734 to 1.3726 as of 00:00 GMT today. GBP/USD went down from 1.6036 to 1.6028, while USD/JPY was flat at 98.48 following yesterday’s advance.

Markets Primed for Dovish FOMC Outcome May Be Disappointed

German Unemployment and CPI figures headline the economic calendar in European hours. The former data set is expected to show no change in headline labor market indicators in October, with the ranks of the jobless holding steady from the prior month while the unemployment rate remains at 6.9 percent. The latter report is forecast to see the baseline year-on-year inflation rate holding at 1.4 percent, matching September’s result.

On balance, such outcomes offer no meaningful impetus for markets to re-appraise status-quo ECB policy expectations, and as such seem unlikely to yield much of a reaction from the Euro. Overall Eurozone economic news-flow has deteriorated relative to expectations over the past two months according to data compiled by Citigroup. While this opens the door for downside surprises, the probability of an outsized reaction from the single currency (much less of seeing lasting follow-through) seems rather low before the markets can put today’s FOMC policy announcement behind them.

Needless to say, investors are looking to the Fed meeting to offer guidance on when officials will begin to “taper” the size of the QE3 stimulus program. Fiscal drag considerations following October’s US government shutdown have pushed back expectations on when the policy normalization process will commence, with the baseline view now looking for the first cutback in March 2014.

The incorporation of this view into asset prices weighed on the US Dollar over recent weeks, dulling the impact of any overtly dovish rhetoric that may emerge in the FOMC policy statement. That means that any large-scale volatility that occurs after the results of the Fed sit-down cross the wires is likely to come from an indication that the unwinding of QE may be closer on the horizon than current expectations are accounting for. In this context, broadly unchanged Fed commentary may be seen as comparatively hawkish considering investors seem primed for a noticeable lurch toward the accommodative side of the spectrum.

The absence of a discernible dovish tone shift may thus weigh on risky assets and boost the greenback. Such a scenario seems reasonable. Recalling the ultimately unfounded fears of the fiscal drag from the payroll tax hike and “sequester” spending cuts on the US recovery earlier this year, the chance that worries about the shutdown’s impact are overstated is a real one. Furthermore, the Fed’s recently spotty record of managing expectations means officials will probably want to see more hard evidence before tinkering with existing guidance.

EUR/USD retesting 1.37 support bears in control

The EUR/USD is extending its losses along Asia, currently testing bids at the 1.37 handle, exact same area where it stalled post FOMC, representing a technical support aligning with Oct 18 peak.

EUR/USD maintains a strong bearish tone according to the hourly chart, says Valeria Bednarik, Chief Analyst at FXstreet.com, adding that "failure to quickly regain 1.3750 will likely keep the pressure to the downside, with next big hurdle of buyers waiting around 1.3640."

The move, which has come in impulsive waves, reflects the somewhat increased optimism that the Fed left the door open to start the tapering of its bond purchasing program by December this year or January 2014.

What is BitCoin

Bitcoin is the first decentralized Digital Currency or E-currency which enable instant payment to anybody and anywhere in the world, created and electronically held. Bitcoins are not paper not or printed like Euros or Dollars or even Pounds. One of the interesting part from Bitcoin is they are produced by lots of people running their computer around the world using the software which solve mathematical problems. Bitcoin is the very first sample of growing category of money which currently known as cryptocurrency.

Some of you might found it on HYIP program as well and also Revenue share program. The truth is, it will be great if they can support this Digital Currency Bitcoin. It will allow you to trade bitcoin in other trading platform while investing your bitcoin in HYIP at the same time. Bitcoins have a number of advantages such as it is directly transferred from person to person via the net without going to the bank or clearing house.

• Instant peer-to-peer transactions
• Worldwide Payments
• Zero or Low Processing Fees

You can think of Perfect Money or Solid Trust Pay which is also has the same advantages with bitcoins but they are significantly differ in many ways. You can use bitcoin in every country and your account can not be frozen by anyone else. And as I mentioned before, Bitcoins are generated by many people all over the internet by anybody running a free application called The BitCoin Miner. While mining a bitcoin, it will require you a certain amount of work for each block of coins. This amount is automatically adjusted by the internet network and the total amount of bitcoins is predictable and limited. Therefore, your bitcoins are stored in digital wallet or E-wallet and when you transfer a bitcoins an electronic signature are added and within a few minutes the transactions will be verified by a miner and prominently and anonymously saved in the network.

What is Bitcoins, and How Does it differ other digital currency ?

Bitcoins can be used to buy things electronically. You can buy everything using Bitcoins as long as the merchant accepted this digital currency called Bitcoin. You may notice that this digital currency is also accepted by HYIP admin in their website to attract more investors as it will give us a unique payment when investing in HYIP program which of course many people will be interested to join them. Bitcoin is just like a conventional.

The unique thing of Bitcoin is that it is decentralized which given them the most important characteristic and also makes it different to conventional money such as dollars and yen. It is also a great characteristic which differ significantly to Perfect Money, Solid Trust Pay and even Ego Pay. There is not even one single institution that controls the Bitcoin network. Furthermore, it will put you at ease since there is no bank and even large bank can’t control their money. Bitcoin also got some company with the form of rival digital currencies such as Ripple, Freicoin, Namecoin.dollars, Euros, or yen which also traded online.

So who created Bitcoin ?

Bitcoin was propsed by software engineering called Satoshi Nakamoto which was a digital payment system based on mathematical proof. It was a complicated coding which was created by and him and now it is widely used in digital world. The idea was to create and produce an independence currency of any central authority getting involved, digitally transferable, more or less instantly with very or maybe no fees at all. Today, the idea was created, proven and has been widely use by people in digital world.

Then Who prints Bitcoin ?

No body.. It wasn’t physically produced from the beginning by the bank. It is uncountable and it has it’s own rules. If the bank can easily print out this Dollars paper note than bitcoins are mined using computing power in a distributed network by the community of the people in digital world. Therefore, the network also handle the transaction processes made by bitcoins and effectively creating the bitcoin as its own payment method. There is also another rule for example, say that only 25 million bitcoins can ever be made by miners in digital world. Thus, these bitcoins could be divided into a smaller pieces and the smallest divisible is for 100 millionth of Bitcoins which is called ‘satoshi’ after the founder of the Bitcoins digital currency.

And What is it ‘Based’ on

Usually conventional currency may be in form of Gold or Silver. Basically, you understood that if you deposited $10,000 in the bank, you could get your deposit in form of gold. Thus, Bitcoin is not based on gold but instead it is based on mathematical formula created by Satoshi. its values is not rooted by precious metals such as Gold or silver. Therefore, the community are using software program that follow these mathematical formula to produce and create bitcoins around the world. You would probably need a high computer performance to boost up your bitcoins mining. The mathematical formula is free to be accessed and any body can see and use it. Furthermore, it is an open source software which you can edit or delete the code to ensure it does what it is supposed make. As long as you know and understand the code, you can edit it according to your will.

What are the important Characteristics of Bitcoin ? Bitcoin has several Important Characteristics that others don’t

1. It’s decentralized

Which mean the network is not controlled by one central authority. It’s backed by no government agency or bank which means that they won’t be able to interfere the monetary policy and cause a meltdown is simply able to take other people’s bitcoin away as what Central European did on Cyprus in early 2013 which caused an uproar. And even if the network goes offline, for any reasons the the money will still flowing without problem.

2. Easy to Set Up

Setting up merchant account in Bank may be a bit complicated but setting a merchant account is as easy as flipping your bitcoins. You can set the account within seconds without any question being asked and there is completely no fees.

3. It’s Anonymous

I would say this is the best feature for HYIP admins and investors as well. It gives a complete anonymous when hold a multiple or single account. They are not linked to your name, addresses or any other personal information which means they are the best when used in illegal stuffs such as HYIP.

4. It’s completely transparent

However your bitcoin balance is completely revealed to anyone and they can tell how much you have. However, they just don’t know that it’s yours bitcoins since it is completely anonymous account. If you have this publicly bitcoin addresses then this might happened in the future but they won’r recognize the personal information or your name of this account owner.

5. Transaction fees are teeny

You bank charged you $35 for international bank transfers. You bitcoin wallet charged you $0 for international bitcoin transfers. Simple and profitable for investment.

6. Fast & Furious

Receive your Bitcoins within minutes after the network processes the transactions.

7. It’s Non-refundable

When bitcoins are sent, it is Sent ! Dispute ? Impossible ! for Bitcoins unless the recipient send you back.

EgoPay.com Reduced Transaction Fees

So, after such a long time replacing Payza’s that stop involving and working with HYIP industry anymore today EgoPay sent a fabulous news letter regarding the reduction transfering fees from Payza. EgoPay decided to lower their transferring fees after more than a year involving their payment processor in HYIP industry. EgoPay known as one of the payment processors that has a higher rate of transaction fees besides Solid Trust Pay and they also accept deposit method using Payza and OKpay. In this year, EgoPay has made me easier to cash out my money. They decided to collaborate and work together with OKPay and this is also benefits me since I have my own OKPay debit card.

With OKPay debit card, I can cash out my money from EgoPay into OKPay and then through ATM which finally end up in my wallet. This is one of the benefit that EgoPay gave me. Since they don’t provide debit card, I will probably using exchangers and transfer my money into my paypal account or bank account. Sometimes I joined several revenue share program which mostly accept payze in their business. Payza has it’s own debit card but until now, their debit card still can not be used and payza does not give me a proper reason why it can’t be use.

I usually use transfer my money from Payza to EgoPay and then transfer it one more time to OKPay and then cash out using OKPay debit card. It will cost you so much fees so I often use exchangers and withdraw it from EgoPay into my Paypal account. It is much convenient since I always using Paypal to purchase any thing online. You can also use OKPay debit card to purchase any thing online instead of using your credit card. So basically, while investing and earning revenue or profits from HYIP investment, you can use OKPay to cash out or purchase any thing online. I often use Perfect Money and EgoPay for my investment and this make things easier to cash out and purchase goods online. So with lowering the fees, this might give me benefits.

There is also a good news from EgoPay, you can deposit into EgoPay from any other payment processors with 0% fees. However, this does not apply for Payza and OKPay as you will still be charged with some fees when using those processors to fund your EgoPay account. Also good news for HYIP admin who use a merchant account. The fees will be lower when you received money which is less than $10. EgoPay will only charge merchant account 2.5%+0.25$ instead of previous 2.5%+0.50$.

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Dollar mixed as traders eye Fed meeting

The U.S. dollar was mixed against its major rivals during Monday’s Asian session as traders await the start of a two-day Federal Reserve meeting on Tuesday.

In Asian trading Monday, EUR/USD rose 0.05% to 1.3812. Last week, the pair gained nearly 1%. Last Monday, the U.S. is to produce reports on industrial production and the capacity utilization rate, as well as private sector data on pending home sales.

USD/JPY added 0.14% to 97.54 after that pair lost 0.82% last week. In addition to the Fed meeting, which concludes Wednesday, Thursday’s monetary policy statement by the Bank of Japan will also be closely watched.

GBP/USD gained 0.09% to 1.6183. That pair rose 0.22% last week. Wednesday’s minutes of the BoE’s October meeting said the U.K. unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.

In U.S. economic news out Friday, the Commerce Department said durable goods orders rose 3.7% last month, beating expectations for a 2.3% gain. The August reading was revise up to 0.2% growth from 0.1%. Excluding transportation, orders fell 0.1% against expectations of a 0.5% rise.

The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment fell to 73.2 in October from 77.5 in September. That is the lowest reading since December 2012. Economists expected an October reading of 75.

USD/CHF inched down 0.02% to 0.8925 while USD/CAD fell 0.11% to 1.0442. It is widely expected no announcement regarding tapering of the Fed’s USD85 billion-a-month bond-buying effort will be made at this meeting.

AUD/USD advanced 0.23% to 0.9607. Reserve Bank of Australia Governor Glenn Stevens is scheduled to speak on Tuesday.

NZD/USD rose 0.24% to 0.8300. Markets in New Zealand are closed Monday for a public holiday. The U.S. Dollar Index inched down 0.04% to 79.23.

Canada Dollar Falls Most in 4 Months on Rate-Bias Tilt, Oil Drop

The Canadian dollar fell the most since June after the Bank of Canada abandoned a leaning toward higher rates and crude oil dropped below $100 a barrel for the first time since July.

The currency weakened versus the majority of its 16 most-traded peers for a fourth week as a more accommodative policy by the Bank of Canada announced Oct. 23 followed a Sept. 18 decision by the Federal Reserve to sustain the pace of bond purchases to engineer a stronger economic recovery. Canada’s economy may have expanded 1.7 percent in August from a year earlier, according to the median in the Bloomberg News survey of economists before the Oct. 31 Statistics Canada report.

“There’s two factors at work, the Bank of Canada and industrial commodity prices,” Greg Anderson, head of global foreign exchange strategy at Bank of Montreal, said by phone from New York. “We haven’t seen oil prices this low in a long time.”

The loonie, as Canada’s dollar is known for the image of the waterfowl on the C$1 coin, added 1.6 percent this week to C$1.0448 per U.S. dollar in Toronto. It reached C$1.0461, the weakest level since Sept. 6. One loonie buys 95.71 U.S. cents.

BMO’s three-month forecast is for the currency to weaken to C$1.06, Anderson said.

Prism Cement gains; Ashwani Gujral suggests Rs 79 as target

Prism Cement was among major gainers in today’s session. At 11.30am, the stock was trading 6% higher compared to previous close.

The stock has touched an intraday high of Rs 54.25 on NSE. The trading volumes are high as well. On NSE, during the first hour of trading, 2.1 million shares changed hands while the volume on BSE was 1.4 million shares.

The stock is trading near its 52-week high of Rs 60.

Indian Stock markets trading higher, BSE Sensex up by 160 points at 11.03 AM IST

In a surprise move, Indian Stock markets have gone opposite to the global weakness. The stock market started inching up during the morning session. At 11.03, BSE Sensex was up by 160 points at 14948. NSE Nifty was up by 51 points.

Among major gainers on NSE were, ONGC (up by 1.6%), Hindalco (up by 3.2% at Rs 104), Siemens, M&M, DLF, Larsen & Toubro, Jindal Steel and Suzlon Energy.

Among major gainers on BSE were, Jaiprakash Associates, SBI, Maruti Suzuki, Tata Steel, ICICI Bank and HDFC Bank.

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If You Don’t Like Whipsaws, Don’t Trade Gold

It seems every time there is a jump or a fall, there is a monster on the other side of the the market waiting to jump in. Gold up $14 now to $1607 after falling to a session low of $1585 thirty minutes ago.

Bernanke is taking questions now but his answers can’t be interpreted one way or the other.

Goldman cut its 2013 and 2014 gold forecasts earlier today. They see gold at $1600 in 2013 vs $1810 previously.