Hong Kong shares available for trading at ActivTrades

Trading in foreign stocks is not an easy task, especially when the access to certain stock exchanges is limited or reserved only for a few with enough capital. But now an independent retail trader can have access to some of the most important companies listed on the Hong Kong stock exchange though the use of ADRs. In order for a company outside de United States to get listed in one of the American exchanges, it must create an ADR, which means an American Depositary Receipt. Through the creation of ADRs, a broker can offer these shares through CFDs or contracts for difference. This is what ActivTrades has been offering lately as an addition for traders to diversify their portfolios. CFDs carry different margin requirements, and that is why we invite you to visit the ActivTrades’ website to see for yourself the requirements and all the other ADRs available that the broker has. Actually, you may find that the broker offers trading in almost all the main exchanges with some of the biggest companies.

For more information, please visit:

http://www.activtrades.co.uk/index.aspx?page=cfds_commissions

Pullback on the AUD/USD towards the 0.7700 level

The Australian Dollar dropped unexpectedly during today’s session after the interest rate cut announcement by the Reserve Bank of Australia. Initially, the AUD/USD drops from the 0.7800 zone until it breaks below the 0.7700 level. The pair has fallen to the 0.7625 level from where it has started to make a correction to the upside. At the moment, the price is very close to touching the 0.7700 area again, and the zone could become a good resistance for the pair, mostly because this is a round number level. Let’s be on the lookout for a possible bounce to the downside from the 0.7700 area, especially because a breakout-and-pullback pattern may develop.

First week of February is full of fundamental data

This week we have scheduled some very important fundamentals that could make volatility rise once again in the markets. On one hand, we have the PMIs from the United States, we also have the rate decision and statement from the Bank of England. Lastly, on Friday we have Non-Farm Payrolls out of the US, this piece of data is very important and it could create high volatility in the markets. It is expected that the US economy created 231,000 new jobs during the month of January. If the reading comes out better than expected, then the greenback could strengthen and the EUR/USD could reach new lows.

Who to trust during the high volatility events?

The financial markets have been shaken recently by high volatility due to the slew of fundamental and geopolitical events surrounding the main currencies of the globe. The Euro has been losing ground amid worries about Greece and its future plans, the Dollar has been gaining ground on a possible rate hike by the FED during this year, and the Swiss Franc gained an amazing 20% versus the Euro after the National Swiss Bank let the currency float freely.

The events that came after the announcement by the National Swiss Bank, was a test to the most important Forex brokers around the world. Alpari had to declare itself insolvent, FXCM had to be bailed out by an outside company, and even CitiFX reported millions of Dollars in client loses during the National Swiss Bank event.

But this was also a good opportunity to see which brokers handled the situation professionally. Actually, the brokers that best came out of the recent events were the brokers that took measures before the panic started. For instance, Dukascopy raised its margin requirements on the CHF crosses since October and so did ActivTrades since November. This prevented the clients from these brokers from suffering huge losses on their accounts. The official announcement by ActivTrades may be found here:

http://www.activtrades.co.uk/index.aspx?page=important_announcement

Possible test and bounce at the 133.00 level on the EUR/JPY

After today’s statement from the FED, the Euro versus the Yen started to move rapidly in both directions, but after a moment of high volatility, the pair seemed to have chosen to go down. The next support on the pair is the 133.00 level. Let’s be on the lookout for a possible visit of the price to the 133.00 level, from where we may see a bounce to the upside. If the price does not bounce, but breaks below this level, the best thing to do is to wait for the pullback for a possible short entry.

What is the daily turnover in the Forex market?

The volume of trades that are being executed daily in the Foreign Exchange Market is rising. The average daily volume for the month of October in North America was more than one trillion Dollars. Daily Forex volume turnover in the United Kingdom has also been on the rise, reaching record highs in April of last year. That month, the daily average turnover for the Forex market was 2.7 trillion Dollars. In Japan the daily Forex turnover is rising as well with 373 billion Dollars exchanging hands on a daily basis.

The data shows that more traders are being attracted to the Forex market every day and the Forex stays as the financial market with the highest expansion rate. However, we must keep in mind that the rising figures in the Forex daily turnover is also being caused in great part by the rising volatility. The divergent monetary policies between the FED and the European Central Bank has fueled the current volatility that we are seeing in the markets and that is why volumes are also rising.

The GBP/JPY tests the 179.00 level

The GBP/JPY has retraced more than 300 pips during today’s session. On its way to the 179.00 level, the pair encountered some resistance around the round number levels, where it tried to consolidate for a while, but the price kept rising until reaching the 179.00 level. From that zone, the price may try to bounce back down, but we must be attentive to a possible breakout, which could take the price to the next round number level of 180.00.