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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (48311)	4/16/2005 7:59:31 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

April 15-Titanic sunk 1912: The British luxury passenger liner Titanic sank in the early hours of this day en route to New York City from Southampton, Hampshire, England, during its maiden voyage. About 1,500 lives were lost at a point about 640 km (400 miles) south of Newfoundland. The great ship, at that time the largest and most luxurious afloat, had a double-bottomed hull that was divided into 16 watertight compartments. Because four of these could be flooded without endangering the liner's buoyancy, it was considered unsinkable. 1959: Seriously ill with cancer, John Foster Dulles resigned as U.S. secretary of state. 1947: Jackie Robinson, who broke baseball's racial barrier, played in his first major league game for the Brooklyn Dodgers at Ebbets Field. 1926: Robertson Aircraft, one of the companies that later developed into American Airlines, flew its first mail route, between Chicago and St. Louis, Missouri; the pilot on the first flight was Charles A. Lindbergh. 1920: Two men were murdered in South Braintree, Massachusetts, leading to the Sacco-Vanzetti case and the still-controversial conviction of the two Italian immigrants. 1850: San Francisco was incorporated as a city in California. Leonardo da Vinci Leonardo da Vinci, born this day in 1452, was an Italian painter, draftsman, sculptor, architect, and engineer whose genius, perhaps more than that of any other figure, epitomized the Renaissance humanist ideal. His Last Supper (1495–98) and Mona Lisa (1503–06) are widely influential paintings. "The most praiseworthy form of painting is the one that most resembles what it imitates." Leonardo da Vinci

To: IQBAL LATIF who wrote (48311)	4/23/2005 4:29:21 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

US Dollar – What Are The Most Market Moving Economic Indicators? Written by Kathy Lien, Chief Strategist Friday, 22 April 2005 GMT While most participants in the FX market are purely technicians, it has been estimated that 25% of all foreign exchange dealers trade with fundamentals, compared to 30% who use technicals. Among the speculative day trading community, this ratio is probably even more weighted towards technicals. However, as we have all learned throughout the past year, fundamental releases have become increasingly important market movers. Based upon our observations, the most significant movements in the dollar (against the euro) tend to occur in the first 20 minutes following the release. Relative importance of data changes over time The relative importance of economic releases also tend to evolve with time. In 1992, the trade balance was the number one market moving US economic release on a 20-minute basis while non-farm payrolls (and unemployment data) was the third. In 2004, these two indicators switched places with non-farm payrolls being the biggest market mover for the dollar and the trade balance taking third place. Intuitively this finding makes sense as the market shifts its attention to different economic sectors and data—for example, trade balances may take precedence when a country is seen to be running unsustainable deficits. Similarly, in an economy that has difficulty creating jobs, unemployment data will be viewed by the market as more important. According to a paper written by the National Bureau of Economic Research (NBER) conducted in 1999, the importance of economic data was ranked as the following: FX Dealer Ranking of Importance of Economic Data: Changes over time What is also important to take into account is that prices do retrace throughout the course of the day, therefore the biggest 20-minute mover for the dollar may not be the most significant market mover over the course of an entire trading day. According to our own analysis of 20-minute and daily ranges, we have found and created the following rankings for economic data: As indicated in our tables, non-farm payrolls is hands down the most significant market mover, causing an average 124 pip range of trading in the first 20 minutes following the release and a 192 pip range of trading throughout the course of the day. Interest rates also hold on to second place for both time frames, but the rankings begin to shift dramatically for the other indicators. Net foreign purchases of US securities generally has a nominal average 20-minute move of 33 pips while on a full day basis, it results in a 132-pip move. The breakdowns of the average pip ranges for the EURUSD are the following: As you can see, the most significant change over the past few years has been the shifting importance of the trade balance. In addition, contrary to popular belief, throughout the same time period, the GDP report has also become one of the lesser important economic indicators and has led to one of the smallest relative movements in the EURUSD. One possible explanation is that GDP releases are less frequent than other data used in the study (quarterly versus monthly). In addition, GDP data is more prone to ambiguity and misinterpretation. For example, surging GDP brought about by rising exports will be positive for the home currency; however if GDP growth is a result of inventory buildup, the effect on the currency may actually be negative. Factors such as these are very important for currency traders to keep in mind regardless of technical or fundamentals trading strategies. For technical range traders, they know that they should probably stay away from range trading ahead of the NFPs, while breakout traders will find that the NFPs may pose a great trading opportunity. For fundamental traders, these results are also important because the exchange rate adjustment to economic news appears to be very swift, any reaction beyond a 15-30 minute window after the data is released may be the result of investor over-reaction or trading related to customer flow rather than news alone. The GDP is a perfect example - the 20-minute reaction ranking is higher than the daily ranking. It is also critical to stay abreast of which data the market deems important at any point in time because the market's focus changes from period to period, once relevant data may end up having less of an effect on currency values, and vice-versa. Resources: Macroeconomic Implications of the Beliefs and Behavior of Foreign Exchange Traders: georgetown.edu Last Updated ( Friday, 22 April 2005 )