TFN NEWS BRIEFING: Macroeconomics highlights to 10:10 GMT

US, EU unlikely to stop Microsoft deal

WASHINGTON (AP) - U.S. and European antitrust regulators aren't likely

to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of

the deal could drag on for months.

2008-02-01 23:31:41

EconoLog

NEW YORK (AP) - Is the U.S. economy slipping into recession? Economists,

analysts, company executives and investors are increasingly recognizing the

possibility. Following are some comments Friday assessing the state of the

economy, and what may happen if it slides into a recession:

-- Analysts from Moody's in a conference call cited heightened fear of a

recession as one of the reasons the ratings agency is likely to downgrade some

bond insurers' financial-strength ratings by the end of the month.

New Services from FOREX.com

More trading opportunities.
You can now trade four new currency pairs at FOREX.com - AUD/NZD, AUD/CAD,
GBP/AUD, GBP/CAD. These new cross currency pairs allow traders to directly target trading opportunities in the so-called “commodity” currencies.

Even more research.
Now you can access more research from within the platform; session recaps and pivot points are available from within our FOREXTrader platforms.

Published three times daily at the close of each major market session, the session recaps provide actionable insight on the market. Pivot point calculations can help you determine significant support and resistance levels to anticipate trend shifts, especially when used in conjunction with other technical indicators.

More trader education.
Sharpen your trading skills with enhanced Learn To Trade Forex training program. The new course features updated information and additional lessons. Also, as part of the program you now have unlimited access to an experienced FX instructor.

Also added half-day intensive training sessions with FOREX.com’s team of seasoned FX instructors in cities worldwide.

Even more convenient funding options.
Deposits in five currencies - USD, EUR, AUD, CAD, CHF and GBF. You can now withdraw funds online from MyAccount.

Your satisfaction matters.
Feed Back:

“We’re always eager to hear your ideas for improving FOREX.com. In fact, in our latest client survey many of you asked for pivot points and additional currency pairs - and we’re more than happy to deliver. Keep the suggestions coming!”

We’re also happy to report over 90% of survey respondents would recommend FOREX.com to their friends. If you feel the same, check out our Refer a Friend program. Every time you refer a friend who opens and funds a FOREX.com account, you’ll both have the opportunity to earn up to $250.

How to avoid making psychological mistakes while currency trading

Amelie Gam is an Internet writer for Forex Trading Plus. She just wrote an interesting article on psychological aspect of currency trading.

According to Amelie, a trader exposes himself/herself to the higher risk of loss when he or she :

- doesn't control human emotions;

- acts upon fear or hope without basing own feelings on real facts;

- exploits other people’s human emotions (people who are constant in their mistakes can not gain success and earn money);

- is not disciplined, doesn't make plans, doesn't follow strategies, doesn't apply mathematical and money management principles;

- doesn't run only profitable trades and doesn't try to cut losses as fast as possible;

- uses rumors and advice without being certain of their authenticity and quality.

To be successful you have to think independently of the majority and stick out from the crowd. Currency trading is safer than other trading methods, but if you want to have an edge over other competitors than try to be wise and research first, study other people’s behavior and choose from them only the best.

Foreign Currency Trading

Forex - (short for Foreign Exchange) is real-time buying of one currency and selling of another. One of the biggest trading markets in the world, trading foreign currency allows people to trade one currency for another trying to determine which currency's value will increase by the end of a determined time. For example, one could choose to buy the US Dollar against the Euro in anticipation for a rate change in favor of the US Dollar. The foreign currency trading market is considered the largest financial market in the world with average daily trading rates currently amassing to over three trillion US Dollars.

To start with, remember that the first currency listed is called the "base currency." A base currency is usually the US dollar. People (traders) will usually pit the USD against another currency – say, for example, a Japanese Yen.

The American dollar is usually considered the base currency for quotes. For example, a quote of USD/JPY 2.34 means that one U.S. dollar is equal to 2.34 Japanese Yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has increased in value and the other currency has weakened. If, after the allotted time, the USD/JPY quote is 2.50, then the dollar is stronger because it can buy more Japanese Yen. There are exceptions to the rule, such as the British pound (GBP) or Euro, which would be the base currency if matched against the US Dollar. In this case the American currency is the "weaker" one.

To sum up: if a currency quote goes higher, this increases the value of the base currency. A lower quote means the base currency is weakening.