Forex - NZD/USD down during the U.S. session

 The New Zealand Dollar was lower against the U.S. Dollar on Thursday after the release of U.S. data on Initial Jobless Claims.

NZD/USD was trading at 0.8443, down 2.23% at time of writing.

The pair was likely to find support at 0.8428, today’s low, and resistance at 0.8842, Monday’s high.

Earlier in the day, official data showed that U.S. Initial Jobless Claims fell unexpectedly to a seasonally adjusted 400K last week from 401K in the preceding week whose figure was revised up from 398K.

Analysts had expected Initial Jobless Claims to rise to 406K last week.

Meanwhile, the New Zealand Dollar was down against the Australian Dollar and the Euro, with AUD/NZD gaining 0.15% to hit 1.2470 and EUR/NZD rising 1.01% to hit 1.6753.
Forexpros 

All American Gold Corp Announces Appointment of Dr. Gaspar Gonzalez Jr. as New CFO

As chief financial officer, Dr. Gonzalez, Jr. oversees all of the organization, planning, reporting and analyzing of the Company’s financial data. Dr. Gonzalez, Jr. has more than fifteen years executive-level experience in financial management organizations.

Prior to joining the Company, from 1997 to 2009, Dr. Gonzalez, Jr. was an advisor on global business alliances and a senior director of international development in strategic affairs and governmental business development with United States Advanced Resource Technologies. His responsibilities included the introduction and development of strategic business alliances; serving as host with governments, while bridging respective organizations to key decision making contacts in the target country; identifying the client’s needs and interfacing with the sales and delivery of technical advisory services, mergers and acquisitions, and infrastructure developers in Asia/Pacific, Latin America, Africa and Europe; leading international operations. These included functions of general management issues specializing in banking and international finance, international trade and commerce, energy, water, environmental management, telecommunications, healthcare, pharmaceutical and nutraceutical, food and distribution sector.

From August 2005 to July 2007 Dr. Gonzalez, Jr. was the senior advisor, director, project manager and program facilitator with Menon Foundation in Dubai, UAE, where his responsibilities included advising on all phases of negotiations and contracts, stemming from letters of intent to final payments and review of contract structures; coordinating with all responsible parties and consolidating reports; verifying and hypothecating all negotiable instruments for transactions; identifying fraudulent operators and coordinating reporting with the Federal Reserve and all other respective duties assigned by the authority of the Sheik. Dr. Gonzalez, Jr.’s financial control and commercial skills played a crucial role in helping Menon Foundation achieve and exceed its projected growth year after year.

Dr. Gonzalez has experience in the financial sector working with entities such as IMF, Export-Import Bank, World Bank, USAID and others specializing in banking, international financial operations, international trading and mineral and oil related industries.

Dr. Gonzalez earned his Bachelor of Business Administration degree at Florida Atlantic University (1979). He also holds a Doctorate Business Administration/PHD (1992) in international business development and finance. Dr. Gonzalez is multilingual – DOD/NSA certified in English, Spanish, French, Portuguese, Italian and with working knowledge in Chinese.

“All American is very enthusiastic with the addition of Dr. Gonzalez. I feel we have added a team member that possesses a strong background in finance, is an experienced negotiator and an individual that has amassed a substantial world-wide network in the exploration field through his previous experience. We look forward to continuing to bolster the company’s future as a management team.” Brent Welke, CEO, All American Gold Corp.

About All American Gold Corp:

All American Gold Corp. is a precious mineral exploration company focused on the acquisition and ongoing exploration of mineral property holdings in the United States. All American has various existing holdings in the gold-rich state of Nevada and intends to seek out new opportunities through its experienced and proven geological team. Additional information concerning All American's projects can be found on the company's website at www.allamericangoldcorp.com.

Safe Harbor Statement

THIS NEWS RELEASE MAY BE VIEWED TO CONTAIN "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.

EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NO SECURITIES REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

Dollar Soars as Global Equities Tumble- Yen Heavy on MoF Intervention

The greenback advanced against all its major counter parts an hour into US trade as global equities continued to sell-off, with the Swiss franc topping the performance charts with a loss of just 0.19% against the dollar. The USD/CHF pair tested the 23.6% short-term Fibonacci extension taken from the July 31st and August 1st crests at the 0.78-handle, before finding solace around the 61.8% extension at 77.15. The swissie is likely to remain well supported however as remarks made by ECB President Jean-Claude Trichet saw European investors once again seeking refuge in the swissie. A downside break here sees interim support at the 76.4% extension at 76.80 backed by the 76.50 level and the 76-figure. Topside resistance holds at the 78-handle, with subsequent ceilings seen at 78.50, 79, and the 79.50 level. Overnight traders will be eyeing data out of Switzerland with July CPI data on tap. Inflation is expected to remain subdued with consensus estimates calling for a print of -0.6% m/m and 0.7% y/y, well below its European neighbors where the risk to inflation remains to the upside, as cited today by President Trichet.

The Relationship Between Stock Prices and Bond Prices

Recently, I had the opportunity to teach a session of OTA XLT Forex. In the class, we were identifying potential trades that were to play out in the next few days to weeks. One of the comments that I made in the class resulted in a flood of emails being sent to me from the students. I was discussing inter-market analysis and mentioned that bonds and stocks tend to move together in the same direction.
This came as a shock to most of the students who believed that the bonds and stocks should move in the opposite direction. In studying to become a Chartered Market Technician, I was required to study the relationships between asset classes, and as a trader, this has benefited me greatly. By understanding these relationships, a trader can identify potential shifts in trend and confirm support and resistance. Additionally, one can also profit from multiple asset classes as you are already doing the analysis and may see the opportunities.
Now to explain my statement, "Stock prices and bond prices should move in the same direction." Most traders believe that bonds are a direct substitute for stocks and are used as a flight to safety in times of trouble. That is partially true. When there are economic scares, the US Treasury stands as a safer investment than equities. This will cause a rise in bond prices when the initial shock of a possible stock decline hits. However, when one understands the relationship of bonds to the interest rates, you will see that this is just not possible for the long-term.
Bond prices are inversely related to their interest yield. If rates in general go up, then someone selling a bond in the secondary market with a lower rate must drop their price to make the overall yield for the bond comparable to new offerings with higher coupon rates. If the rates in the market go down, then someone can sell their bond for more money if it offers a higher rate than what is now available.

Businesses compete for investor money and also offer corporate debt (bonds) to finance operations. If the rates of Treasuries rise due to Fed action or a sell-off in the bond market in general, then a company that wants to raise capital must offer higher rates of return on their bonds offerings. This higher rate of return is a larger burden on their balance sheets and causes less profitability and therefore, lower EPS. Couple that with higher borrowing rates for business and the consumer alike and you will start to see a slowdown in business. That slowdown will result in the liquidation of share holdings in search of better investments.
The following chart shows the inverse relationship between bond rates and stock prices in the bull market from 1982 to 1999. You can see that during this time of market and economic prosperity, we had a rise in both equity and bond prices.

BRIEF-Shell considers reversal of Houma-Houston pipeline

Ford oil eastward - spokesman 

* Shell says reversed ho-ho line could begin service in early 2013, 

subject to customer and regulatory approval - company 

* Shell says reversed ho-ho line could carry about 300,000 bpd of 

crude across Texas-Louisiana gulf coast 

((Houston Energy Desk; tel: +1 713 210 8520)

Wind power shares fall on policy risk-HSBC

Thursday, as the risk of further fiscal tightening weighed on a 

sector which depends on government support. 

All renewable energy sectors have lagged fossil fuel energy 

and wider global stocks over the past month and the year to 

date, data show, underperforming even as world shares slide on 

concerns about sluggish global growth. 

Alternative energy is vulnerable in a downturn for a range 

of reasons, including technology risk, a lower ranking of green 

concerns, dependence on subsidies from cash-strapped governments 

and falling prices for competing fossil fuels. 

After sharp share price falls wind stocks were now 

undervalued, said HSBC analysts, given rising order inflow and 

order backlogs, but further drops could be expected. 

'We believe the debt crises in the EU/US have heightened 

as-yet unfounded prospects of further regulatory uncertainty and 

possible credit tightening,' said the bank's Global Wind report. 

'While we feel these stocks are undervalued, we expect 

continued flat or underperformance, while macro concerns 

persist, with investor appetite poor for what is considered a 

risky sector in weak markets.' 

The global wind market fell last year, meaning fewer 

turbines were installed than in 2009 reversing a 20-year trend 

after the financial crisis slowed demand and froze capital. 

But order inflow for major wind turbines in the first half 

of 2011 was up a fifth on the same period last year, while the 

combined order backlogs had roughly doubled for major 

manufacturers Vestas, Gamesa, REpower 

and Suzlon, HSBC said. 

Wind power still struggles to compete with cheaper natural 

gas, and depends on government support in the form of a price 

premium called a feed-in tariff. 

Solar power is far more expensive than fossil fuel 

alternatives. Italy was the world's second biggest solar power 

market last year and in May capped solar subsidies at 6-7 

billion euros annually by 2016.. But Rome is 

currently in the throes of market doubts over the size of its 

sovereign debt. 

Click here for a factbox of green energy support: 

The table below shows that wind and solar have 

under-performed other energy and wider stocks in the past month 

and in the year to date, compared with Thursday's prices. 



ASSET PCT CHANGE 



LAST MONTH YTD 

European coal 

S&P Global Nuclear -7.53 -13.90 

DJ Global oil & gas -8.42 -1.09 

MSCI World -8.83 -4.01 

HSBC Climate Change -10.28 -9.64 

NASDAQ Global Wind -12.30 -12.99 

HSBC Energy Efficiency -13.12 -8.60 

FTSE Env Opportunities -14.92 -7.35 

MAC Solar -17.87 -19.95 

S&P Clean Energy -18.34 -16.09 





(Reporting by Gerard Wynn) 

The foreign exchange market

The foreign exchange market (forex, FX, or currency market) is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.^[1]

The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import British goods and pay Pound Sterling, even though the business' income is in US dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies.^[2]

In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

The foreign exchange market is unique because of

• its huge trading volume representing the largest asset class in the world leading to high liquidity;
• its geographical dispersion;
• its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
• the variety of factors that affect exchange rates;
• the low margins of relative profit compared with other markets of fixed income; and
• the use of leverage to enhance profit and loss margins and with respect to account size.

As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,^[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.^[4]

The $3.98 trillion break-down is as follows:

• $1.490 trillion in spot transactions
• $475 billion in outright forwards
• $1.765 trillion in foreign exchange swaps
• $43 billion Currency swaps
• $207 billion in options and other products