Consumer inflation in Germany has fallen to levels last seen in April 2013, and reaction from the forex markets has been mixed. The federal statistics office confirmed what many analysts had previously indicated in their forecasts: German consumers got a slight break at the cash register during October.

Reaction by the forex markets to the economic update from Germany was mostly mixed. As reported on iForex.in, the euro essentially disregarded the inflation news and advanced against the U.S. dollar and the British pound. The harmonized October reports from Germany show that inflation stood at 1.2 percent versus 1.4 percent in the previous month.

Reasons for Concern

Economists and European Union finance ministers are concerned that the latest figures from Germany point to a larger deflationary trend. Inflation in the Eurozone has been slowing gradually to the lowest levels in four years, which recently motivated the European Central Bank (ECB) to adjust the key interest rate downward to 0.25 percent.

In light of the global financial crisis and the European debt crisis, the ECB is keeping a close eye on inflation. The goal is to keep inflation a little under 2 percent for the purpose of stimulating the economy, but the 1.2 percent reports from Germany hint at the possibility of deflation.

News From the United Kingdom

Germany is not the only European nation to experience lower inflation rates. In the UK, the year-over-year inflation report for October came in at 2.2 percent. Analysts expected an increase to 2.5 percent, particularly after seeing inflation jump to 2.7 percent in October. This slowdown was not seen in the housing sector as home values in the UK are now at historically high levels. As a result, the British pound has been sluggish in the forex markets.

Positive News from the United States

The battered American economy saw signs of improvement thanks to a positive report from the Financial Conditions Index, which is an amalgam of the money lending rates and the yields on U.S. sovereign debt. This index climbed 0.4 percent to stand at 1,825. This macroeconomic indicator put the U.S. dollar on an uptick trend.

Gold Reacts to U.S. News

Now that the Federal Reserve Bank of the U.S. is hinting at a possible reduction of its stimulus program before 2013 comes to an end, gold prices reacted downward. As more positive economic news come out of the U.S., gold traders seem to be pulling back on their market positions, which are placing December futures as low as $1,280.40 an ounce.

Source: iFOREX

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Of late, the option of binary options trading has become quite popular. In this type of trading, the payoff amount is some kind of fixed amount of asset or nothing at all. In the recent times, the binary options trading has been divided into two major types – Cash or nothing binary options trading and Asset or nothing binary options trading. In case of cash or nothing binary options trading, a fixed amount of cash is paid when the option expires while in case of asset or nothing option, the underlying value of the asset is paid off.

Benefits of binary options trading

There are various benefits associated with binary options trading. In order to understand the trading option in a better way, you will have to know about the benefits in details. Let’s take a look:

Accessibility: People prefer trading through binary options because in this option, the investor will be buying the contract and not the asset itself. This will help open up the profit option through binary trading to a greater number of people who would otherwise be restricted due to high prices of other stocks. For example, if you have $1000 and you find that a share costs your $50, then you will be able to buy 20 such shares. Later on, if the share prices increase to $55, you will be able to make a 10% profit on them (20X5 = $100). However, if you invest your money in binary options trading, you will get a profit margin of as much as 71%.

Know the risks: If you go for binary options trading, then it will ensure that as an investor you know how much loss you may have to incur. Most of the companies providing binary options trading will never ask for more money in case the option expires out of money. This helps the investor to plan better for the next investment.

Simple deals: In most cases of binary options trading, the payout is dependent on direction of the asset price change and not on the difference in price. As a result, the investors do not need to have a detailed knowledge about the product. Thus, this option is easier for a new investor as well.

Profitable option: Apart from accessibility of binary options, you should remember that as the profit is not related to the difference in price but to the change in direction, making profit becomes easier.

Trade from home: In case of binary options trading, you will get a platform which will help you in trading for international binary options directly from your home. You can do so whenever the markets are open. Thus, the traders and investors can trade from the comfort of their home.

Now that you know about the major benefits of binary options trading, it will be easier for you to decide whether you should go for this option or look out for stock trading. Once you know about the option that suits your purpose well, you will be able to invest money confidently.

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Our actions are normally governed by emotions. We’d like to think we are in control of our sensitivities but no matter how much we try, our feelings and thoughts get away from us and it is difficult to keep them in check. How often do we find ourselves in a simple political discussion and suddenly discover that anger has slowly crept into our tone of voice? How did it get there anyway? We were perfectly calm to start with.

Fear is another emotion that governs our behavior. When was the last time you held back from telling someone your true feelings for fear of being rejected?

In fact fear plays an overwhelmingly important role in our lives. Fear of dying. Fear of commitment. Fear of losing. Those that can overcome their fears usually move forward in life more rapidly than those who remain stuck in their possessive apprehensions.

Even in the area of investing, fear is a central ingredient. How much should we invest? Should we pull out early or risk losing whatever profits we have already made? In fact, should we be investing at all?

Although we each have a different level of risk tolerance, fear is often an underlying reason for investor mistakes. When we see our money slowly slipping away, panic sets in and we make the wrong move.

So in order to be an astute investor and anticipate some profits from our endeavors, we must learn to pull back from our fears and use our knowledge instead.

Forex trading

When it comes to Forex trading, we follow the same guidelines. Let’s face it. You wouldn’t start building a house without learning first how to use a hammer and nails. Why would you even consider Forex trading without knowing what Forex is all about?

Before placing even the first trade, you must come to the table with at least a minimum of understanding and information about the world of Forex. There are many online tutorials that will guide you through the basics of Forex and give you the background you will need in order to go forward. FXAcademy, for example, has just released a free online Forex course complete with animated videos, quizzes and links to relevant articles to keep you well informed.

With some knowledge under your belt, you can then open a Forexdemo account with an onlineForexbroker. This will enable you to trade with virtual money and gain the experience you need before trading for real.

Once you have gained the confidence you need to trade Forex, you can move on to a real trading account. Don’t forget to start small, see more on FXCM, and always move cautiously. Keep in mind that you will probably lose most of your money at the start. Now that you have learned to control your emotions, you won’t panic. Instead, you will lean on the information you have gleaned from your tutorials, ask advice from experienced traders and hopefully make the right moves.

Let’s face it. Forex trading, or any trading for that matter, is a gamble. No matter how much you think you can logically work out the best steps to take, the nature of investing is such that you will never be able to out-think and out-do the system. Stay in control of your emotions and be prepared for the inevitable. Sit back and try to have some fun. Winning or losing is not what is important; it’s how you play the game.

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The monetary system works well, which is why people all over the world have used money for thousands of years. Money has an agreed upon value, a standard by which worth is judged. Our standard is of course the dollar, and no one better than a young person knows the value of a dollar. Why? Because for you, dollars are hard to come by, easy to spend, and difficult to replenish.

Here is how a young person can stack these dollars by acting smartly

Start saving

Saving money is just plain easier if we’re saving for something. The thing we’re saving for is our goal. Our goal can be short-term or long-term, depending on the nature of the purchase. Generally speaking, short-term goals are easier to achieve because our aim is shorter. Long-term goals take years to achieve, but we all have to start somewhere.

Getting Credit

If the companies you want to borrow money from find out you’re negligent about paying your bills, if you’re always late, or always short, you’re going to have to pay more to borrow the money you want. That makes sense, doesn’t it? If you’re considered a risky bet, you have to pay more to borrow money. If on the other hand, you’re always on time, people will trust you more and you won’t have to pay as much for that car loan as the person who’s always late.

Automatic Savings/ Direct Deposit

Banks and other institutions know exactly how hard it is to save money. So they’ve come up with a tool to make it much easier. I’ve used automatic savings for years, and there’s no doubt that it’s helped me achieve some major financial goals. The only thing you need is a job and a bank account.

Here’s how it works:

• Decide how much you want to save
• Decide where you want this saved money to end up
• Save money without worrying about it!

Every month, I have money deducted from my paycheck and deposited into a variety of accounts. The money goes its way without my ever seeing it, in other words, it never makes it into my paycheck, so I don’t have to face the pain of writing a check, or even worse, depositing cash. You sign up in one of two ways. You can contact your human resources office, who should be able to send the money where you want it to go. And if you go from the direction of where you want your money to end up — say you want to open an online savings account and also fund your Roth Individual Retirement Account, then set up the accounts and have those institutions contact your bank account.

Value Investing

Your aim should be to buy good solid companies whose prices are within your budget. You are to then hold those companies until investing in them no longer makes sense. When does investing in a company make no sense? When their fundamentals — how they run their company — are not good, or when a company’s stock price is so expensive that it’s simply too late to count on any further upward momentum.

Look for impressive dividends

Some companies’ dividends are impressive indeed, and if their fundamentals are sound, I suggest that you own a piece of those companies. If it’s a great stock, like Apple was once upon a time, when it cost less than $20 per share, then you hold onto it and don’t ever let it go. Things that make us rich are a blessing, and I say that without one bit of hesitation. Having money in abundance is something to be grateful for, and if we’re able to earn money even while we’re sleeping, we’ve got the right idea.

So, what’s your investing motto? Buy good companies cheaply. If the company offers you the option of re-investing your dividends, act like you’ve got some sense and re-invest them. Buy and hold. Buy and hold.
Here’s what you look at carefully when you’re considering whether to buy shares of a company:

• What is their market capitalization; i.e., how much is the company worth?
• How much debt do they carry?
• Who runs the company? How long has this person been on board?
• What is their price to earnings ratio?
• What do they produce, and is their future outlook rosy or bleak?
• How many employees do they have? Are the employees treated well?
• How long has the company been in business?
• What is the outlook for the future?

How do we as individuals and nations keep up with rising prices when our incomes aren’t keeping pace? We can’t. Not as long as we don’t make a decent amount of money with our investments. Life is scary, unless you just sit around in an easy chair all day. We have to get out there. We have to take risks.

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Since 1869, the Suez Canal has served as one of the world’s most important waterways, allowing convoys of large freights to travel easily between Asia and Europe without navigating around the African continent. The 193-mile artificial waterway took a decade to build and has seen multiple enlargements over the years. Today the canal supports 8% of the world’s shipping traffic and is used by the world’s largest shipping companies to transport goods. Of course, such convenience comes at a price, and it’s just been announced that the cost of transit on the Suez Canal will now rise by as much as 5%.

The Suez Canal Authority (SCA) in Egypt has implemented the following increases in tolls:

• 5% for ships carrying oil and petroleum products
• 2% for container ships and vessels transporting cars
• 3% for all other ships

Strengthening the Suez

The increase follows a number of recent studies conducted by the SCA, which took a close look at marine traffic on the Suez Canal as well as the waterway’s toll revenues; findings revealed that in 2012, the canal was used by a total of 17 252 ships and 932.43 million tonnes of cargo – ultimately yielding revenues of $5 129 600 000. With the Suez Canal accounting for a significant part of Egypt’s GDP, and a major source of foreign currency, the Government hopes that the toll increases will help to further boost toll revenues and avert a currency crisis. The worldwide effect on trade and shipping traffic remains to be seen in the coming months, but the increase could see more freight owners choosing alternative routes or weighing the cost of the Panama Canal against the Suez.

Rail and Road Links

The Government has also announced that plans are underway to build three tunnels under the canal; two of these 3km long, 12.2m wide) will be used for road links and one longer tunnel (5km long, 12.2m wide) will be dedicated to a rail transport project. This move is part of a larger regional development plan. Hatem Abdel Latif, Egyptian Minister for Transport, told press that the tunnels will contribute to expansion in North Sinai and complete the extension of the coastal road between Rafah and Nuweiba.

As Egypt’s foreign currency reserves begin to dwindle, it is vital that the Government protect this valuable source of foreign income, and look at innovative projects like the Suez Canal rail and road tunnel construction in order to strengthen the country’s economy and trade connections alike.

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