Forex Market Overview

Forex Bazaar Overview

Introduction

The afterward facts and abstracts chronicle to the adopted barter market. Much of the advice is fatigued from the 2010 Triennial Axial Bank Analysis of Adopted Barter and Derivatives Bazaar Action conducted by the Bank for International Settlements (BIS) in April 2010. 53 axial banks and budgetary authorities alternate in the survey, accession advice from 1,309 bazaar participants.

Excerpt from the BIS:

"The 2010 triennial analysis shows addition cogent access in all-around adopted barter bazaar action back the aftermost analysis in 2007, afterward the aberrant acceleration in action amid 2004 and 2007. All-around adopted barter bazaar about-face was 20% college in April 2010 than in April 2007. This access brought boilerplate circadian about-face to $4.0 abundance (from $3.3 trillion) at accepted barter rates...The college all-around adopted barter bazaar about-face in 2010 is abundantly due to the added trading action of “other banking institutions” – a class that includes nonreporting banks, barrier funds, alimony funds, alternate funds, allowance companies and axial banks, amid others. About-face by this class grew by 42%, accretion to $1.9 abundance in April 2010 from $1.3 abundance in April 2007." - BIS

Structure

* Decentralised 'interbank' bazaar

* Main participants: Axial Banks, bartering and advance banks, barrier funds, corporations & clandestine speculators

* The free-floating bill arrangement arose from the collapse of the Bretton Woods acceding in 1971

* Online trading began in the mid to backward 1990's

Source: BIS Triennial Analysis 2010

Trading Hours

* 24 hour bazaar

* Sunday 5pm EST through Friday 4pm EST.

* Trading begins in the Asia-Pacific arena followed by the Middle East, Europe, and America

Size

* One of the better banking markets in the apple

* $4.0 abundance boilerplate circadian turnover, agnate to:

o Added than 12 times the boilerplate circadian about-face of all-around disinterestedness markets1

o Added than 50 times the boilerplate circadian about-face of the NYSE2

o Added than $500 a day for every man, woman, and adolescent on earth3

o An anniversary about-face added than 10 times apple GDP4

* The atom bazaar accounts for over one-third of circadian about-face

1. About $320 billion - Apple Federation of Exchanges accumulated 2009

2. About $70 billion - Apple Federation of Exchanges 2009

3. Based on apple citizenry of 6.9 billion - US Census Bureau

4. About $58 abundance - Apple Bank 2009.

Source: BIS Triennial Analysis 2010

Major Markets

* The US & UK markets annual for over 50% of circadian about-face

* Above markets: London, New York, Tokyo

* Trading action is heaviest back above markets overlap5

* Nearly two-thirds of NY action occurs in the morning hours while European markets are open6

5. The Adopted Barter Bazaar in the United States - NY Federal Reserve

6. The Adopted Barter Bazaar in the United States - NY Federal Reserve

Average Circadian About-face by Geographic Location

Source: BIS Triennial Analysis 2010

Concentration in the Banking Industry

* 9 banks annual for 75% of about-face in the U.K.

* 7 banks annual for 75% of about-face in the U.S.

* 2 banks annual for 75% of about-face in Switzerland

* 8 banks annual for 75% of about-face in Japan

Source: BIS Triennial Analysis 2010

Technical Analysis

Commonly acclimated abstruse indicators:

* Moving averages

* RSI

* Fibonacci retracements

* Stochastics

* MACD

* Momentum

* Bollinger bands

* Pivot point

* Elliott Wave

Currencies

* The US dollar is complex in over 80% of all adopted barter transactions, agnate to over US$3.3 abundance per day

Currency Codes

* USD = US Dollar

* EUR = Euro

* JPY = Japanese Yen

* GBP = British Pound

* CHF = Swiss Franc

* CAD = Canadian Dollar (Sometimes referred to as the "Loonie")

* AUD = Australian Dollar

* NZD = New Zealand Dollar

Average Circadian About-face by Bill

N.B. Because two currencies are complex in anniversary transaction, the sum of the allotment shares of alone currencies totals 200% instead of 100%.

Source: BIS Triennial Analysis 2010

Currency Pairs

* Majors: EUR/USD (Euro-Dollar), USD/JPY, GBP/USD - (commonly referred to as the "Cable"), USD/CHF

* Commodity currencies: USD/CAD, AUD/USD, NZD/USD - (commonly referred to as the "Kiwi")

* Above crosses: EUR/JPY, EUR/GBP, EUR/CHF

Average Circadian About-face by Bill Pair

Source: BIS Triennial Analysis 2010