Free Friday s Forex By Rita Lasker

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1 Free Friday s Forex By Rita Lasker November, 4-11

That is why we decided to share the Forex news with you having not only facts in store but real figures.

2 Do you happen to know that the euro gained as Italy, the region s third - largest economy, sold 5 billion euros ($6.8 billion) of bills? Yes, Forex market depends on the financial and macroeconomic statistics. Nothing compares to seeing the actual effects of the news. That is why we decided to share the Forex news with you having not only facts in store but real figures. And before we start talking about the last week events, let me say few words about * Standard & Poor's downgraded France rating for few hours In October S&P cut Spain's long-term rating to "AA-" from "AA" with a negative outlook. Moody's Investors Service and Fitch Ratings have also downgraded the nation's credit. In September, S&P cut Italy's long- and shortterm sovereign credit ratings, as has Moody's and Fitch. The credit ratings for France have not been downgraded by Standard & Poor's, but there was an accidental transmission of such message to some subscribers that it had downgraded the nation's credit. In a statement, S&P says a technical error caused the automatic dissemination of a message to some subscribers of its Global Credit Portal "suggesting that France's credit rating had been changed." S&P says that is not the case and France's ratings remain at "AAA," the highest investment-grade rating, with a "Stable" outlook. The release was sent to some S&P Ratings subscribers under the headline, "DOWNGRADE," and a link to the France ratings. Anyone who would have clicked on the link would have seen that France's rating was unchanged, said S&P spokesman Martin Winn in London.

The original notice was sent at around 9:57 a.m.

ng France's credit rating was sent out at 11:30 a.m.

Traders have been concerned in recent days that debt troubles in Italy and Greece could spread to the U.S. and lead to a global crisis.

3 The original notice was sent at around 9:57 a.m. (14.57 GMT), and a new release acknowledging the error and affirming France's credit rating was sent out at 11:30 a.m. Market reacts A downgrade of France's credit rating would likely be a hard hit to investors, who have shown little patience with the economic instability in Europe. Traders have been concerned in recent days that debt troubles in Italy and Greece could spread to the U.S. and lead to a global crisis. The Dow Jones industrial average dropped 389 points Wednesday after Italy's borrowing rates soared to a dangerous level and talks in Greece on naming a new prime minister broke down. Italian Bill Sale Worries eased on Thursday after Italy sold debt at more favorable rates than analysts expected and there were also signs of progress in Greece. The Dow rose 115 points, or 1 percent, in late afternoon trading. The euro gained as Italy, the region s third- largest economy, sold 5 billion euros ($6.8 billion) of bills to yield percent, compared with 3.57 percent the last time it auctioned 12-month securities on Oct. 11. Demand was 1.99 times the amount on offer. The European Central Bank was said to have bought Italian government bonds. Italy will sell the five-year debt on November 14 and some analysts suggest that the outcome of the auction will be crucial for the short-term performance of the common EU currency. Yet, whether the auction will be successful or not, there are still Greece with its troubles and other indebted countries like Ireland, Portugal and Spain. The euro advanced from a one-month low versus the dollar after Standard & Poor s clarified that France s credit rating remains AAA, easing concern that a crisis was imminent in the region s second-largest economy. The French yields increased a day after rates on Italian government 10-year debt jumped to a euro-era record of 7.48 percent, exceeding 7 percent, the threshold at which Greece, Italy and Portugal sought international bailouts.

The main reason for such downbeat outlook, as one may expect, is the credit crisis in the region.

4 *European commission forecast The European Commission estimated that the economic growth in the European Union will almost stall next year. Gross domestic product of the EU and the Eurozone will grow only 0.5 percent through 2012, according to the EC forecast. The main reason for such downbeat outlook, as one may expect, is the credit crisis in the region. The EC said: Continued uncertainty in financial markets relating to the sustainability of public finances in some euro area economies as well as fears of contagion affecting the core euro area countries will contribute to subdued growth. The global economy s weakness, including of some of the most important partners for the EU, will reinforce this trend. One can notice another negative factor for the EU economy in the report: the stalling growth of the global economy. The trick here is that both problems, Europe s crisis and the global economic slowdown, feed each other, in a way. The European debt problems have a huge negative impact on the global economy, and the resulting slowdown in turn hurts the economy of the EU. * Japanese Yen in demand The Japanese yen gained as some Forex market participants doesn t consider the current political events in the European Union (namely, the resignation of Greek Prime Minister and the future resignation of Italian Prime Minister) as positive for the European economy.

Unless the Bank of Japan would follow the Swiss National Bank in implementing unprecedented measures, like pegging the nation s currency to the euro or some other currency, it s unlikely that the yen

Japanese leaders recently intervened in the Forex market in order to weaken the yen, which has been strengthening lately.

China holds a large number of currency reserves denominated in US dollars, and, until quite recently, Chinese efforts at diversification have focused on the euro.

5 Unless the Bank of Japan would follow the Swiss National Bank in implementing unprecedented measures, like pegging the nation s currency to the euro or some other currency, it s unlikely that the yen will remain weak for long. Therefore, market participants will continue to flow to the Japanese currency in times of turbulence and uncertainty. Japanese leaders recently intervened in the Forex market in order to weaken the yen, which has been strengthening lately. However, efforts to keep the yen lower have been running into trouble as China increases its investment in Japanese notes and bonds. Normally, China doesn t present much of a problem for Japan. China holds a large number of currency reserves denominated in US dollars, and, until quite recently, Chinese efforts at diversification have focused on the euro. However, with eurozone problems affecting the stability of the euro, it appears that Japanese denominated investments are looking more attractive to China. And, as China invests in Japanese notes and bonds, it supports the yen in Forex trading. This, of course, is an undesirable development for Japanese leaders. Japan prefers a weak yen it gives Japan an advantage when exporting goods. However, Japanese leaders have been struggling against yen strength for some time now. Even the approval of a massive bond sale was unable to undermine the yen for very long. And finally more trading news of the last week

6 November, 4 - EUR/USD Rallies for Third Day The euro rallied for the third straight day on the speculation the employment growth in the USA slowed, supporting the case for the Federal Reserve to perform additional monetary easing. EUR/USD rallied from to as of 9:42 GMT after falling to the low of EUR/JPY advanced from to , following the drop to the intraday minimum of November, 4 - US Dollar Mixed in Forex Trading US dollar is mixed as the Forex market and other markets look for direction. Economic data is mixed, and that is likely contributing to the confusion with currencies. Jobs data has been released in the US that shows that nonfarm payrolls added 80,000 jobs to the economy in October. However, this good news is a bit overshadowed by developments in Europe. In Greece, the prime minister is facing a no-confidence vote. In Germany, manufacturing data for September came in unexpectedly negative, and that is causing some consternation, since Germany s economy largely drives the eurozone economy. At 13:04 GMT EUR/USD is slightly higher at , up from the open at GBP/USD is lower at , down a little from the open at USD/JPY is currently a little bit lower at , down from the open at November, 4 -Japanese Yen in Demand Japanese leaders recently intervened in the Forex market in order to weaken the yen, which has been strengthening lately. Today, yen is stronger against the euro and the pound, but weaker against the US dollar. The weakness against the dollar is probably desirable, and the strength against the euro is likely a result of China shifting some of its efforts away from euro assets and into yen assets. At 14:03 GMT USD/JPY is higher, at , up from the open at EUR/JPY is down to from the open at , and GBP/JPY is lower at , down from November, 5 - The Swiss franc dropped after Switzerland s central bank report The Swiss National Bank reported that the foreign currency reserves declined to billion francs on October from billion francs in September. The balance of

7 the foreign assets was down 29.7 billion francs in September, following the drop by 12.3 billion francs in August. For a long time the SNB was attempting to weaken the franc. The central bank achieved its goal by pegging the currency to the euro and the franc has weakened by a great deal since that measure was implemented on September 6. There is speculation that the strong currency has already dealt damage to the nation s economy and such concerns also eat away attractiveness of the franc. USD/CHF rose from to close at and EUR/CHF climbed from to yesterday. CHF/JPY fell from to November, 7 - Franc Drops as CPI Falls The Swiss franc weakened after the report showed that the inflation in Switzerland unexpectedly declined. The Federal Statistical Office reported that the Swiss Consumer Price Index fell by 0.1 percent in October, following the 0.3 percent growth in the preceding month. Analysts promised the index to increase by 0.2 percent. The members of the Swiss National Bank were already worried about the negative impact of the strong currency on the nation s economy and the slowing inflation gives even more stimulus for an additional intervention. USD/CHF advanced from to and EUR/CHF rose from to as of 11:12 GMT. November, 7 - Concerns Shift to Italy, Making Euro Weaker The euro declined as investors turned their attention from Greece to Italy and the situation there was bad enough to spur talks about spreading of the debt contagion across the Eurozone. Greek Prime Minister agreed to resign and let the unity government, formed by the ruling and the opposing parties, to make arrangements for getting the bailout. All fundamental reports were negative today, including the worsening Sentix Investor Confidence, the declining Eurozone retail sales and the shrinking German industrial production. EUR/USD fell from to the intraday low of before trading at as of 11:53 GMT. EUR/JPY dropped from to , while the intraday low was The euro rallied recently, erasing bigger part of its losses, but currently slowed the rally and resumed its decline.

8 November, 7 - Concerns about the Eurozone Send US Dollar Higher US dollar is higher, gaining as risk aversion makes an appearance. With Italy on the verge of a Greek-like crisis, Forex traders are concerned about what could happen next. Eurozone financial ministers are getting ready to meet on the EFSF rescue fund. There are concerns about how to adequately fund it. While some broad strokes were suggested a couple of weeks ago, few details have been offered regarding how the EFSF will work. As a result, there is concern about whether or not it will even be funded enough to contain the sovereign debt crisis. With all this uncertainty about the eurozone, it is little surprise that the US dollar is higher. Forex traders are looking for some stability, and the euro isn t offering it. At 12:56 GMT EUR/USD is down to from the open at GBP/USD is lower at , down from the open at USD/JPY is lower at , down from November, 7 - Japanese Yen Gains in Forex Trading Last week, Japanese leaders intervened in an effort to help keep the yen weak. And, today, yen is strengthening again as a safe haven. So, it doesn t matter that Japanese leaders attempted to weaken the yen last week. The currency is still in demand. At 14:00 GMT, USD/JPY is lower at 78.06, down from the open at EUR/JPY is lower at , down from the open at GBP/JPY is down to from the open at , and AUD/JPY is lower at 80.70, down from the open at November, 8 - Pound Rises Ahead of Vote in Italy The Great Britain pound strengthened after the manufacturing production expanded, while the concerns about the situation in the European Union increased demand for the currency as a safe haven. The unpredictable outcome of the vote (Italian Prime Minister Silvio Berlusconi faces a parliamentary vote) makes traders seek a refuge to safely wait and see how the situation will develop. GBP/USD jumped from to , but retreated and traded near its opening level as of 11:58 GMT. EUR/GBP was down from to , while the intraday minimum was

9 November, 8 - Euro Under Pressure on Berlusconi Vote The euro fluctuated as the mounting pressure for Italian Prime Minister Silvio Berlusconi added Italy to the list of countries investors should be worried about. In fact, Italy was on that list, together with Portugal, Ireland, Spain and Greece, and traders were just reminded that the problems of the European Union aren t limited only to Greece. The interest rate cut, performed by the European Central Bank on November 3, should support the euro in the long run, but in shorter term it had some negative consequences as the press conference after the monetary decision revealed rather dovish outlook of the bank s members. EUR/USD was down from to today before trading at as of 12:42 GMT. EUR/JPY was at after falling from to earlier. November, 8 - US Dollar Lower as Markets Await Italy Vote For now, US dollar is lower, dropping as equities in Europe advance, and as US stock futures point to a higher open. Forex traders are looking for riskier assets and higher yields, and the US dollar just can t deliver. Markets are waiting on Italy, and the US dollar is lower in general against its counterparts. At 13:47 GMT EUR/USD is higher at , up from the open at GBP/USD is higher at , gaining over the open at USD/JPY has moved lower, to , down from the open at November, 8 - Euro Advances as Berlusconi Ready to Step Down The euro rallied yesterday and done a good job keeping its gains today as Italian Prime Minister Silvio Berlusconi agreed to resign after the austerity measures will be implemented. EUR/USD was at as of 1:35 GMT, following yesterday s advance from to EUR/JPY traded near yesterday s close of , while EUR/GBP traded at about after it climbed from to on the previous trading session. November, 9 - Japanese Yen Gains on Uncertain Prospects The Japanese yen gained as some Forex market participants doesn t consider the current political events in the European as positive for the European economy. Such traders prefer to buy the Japanese currency as a safe haven.

10 USD/JPY fell from to as of 5:05 GMT. EUR/JPY was down from to and GBP/JPY declined from to November, 9 - Safe Haven Demand Sends US Dollar Surging Safe haven demand is high today as Italy moves to the brink of default. With bond yields surging, and other eurozone countries fighting their own sovereign debt battles, Forex traders are looking for safe haven and that means the US dollar. All of the wrangling over Greece failed to come up with a plan to contain the sovereign debt crisis, and Greece, obviously, isn t the only problem in the eurozone. For now, risk aversion is likely to keep the US dollar higher in Forex trading. It will take a turnaround in sentiment, and possible a real solution for the eurozone, to overcome dollar strength. At 14:42 GMT EUR/USD is much lower at than the open at GBP/USD is down to from the open at , and USD/CAD is higher at , up from the open at November, 10 - Euro s Biggest Drop Since August 2010 The euro posted the biggest drop since August 2010 yesterday, reaching the lowest level this month against the dollar and the yen and the lowest price since February against the pound today, as Forex market participants are becoming more and more concerned about the European debt crisis. Tensions are high and it s hard for the euro to find support. EUR/USD sank yesterday from to and reached (the lowest level since October 10) before trading at as of 5:58 GMT. EUR/JPY was down from to yesterday and was at the low of (the lowest since October 26) today before trading at about EUR/GBP slumped from to on the previous trading session and was at at the current session, following the fall to the price last seen in February. November, 10 - SNB Resists Urge to Weaken Franc Further The Swiss franc strengthened on the speculation the Swiss National Bank will refrain from raising the ceiling for the currency in the near future. The SNB may be unwilling to further weaken the franc because an increase of the cap for the currency is virtually the only instrument it has left in case the threat of deflation would materialize.

11 USD/CHF fell from to today as of 12:31 GMT. EUR/CHF traded at after opening at and rising to the daily high of November, 10 - Japanese Yen Lower The Japanese yen, after heading higher yesterday on risk aversion, is pulling back against major counterparts as a bit of risk appetite shows in Forex trading. Though, with the ECB buying up Italian bonds in an effort to prevent disaster, and somewhat encouraging economic data coming from the US, risk appetite is making an appearance. And, of course, Japanese leaders have shown themselves perfectly willing to intervene when they feel it necessary. If the yen begins to strengthen too much, too quickly, Japanese financial leaders would be quick to make an attempt to keep the yen weak. At 14:43 GMT, USD/JPY is a little lower, heading down to from the open at EUR/JPY is higher, at , up from the open at GBP/JPY is also higher at , up from the open at November, 11 - Yen Gains as Europe s Crisis Means Slower Growth The Japanese yen rose today as the escalating sovereign-debt crisis in Europe resulted in more pessimistic outlook for the region s economic growth. The European Commission estimated that the economic growth in the European Union will almost stall next year. Gross domestic product of the EU and the Eurozone will grow only 0.5 percent through 2012, according to the EC forecast. The main reason for such downbeat outlook, as one may expect, is the credit crisis in the region. USD/JPY fell from to as of 5:32 GMT today. EUR/JPY trade near its yesterday s close of GBP/JPY went down from to What should we expect from the coming week: Date Event GMT EST5EDT 12-Nov Sat CNY New Yuan Loans 13-Nov Sun JPY Nominal Gross Domestic Product 23:50 18:50 CNY Actual FDI JPY Nationwide Department Store Sales JPY Industrial Production 04:30 23:30 JPY Capacity Utilization 04:30 23:30

12 14-Nov Mon EUR French Current Account (euros) 07:45 02:45 CHF Producer & Import Prices 08:15 03:15 EUR Euro-Zone Industrial Production 10:00 05:00 USD Mortgage Delinquencies GBP Nationwide Consumer Confidence AUD Reserve Bank's Board November Minutes 00:30 19:30 JPY Tokyo Condominium Sales 04:00 23:00 15-Nov Tue EUR German Gross Domestic Product 07:00 02:00 16-Nov Wed EUR French Non-Farm Payrolls 07:45 02:45 EUR Italian Trade Balance (Total) (euros) 09:00 04:00 GBP Core Consumer Price Index 09:30 04:30 EUR Euro-Zone Gross Domestic Product 10:00 05:00 EUR Euro-Zone ZEW Survey (Economic Sentiment) 10:00 05:00 EUR German ZEW Survey (Economic Sentiment) 10:00 05:00 USD Producer Price Index 13:30 08:30 USD Advance Retail Sales 13:30 08:30 JPY Bank of Japan Rate Decision GBP CBI Trends Total Orders / Selling Prices EUR Italian Consumer Price Index - EU Harmonized 09:00 04:00 GBP Jobless Claims Change 09:30 04:30 EUR Euro-Zone Consumer Price Index (YoY) 10:00 05:00 EUR Consumer Price Index n.s.a. 10:30 05:30 USD MBA Mortgage Applications 12:00 07:00 USD Consumer Price Index (MoM) 13:30 08:30 USD Consumer Price Index (YoY)/ Ex Food & Energy (YoY) 13:30 08:30 USD Industrial Production 14:15 09:15 NZD Producer Prices- Inputs (QoQ) / Outputs (QoQ) 21:45 16:45 JPY Japan Buying Foreign Bonds (Yen) / Stocks (Yen) 23:50 18:50 JPY Foreign Buying Japan Bonds (Yen) / Stocks (Yen) 23:50 18:50 CNY Conference Board China September Leading Economic Index 02:00 21:00 17-Nov Thu AUD Foreign Reserves (Australian dollar) 05:30 00:30 GBP Retail Sales (YoY) 09:30 04:30 EUR Euro-Zone Construction Output 10:00 05:00 CHF ZEW Survey (Expectations) 10:00 05:00 CAD International Securities Transactions (Canadian dollar) 13:30 08:30 USD Housing Starts (MoM) / Building Permits (MoM) 13:30 08:30 USD Continuing Claims 13:30 08:30 USD Philadelphia Fed. 15:00 10:00 EUR Euro-Zone Consumer Confidence

13 CNY MNI Novemeber Flash Business Sentiment Survey 01:35 20:35 18-Nov Fri EUR German Producer Prices (YoY) 07:00 02:00 EUR Italian Industrial Orders n.s.a. (YoY) 09:00 04:00 EUR Italian Current Account (euros) 10:00 05:00 CAD Consumer Price Index (YoY) 12:00 07:00 CAD Bank Canada Consumer Price Index Core (YoY) 12:00 07:00 USD Leading Indicators 15:00 10:00 In conclusion Europe and its problems continue to rule the Forex market. Forex market participants remain concerned as the Europe faces not only economical, but also political challenges. The concerns now shifted to Italy. It is important to remember that choppy financial markets could easily swing from gains to losses. Forex markets have been quite volatile of late, with the global economy and the eurozone driving hopes and fears. Yen is gaining heading higher against other currencies, especially those in Europe, as concerns about stability continue. No one knows what will happen next, and it doesn t appear that eurozone leaders have a solid plan for containing sovereign debt throughout Europe. As a result, Forex traders are turning to safe havens. And I hope now, you would not only see the movement of the price but also the reason behind it. If you have any questions, please feel free to ask our support team by sending an to: support@ritalasker.com We will do our best to help you. Yours, Rita Lasker & Green Forex Group.

14 Any additional information: Contact Information: ALL Green Forex products: Free Friday s Forex, By Rita Lasker,

Free Friday s Forex By Rita Lasker

Free Friday s Forex By Rita Lasker November, 18-25 Do you happen to know that euro pared gains after Fitch Ratings cut Portugal credit ranking to below investment grade due to the country s weakening economy?