EBENE, MAURITIUS -- (Marketwire) -- 01/31/13 -- Going into February 2013, fiscal and monetary policies are getting bolder, the S&P 500 Index (SPX) is approaching its historical high, and early repayment of the long-term refinancing operations (LTRO) from Euro banks indicates that the two-and-a-half year Euro Zone debts crisis is abating.
Mario looked at the USD, the AUD in light of the China uptrend and JPY weakening this month, and at realistic profit targets for retail Forex traders amongst other topics, in his AskMarioSingh.com blog, "Your toughest Forex Questions answered daily".
Said Mario, "I believe the USD will weaken further in the long run, and its status as a safe haven currency or even as a reserve currency might be threatened. The market is beginning to wake up to the fact that indefinite Quantitative Easing (QE) will continue devaluing the Dollar and result in inflation, or perhaps even hyperinflation."
On the implications of the Chinese economy's apparent uptrend, Mario cited last quarter's Gross Domestic Product (GDP) growth and continued stimulus from big government projects, as factors that will indirectly boost the Australian economy as well, as Australia exports a huge portion of raw materials to China. A positive Chinese Manufacturing Purchasing Managers' Index (PMI) this Thursday, should support the AUDUSD and rally the AUDJPY in the short term, with the weakening JPY due to Prime Minister Shinzo Abe's monetary stimulus.
"The JPY has been on a downward slide since the new Prime Minister came into office," said Mario. "A widely known advocate of "unlimited easing," he criticized the Bank of Japan (BoJ) for not doing enough to help Japan get out of its deflation cycle, and he wants the JPY to weaken further in order to help the export-reliant Japanese economy," he explained.
On whether it is possible to earn USD20,000 a month trading the foreign exchange markets, Mario said that to be realistic, retail traders should set an achievable profit target of 6% a month, which means that a profit of USD20,000 would need capital of at least USD334,000. On the other hand, if you aim to profit USD200 a month, your starting capital should be USD3,340 - which is a level most new traders can achieve. Traders can build their capital size by leaving their profit in their accounts. FXPRIMUS Coaching services can shorten the learning curve for trading success, which requires a lot of patience.
The views of Mario Sant Singh - who is Director of Training & Education at FXPRIMUS, are widely sought after in the Forex industry. His popular blog, his weekly market webinar, his daily and weekly market reports provide direct channels for some of the best-informed educational resources that new and experienced traders can access to improve their knowledge of Forex and related investment markets.
During January, the top ten Forex trading questions (click the links for the answers) were:
1. Falling off the fiscal cliff was negative for the U.S. economy. Why did the Dollar rise when a deal wasn't reached until the last moment?
2. Since the Chinese economy seems to be in an uptrend, will next week be better for the AUDUSD or other pairs?
3. How can we use fundamentals to assess whether the market is in "risk on" or "risk off" mode?
4. Why is the Yen dropping towards its 2010 low?
5. What is the CFTC and what does it do? Did it cause the GBP's recent bullish movement?
6. Is it possible to earn USD20,000 a month trading the market?
7. I trade well on my practice account, but why do I lose when I trade on my live account?
8. As a beginner, what should I include in my trading journal?
9. Lim: Should we always trade outside our comfort zone?
10. Mario, what is your trading resolution for 2013?
Have a new question for Mario? Then ask him online at AskMarioSingh.com, and sign up to receive Mario's Forex Answer of the Day, by email.
ABOUT MARIO SANT SINGH
Mario Singh is the Director of Training & Education at global retail Forex brokerage FXPRIMUS. He has appeared as a guest expert on CNBC more than 35 times to talk about foreign exchange markets, and is a regular contributor to top investment publications and online portals. Known as a brilliant and intense communicator with a unique ability to 'keep Forex simple' and a mission to help every man-in-the-street to trade profitably and responsibly in the Forex market, more than 20,000 people have attended his Forex trading programs. He is the only Forex trader in Asia invited to train Julius Baer Private Bankers - the third largest Swiss Bank, and ICBC, China's largest commercial bank. Mario is also author of the best-selling book, 17 Proven Currency Trading Strategies: How to Profit in the Forex Market. (Wiley Publishing).
FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security and an industry-leading trader toolset that includes free access to powerful trader tools and personal coaching via FXPRIMUS Coach. FXPRIMUS truly is The Safest Place To Trade.
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