Currency Profile Of GBP (Part I)

By Ahmad Hassam

GBP/USD is the most liquid currency pair in the world and is highly popular with the currency traders. 90% of the global currency trading is pure speculation by the market players. Why is GBP so popular with the currency traders? What are the strength and weakness of GBP? Lets discuss the currency profile of GBP. Another name for the British Pound (GBP) is Pound Sterling. GBP is also known as the Cable. This name most probably struck in the early part of the twentieth century when most of the global trading used to be done through GBP via telex machines run on the cables. GBP used to be the international reserve currency of choice in those days. United Kingdom (UK) is the fourth largest economy in the world. UK has a service oriented economy with manufacturing representing a small part of GDP. Manufacturing is only equivalent to one fifth of GDP.

London is still the forex center of the world. London Stock Exchange is still the second most important stock exchange in the world after the New York Stock Exchange. The British capital market systems are one of the most developed in the world and as a result finance and banking has become a strong contributor to the GDP.

Although majority of UK GDP is from services, UK is the largest producer and exporter of natural gas to EU. The energy production industry accounts for 10% of GDP which is one of the highest shares of any industrialized nation.

Trade deficit is an important economic indicator for determining the strength or weakness of a currency. Overall, UK is a net importer of goods with a consistent trade deficit. Increases in energy prices such as oil will significantly benefit the large number of UK oil exporters. This is important for forex traders as energy prices are positively correlated with GBP.

The United States on an individual basis still remains UKs largest trading partner. However, the largest trading partner of UK is the EU with the trade between the two accounting for almost 50% of UK imports and exports activities.

The leading import sources for UK are Germany, France, United States, Belgium and the Netherlands. The leading exports markets for UK exporters are the United States, France, Germany, Ireland and the Netherlands.

UK had rejected adopting Euro as its currency in June 2003. However, the possibility of Euro adoption will still be in the backs of minds of pound traders for many years to come. Now, if UK decides to join EMU, it will have significant ramifications for its economy.

In case UK decides to join EMU, the most important of these ramifications is the adjustment of UK interest rate with the Eurozone interest rate. One of the primary arguments used against adopting the Euro is that UK has sound macroeconomic policies that have worked very well for the country.

Right now Brits are not in favor of a Euro entry. There are many arguments in favor of Euro entry and many against.UK is a highly political country with government officials highly concerned about the voter approval ratings. The voter opinion can change overtime. However, the likelihood of EMU entry will decline if the voters do not support Euro entry.

Bank of England: The Bank of England (BOE) is the UKs central bank. The Monetary Policy Committee is the nine member committee that sets the monetary policy for UK. It consists of a governor, two deputy governor, two executive directors of the central bank and four outside experts. The committee was granted operational independence in 1997. - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try These 1500 Pips A Day Forex Signals From Heaven. Know Forex Rebellion!

Laws On Uninsured Vehicles

By Christos Chalfont

It is an offence to drive a motor vehicle without a certificate of insurance in place covering you to drive that vehicle on that occasion.

Driving without insurance is treated very seriously in the Magistrates Court because of the potential implications if you were to crash when uninsured.

In order to be found guilty of driving without insurance, the Prosecutor only has to prove that you were driving the vehicle on a public road at the time in question and it is down to the defendant (you) to prove that you had insurance and you were allowed to be driving it. This is an unusually way of proceeding in court, but it is this way because it would be extremely time consuming and nearly impossible for the Prosecutor to prove that you were not insured because they would have to go to every insurance provider in the country and check that you aren't insured with each of them. It is therefore your responsibility to prove that you did have insurance to be driving the vehicle at the time in question.

One of the things that catches most people out in relation to the no insurance offence is that you do not have to actually be driving the vehicle at the time of the alleged offence in order to be guilty. The offence is actually described as using the vehicle without insurance. Using a vehicle can mean "having use of" the vehicle. This means that if the vehicle is parked up on a public road outside your home for example (even if it is broken down) the Court will still find that you had the potential use of the vehicle and therefore if it is uninsured they will find you guilty of using the vehicle without insurance.

Another way in which a lot of people get caught out in relation to insurance offences is because they believe that their fully comprehensive insurance covers them to drive a vehicle owned by another person with their permission. A lot of fully comprehensive insurance policies do not actually have this type of cover as of right. This element of the cover is also sometimes dependant on the age of the policy holder.

It is of the utmost importance that you full understand and have read everything in you insurance policy. You must ensure that whenever you go to drive your own vehicle, or someone else's that you are indeed covered and are legally allowed to be driving that vehicle at that time. - 23196

About the Author:

For more information about free legal advice please click driving with no insurance.

Invest The Best Way In The Stock Market

By Michael Swanson

A successful player in stock market investing will watch his stock picks like a hawk. Monitoring the rise and fall of stock prices is an essential part of the money-making formula.

Watch your stock prices every day, noting whether prices are heading up, down or even fluctuating. You can find stock listings in your local newspaper or on many Internet websites.

When your broker mails out his monthly statements, open them up and keep track of price trends in your stocks. In between statements, pay attention to stock prices printed in the paper or on the Internet.

If you're following a tip on a hot new stock, watch it for a while. Make note of the ups and downs of your potential new stock. Once you're more familiar with its history, you can buy with more confidence.

Stocks that are growing nicely should be added to when you have some extra cash to invest. Remember to diversify your investments. Like the old adage says, don't put all your eggs in one basket, because if that basket falls, everything is broken.

Do you know your broker's phone number? If you're paying close attention to your stocks, you'll know when it's time to buy or sell and you'll want to act fast. Instruct your broker as to what to do as well as a price. Everything can be handled by the broker. All you need is a confirmation number when the deal is complete.

Read industry papers such as the Wall Street Journal or Barrons. Both contain not only market prices but news and information that will affect the entire stock market.

Be warned that like a bomb, the stock market can "go off" at any moment. It is very volatile which is why sometimes cooler heads must prevail. Look three years down the road when investing in the stock market and don't dump your stocks impulsively if they start to take a nose dive. Take a look at your stocks over time.

Congratulations! Day trading can be profitable for those who are vigilant, but remember it still takes a lot of hard work and sophistication. - 23196

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Forex Trading System Course - Potential Money Maker

By Mark Walters

You may have heard about the exciting money making opportunity that is foreign currency trading, but it's tough to know where to start. A forex trading system course can be a way to get your foot in the door. The last thing that you want to do is go head first into the world of forex trading without having a clue what you're doing.

When you want to get into forex trading, it helps to first understand what essentially forex is. Just saying currency trading probably doesn't mean a lot to most people. Every time a holidaymaker travels to another country and exchanges money, they are trading foreign currencies. This is a small scale example, but it's one that everyone can relate to.

The value of one currency against another is constantly changing. One day you might be able to exchange 100 USD for 60 Euros, and the day after those 60 Euros might be worth 110 USD. Alternatively, they could be worth less - maybe only 80 USD. The fluctuations are usually not that fast, but you get the idea.

However, though the value of a single currency doesn't change too much over the course of a day, the large number of currencies and the sheer volume of money being passed through the market (as much as $1.5 trillion daily) mean that there is still big money to be made. It can seem overwhelming at first to take all the figures and rules in, which is exactly why you should sign up for a forex trading course before investing your own money in the forex market.

There are a lot of things to take in when it comes to learning your way around forex. You need to understand how the market operates, the different types of software involved, and most of all, you need to learn discipline and how to keep your head.

Forex trading system courses are available in a face to face classroom environment or can be taken directly from your own home via the internet. For a small upfront fee, there are plenty of forex course providers who can show you what you need to know to start making money through forex trading.

Unfortunately, some of them are straight-up scams and they will charge you way too much and provide almost no information on successful forex strategies. So, be sure to check the credentials of both the institution offering the course and the instructors, make sure that they're coming from a successful forex background. - 23196

About the Author:

Got the idea of how you can make money from different currencies? For more information on how you can have a forex trading system course work to your advantage, take a look at http://www.compareforexproducts.com

What You Must Know Before You Buy Forex Signal Software.

By Kareechy Ken

How many times have you bought something without exactly knowing what it was? Sure we might have all done that. We have all bought things that you might or might not know how they work. Here is what you should understand and what you should know before you buy forex software.

You might have a brief idea of what forext software is, but before you buy it this is what you should know before you buy forex software. So, if you don't quite know what it is, here let us help you. This is software that trades foreign currencies as the prices of currency are always fluctuating.

Next, how easy is it to use? You should be able to navigate your way through it with ease. If this isn't available, then you need to rethink this. This is extremely important for people to have. Some actually have tutorials that allow you to try this for free just so you know how to work the software.

What does the logic look like? You want something that has been known to give the best results. If you don't have this, then you are getting now here with the software that you have. If you don't have the best then you can prepare to lose money.

There are many benefits. The money you can make is just one of those many benefits to forex software. They keep their eyes out for you to bring you a great amount. You'll love it when you see how much you can make.

Other sites and other services make you have a good portion of money in the bank before you begin. This isn't at all true with forex software. With just a little money to start with you can start trading foreign exchange currencies. It's really that simple.

With understanding the basics, you are ready. You are aware of what you need to know before you buy forex software. If you don't know that, then there are things you still need to look up so that you don't go wasting money or losing it for that matter. Have fun and be careful. It can be very tricky. Get started and look at the financial business you are in. Be aware of the things that could really bring you trouble when using forext trading. - 23196

About the Author:

Learn more about Forex Trading Signal Software. Stop by ForexTradingSignalSoftware.net site where you can find out all about Forex Trading Signals Software and what it can do for you.