US stock markets have raised today and is said to incline for the next three days. The stock market forecasts reveal that due to falling price of gold and Greece crises under control, the stock markets rose slightly but investors are still unclear as China’s tighten monetary policy is slowing down the growth in that country.

A 10% decline of Dows’ made traders believe that correction is the right word but many analysts said that a pullback was overdue and Europe’s future is just a non-issue. The traders expressed situations in the financial markets as troubled and unstable. The US corporate bonds have fallen straight and the prices of oil, copper and gold dropped. Gold forecasts have resulted in negative whereas gold was often seen as a safe-haven asset, dropped. Gold acts as a hedge against inflation and its price fall indicates that investors are less worried about growth of precious metal. The bad news is that the feds will be raising interest rates at the end of this year which has made investors worried about future predictions of stock market.

The American stock market is on the doldrums as heavy losses have been witnessed by the investors. Dow Jones have fallen more than 1000 points which is incredibly low after the 2007 recession. The market doesn’t seem to recover till the end of the month of May but mid of June would be a recovery period for NYSE. NASDAQ (IXIC) and S&P (GSCP) follow the downward trend of NYSE. Reuters name the fall of stock market as “correction” but this is not what market correction is. It is only because of Euro-Zone’s debt crises which could easily put the global economic crises into jeopardy.

The Dow Jones Industrial Average has declined to almost 9% this month which is a bad indicator. Nasdaq and S&P have fallen 2.71% and 3.6% respectively which is not healthy for investors. On the other hand, UK stock market has shown some recovery in the past few days. The forecast for UK stock market is very important as it plays an important part in world economies. Signs of recovery in UK market shows that the US stock market will recover soon in the month of June. “This is the right time to by US stocks as a large market volume displacement has occurred which will recover soon profiting the investors” said Chris Jason, board member of Fed. The predictions are clear, as the market is falling and investors confused, it is time to invest and selling your shares is not a intellectual move to make.

View the full DJI chart at Wikinvest

View the full SBAZ chart at Wikinvest

By Daniel Riches (Financiere Correspondent)

Dollar fell today against Yen due to extreme remarks from the Bank of Japs’ governor about their country’s price weakening speculations. They said that the state bank will ease monetary policy by the end of this month.

This, not only effected dollar rates in Japan but signaled the Asian economy about the low spectrum of dollar downfall. The greenback is likely to fall until some serious measures are taken by the U.S. Govt. On the other hand, U.S. stock market gained as dollar weakened allowing investors to grow hopes and investments. The dollar declined to 93.15 yen from 93.21. The dollar dropped against the Swiss franc nearly one cent to 1.0663 from 1.0739 francs a day ago. The maturity came after guesswork increased about a looming EU verdict to execute a rescue package for Greece. The dollar also appears to be weaker when compared to the Canadian and the Australian dollars.

There is evidently more pressure to sell dollars from corporate clients. Financiere analysts forecasts that if Retail Sales post a strong gain, they could stoke rumor that the Fed will raise rates sooner rather than later and boost the U.S. Dollar.

The U.S. dollar rose on Saturday against Euro, the future plunging currency. Our financial advisory division forecasted euro plunge in near future and warned investors to avoid further investments in euro, at least for six to eight months. The dollar rose to 0.9 percent marking its current position to $1.340. The dollar is now looked upon as safety currency because euro’s outlook is blurred, unclear and uncertain. It is very common amongst investors that when they become uncertain about investments, they try to invest in major currency which is now U.S. dollar after euro’s downfall.

The yen also fell against dollar and 15 other most traded currencies as Japanese consumer price (CPI) plunged this week forcing its central bank to raise interest rates. Similarly, the Canadian and Australian dollars also fell against the greenback.

U.S. payrolls added 190,000 jobs in March, increasing the likelihood the Federal Reserve will raise interest rates in the near future. This will give a stronger position to the dollar but only for a short-term. For long term investments, investors should move ahead towards “Better investment than U.S. dollar” which is gold.

But The U.S. dollar is the most regularly used currency in international market up till this day. The fact that the U.S. is the world’s largest trading nation is only part of the reason. The value of international market in dollars is much larger than the total business conducted by the U.S. and countries with currencies linked to the greenback. This is predominantly true in Asia, where many countries bill more than 80% of their exports in dollars.

The U.S. Forex Outlook is extremely volatile and a novice investor might get flustered with the volatility and suffer huge loss The US Dollars are expected to experience short-term downfall as Fed rate climbs. The whole economy is dependent on feds withdrawal of motivation and how the tightening cycle hits the US recovery. It is evident that the US economy will shrink in the second half of 2010 but for the month of March 2010, the stability is expected. Forex had been attracting a lot of players in U.S. market from stocks, bonds and commodity markets but recently the trend has changed and people are hitting back to gold investments and stock market. The interbank trading has also been rough for a past couple of months. The sheer size of forex market is now going bearish and the Fed, instead of tightening policy should give a break to the still recovering U.S. Economy.

The U.S. Fed (Federal Reserve Board) increased the discount rate charged to banks for direct loans whereas the chairman Ben Bernanke assured that the Fed and the central bank is aware of the joblessness in United States of America. It is said that the move will cheer financial institutions to rely more on money market treasuries rather than the state bank for liquidity requirements.
The dollar bulled as the Fed retreated gradually from its extraordinary actions to arrest the deepest financial crisis since the great depression. The Fed has released hundreds of billions of dollars in backstop credit to banks, commercial paper borrowers, bond dealers and anxious financial institutions. Our financial advisory division has stated the rise in discount rate as “nonsense” because of high inflation and joblessness. The U.S. economy hasn’t yet recovered completely from financial crises and the expenditure in Afghan and Iraq war is making the situation worst. The act of raising the discount rate is a fraction of a broader move to pull back the extraordinary aid fed provided to fight the financial crisis.