British Pound Currency Profile (Part I)

By Ahmad Hassam

British Pound is also known as the Cable. The name most probably struck in the late nineteenth century and the early twentieth century. 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.

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. 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.

UK has large reserves of oil and gas in its North Sea. Offshore drilling has made the energy production industry account for 10% of GDP which is one of the highest shares of any industrialized nation. UK is the largest producer and exporter of natural gas to EU although majority of UK GDP is from services.

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 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 United States on an individual basis still remains UKs largest trading partner.

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

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

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. The most important of these ramifications is the adjustment of UK interest rate with the Eurozone interest rate in case UK decides to join EMU.

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. Right now Brits are not in favor of a Euro entry. The voter opinion can change overtime. However, if the voters do not support Euro entry, the likelihood of EMU entry will decline.

Bank of England: The monetary policy of UK is under the control of The Bank of England (BOE). BOE is the UKs central bank. BOE is one of the oldest central banks in the world. The Monetary Policy Committee is the nine member committee that sets the monetary policy for UK. The committee was granted operational independence in 1997. It consists of a governor, two deputy governor, two executive directors of the central bank and four outside experts. - 23159

About the Author:

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

Using Mutual Funds That Match Your Personal Needs

By Adriana Noton

A mutual fund is a collection of a wide number of stock and bond combinations held by individuals that are entrusted to a mutual fund company. The manager of the mutual fund will develop the mutual fund with the purpose of making a certain investment objective.

Mutual funds are popular because they are low risk and they can be chosen to one's personal needs.

Mutual funds are a diversified investment which makes them less of an investment risk. Mutual funds can follow diverse investment areas such a specific industry area. There are general industry areas as well as new and innovative type of investment funds such as mutual funds that only invest in environmentally conscious industries.

An important feature of a mutual fund is that one gains immediate access to hundreds of individual stocks or bonds, thereby drastically decreasing one's exposure to high risk volatility in the market. As well, to meet one's personal needs, a mutual fund is available in a number of types. These types include: money market mutual funds, stock funds, balanced funds, sector funds, and much more. The various types of funds allow people to build a diverse portfolio based on their personal needs.

Another benefit of mutual funds is that it does not require a significant amount of money to invest in a mutual fund. One can make regular investments in a mutual fund for little as about $50.00 a month. One can arrange to have a direct deposit made into their fund from their bank account once a month. As well, if one needs extra money, they can make a withdrawal from the mutual fund into their bank account. The flexibility and convenience make this form of investment popular with a broad range of consumers. Mutual fund holdings are available for public viewing so one can keep track of their investment.

Normally you will have to pay a tax on the money you make from the mutual fund. Although, if you hold your mutual funds in a registered plan, you will not pay any income tax on the money until you make a withdrawal.

For those who do not have the knowledge or time to research and analyze stocks and bonds in order to build a low risk portfolio, mutual funds are a great choice. As well, one can take their earnings and have them reinvested into other mutual funds without hassle or expense.

For ones personal needs, mutual funds provide a wide variety of investments that will allow you to choose investments that you are comfortable with so that you do have to worry. You have the ability to buy the type of mutual fund that you want and you can include low risk investments with a few high risk ones. You can invest at any phase of life, that is, young, middle age, and old. Because there are so many funds to select, you will find one that meets your particular needs.

A mutual is a safe method of investment for those who want to earn extra money for retirement or any other future expense that requires a significant amount of money. - 23159

About the Author:

When you're deciding to buy a house, some of the factors that you have to take into account are mortgage rates. As mortgage rates are important for home-buyers, GIC rates are important for investors. If you're interested in a customized financial plan, remember to visit us.

Best Ways To Increase Your Credit Score

By Doc Schmyz

Once upon a time you could walk into a bank and get a loan on a handshake and your honor. This was when you actually dealt with a person and were seen as more than a number on a spread sheet. Now it?s all about your FICO score.

Several credit models can be used for this article, however we are going to focus on the Fair, Isaac Company model. Better known as FICO.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Getting and improving your credit score is not hard at all, just takes time. Here is a tip or two that will help you improve and increase your score.

FIRST: Obtain a Credit History

There are many reasons you may have no credit history. Maybe you're just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

The easiest way to raise your score is acquire a loan, and pay it off on time. In general, installment loans are weighted more heavily than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

A second idea is to take a sum of money, let?s say $1000, and put it in to a 6 month CD at a bank or credit union. Then you in turn go and get an installment loan against the first CD as collateral. The final part of this step is to take your new loan and repeat the process 2 more times at a different bank each time.

Let the CD's mature, paying only the minimum for the 6 months. Once they mature you cash them out and pay off all three loans. Congratulations...you now have a credit history.

SECOND: Keeping your history in good standing.

So we now have a good history. How do we get the score higher?

Don't close your old accounts. One part of your credit score is based on the amount of credit available verses amount of credit used. Closing old accounts can lower this part of your score.

Another thing to be aware of is how you manage your money. Here?s the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here's what happens - your credit card company reports your credit information monthly to FICO. However if they report it on the day before you pay it off...the credit agency sees you carry a balance every month. If you can try changing the days you pay off your credit card.

THIRD: Repair poor credit

At some point there is a very good chance you will have something that causes your credit rating to drop. Don't panic...poor credit can be fixed. Understand however that the process takes time. In some cases you may need to talk to a credit counselor to assure you address the reasons for the drop as well as remove any future habits that may cause it to drop again.

The FICO score is most affected by your credit history. To repair a low credit score start paying your bills onetime. In order of value you need to pay your Mortgage, Installment loans, and last your credit cards.

The next largest factor on your credit is how you have used it. You can improve it by paying off your credit cards.

When you?re all done with the rest of things...review your credit report. Get one from all the credit agencies. Look for errors and mistakes. Contact them to see if they can remove them or correct the errors.

A good FICO score is a huge part of your financial life. Keep it healthy. Use these tips and watch your score climb. - 23159

About the Author:

Doc Schmyz has done real estate deals all over the US. His free website shares Real estate investing information for all over the US. Findreal estate information by state

Selecting a Forex Trading Broker

By Bart Icles

If you are a beginner to the foreign exchange or forex market, it would help a lot if you work with a forex trading broker. This broker can help you a lot in representing you during trading in such a way that trading with a broker will help eliminate the chances that you will be making the same trading mistakes again and again. A lot of beginners simply enter the market and they believe that they will eventually succeed out of pure luck. However, they often realize too late that they are making the same mistakes and before they know it, they have already lost all their investments.

However, this does not mean you cannot start trading in the market on your own. If you are one of those beginners who have been equipped with sound knowledge and proper training on how to make use of forex signals, then you can easily take on any trading situation on your own. On the other hand, if you are one of those who have entered the currency market without any clue of what to do, it would be to your advantage to take time to consult a forex broker.

There are certain factors that you will need to consider in looking for the right forex trading broker. Take time to do a little research on the different companies that promise to give you help in forex trading representation and other needs. You will need to be cautious in making decisions because you will be putting the management of your trading account into the hands of someone else.

You can start researching for a forex trading broker online. Go online and participate in online web forums. Try to see if you will be able to talk to someone who has a first-hand experience in dealing with trading brokers. Then, try to ask for recommendations and referrals. Once you have a name, try to do a little background check on that person ? try to gather information on his or her reputation and his or her experience in forex trading.

There is no foolproof way of selecting the best forex trading broker. But it definitely helps to screen several brokers before settling for one. In this manner, you will be able to have a good idea of what they do and how they can potentially help you. In this manner, you will able to determine if he or she can effectively handle your forex trading needs. - 23159

About the Author:

Using a forex trade signal starts with a desire to learn and a drive to become a great trader. Learning to use a forex trading signal software is a powerful technique, it takes a good teacher and mentor. But once you learn how to trade using them your life will change and you have options and financial resources you never had before.

Currency Trading Broker - What Makes The Best?

By Fox Buchanon

Choosing the right currency trading broker is an important part of getting off on the right foot as a trader. You need to consider the fees that your broker will charge as these will affect your profits. There are so many brokers in the market and they differ in the amount they charge. It is not necessary to choose the lowest cost broker, but this is certainly a consideration. It is good to determine if the services you receive justify the costs.

There are some things you need to understand about how fees are determined in currency trading. Some brokers charge a commission but most make their money on the spread between the bid and ask price. The bid is what they would pay to buy your currency, the ask is what they would charge you to buy the currency. An example is the EUR/USD 1.2500/1.2502. The price difference is 2 pips. A pip is 1/100th of one percent on the based on the lot size. On 100,000, the typical size this would equate to $20.00. The smaller the spread the lower your cost will be.

Ask your friends who trade to recommend a broker to you. If they are getting good results from their broker this may be the one you should use. Be cautious with brokers advertising no commissions and low, low fees. This is usually temporary. Look for a broker who is competent and can complete your transactions quickly. Being able to trust your broker is an essential issue to your trading success.

Choosing an honest, ethical currency trading broker is one of the most important things you can do when you are ready to enter the market. You want to use someone you wants you to be a success. It is important that the broker be regulated by a government agency and have a clean record. Beware of scam artists.

It is best to choose a broker that is not going to take the position opposite to your position. This is a conflict of interests. You want to work with someone who is working for you and wants you to succeed. Many brokers have no vested interest in the direction of currency price movements.

If is recommended to choose a broker you trades through the Electronic Communication Network.(ECN) This is the type of currency trading broker who simply matches up trades from the buyers against the sellers. They do not take positions themselves. Market-makers will take the opposite position to yours in order to "make a market." This creates a conflict of interest. Stay away from this style of broker.

A good idea in addition to these recommendations about brokers is to use an online service that affregates information for you make a selection from.

Choose a currency trading broker that works with you as a partner. You want to spend your time making money rather than worrying about who you are trading with. - 23159

About the Author:

A KEY factor for your success will be your currency trading broker if you are serious about online foreign currency trading!