Political stability, sound fiscal and monetary policy and the resulting steady macro-economy make the CHF the quintessential safe-haven currency to which international investors return in times of crisis. The safe-haven nature of the CHF poses a challenge for the Swiss economy as the CHF tends to appreciate whenever a global crisis looms. This trend has been less pronounced lately with key events such as the triggering of Article 50 and even the election of Donald Trump failing to spark the rally some might have hoped in the Franc....
When it comes to fundamental analysis of a currency of a particular nation, one of the most influential factors to mark trading currency pairs, is the monetary policy course, adopted by central banks. A nation’s central bank, acting as a monetary authority which ultimately strives to achieve price stability in the country, uses monetary policy in order to control the money supply, or the total amount of money available in the economy. Generally, each central bank tries to achieve an equilibrium between the rate of inflation and economic...
Minutes from the last FOMC meeting which was held on May 2nd showed that the US Fed saw no reason to rush into increasing interest rates. A growing number of market participants questions if the US Fed will increase interest rates much further in 2018. While the Trump administration have criticized the Fed for not normalizing monetary policy, it appears that even the Trump approved new Fed Chairman Jerome Powell who took over on February 5th 2018 is unable to accelerate the return to normal. Many call the current US monetary environment the ‘...
The concept of the fractal is more than just a strategy idea. It is a way of understanding forex price action and trade flows at their most fundamental level. Fractals are indicators on candlestick charts that identify reversal points in the market. Traders often use fractals to get an idea about the direction in which the price will develop. A fractal will form when a particular price pattern happens on a chart. Fractal trading is only one of the evaluation methods which is effective during the periods of a stable trend, while in a wide...
With Oil's stature as a high-demand global commodity comes the possibility that major fluctuations in price can have a significant economic impact. The price of crude Oil depends on many factors that influence it individually or have a reciprocal effect. These factors vary in relevance and their importance can quickly change. The Oil price was, for decades, largely dictated by demand from the US and supply from the OPEC group of Oil producers, but the rapid rise of US shale Oil output and incredible economic growth in China mean that the...
