Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which reacts not only to U.S. economic news but also to news from around the world. The forex market is a 24-hour market and news can come in at any time from anywhere in the world. Changes in the market based on economic news and data can hit any kind of trader wherever he might be and whichever currencies he chooses to trade. The most important component in any fundamental analysis of...
The market’s estimate of how much a currency pair will fluctuate over a certain period in the future is known as implied volatility. For online investors, a volatile market means both potential risks and an abundance of opportunities. Many traders follow market news and economic calendars in an attempt to recognize potential volatility, benefit from it and stay ahead of the market. Volatility is a useful concept for forex traders that can give them a sense of the risk involved in trading a particular currency pair. Volatility (in forex...
The US and China are in the early stages of a trade war which will increase volatility as well as uncertainty about how the US Dollar and the Chinese Yuan will trade, at least in the short-term. It will be harder for analysts to filter through the tweets of US President Trump and gauge a counter reaction by Chinese President Xi. Some forex traders may want to reduce their exposure to those currencies until more details become available. The funds which will flow out of higher volatile currencies will look for another trade in the forex space...
Many aspiring traders fail to become consistently profitable because they put too much time into trying to get rich from forex trading and not enough time into the actual process of trading. Becoming a consistently profitable forex trader is the result of discipline, passion, and a willingness to recognize and conquer your own personal mental faults. Becoming a consistently profitable forex trader is the result of discipline, passion, and a willingness to recognize and conquer your own personal mental faults. Successful traders understand...
Around the world, various governmental and non-governmental agencies report on a regular basis certain pieces of economic information. Consumer Price Index (CPI) is an index that measures the change in the price of a representative basket of goods and services such as food, energy, housing, clothing, transportation, medical care, entertainment, and education. It is also known as the cost-of-living index. The CPI Core is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive or bullish for the...
