Correlations between the world's most heavily traded commodities and currency pairs are common. For example, the Canadian dollar (CAD) is correlated to oil prices due to exporting, while Japan is susceptible to oil prices because it imports most of its oil. Similarly, Australia (AUD) and New Zealand (NZD) have a close relationship to gold prices and oil prices. While the correlations (positive or negative) can be significant, if Forex traders want to profit from them, it's important to time a "correlation trade" properly....
The Australian Dollar has enjoyed a very good rally since recording a multi-month low of 0.8659 on January 24th 2014. The extreme correction in the Australian currency was caused by several disappointments out of the Australian economy. In addition comments from the Reserve Bank of Australia favored a weak Australian Dollar in order to boost exports especially to China which Australia depends on for economic prosperity due to heavy dependency on commodity exports. At the end of 2013 the majority believed that the Australian Dollar would...
This coming week Forex traders await fundamental data on the index of retail sales in the U.S., consumer prices in the UK, as well as data of current sentiment in the business environment in Germany, China's GDP figures and much more. All times are Moscow Monday, April 14 The first working day will begin with the publication of industrial production in the euro area. Experts predict that industrial production will grow by 0.2% in monthly terms. During the day the attention of traders will move to the United States, there at 15:30...
The value of a country’s currency is affected and influenced by various economic indicators that reflect how a country is performing. The macroeconomic events that are placed internally and internationally are factors that have huge effects on the currency’s value. Forex traders should know that there are economic reports which have huge impact on the forex market. GDP is considered for one of the biggest measures of a country’s economy and it represents the total market value of all goods produced in a country during a given year. Most of...
The tens of billions of euros euro zone banks set aside for loan losses in their latest annual accounts may have substantially reduced the chance of institutions failing ECB stress tests in the next few months. A total of 71.5 billion euros ($99.3 billion) was set aside in 2013 by the 20 biggest listed banks involved in the exercise. Many analysts also boosted capital ratios by raising cash and hoarding profits. If replicated across the 128 lenders subject to tests the European Central Bank aims to complete by October, it could mean no...
