The Japanese yen and the Swiss franc gained on Monday, thanks to safe-haven buying as sentiment in financial markets remained fragile on heightened worries over political instability in the United States and fears of a global economic slowdown. Trading volumes were thinning out with most global markets set to shut for Christmas, while Japan was closed on Monday for a holiday. There was hardly any appetite among investors to take on risk, with a deteriorating outlook for global growth leaving stocks hurtling down for their worst quarterly...
I know that forex trading is dominated by make traders so you can imagine that it was a bit harder for me to get my business off the ground. Adding to the obstacles were my conservative family who wanted me to get married and become a housewife, growing up in Saudi Arabia and being Muslim living in Poland now. I am very untraditional across in all aspects of my life, but I believe this is one of my greatest strengths. I had way too many hurdles to clear, so I decided to clear them one at a time. This has taught me a very valuable lesson for...
If you work in the Forex market, know how to analyze the information provided on the current situation on the currency exchange, you must have come across the term pips. So what is it? What does pip mean? Pips are used as a definition in price movement changes at minimum values. That is, it is an accepted unit of exchange rate versus value. The term originated from the abbreviated combination of two English words “percentage” and “point”. Therefore, a pip is measured as a percentage of 1/100 and allows you to catch the minimum fluctuations...
Over the past years, many ignored the US yield curve as the Federal Reserve kept interest rate near zero and supplied three rounds of quantitative easing. This was done in reaction to the 2008 global financial crisis and the U Great Recession which followed. The US central bank hoped to buy the economy enough time to heal and grow on its own. Since the Fed ended its QE purchases and started to increase interest rates, the yield curve started to slowly become more interesting. The 2-year/10-year yield curve inversion has often been a precursor...
The Central Bank (CB) of any country is the most important market participant for that country´s currency. The Central Bank officials, with their president/chairman at the top, hold the monopoly for the monetary policy of each country or economic zone. A perfect example of this being the Eurozone. They are the decisive factor for all long-term currency moves. Of course, there are other market participants in the forex market such as investors, speculators, hedge funds, second level banks etc., but they usually drive the market in the short to...
