US President Trump will face his first mid-term elections of his presidency. The Republican Party currently controls the White House, the Senate and the House of Representatives. This ensures that President Trump can push his proposals though Congress with little resistance unless his own party rebels against him. In order to pass legislation, it needs to pass both chambers in Congress before the President can sign it into law. There are exceptions where the President can act without approval of Congress. The Democrats have been waiting for...
Understanding and measuring the relative roles of different causal channels between commodity prices and exchange rates has important implications in financial decision making, especially for market participants with short horizons. From a macroeconomic perspective, this can also be useful for interpreting exchange rate movements, financial market monitoring, and monetary policy. Basic economic reasoning on currency demand suggests that currencies of countries whose exports depends heavily on a particular commodity should strongly be...
Hello everyone, my name is Bintang and I am from Indonesia. I wasn’t sure if I should share my forex strategy with all of you, not because I wanted to keep it all to myself but I thought that many will simple laugh it off. Ever since I started trading forex people have laughed at me for doing so. I did get a lot of negative feedback from friends and family, none of them ever traded forex, and they tried to discourage me from pursuing something I genuinely believed it. I don’t want to bother you with the long details of it, but I do want to say...
As the US-China trade war is set to intensify, forex traders should take a closer look at commodity currencies. US President Trump announced that tariffs on the remaining Chinese imports into the country may be announced if no progress is achieved on the sidelines of the G-20 meeting in Buenos Aires, Argentina between November 30th and December 1st. This would levy tariffs on all Chinese exports to the US, valued over $500 billion per year. This is expected to have a much bigger negative impact on the global economy than many are prepared for...
Currencies constantly move up and down against each other as financial markets change. The currency markets are intertwined with the interest rate markets allowing sovereign rates to have a direct influence on the direction of a currency pair. Sovereign rates, which are the official interest rates issued by the government of a country, are used to create the forex forward market. The forward rate, of a currency pair, is any date longer than the spot rate. As sovereign interest rates fluctuate relative to other sovereign rates, the change can...
