Information that changes the value of a currency pair, can come in many forms, but the most pertinent are economic indicators that help drive the forex market. Forex traders are always on the lookout for economic news indicators which they can follow to help them make more money during forex trading. Economic indicators can have a huge impact on the market; consequently, knowing how to construe and analyze the information they contain is very important for forex traders. Economic Indicators are usually classified in several ways. The major...
Will 2018 be the year the US Federal Reserve will finally deliver on their interest rate hikes according to their now infamous dot-plot chart? Since the introduction of quantitative easing and the reduction in US interest rates down to a range between 0.00% to 0.25% in December of 2008, there has been plenty of discussions on when to normalize the monetary environment. Over the past decade, savers and fiscally responsible citizens have been punished as money in the bank did not return anything. This resulted in a Japanese style monetary...
With hundreds of forex brokers to choose from, selecting the right one can be challenging and time-consuming. This represents an important decision because the type of forex broker chosen can affect both the quality of service you receive, as well as your transaction fees and dealing spreads. The first step you need to do to trade on the forex market is opening a trading account with a forex broker. Some brokers offer better trading conditions than others, and you need to know what to look for when choosing your first forex broker. Trading in...
Many traders are attracted to the forex market because of its high liquidity, around-the-clock trading and the amount of leverage that is afforded to participants. On the other side stocks, particularly blue-chips, are generally used for longer-term buy-and-hold investments, where your return will be determined over weeks and months. The foreign exchange market is the world’s largest financial market offering traders a chance to get a piece of the 5 trillion dollars that are traded daily. Whereas the stock market trades reputable and...
Given that the United States economy is far and away the largest single economy in the world (close to three times the size of second place China), it is not surprising that the U.S. dollar holds the position that it does. The United States dollar is by far the most significant currency in the global market; it is the dominant reserve currency of the world, it represents nearly half of the trading volume of the major currencies, and it is the default currency for most transactions. There are numerous models and theories that attempt to...
