The non-farm payroll report or NFP report out of the US is often considered the most important economic report released out of the US. Forex traders often try to position their portfolios prior to the release in order to take advantage of the increase in volatility that usually accompanies the release of the NFP report. When is the NFP report released? The NFP report is released every first Friday of the month for the previous month. The biggest mistake many forex traders make, especially new ones, is that they focus on the headline figure as...
Does central banks news has impact on market forecasts and thereby cause severe currency fluctuations? Studies suggest that yes, it does. Moreover, currency fluctuations can be caused not only by news on monetary policy decisions, but also by the words on the subsequent press conferences, which capable of causing a strong reaction in the market. Over the past few years it has become evident that the European Central Bank (ECB), the US Federal Reserve and the Bank of England hold their press conference after the adoption of important...
The Australian Dollar has experienced an extremely volatile trade over the past eight trading weeks. Forex traders have reacted to every data point which caused rapid moves to both sides. Besides technical as well as fundamental factors which acted on this currency, the Australian Dollar continues to face interference from the Reserve Bank of Australia which took a page out of the playbook of Mario Draghi, the President of the European Central Bank. Prior before the ECB decided to slash interest rates Mario Draghi and other central bank...
Late last week, the US Dollar Index has tested significant level of 88.00. Indeed, the USD is in demand as the euro and the British pound lost their recent achievements, which was caused by the words of President of the ECB Mario Draghi, who spoke at the European banking conference in Frankfurt. He focused on inflation and talked about very low inflation expectations in Europe. This is important because the maintaining price stability in the medium term is a direct responsibility of the ECB. If inflation forecasts are reduced, the ECB...
Facing a trading loss is as much part of trading forex as analyzing the charts for a trade, following economic developments for fundamental signals and earning money. Many traders feel uncomfortable with taking losses which can lead to even greater losses. This comes down to trading psychology and too many forex traders do not take into account that they need to learn how to deal with a trading loss effectively. This needs to be learned over time, but the sooner new traders will start to familiarize themselves with trading losses the better....
