By the end of 2022, the price of iron ore is expected to hit their lowest level in three or four years as global demand for the commodity continues to slow down, particularly from China, the world's largest consumer of iron ore.
In recent years, China has been cutting down its iron ore demand especially after the government placed restrictions on the industry to...
It's now official; the US Federal Reserve has enacted its fourth consecutive 75-basis-points rate hike, bringing its benchmark rate to the 3.75% - 4.00% range, which is the highest it has been since January of 2008.
The markets reacted quite mildly to the rate hike at first, due to it aligning with exactly what the market was expecting for the past few weeks....
Now that Elon Musk’s buyout of Twitter has been completed, and the company has been taken off the trading market, what comparable stocks can traders look to trade now?
Of course, there are other social media compatriots that traders could turn to, or even other companies of a similar market capitalisation that are in takeover talks and abiding by a similar...
A couple surprising notes have appeared in the Bank of International Settlements’ (BIS) survey released today (28/10/2022). The triennial (occurring every three years) survey was conducted with the involvement of monetary authorities, like central banks, from 52 territories as well as 1,200+ commercial banks.
Trading volume increases
Foreign exchange trading...
New Zealand's stock exchange (NZX) could be facing strong headwinds toward the end of 2022 as third-quarter inflation figures suggest an 75-basis-points hike in the central bank's Official Cash Rate (OCR) in November.
In anticipation of the Reserve Bank rate decision earlier in October, the S&P/NZX 50 fell 106.3 points or -1% to 10,959.71. A similar scenario...
The British pound is likely to see another few months of turmoil now that Prime Minister Liz Truss has resigned.
During Truss’ reign, which latest a mere 45 days, the shortest tenure in UK prime ministerial history, the pound was rocked by her government’s plan to borrow billions of dollars to fund tax cuts. On the day of the release of the ‘mini-budget’ that...
The GBP/NZD has continued to sink from its recent high of 2.032 and is now well below the 2.000 level that the pair closed below on Tuesday.
A major factor determining the movement of this pair is the respective inflation rates data from each country that was released this week. The annual Inflation rate for the United Kingdom rose back to 10.1% in September...
With the latest US earnings season underway, plenty of investors are still wary of making investment decisions. They hope that the earnings results will serve as guidance as to how the next few months will look like before factoring in fresh monetary policies and inflationary measures.
Earnings and the S&P 500
In the lead up to the earnings season, A...
TradingView offers a great deal of built-in and community-led features, including Indicators and Strategies. It is the latter feature that I will discuss in this trading guide in relation to trading one of our clients' favourite instruments to trade, gold.
Strategies are programmes, written in the Pine Script language, which can execute, modify, and close buy...
Gold experienced some notable gains in the 2 weeks leading up to the release of the Non Farm Payrolls (NFP) data. However, this trend appears to have been spoiled with a sharp decline in gold at the end of last week and continuing at the start of this week.
The solid NFP report, which registered 263K jobs added to the US economy in September, validated the FED's...
It’s that time of year again; earning session for US stocks. With so many other variables contributing to volatility in the US markets (e.g., inflation, Fed rate hikes, recession, oil prices, quantitative easing), anything out of the ordinary can result in huge moves in stock prices. This has already been witnessed in an early report from Nike (NYSE: NKE) last...
By the close of last week's trading session, the top 3 worst performing currency pairs came out to be the USD/PKR (-4.91%), NZD/USD (-2.61%), and USD/SEK (-2.04%).
To help determine the direction that these pairs will take this week, we will use the Hacolt Indicator (Vervoort Heiken-Ashi Longterm Candlestick Oscillator). Will the pairs continue to slide, or are...
By the close of last week's trading session, the top 3 worst performing currency pairs came out to be the USD/PKR (-4.91%), NZD/USD (-2.61%), and USD/SEK (-2.04%).
To help determine the direction that these pairs will take this week, we will use the Hacolt Indicator (Vervoort Heiken-Ashi Longterm Candlestick Oscillator). Will the pairs continue to slide, or are...
By the close of last week's trading session, the top 3 worst performing currency pairs came out to be the USD/PKR (-4.91%), NZD/USD (-2.61%), and USD/SEK (-2.04%).
To help determine the direction that these pairs will take this week, we will use the Hacolt Indicator (Vervoort Heiken-Ashi Longterm Candlestick Oscillator). Will the pairs continue to slide, or are...
After being criticized for being slow to recognize inflation, the Fed has embarked on its most aggressive series of rate hikes since the 1980s. From near-zero in March, the Fed has pushed its benchmark rate to a target of at least 3%. At the same time, the plan to unwind its $8.8 trillion balance sheet in a process called “quantitative tightening,” or QT —...
Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.
There are some parallels between 1998’s intervention and...
In just two trading days, the probability that the sterling will fall to parity against the US dollar increased to 60% on Sept. 26 from 32% on Sept. 23 after the UK government's announcement of new tax cuts elevated concerns for the country's economy.
Bloomberg estimates that the GBP/USD will have equal value before the end of 2022, based on sterling-dollar...
Today’s FOMC meeting policy was as expected, with a 75-basis-points rate hike to 3.25%. In reaction, the USD/JPY moved towards the upside breaking a daily consolidation level.
The JPY, however, may find some support after the Bank of Japan (BoJ) carried out a rate check in preparation for a possible intervention for the currency. Japan is now prepared at any...
