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Understanding GBPUSDToday we will be taking a closer look at understanding GBPUSD . GBP -no global business -risk currency -more linked to the UK economy, politics, central banking USD -global business currency -safe haven globally -Petrodollar UNDERSTANDING THE CURRENCY PAIR -we have to understand that within this pair “ GBPUSD ” one is a “ risk ” currency ( GBP ). ( USD ) is a “ safe haven currency ” and is also known as the world reserve currency. During times of economic uncertainty our doubt , or during any periods of times where we have more $ strength, which can be induced by the FED central banking, interest rate hikes and so forth, we will always have the $ dominate, even if the other currency can have some short term strength. THE USD IS THE WORLD RESERVE CURRENCY What does this mean? -this means that the majority of INTERNATIONAL business is denominated in USD. We can see this very relevant when we are looking at the OIL industry and how oil is always exchanged in USD. Hence the name “PETRODOLLAR”.
Education
by FxPocket
Evolution of JPY:How BOJ Policies & Global Events Influence YENUSD/JPY Dynamics: A Historical and Policy-Driven Analysis of the Bank of Japan's Impact Historical Context and Market Reactions The COVID-19 pandemic led to some of the most extreme market reactions in recent history. During this period, global bond yields spiked in a highly risk-off environment, defying expectations that they would fall as investors sought safe havens. This prompted the Federal Reserve to implement unlimited Quantitative Easing (QE), including daily purchases of $300 billion in bonds. The market chaos highlighted the extent of leverage in supposedly liquid trades. Post-COVID , zero interest rates spurred significant equity market gains until inflation concerns and subsequent rate hikes caused a market correction. It was expected that higher borrowing rates would reduce excessive leverage, but the heavily crowded yen carry trade suggested otherwise. Yen borrowing was extensive and leveraged, flowing into the Japanese market due to minimal currency risk. The Bank of Japan (BOJ) System The Bank of Japan (BOJ), established in 1882, serves as the central bank of Japan. Its primary roles include issuing currency, implementing monetary policy, and maintaining financial stability. The BOJ’s policies and actions significantly impact the yen’s value and the broader Japanese economy. Key Functions of the BOJ: 1. Monetary Policy: The BOJ's primary tool for influencing the economy is its monetary policy. This includes setting interest rates and engaging in open market operations to control the money supply. The BOJ's main policy goals are to achieve price stability and economic growth. 2. Quantitative and Qualitative Monetary Easing (QQE): Introduced in 2013 under Governor Haruhiko Kuroda, QQE aimed to combat deflation and stimulate the economy by purchasing government bonds and other assets, thus increasing the monetary base. 3. Negative Interest Rate Policy (NIRP): Implemented in 2016, the BOJ introduced a negative interest rate on excess reserves held by financial institutions at the bank. This policy aimed to encourage lending and investment by making it costly for banks to hold excess reserves. 4. Yield Curve Control (YCC): In 2016, the BOJ introduced YCC, targeting a zero percent yield on 10-year Japanese government bonds to control the shape of the yield curve and maintain low-interest rates across different maturities. Recent Economic Developments Japanese Yen Strength: - Recently, the yen extended its rally to above 146.50 against the US dollar, its strongest level since March. This was driven by diverging monetary policies between the US Federal Reserve and the BOJ. - Weak US jobs data have increased expectations for further Fed rate cuts, contributing to a weaker dollar. BOJ Rate Hike: - The BOJ raised its interest rate to a 16-year high of 0.25% and signaled the possibility of future increases if economic conditions warrant. This move surprised many economists. Government Intervention: - In July, Japanese authorities spent 5.53 trillion yen to support the currency through intervention. The government expressed concerns that a weaker yen could erode household purchasing power by pushing inflation higher than wage growth. Impact on Financial Markets Japanese Market: - The yen’s strength and BOJ’s policy adjustments have significantly influenced Japanese financial markets. The Nikkei 225 index fell by about 6%, closing the week at 35,909.70. This was one of the worst performances since March 2020 when the index fell below 36,000. Bond yields also dropped, with the benchmark 10-year yield falling below 1%, its lowest level in two months. Global Markets: - Global financial markets, including US markets, have been affected by recession fears and weak economic indicators. The Nasdaq Composite has slid into correction territory, reflecting broader market concerns. Conclusion The interplay between BOJ policies and global economic conditions continues to shape the USD/JPY dynamics. The BOJ’s commitment to maintaining low interest rates and engaging in extensive bond purchases influences the yen's value and the broader Japanese economy. Understanding these dynamics is crucial for investors and traders navigating the complex landscape of forex markets. USD/JPY Historical Movements and Influential Events on JPY Historical Movements of the JPY The Japanese yen (JPY) has experienced significant fluctuations influenced by various historical and economic events. Here are some notable periods and their impacts: 1. Introduction and Early Years (1871 - 1882): - The yen was introduced in 1871 as a modern currency, replacing the diverse local currencies issued by feudal regions. - In 1882, the establishment of the Bank of Japan (BOJ) centralized control over the currency, standardizing and stabilizing the yen. 2. Post-WWII Era (1945 - 1971): - After WWII, the yen was pegged to the US dollar at 360 yen per USD under the Bretton Woods system. This fixed rate helped stabilize the Japanese economy during its post-war recovery. - The peg was abandoned in 1971, and the yen became a free-floating currency. This shift led to significant volatility, with the yen reaching a high of 271 per USD in 1973. 3. 1980s Economic Boom and 1990s Asset Bubble Collapse: - During the 1980s, Japan's economy boomed, and the yen appreciated significantly. - The collapse of the asset bubble in the early 1990s led to a prolonged period of economic stagnation and deflation, with the BOJ adopting low interest rates to stimulate growth. 4. 2008 Financial Crisis: - The global financial crisis in 2008 saw the yen strengthen as investors sought safe-haven assets. The BOJ intervened multiple times to prevent excessive appreciation. 5. COVID-19 Pandemic: - The pandemic caused economic disruptions globally, leading to significant yen volatility. Safe-haven inflows drove the yen's value up, while the BOJ's QE programs aimed to mitigate economic downturns. Key Events Influencing Strong Movements in JPY 1. 1985 Plaza Accord: - An agreement between the G5 nations to depreciate the US dollar relative to the yen and other currencies. This led to a rapid appreciation of the yen, causing significant adjustments in Japan’s economy. 2. 1997 Asian Financial Crisis: - The crisis led to a flight to safety, with the yen initially strengthening before the BOJ intervened to stabilize the currency. 3. 2008 Global Financial Crisis: - The yen appreciated as global investors sought safe-haven assets. The BOJ intervened to prevent excessive yen strength, which could hurt Japan's export-driven economy. 4. 2011 Earthquake and Tsunami: - The natural disaster led to a sharp appreciation of the yen, prompting the BOJ and the Japanese government to intervene in the forex market to stabilize the currency. 5. COVID-19 Pandemic: - Safe-haven demand for the yen increased during the pandemic, but BOJ’s monetary policies, including extensive bond-buying and low interest rates, aimed to support the economy and stabilize the currency. Conclusion The Japanese yen has a rich history of significant fluctuations driven by both domestic policies and global events. The BOJ’s role in stabilizing the yen through various monetary policy tools has been crucial, especially during periods of economic uncertainty. Understanding these historical movements and influential events is key for anyone looking to grasp the dynamics of the JPY in the forex market.
Education
by SroshMayi
Trade Like A Sniper - Episode 47 - USDTWD - (18th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions. A couple of things to note: - I cannot see news events. - I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range. - I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks In this session I will be analyzing USDTWD, starting from the 4-Month chart. If you want to learn more, check out my profile.
Education
by Road_2_Funded
Trade Like A Sniper - Episode 46 - USDPLN - (17th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions. A couple of things to note: - I cannot see news events. - I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range. - I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks In this session I will be analyzing USDPLN, starting from the 3-Month chart. If you want to learn more, check out my TradingView profile.
Education
by Road_2_Funded
2
Trade Like A Sniper - Episode 26 - CNYUSD - (8th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions. A couple of things to note: - I cannot see news events. - I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range. - I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks In this session I will be analyzing CNYUSD, starting from the 4-Month chart. If you want to learn more, check out my other videos on TradingView or on YT. If you are interested in private coaching, feel free to get in touch via one of my socials.
Education
by Road_2_Funded
Trade Like A Sniper - Episode 14 - US10Y - (3rd June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions. A couple of things to note: - I cannot see news events. - I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range. - I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks In this session I will be analyzing US10Y, starting from the 3-Month chart. - R2F
TVC:US10YEducation
by Road_2_Funded
Trade Like A Sniper - Episode 8 - EURUSD - (29th May 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions. A couple of things to note: - I cannot see news events. - I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range. - I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks In this session I will be analyzing EURUSD, starting from the Monthly chart. - R2F
Education
by Road_2_Funded
2
[EDU-Bite Sized Mini Series] When to trade for best bang for $$?Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Okay, let's get started on today's topic. Knowing when to trade and when NOT to trade is very important. This is the "timing" element which is also a crucial part of trading. And, this is especially important if you are looking to trade on a lower timeframe! Understanding the different trading sessions in the forex market and identifying the best times and days to trade can significantly improve trading success. Here's a breakdown of the major forex trading sessions and their characteristics: Asian Session (Tokyo/Singapore/Hong Kong): The Asian session begins with the opening of the Tokyo market, though the AUD and NZD starts trading earlier than it. It's known for lower volatility compared to other sessions, with currency pairs like USD/JPY and AUD/USD often experiencing increased activity.At times, if there's a important news release such as FED interest rate release or Non- farm payroll on a Friday. The preceding Asian Session could have "spill over" activity and increased in volatility in the FX market. European Session (London): The European session, centered around London, is considered the most active session (besides the US). It often sees high liquidity and volatility, making it ideal for day traders. Major currency pairs like EUR/USD, GBP/USD, and EUR/GBP typically exhibit significant movements during this session. 3. North American Session (New York): The North American session overlaps with the end of the European session, creating a period of increased activity. Day traders loved the volatility during this period of time, more over key news releases could be catalyst for further volatility. It's characterized by liquidity from both European and American traders. Currency pairs involving the USD, such as EUR/USD, USD/JPY, and GBP/USD, are particularly active. 4. Best Times to Trade: To be specific, the best times to trade forex are typically during the overlap of multiple trading sessions when liquidity and volatility are highest. This occurs during the overlap of the European and North American sessions, known as the "London-New York" overlap, which occurs from 8:00 AM to 12:00 PM EST. Another optimal period is during the overlap of the Asian and European sessions. Best Days to Trade While forex markets are open 24 hours a day, five days a week, certain days tend to offer more trading opportunities. Tuesday, Wednesday, and Thursday are generally considered the best days to trade, as they typically see higher volatility and more significant price movements compared to Mondays and Fridays. By understanding the characteristics of each trading session and identifying the optimal times and days to trade, you can enhance your trading strategies and capitalize on the most favorable market conditions. Do check out my recorded video (in trading ideas) for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
[EDU-Bite Sized Mini Series]All you need for Order types in FX Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Understanding the various order types in forex trading is essential for navigating the market efficiently and executing trades effectively. Here's a concise overview of some common order types: 1. Market Order: This order is executed immediately at the current market price. It is used when a trader wants to enter or exit a trade quickly. More of for Day Trading - A trader might use market orders to quickly enter and exit positions based on real-time news events or technical signals. Live example > A trader sees a positive European's news release and expects a quick upward move in the EUR/USD pair. They use a market order to buy EUR/USD at the current price of 1.1950, aiming to sell it later in the day at a higher price based on the expected market reaction. 2. Limit Order: A limit order allows traders to specify the price at which they want to enter or exit a trade. It's used to buy below the current market price or sell above it, ensuring entry or exit at a specific price level or better. For example for Swing Trading - A trader might place a buy limit order at a support level, expecting the price to bounce back up, or a sell limit order at a resistance level, expecting the price to fall. Live Example > A trader identifies strong support for USD/JPY at 110.50 and places a buy limit order at this price, expecting the price to rebound. When the market price dips to 110.50, the order is executed, and the trader aims to sell at 111.50. 3. Stop Order(Stop-Loss Order): A stop order becomes a market order once a specified price level is reached. It's commonly used to limit losses or protect profits by triggering a trade when the market moves in a certain direction. This, in my opinion should be used as Risk Management for all traders - A trader sets a stop-loss order below the entry price for a long position or above the entry price for a short position to limit potential losses if the market moves against their position. Live Example > A trader buys GBP/USD at 1.3500, anticipating a rise. To protect against unexpected drops, they place a stop-loss order at 1.3450. If the price falls to 1.3450, the order executes, limiting the trader's loss to 50 pips. 4. Stop-Limit Order: A stop-limit order combines features of both stop and limit orders. It triggers a limit order to buy or sell at a specified price once the stop price is reached, offering more control over entry and exit prices. More of for Advanced Trading - A trader might use a stop-limit order to ensure they enter a position only if the price reaches a certain level but still want to control the maximum price they are willing to pay. Live Example: A trader wants to buy EUR/GBP only if it breaks above 0.8500 but not pay more than 0.8520. They place a stop-limit order with a stop price of 0.8500 and a limit price of 0.8520. If the price hits 0.8500, the order becomes a limit order, executing only if the price is 0.8520 or lower. 5. Trailing Stop Order: A trailing stop order is a dynamic stop-loss order that adjusts automatically as the market price moves in the trader's favor. It helps lock in profits while allowing for potential further gains. For Trend Following - A trader might use a trailing stop order to lock in profits as the price moves in their favor, allowing the stop price to trail the market price and protect gains if the market reverses. A trader buys USD/CAD at 1.3000 and sets a trailing stop order with a 50-pip trail. As the price rises to 1.3100, the trailing stop adjusts to 1.3050. If the price then falls to 1.3050, the order executes, locking in a 50-pip profit. Hopefully these explanations on the various Trading Orders open you up to more strategies that you can applied in the market for you to trade more efficiently and profitably! Do check out my recorded video (in trading ideas) for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
[EDU-Bite Sized Mini Series]Margin? Lots? Spread? What are they?Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Today we are going to cover terms such as Margin, Lot size, Spread and What are they. Forex trading is a dynamic and potentially lucrative endeavor, but it comes with its own set of terminology and jargon that can be intimidating for beginners. Understanding these terms is crucial for aspiring traders to navigate the forex market effectively and make informed decisions. Margin One of the fundamental concepts in forex trading is margin, which refers to the amount of money required to open and maintain a trading position. Margin allows traders to control larger positions with a relatively small amount of capital, amplifying both potential profits and losses. It's important for traders to understand margin requirements and manage their leverage carefully to avoid excessive risk. Lot Size Another key concept is lots, which represent the size of a trading position in forex. Standard lots typically consist of 100,000 units of the base currency, while mini lots and micro lots represent 10,000 and 1,000 units, respectively. Lot size determines the potential profit or loss of a trade, with larger lots leading to greater fluctuations in account equity. If you are more comfortable with smaller lot size, you can even go on to nano lots in 100 unit of currency. Spread Spread is another term commonly used in forex trading, referring to the difference between the bid and ask prices of a currency pair. The bid price is the price at which traders can sell a currency pair, while the ask price is the price at which they can buy it. The spread represents the cost of executing a trade and can vary depending on market conditions and liquidity. There are different types of spreads encountered in forex trading, including fixed spreads and variable spreads. Fixed spreads remain constant regardless of market conditions, providing traders with certainty about trading costs. On the other hand, variable spreads fluctuate in response to market volatility, widening during times of high activity and narrowing during periods of low activity. Understanding these trading terms and jargon is essential for beginners to develop a solid foundation in forex trading. By mastering concepts such as margin, lots, spread, and different types of spreads, aspiring traders can make more informed decisions and effectively manage their risk in the dynamic and fast-paced world of forex. Do check out my recorded video (in trading ideas) for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
[EDU-Bite Sized Mini Series]Understanding Forex Market StructureHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Let's begin with our topic today! The forex market, being decentralized and over-the-counter (OTC), operates differently from traditional centralized exchanges. To navigate it effectively, traders need to comprehend its unique structure. Market structure refers to the arrangement of price action within a given market, encompassing key elements such as trends, support and resistance levels, and price behavior. 1. Trends: Trends are one of the fundamental aspects of market structure. They depict the overall direction of price movement over time. Traders often classify trends as bullish (upward), bearish (downward), or ranging (sideways). Understanding the prevailing trend helps traders align their strategies accordingly. 2. Support and Resistance Levels: Support and resistance levels (or known as supply and demand levels/zones) are areas where price tends to stall, reverse, or exhibit significant buying or selling pressures. These levels/areas form the building blocks of market structure and are crucial for identifying potential entry and exit points. Support represents levels where buying interest outweighs selling pressure, preventing prices from falling further. Conversely, resistance denotes areas where selling pressure surpasses buying interest, hindering further upward movement. If you have cluster of candle's tail in a area/levels, likely it would be supply/demand liquidity pocket 3. Price Behavior: Price behavior within market structure provides valuable insights into market sentiment and participant dynamics. Patterns such as higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend, signify the strength or weakness of a trend. Additionally, the manner in which price interacts with support and resistance levels can indicate potential reversals or continuations. 4. Market Phases: Understanding different phases of the market, such as accumulation, markup, distribution, and markdown, aids in deciphering market structure. Each phase reflects the behavior of market participants and their collective impact on price action. Recognizing these phases enables traders to anticipate potential shifts in market direction and adjust their strategies accordingly. Conclusion: In summary, comprehending forex market structure is essential for effective trading. By analyzing trends, identifying key support and resistance levels, observing price behavior, and recognizing market phases, traders can make informed decisions and navigate the forex market with confidence. Do check out my recorded video (in trading ideas) for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
Why Would Countries Devalue Their Currency?Why Would Countries Devalue Their Currency? Currency devaluation is a nuanced aspect of fiscal policy with profound implications globally. This article demystifies the strategic reasons and consequential effects when nations choose to devalue their currency. From influencing trade balances to adjusting economic strategies, understanding these dynamics is crucial for traders and investors alike. Dive into the complex world of currency devaluation and its far-reaching impact on global economics. Devalued Currency Definition So, what is currency devaluation, and how does a country devalue its currency? Currency devaluation is a deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard. This monetary policy decision is typically made by a national government or its central bank. Devaluation is distinct from depreciation, which is a market-driven decrease in currency value. In a practical sense, devaluation reduces the cost of a country's exports and increases the cost of imports. For countries with fixed or semi-fixed exchange rates, this involves officially lowering the exchange rate by the revaluation of the peg or a change in the pegged currency. Countries with a free-floating currency system can influence devaluation through monetary policies like lowering interest rates, which can decrease investor demand for the currency, thereby reducing its value. Also, central banks can intervene by buying foreign currency and selling domestic. These fluctuations are visible across many currency pairs in FXOpen’s free TickTrader platform. Additionally, governments might engage in expansive fiscal policies or public statements to sway market perceptions, indirectly impacting the currency's market value. Devaluation of Currency Example In 1994, Mexico experienced a notable devaluation of its currency, the peso. This event is often referred to as the Mexican Peso Crisis. Prior to the devaluation, Mexico maintained a fixed exchange rate regime, pegging the peso to the US dollar. However, due to a combination of political uncertainty, economic pressures, and dwindling foreign exchange reserves, the Mexican government found it increasingly challenging to maintain the peso's value. In December 1994, the government decided to devalue the peso by around 15%. The immediate effect was a dramatic fall in the peso's value, plunging nearly 50% against the dollar within months. This devaluation led to significant economic turmoil, including high inflation and capital flight, but it also eventually helped to make Mexican exports more competitive in the international market. Why Might a Country Choose to Devalue Its Currency? 3 Reasons Why would a country devalue its currency? While this move can have widespread implications, there are strategic reasons behind such a decision. Understanding these reasons is crucial in comprehending global economic dynamics. Reason 1: Boosting Exports One of the primary reasons for a country to devalue its currency is to make its exports more competitive in the global market. A weaker currency lowers the price of a country's goods and services in foreign markets, making them more attractive to international buyers. This increase in demand for exports can stimulate the country's manufacturing sector and, in turn, boost economic growth. For instance, a country heavily reliant on exports might use devaluation to gain a competitive edge, especially if its major trading partners have stronger currencies. Reason 2: Reducing Trade Deficits Devaluation can be a tool to address trade imbalances. A country with a significant trade deficit – where imports exceed exports – might devalue its currency to make imports more expensive and exports cheaper. By doing so, it can reduce the volume of imports as they become costlier for domestic consumers and businesses, while simultaneously increasing exports due to their lower prices on the international market. This adjustment can help in narrowing the trade deficit, bringing more balance to the country's external trade. Reason 3: Managing National Debt Countries with high levels of debt denominated in foreign currencies may resort to devaluation as a strategy to reduce the real value of their debt. When a currency is devalued, the amount owed in the local currency increases, but the actual value in terms of foreign currency decreases. This may ease the burden of debt repayment for the government, particularly if the country is facing fiscal challenges. However, this approach can be risky, as it might lead to loss of investor confidence and increased cost of borrowing in the future. Devalued Currency Effects The effects of devaluing a currency ripple through various sectors of an economy. In the short term, it often leads to increased inflation. As the cost of imports rises, domestic prices generally increase, affecting the purchasing power of consumers. This inflationary pressure can be particularly challenging for economies that heavily rely on imported goods. On the business front, while export-oriented industries may thrive due to increased competitiveness abroad, import-dependent businesses face higher costs, which can lead to reduced profit margins or increased prices for consumers. Additionally, the immediate aftermath of devaluation often includes volatility in financial markets, as investors may react to perceived risks by pulling capital out of the country. In the long term, if managed well, devaluation can lead to a more competitive export sector, potentially resulting in economic growth and job creation. However, the benefits depend on the elasticity of demand for exports and the country's ability to capitalise on the weakened currency. Finally, devaluation can impact a country's global reputation. Frequent or large-scale devaluations might lead to a loss of investor confidence, affecting foreign investment and the country's ability to borrow money on international markets. Such decisions, therefore, must balance immediate economic needs with long-term fiscal stability and credibility. The Bottom Line Understanding currency devaluation's complex dynamics is vital in today's interconnected world. Whether to boost exports, manage debt, or address trade imbalances, nations employ this strategy with varied outcomes. For those looking to take advantage of forex trading, consider opening an FXOpen account to access comprehensive resources and trading opportunities in this dynamic field. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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Education
by FXOpen
11
[EDU-Bite Sized Mini Series] Various FX involved,Mostly..Hello Traders, here we go again! Let me cover a little bit more on the next topic in this mini series, the various currencies that are involved and a little descriptions about them! Let's begin! In the vast realm of forex trading, understanding the intricacies of currency pairs is fundamental to success. As a Full-time forex trader with years of live experience, I'm here to shed light on the major and minor currency pairs that dominate the market. Major Currency Pairs: The Powerhouses of Forex. Normally most retailers trade these pairs as they offer higher liquidity and therefore tighter spreads. Major currency pairs are the cornerstone of forex trading, encompassing currencies from the world's largest economies. These pairs typically involve the most traded currencies globally and offer high liquidity and stability. Among the major pairs, the most prominent include: 1. EUR/USD (Euro/US Dollar): Known as the "fiber," this pair represents two of the world's largest economies, the Eurozone and the United States. It's renowned for its liquidity and tight spreads. 2. USD/JPY (US Dollar/Japanese Yen): Dubbed the "ninja," , the JPY or the YEN, this pair reflects the economic relationship between the US and Japan, two economic powerhouses with distinct monetary policies. 3. GBP/USD (British Pound/US Dollar): Often referred to as "cable," this pair reflects the relationship between the UK and the US, and it's influenced by economic data, geopolitical events, e.g. Brexit developments. 4. USD/CHF (US Dollar/Swiss Franc): Known as the "swissie," this pair is influenced by safe-haven flows, Swiss banking policies, and US economic data. 5. AUD/USD (Australian Dollar/US Dollar): Termed the "aussie," this pair is closely tied to commodity prices, particularly gold and other precious metals, as Australia is a major exporter of raw materials. 6. USD/CAD (US Dollar/Canadian Dollar): Called the "loonie," this pair is heavily influenced by oil prices, given Canada's status as a major oil exporter. Minor Currency Pairs: Navigating the Market Beyond Majors While major pairs dominate forex trading, minor currency pairs offer unique opportunities that should not be overlooked as well. These pairs involve currencies from smaller or emerging economies and could be less liquid than their major counterparts. Notable minor pairs include: 1. EUR/GBP (Euro/British Pound): This pair reflects the relationship between the Eurozone and the UK, and it's influenced by economic data from both regions. In my opinion, this pair quite frequently range and sometimes it is termed as "mean reverting pair". 2. EUR/JPY (Euro/Japanese Yen): Combining two major currencies, this pair offers opportunities for traders seeking exposure to both the Eurozone and Japan. 9. GBP/JPY (British Pound/Japanese Yen): Known for its volatility, this pair attracts traders looking to capitalize on the economic dynamics between the UK and Japan. It is also one of the top favorite for scalpers. 10. AUD/JPY (Australian Dollar/Japanese Yen): Influenced by commodity prices and risk sentiment, this pair is popular among traders seeking exposure to the Australian and Japanese economies. 3. NZD/USD (New Zealand Dollar/US Dollar): Known as the "kiwi," this pair reflects economic developments in New Zealand and global risk sentiment. 4. CAD/JPY (Canadian Dollar/Japanese Yen): This pair offers insights into the commodity markets and the economic relationship between Canada and Japan. In conclusion, mastering major and minor currency pairs is essential for navigating the forex market effectively. Major pairs offer stability and liquidity, while minor pairs provide opportunities for some diversification. By understanding the dynamics of each currency pair and staying informed about global economic developments, traders can unlock the full potential of forex trading and achieve profitable outcomes in this dynamic and ever-evolving market. And of course don't forget about your technical analysis! Thank you for your time and hope you have enjoyed the content and if you do so please leave a thumbs up or a comment if you have any suggestions to make this better! Do check out the other links if you missed out on the other parts of this Forex Mini Series i put up for all (FREE)! Signing out! STBB
Education
by Shadowing_The_Big_Boys
1
All-Time Low and All-Time High Trading StrategiesAll-Time Low and All-Time High Trading Strategies In the volatile world of trading, mastering all-time high trading strategies and understanding how to navigate all-time lows are key. This FXOpen article delves into the nuanced tactics and insights that may help you navigate the peaks and troughs of market conditions, offering comprehensive insights if you are looking to leverage these critical areas for trading opportunities. Understanding All-Time High and All-Time Low Market Conditions Understanding the dynamics of all-time high and all-time low market conditions is crucial for traders aiming to navigate these pivotal points effectively. All-time low trading refers to the scenario where an asset has reached its lowest price level in history, often triggering a heightened interest among investors looking for undervalued opportunities or signalling a potential reversal point. Conversely, all-time high trading occurs when assets are trading at their highest historical prices, indicating strong market optimism or potentially overvalued conditions ripe for a correction. These extremes in market conditions represent significant psychological thresholds for the market participants, as they may lead to increased volatility and liquidity. Traders scrutinise trading at all-time lows to identify the potential for recovery, while those at all-time highs are monitored for signs of sustained momentum or impending pullbacks. Below, we cover three all-time high and low trading strategies. Consider applying them to live charts in FXOpen’s free TickTrader platform. Breakout and Consolidation Strategy When engaging with the market, traders often explore the dynamics of stocks trading at all-time highs or nearing all-time lows. This approach is anchored in the principle that these assets can exhibit significant momentum, potentially setting the stage for trading opportunities. In learning how to trade all-time-high stocks, one strategy stands out: the Breakout and Consolidation strategy. Its essence lies in monitoring assets that are not only at their all-time high or low but also exhibit a distinct consolidation pattern post-reaching these levels. Traders typically look for the price to close beyond the all-time high or low, usually on timeframes ranging from 1 hour to daily charts. A subsequent period of sideways movement just beyond the high or low signals a consolidation phase. This phase is crucial as it suggests a potential accumulation or distribution, with traders able to potentially capitalise on a further breakout or upcoming reversal. Entry Traders may place a buy-stop order just above the high of the consolidation range if anticipating a continuation of the uptrend. Alternatively, a sell-stop order can be set just below the low of the range for those expecting a downtrend. Stop Loss A stop loss is typically positioned on the opposite side of the consolidation range to manage risk effectively. Take Profit Given the absence of a predefined exit point, traders often rely on a specific risk/reward ratio to determine when to exit the position. Others may prefer using technical analysis tools, such as Fibonacci extensions or momentum-based indicators, to identify potential exit points. Breakout Retest Strategy The Breakout Retest strategy offers a nuanced approach for traders looking to understand how to trade all-time high forex pairs. This method is favoured by traders who seek to capitalise on the momentum immediately following the breach of an all-time high or low without waiting for a consolidation phase to confirm the breakout. In this strategy, the initial step involves identifying a decisive break of the all-time high or low. Unlike the Breakout and Consolidation strategy, which requires a period of sideways movement for confirmation, the Breakout Retest strategy allows traders to act swiftly. Upon witnessing the break, traders can place an order directly at the level of the broken high or low. This newly established level is now expected to serve as a foundation of support or resistance, guiding future price actions. Entry An order may be set at the broken high or low, anticipating it to now act as support (in case of a high break) or resistance (in case of a low break). Stop Loss A stop loss may be strategically placed beyond a nearby swing point, offering enough leeway for the price to fluctuate slightly before potentially moving in the anticipated direction. Take Profit Profit-taking may be based on a predetermined risk/reward ratio that aligns with the trader's objectives. Alternatively, traders may employ technical indicators as a signal for exiting the trade. Candlestick Pattern Reversal Strategy A Candlestick Pattern Reversal may be particularly effective as part of an all-time low trading strategy. This technique hinges on the premise that a significant price level, such as an all-time low, may mark a turning point where selling pressure exhausts and buying interest begins to dominate. By focusing on candlestick patterns that signal a reversal, traders can identify moments when the market sentiment shifts from bearish to bullish. The theory states that it’s best to use higher timeframes here, like the daily or weekly chart. Traders watch for specific candlestick formations that indicate a potential reversal. The hammer or morning star patterns are key figures in this analysis, suggesting that sellers have capitulated and buyers are starting to take control. Once such a candle closes, traders have the option to enter the trade at the closing price or at the opening of the next. Another approach is to wait for a breakout beyond the high or low of the identifying candlestick for confirmation. Entry Traders may initiate a position at the close of the reversal candle or upon a breakout of the candle's high or low. Stop Loss Setting a stop loss just beyond the extremities of the reversal candle may help in managing risk. Traders consider the risk/reward ratio as they trade on high timeframes, so price fluctuations may be significant. Take Profit As this is a reversal strategy aimed at capitalising on a shift in market dynamics, identifying notable support or resistance levels may provide logical targets for exiting the trade. Evaluating Fundamentals Around All-Time Highs and Lows Navigating the terrain of all-time highs and lows in both forex and stock markets demands a keen understanding of fundamental analysis. This approach enables traders to assess an asset's intrinsic value and anticipate future movements. Economic Indicators: For forex, interest rates, inflation, and employment data can help set a bias. In stocks, understanding earnings reports, industry health, and economic conditions can be valuable in analysing direction. Market Sentiment: Investor sentiment and market trends can significantly impact prices at extreme levels. Global Events: Political events, economic policies, and global crises can influence market movements, especially at pivotal highs and lows. Financial News: It may be a good idea to stay updated with financial news and reports that can affect asset valuations and investor behaviour. The Bottom Line Mastering how to trade all-time lows and highs is essential for any trader looking to navigate market extremes effectively. By applying the strategies outlined, traders can potentially capitalise on the opportunities these highs and lows present. For those ready to apply these insights in real-world trading scenarios, opening an FXOpen account offers a gateway to the markets, providing the tools and platforms necessary for engaging with all-time high and low trading strategies. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
Fixed Exchange Rates: Benefits and LimitationsFixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present. Historical Context of Fixed Exchange Rates The concept of a fixed exchange rate system dates back centuries, but its modern incarnation emerged prominently with the Bretton Woods agreement in 1944. This fixed exchange rate regime established stable currency rates by pegging them to the US dollar (USD), which was convertible to gold. This arrangement aimed to provide international monetary stability by preventing competitive devaluations and promoting economic growth. However, by the early 1970s, the Bretton Woods system collapsed, leading to a shift towards more flexible currency systems. Despite this, pegged exchange rates continue to be adopted in various forms by several countries. Understanding Fixed Exchange Rates A fixed exchange rate is a system where a country's currency value is tied to another major currency or a basket of currencies. In this regime, the exchange rate is maintained within a very narrow range. Countries with fixed exchange rates adopt this approach to stabilise global trade and financial relations. A real-world fixed exchange rate example is the Hong Kong dollar (HKD), which has been pegged to the US dollar since 1983. Under this arrangement, the Hong Kong dollar is maintained at a fixed value of approximately 7.8 to the US dollar. This stability is achieved by the Hong Kong Monetary Authority, which trades the local currency against the USD as needed. You can see how this relationship has unfolded throughout the years with USD/HKD charts in FXOpen’s free TickTrader platform. The predictability offered by a stable rate is typically advantageous for international trade and investment, but it requires significant reserves of the pegged currency to maintain its value. Fixed Exchange Rate Pros and Cons While many economies choose a floating system nowadays, there are pros and cons of a fixed exchange rate. Advantages of a Fixed Exchange Rate Stability in Global Trade: Pegged currencies reduce the uncertainty and risk associated with floating currencies, making it easier for businesses to plan and engage in international commerce. Reduced Risk in International Investments: Investors are more likely to invest in countries with stable currencies, as it lowers the risk of losing money through price fluctuations. Control of Inflation Rates: Countries can maintain low inflation levels by pegging their currency to a stable, low-inflation economy. Prevent Competitive Devaluations: Such a regime prevents countries from engaging in competitive devaluations, which may lead to a 'race to the bottom' and global economic instability. Increased Policy Discipline: Anchored rates can impose discipline on a country's fiscal and monetary policies, as maintaining the peg requires consistent, responsible economic management. Simplified Transactions: A fixed currency simplifies the process of global transactions by providing predictability in exchange costs, reducing the need for complex hedging strategies. Disadvantages of a Fixed Exchange Rate Overvaluation or Undervaluation: Maintaining a fixed rate might lead to misalignment, where a currency may become overvalued or undervalued relative to its economic fundamentals. High Costs of Maintenance: To maintain the peg, countries often need to hold large reserves of foreign currency, which may be costly and economically inefficient. Lack of Monetary Policy Flexibility: Countries lose the ability to set their own interest rates and conduct independent monetary policy, as they must focus on maintaining the peg. Vulnerability to External Shocks: Tied exchange rates can make a country more susceptible to economic problems in the nation to which its currency is pegged. Risk of Speculative Attacks: If investors believe a currency is overvalued or undervalued, they may engage in speculative attacks, leading to severe financial crises. Reduced Responsiveness to Domestic Conditions: A pegged currency regime limits a country’s ability to respond to domestic economic changes, such as inflation, unemployment, or economic downturns. Fixed Exchange Rates in Modern Trading In modern trading, understanding the dynamics of fixed currencies offers traders specific advantages and insights: Predictability in Forex Pairs: Traders can anticipate less volatility in forex involving a fixed value, allowing for more stable long-term investment strategies. Indicator of Economic Policies: The status and changes in a fixed rate potentially signal shifts in a country's monetary and fiscal policies, providing traders with crucial information for decision-making. Trade and Investment Decisions: Understanding which countries have pegged rates can guide traders in making informed decisions about trade and investment opportunities. List of Fixed Exchange Rate Currencies As of 2023, several currencies operate under a fixed exchange rate system. Notable examples include: Hong Kong dollar (HKD) - pegged to the US dollar. United Arab Emirates dirham (AED) - pegged to the US dollar. West African CFA franc (XOF) and Central African CFA franc (XAF) - both pegged to the euro. Bahamian dollar (BSD) - pegged to the US dollar. Danish krone - pegged to the euro. The Bottom Line In conclusion, grasping the nuances of fixed exchange rates is crucial for anyone involved in international finance. Whether weighing the pros and cons or observing their impact on modern trading, this knowledge is invaluable. For those looking to apply this understanding practically, opening an FXOpen account can be a strategic step, offering a platform to navigate and capitalise on the opportunities in the global financial markets. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
Domination of USDT + USDC and lows/maxims of BTC. CorrelationIn the graph, combined into one graph of the dominance of such stablecoins as USDT and USDC. Orange color—chart of the bitcoin price against the dollar. The time interval is 1 week. The graph is logarithmic. The same chart and the same parameters on the candlestick chart . All BTC price lows and highs are specially shown. Compare what the capitalization of stablecoins was at the time. At an earlier time, the dominant stablecoin was one USDT, later USDC was added. They occupy a significant capitalization. BUSD and DAI are less capitalized. They too can be added to this “indicator” of the Pumps/Dumps market. I think the dominance history and the bitcoin overlay chart illustrate well which market phase and in which areas to buy and sell bitcoins and other speculative crypto coins. Centralized Stablecoin capitalization of a decentralized market . Sounds crazy, doesn't it? The dominance of centralized in a decentralized market. The 3rd,4th,6th places are naturally occupied by centralized stablecoins such as: #USDT #USDC #BUSD. This kind of decentralized cryptocurrency financial world (freedom from the dictatorship of banks, power states, and so on) did you imagine, for example, in 2015-2017? Is it good or bad? What will happen after a while? What trend will develop further after the community bait has been swallowed? 3rd place . USDT ( .... "Reds" .... ) $67,562,687,657 4th place . USDC (Circle, Coinbase, JPMorgan, Blackrock .... ) $51,726,419,583 6th place . BUSD (Binance) $20,003,320,692 13th place DAI ETH (!) BTC and ETH dominance. Continuing on this “democracy” theme of crypto sandbox capitalization. Today 14 09 2022. Market Cap: $989,560,104,72 Dominance: #BTC: 38.9% #ETH: 19.9% Total 2 assets: 58,7% Also add 3,4,6,13 top stablecoins to this. Stablecoins over 20%. Almost 60% of the market is 2 assets. Over 80% of the market is 6 assets. So much for the true mythology of decentralization ))). How to look for a “live chart” for yourself and combine the dominance of USDT and USDC: 1) Look for the MARKET CAP USDT DOMINANCE, % 2) On the right side of the chart in the search field, press the + button 3) Write MARKET CAP USDC DOMINANCE, %. For the analysis, it will also be useful to track at the same time: 1) BTC dominance 2) US dollar index (DXY, USDX) BTC dominance BTC to altcoin dominance. Stablecoin dominance and market pamp. US Dollar Index (Fed)with prices of BTC lows/maxims. Correlation of assets. DXY and PampDump BTCMarkets Cycles. This is what it looks like on a line chart to illustrate simple correlation things. Preparedness for force majeure. I would also like to say that all stabelcoins are focused on the "stability" of the U.S. dollar. Think about what would happen if, for some reason, that stability were to be undermined in the blink of an eye. Then you are faced with a very difficult choice. What to do? Sell/buy cryptocurrency/shares? Just think ahead "What do you do" if, purely hypothetically, for some fantastic, hard-to-imagine reasons this happens. Think ahead in today's calm time (are you sure it's not calm now?), so you won't be caught off guard in a turbulent time.
CRYPTOCAP:USDT.DEducation
by SpartaBTC
24
The Evolution Of Money: From Barter-System To Cryptocurrency!Hello, Welcome to this analysis about The Evolution Of Money. Till today money had a protracted history reaching back to times where there even did not exist electricity or industry like we now it these days. Since these beginnings money constantly reshaped and emerged new forms of money that theoretically can be applied still today however it is also a fact that it is important in which form the money circulates bringing innovation and prosperity to the civilization as there are money forms although logical from its form however contra-productive for the further developments. __ The Barter System (High Phase 98000 BC - 900 BC): It is clear that in times where people did not have the ability to keep a sufficient store-of-value they had to adapt to circumstances and exchange what they had in order to receive things they need for everyday living, this form of money is called the "Barter-System". This system principally defines the exchange of goods and services against other goods and services. It was a typical hunter-gatherer-form of exchange between the individual occupations. For example, a fisherman had a lot of fish however no grain to exchange for and on the other side there was a farmer which had a lot of grain, however, no fish to eat, so these two come to an agreement to exchange the fish against the grain in order to fulfill both sides needs. This system had a lot of substantial problems as it was not possible to store any value with the goods and services, besides it only functioned when the other side also searched for the offered product therefore there needed to be a double coincidence of wants otherwise an exchange was not fulfilled by both sides agreements. Besides that there was the issue with the indivisibility of goods, for example, one had one goat and needed one pot therefore it was only possible to exchange one goat against 10 pots and now the goat holder was stuck because he could not share the goat into 10 pieces to received his one pot as needed. Overall it was a complicated exchange system that definitely could have been improved. Commodity Money (High Phase 6000 BC - 500 AD): Since it was not possible to store values with the Barter-System as there were also many goods that fouled by the times this could also be improved by the right commodities that do not foul. In ancient Rome, the Romans moved on to keep salt as a store of value and exchange for goods and services. Salt is easily divisible, it can be stored for a long period of time and it was expensive and labor-intensive to produce therefore limited in quality, besides that it was widely consumed by everybody. Additionally to salt, many other forms of this commodity money emerged such as Cattle, Tobacco, Rice, Sugar, or Tea. All commodities which can be stored over a long period and exchange properly. Together with these new gained advancements, it was a step in the right direction nevertheless there remained significant negative aspects in the commodity money these are various things such as some forms of cattle are very difficult to store because they need to be fed constantly and can not obtain a passive store, other forms like cowry shells are fragile and need to be transported carefully. Besides these storing problems, it was always difficult to transport over long routes as the commodities can take up so much room that it was simply so unpracticable to transport them over long distances. Also, there existed not universal acceptability so the two exchange partners needed to agree on the exchange of these commodities to come up with a deal. Metal Money (600 BC till today) Metal money was a true revolution in the money evolution and the story speaks for itself as it is still today widely accepted and a sufficient store of value with gold and silver holding its values. Against the commodity money, it was stable and had an inherent value as it is rare in nature as well as its supply is limited, the perfect characteristics for a natural store of value and also exchange value. As metals were already used for armors and tools and had already the value within these products this kept advancing with the first coins to be pressed in ancient Greece 600 BC after which the metallic money kept advancing into more sophisticated forms such as the IOUs and also tender coinage bringing a practicable way to pay for goods and services. The Metallic Money shaped into different forms like the IOUs where Goldsmiths backed the gold and gave people a trust which they can exchange in order to receive goods and services, so the people came to the goldsmith and bought basically gold for which they received the document to pay with. The only problem with this system was that the Goldsmiths created fake IOUs and kept spending them. Besides this form, there was the legal coinage in Rome for example with gold coins issued by the empire however the problem, in this case, was that it got debased over time as the people mixed more cheap metal like copper with the gold coins to get a higher supply, today it wont function so easily as it can be proved nevertheless in this time it marked a serious issue. Paper Money (1690 till today): The emerging paper money in fact marked a true change in the whole money system as now it was not possible to issue by everybody, now it was issued by a central authority whereas these authorities firstly existed private also the mission came more and more into central bank area. The first printed money was created in 1690 in the form of a bill of credit to serve as a promissory note by the government on its own credit, these bill of credits were unsecured paper money and at this time in the 17th to 18th century, it was still possible to have private money with private companies creating own bills with the individual exchange qualities to get into the circulation. Till today many currencies have established holding the money as it is issued by certain central banks such as the US-Dollar by the Federal-Reserve-System or the EURO by the European-Central-Bank. The problem here is that this money is printed by will and the central banks have the ability to just print more when the time is needed to do so like it was seen in the corona crisis where the money sum moved exponentially to new heights. Although Paper Money is still omnipresent and used as a store of value as well as exchange value to there are important faults that need to be improved to keep a healthy economic balance and obtain continued stable money. Plastic Money (1946 till today): In the 20Th Century, the printed central bank money moved now into the account money especially backed by the payment providers in the individual credit or debit cards. The first bank-issued cards originated in 1946 as a Brooklyn banker created the charge-it card, these were forwarded to the bank account and then the service or good was released. In post-war times further cards followed and till now there established credit-card providers which issue credit or debit cards also with giving their own credits to people that can be paid back. Cryptocurrency (2008 till today): This is the very last money form and the most innovative so far, like Bitcoins, like they invented, are limited in supply and can only be created through the mining process and proof of work they provide a sustainable interface within the blockchain which transactions are scalable and easy to use for peer-to-peer-transactions. It is not a wonder that the cryptocurrency market since the beginnings expanded more and more and several other projects emerged, there are still many projects given however the market will likely sort the not innovative ones out. Cryptocurrency marks the point in the history of money evolution where money advanced significantly from its initial barter exchange system to cryptocurrency. This is a major step and as for now, central banks are looking also into cryptocurrency and blockchain technology to implement their own central-bank-digital-currencies. There are really not many contra-aspects like in the previously stated money forms as cryptocurrency improved all the issues that previously came up and also innovated increasingly above these. __ In this manner, this was my analysis about the evolution of money which is important as the money keeps on shaping as we see it especially in these times with cryptocurrency, it is also not unlikely that these technologies will improve further, and there comes something new that is more applicable and innovative however till now cryptocurrency serves as the highest quality money forms when comparing to the other money forms. Especially it is the case that all money forms still coexist today however mainly not applicable. __ In this manner, thank you everybody for watching, support the idea with a like and follow or comment, have a good day, and all the best to you! Information provided is only educational and should not be used to take action in the markets. __
FX:XAUUSDEducation
by VincePrince
21
The Powell meme bomb & pivotThe fed and Powell have tried everything to dismiss inflation . First ignoring it then saying transitory then changing the perimeters as to how it's calculated. Even Sleepy Joe then chimed in at one point by saying hotdogs are actually cheaper for your red white and blue lies. How about awards... Let's give Ben Bernanke the noble economics prize during this all of this insanity! How about an Oscar to a president? (Sean Penn to Zelensky) yeah why not?? Giving Bernanke an award like "Noble Economics" is like calling Dahmer chef of the year! What the heck is going on? People are so broke they can't even pay attention! Has reality become the twilight zone? or was it always? Who are these people that rule us? Can they really be this incompetent? If so why is there no accountability? Now to Powell and gang. Last year they were caught for insider trading, what was their punishment? They were forced to sell their stock, at record gains mind you. Really... that's a punishment now? No one even batted an eye. The west has become a bunch of zombie filled degenerate nations with it's citizens consuming filth at record pace even Usain Bolt would be envious of. For this charade to keep going, you need to print more zombie snacks (dollars) there is no other way. I do believe the market is pricing in an inevitable Fed pivot at the moment which could turn out to be a sell the news moment next year at some point (not Financial advice). Psychological warfare. The Psy-op being played has been ramped up to new levels the past couple years and it is being reflected in the market due to technology with access to investing now easier than ever with a device sitting in your pocket, just add a little emotion with degenerative news and voila. The Pivot will eventually come, but will be the long term effects of it? Anyone can assume but simple 101 Noble Bernanke economics will tell you it ain't good. Anyway, this is my rant for the day. Actually, I have a question. What effect do SEC (crypto) rulings have past American borders? Here is my opinion, (crypto specifically) They have no jurisdiction past American borders so the effect is limited if any. In my opinion these negative rulings will only stifle any American innovation and growth of the sector. It actually just opens doors for other countries to take advantage of it as crypto is global. Please give me your thoughts on this down bellow. Special Guest Appearance George Carlin Thanks WeAreSat0shi Stay Blessed!
TVC:DXYEducation
by WeAreSat0shi
2
Target Reached! XAGUSD ReviewPrice reversed strongly from our resistance level to the support level at 22.20. But how did it happen? Join Desmond in today's analysis review to have a quick recap on the elements that led to this strong reversal. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:XAGUSDEducation
by FXCM
Decoding Forex Mysteries: USDCHF & EURGBP Reaction to Rate HikesWelcome to the intriguing world of Forex, where currencies act at their own rhythm, sometimes defying expectations and confounding even the most experienced traders. In this article, we are going to unravel the “mysteries” surrounding the reactions of USDCHF and EURGBP to recent interest rate hikes. We will dive into the realms of market anticipation, monetary policy statements, and the significance of staying ahead in this dynamic landscape. 1. The Resilience of USDCHF As the Swiss National Bank (SNB) raises interest rates from 1.5% to 1.75%, market observers brace for the anticipated downward movement of the USDCHF. However, contrary to expectations, the currency pair displays remarkable resilience. Let's explore the underlying factors: a) Priced-in Expectations: The forex market is renowned for its ability to assimilate information in advance. It is likely that market participants had already factored in the interest rate hike, blunting the immediate impact on USDCHF. Such anticipatory behavior highlights the importance of staying attuned to prevailing sentiment and analyzing market positioning. b) Comparative Interest Rates: Understanding the relative interest rates of different currencies is paramount. If the rate hike in Switzerland was aligned with or lower than market expectations, and other major currencies offered more attractive rates, investors might have favored those currencies, mitigating the downward pressure on USDCHF. c) Monetary Policy Statement Outlook: Monetary policy statements accompanying interest rate decisions provide crucial insights into central banks' future intentions (you can usually watch them live on YouTube 30 minutes after the data release or on Bloomberg type of channels). Since the SNB's statement revealed a cautious and neutral stance, it has tempered the impact of the rate hike on USDCHF. Market participants pay close attention to forward guidance, as it shapes expectations regarding future policy actions and influences currency movements. 2. The Curious Behavior of EURGBP Let us now turn our attention to EURGBP, which failed to sustain a short sentiment following the Bank of England's interest rate hike from 4.5% to 5.00% (versus the expected 4.75%) and left a nasty week. To understand this curious behavior, we delve into the following factors: a) Market Expectations: The forex market is often driven by expectations and anticipatory positioning. If traders had already priced in the interest rate hike, the actual announcement might not have triggered a significant market reaction. Therefore, the lack of sustained short sentiment in EURGBP could be attributed to market participants adjusting their positions in advance. The GBP was up already by 4% within the last month against major currencies, so a big chunk of market was already longing EG for the expected short term recovery (guilty, but we also made a 2.9% profit closure on this). b) Monetary Policy Outlook: Beyond interest rate changes, central banks' monetary policy outlooks play a vital role in shaping currency dynamics. The accompanying statement from the Bank of England, which shed light on their future plans, indicated a more gradual approach to tightening or expressed concerns about economic conditions. Such cues influence market sentiment and limit the downward pressure on EURGBP. In case of UK, this is already not a good look with their inflation rates :/ Now, you may ask: “Investroy, what do we do if fundamentals don’t exhibit the expected economical impact?” Don’t worry, we got you! A Prerequisite for Success In the ever-evolving forex market, staying ahead of the curve is crucial. To navigate the intricacies and maximize opportunities, traders must adopt a proactive approach: a) Monitor Central Bank Communications: Understanding central banks' intentions requires careful analysis of their policy statements, speeches, and press conferences. These sources provide valuable clues about future policy decisions and can guide trading strategies. b) Assess Economic Indicators: Keep a keen eye on economic indicators that impact currency valuations, such as GDP, inflation, and employment data. These indicators provide a foundation for understanding a country's economic health and can influence currency movements. c) Stay Informed of Geopolitical Developments: Geopolitical events, such as trade disputes or political instability, can significantly impact forex markets. Being aware of these developments and their potential consequences on currency movements is crucial for staying ahead. d) Analyze Market Sentiment: Sentiment analysis, gauging the collective psychology of market participants, can offer valuable insights. Monitoring market sentiment through various indicators, such as positioning data and sentiment surveys, helps identify potential shifts and align trading strategies accordingly. e) Embrace Technological Tools: Utilize advanced trading platforms and tools that provide real-time data, customizable charts, and algorithmic trading capabilities. These resources empower traders to analyze market trends, spot patterns, and execute trades swiftly. Bonus) this one is a little subjective, but markets are very cyclic, if something is oversold, but everybody is expecting further bearish move, be sure there is a retracement coming before that happens 😊 Stay safe and enjoy your day!
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Education
by Investroy
23
Target reached! GBPUSD ReviewPrice bounced off the 1.2683 support we identified and rose nicely to our take profit target at the 1.2832 level. In this review, we touch on why we used the 1.2832 level and not the swing high at 1.2850 - a lot of this is down to trade management and take profit placement. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
Target Reached! USDCHF ReviewPrice reversed beautifully from the sell entry level we forecasted at 0.8988 and has reached the take profit target of 0.8908. The important lesson here is to place your take profit before a key level (vs right at the key level). As you can see in this video, price touched the TP level and took off in the other direction - just missing this crucial bit of information would have been potentially costly. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM