Tag: Usd

July FOMC Meeting – Will it be a non-event?

July FOMC Meeting – Will it be a non-event?

Trading Articles
Summary: FOMC meeting is due on Wednesday, July 26th There will be no press conference after the FOMC statement Fed officials are likely to communicate further on the plans to unwind the balance sheet Markets expecting a less than 10% chance of a rate hike this week Overall odds of a rate hike for the rest of the year stands just around 50% Fed unlikely to change much of its communication The FOMC meeting this Wednesday, July 26th is likely to pass off as a non-event as investors were seen not expecting much from the central bank this week. The fact that there is also no press conference following the FOMC statement potentially lowers the odds of any surprises from this week's meeting. The fact that the Fed funds futures rate hike probability has odds of less than 1...
Weekly Currency (Futures) Outlook – Jun 13 – 17

Weekly Currency (Futures) Outlook – Jun 13 – 17

Technical Analysis
Weekly Technical Outlook for the currency and commodity markets. Euro: After falling steadily for nearly four weeks, the euro retraced its gains the week before. However, last week saw prices testing the highs above 1.140 but failed to gain higher. As a result the euro fell, to close the week at $1.1298. The retracement to 1.140 this week marks a correction to the upside and we could anticipate near term weakness to continue. The next key levels to watch out for are 1.120 and 1.10. Resistance: 1.140 Support: 1.120 Sterling: The sterling remains capped within a range with last week showing prices breaking out lower. While the sterling closed Friday at 1.426, a 6-week low. Further downside is likely in the near term, with 1.42 coming in as the initial supp...
Weekly Currency Indices Update: 04 – 08 May 2015

Weekly Currency Indices Update: 04 – 08 May 2015

Technical Analysis
Candlestick Patterns (Daily, Weekly) Index Daily Weekly AUD Bearish DCC 3 days ago. No specific pattern identified on Friday’s close Bearish with a shooting star like candlestick. No specific pattern identified CAD Bearish since the last 3 candles. No specific pattern identified Doji, one candle ago with a bearish candlestick GBP Bearish engulfing on body one day ago, followed by a large bearish candlestick on Friday’s close Bearish candlestick. No specific pattern identified JPY Bullish since past 5 daily candles after a bullish engulfing on 27/04. No specific pattern identified Bullish for the past 3 weeks after a bullish engulfing on 12/04 NZD Bearish for the past 3 candles after a bearish engulfing pattern formed on 29/04 Second week of beari
Dollarization: The Ties That Bind Countries Together

Dollarization: The Ties That Bind Countries Together

Financial Markets Explained
The Basic Premise of Dollarization An important concept that comes into play in the forex markets is that of dollarization. Many countries have their own currencies though some choose to band together in a unified economic front. The Euro being representative of several European countries is an excellent example. A country may choose to adopt another country’s currency rather than printing their own for use on the world stage. Like anything, it has benefits and drawbacks. The announcement is typically followed by a drastic fluctuation due to the weighing economic factors. El Salvador, for example, uses the United States Dollar as its national currency. Though it does, it does not have any right to print United States Dollars or take major actions to affect its value and position. It

Trading Exotic Currencies – ZAR

Trading Articles
In the forex market, everyone pays attention to the major currencies and very little attention is paid to some of the exciting minor currency pairs that are capable of delivering good profits. These currencies, also known as the exotic currencies, are an example of how good things can be found in hidden places. We shall pick a currency of one of the BRICS member countries, which is the South African Rand (ZAR), and study it’s pairing with the US Dollar to see how it can be traded for profit. Trading the South African Rand (ZAR) A general principle that is found with the exotic currencies is that fundamentally, they tend to follow correlations. South Africa has one of the largest gold deposits in the world and the South African Rand therefore has a positive correlation with the price of g