Author: FX
VIX dailyThe VIX is up to 27 today but that might not be enough.Even a cursory look at the volatility index shows that it can rise much higher as it did several times in 2022. In August of last year it exploded on the yen carry trade unwind and that ultimately marked a very tradeable bottom. That bottom was reinforced by strong order numbers from Nvidia and the Fed shifting to a dovish stance.I think this time, we would need some sign of less-antagonistic policy from Washington. Source link
EUR/USD was seen trading near the 1.0830 area after the European session, posting mild gains on Monday. Following a strong rally of over 4% last week, the pair enters a consolidation phase, potentially stabilizing above the 200-day SMA near 1.0780. Technical indicators remain in positive territory, though the RSI is slightly declining from overbought conditions, signaling a possible slowdown in momentum. The EUR/USD pair extended its bullish momentum on Monday, trading near the 1.0830 zone after the European session. Despite the mild gains, the pair appears to be entering a consolidation phase after last week’s sharp surge, during which it…
Fundamental OverviewThe USD has come under strong pressure recently as the weaker US data finally triggered a deeper pullback in the greenback from the stretched long positions accumulated in the past two quarters. The market pricing switched pretty fast from expecting just one cut a couple of weeks ago to three now. The main event this week is the US CPI report. Higher than expected data will likely give the greenback a boost in the short term as markets pare back their rate cuts expectations. Conversely, a soft report could see more weakness for the US Dollar ahead of the…
FX markets are starting to settle down after a momentous week. While events in Europe were really the dominant factor, we would not have seen such big moves in EUR/USD were it not for US short-dated rates crumbling, ING’s FX analyst Chris Turner notes. DXY may return at 104.30/50 “Financial markets have priced the Fed terminal rate some 50bp lower in a little over a month. That may be enough for the time being barring some shock fall in US JOLTS job opening data (Tuesday) or big rise in the weekly initial jobless claims data (Thursday). Indeed, Federal Reserve Chair…
Ever wondered why forex trading seems so enticing? It’s the allure of leverage. Traders can control big positions with just a little capital. But here’s the catch: leverage is a double-edged sword. While it can make profits bigger, it also makes losses bigger. Many new traders jump in without knowing the risks. This guide will help you understand these risks and become a smart trader. Key Takeaways Leverage can amplify both profits and losses in forex trading. Understanding leverage mechanics is key to managing risks. Higher leverage ratios mean bigger risks for traders. Good risk management is vital when using…
In one disappointment to another, the White House crypto summit at the end of last week failed to impress. Everyone was highly anticipating details of the supposed “strategic reserve” that Trump touted. But it wasn’t all too convincing as it pertained more to regulatory framework. That said, Trump’s words were still something to take note of.”The federal government is already among the largest holders of Bitcoin, as you know, really one of the largest holders in the world, with as many as 200,000 Bitcoin obtained via civil law and various other forms of law, including enforcement actions. These existing holdings…
The Australian Dollar gains momentum as investors react to concerns over a potential slowdown in the US economy. The AUD finds support from stronger-than-expected GDP growth and robust trade data from Australia. San Francisco Fed President Mary Daly noted that rising uncertainty among businesses could dampen demand in the US economy. The Australian Dollar (AUD) rebounded on Monday, recovering losses from the previous two sessions against the US Dollar (USD). The AUD/USD pair’s upward movement was primarily driven by concerns over a potential slowdown in the US economy. The Aussie Dollar also received support from stronger-than-expected GDP growth and trade…
Buckle up for another busy week in forex markets, with U.S. inflation data and the Bank of Canada’s (BOC) interest rate decision taking center stage amid ongoing trade tensions. Trump’s tariff flip-flopping dominated last week’s headlines, while Germany’s massive €500 billion infrastructure plan sparked a global bond selloff and boosted the euro. Markets are now pricing in THREE Fed rate cuts for 2025 despite Fed Chair Powell’s reassurances that the economy remains “in a good place.” With U.S.-China trade relations deteriorating and key economic indicators on deck, we’re set for another week of potential volatility across currency pairs. …
The forex market is open 24/5, which can be hard to handle. With over $8.2 trillion traded daily, it’s tough for new traders to know when to trade. The constant changes in global markets can make it feel like too much. But don’t worry! Learning about forex trading time frames can help you make better trades. It’s the secret to trading smarter and making more money. The forex market never stops from Sunday 5 p.m. EST to Friday 5 p.m. EST. It has four main sessions: Sydney, Tokyo, London, and New York. Each session offers different chances and challenges. Did…
This week our currency strategists focused on Australia’s GDP Report (Q4 2024) and its potential impact on the Australian dollar for potential high-quality setups. Out of the four scenario/price outlook discussions this week, one discussion arguably saw both fundie & technical arguments triggered to become potential candidates for a trade & risk management overlay. Watchlists are price outlook & strategy discussions supported by both fundamental & technical analysis, a crucial step towards creating a high quality discretionary trade idea before working on a risk & trade management plan. If you’d like to follow our “Watchlist” picks right when they are…