Author: FX

Investor jitters were in play ahead of the highly-anticipated FOMC decision, which then delivered what many interpreted to be a more hawkish than expected announcement, sparking huge moves across the financial markets. Here are the economic updates you need to know and how asset classes reacted. Headlines: U.K. headline CPI up from 2.3% year-on-year to 2.6% in November as expected; core CPI rose from 3.3% year-on-year to 3.5% (3.6% forecast) U.K. PPI input prices flat in November (0.2% m/m uptick expected, 0.1% previous); PPI output prices rose 0.3% m/m (0.2% expected, -0.1% previous) Euro area final core CPI reading unchanged…

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We listen and we don’t judge, but a lot of other traders sure judged the heck out of the Fed’s new policy outlook! As expected, the Fed pulled the trigger on another 25-basis-point rate cut at its December meeting, lowering the federal funds rate to a range of 4.25-4.50%, marking its third straight cut this year. But this time, the tone was different — more cautious, hinting that the pace of future easing could slow down. Target federal funds rate cut to 4.25-4.50% range Overnight reverse repo rate adjusted to 4.25% (30bp cut) Cleveland Fed’s Hammack dissented, preferring no change…

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The Choppiness Index and Power Forex Trading Strategy offers a unique approach to navigating market conditions by combining two powerful indicators that serve distinct purposes. The Choppiness Index, designed to measure the level of market consolidation versus trend strength, helps traders determine if the market is choppy or trending. This indicator is essential for traders who want to avoid entering trades during uncertain phases, as it signals when the market may lack clear direction, reducing the risk of false moves and unpredictable volatility. Paired with the Power indicator, this strategy goes beyond simply identifying market choppiness to also measuring directional momentum. The…

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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and…

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Gold price declines sharply, trading between $2,600 and $2,610, as Fed’s less dovish outlook impacts the market. Federal Reserve Chair Jerome Powell emphasizes a prudent approach to monetary policy, with inflation risks still skewed to the upside. The Fed envisions a slow return to the 2% inflation target, projecting a timeline of one to two years. The latest dot plot from the Summary of Economic Projections reveals expectations for limited rate cuts through 2026, stabilizing the Fed funds rate at 3.4%. Gold prices plummet as Federal Reserve Chair Jerome Powell takes a stance after the US central bank decided to…

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The market is 96% priced for a quarter-point rate cut from the Federal Reserve today, bringing the Fed funds rate down to a range of 4.25-4.50%, what comes next is far less clear.The best way to look at 2025 might be a view of the year as a whole, because that’s what the FOMC dot plot will show. The median dot from the September Fed Summary of Economic Projections was at 3.4%, down from 4.1% in the June forecast. That’s likely to be reversed, at least somewhat.The Sept dot plotThe Fed funds futures market is priced at 3.84% for year-end…

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The latest U.S. data suggest that the economy will end the year on a high note. As has been the case for some time, the current strength reflects solid growth in consumer spending, due not only to the resilience of the labour market, but also to the steady increase in household net worth, NBC’s economist Jocelyn Paquet reports.GDP set to grow by 1.7% in 2026“As the drivers of recent performance are likely to remain the same in 2025, the U.S. economy should continue to outperform that of other rich countries, provided the new Trump administration sticks to the most pro-growth…

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It is said that the failure rate in the forex industry is very high, with more than 95% of aspiring traders expected to drop out of the game within their first few years of trading. At this rate, you might have a better chance of surviving the Hunger Games than becoming a successful forex trader! In his book One Good Trade, proprietary trader Mike Bellafiore outlines the main reasons why traders don’t succeed. Although he draws his conclusions from his experiences in stock trading, the lessons are generally applicable to forex trading as well. What’s interesting to note is that most of these common mistakes…

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