Trading signals and online forecasts EUR/USD

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Forex signals for USDCAD, EURUSD and GBPUSD on 07/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 07/12/2022 USDCAD signalsThe USDCAD forex pair is trading within an uptrend on a 4-hour chart. On it, you can see that the USD/CAD exchange rate is trading above the moving average with a period of 55, which corresponds to the level of 1.3497 and contributes to an increase in the price of the British pound in the short term. I recommend buying in this pair based on the current trading situation.The signal to open a buy position will be a breakdown and consolidation above the resistance at the level of 1.3667 in order to continue increasing to the resistance at the level of 1.3757 and in case of its breakdown and consolidation - to the level of 1.3760.  The stop loss for this strategy is placed at the level of 1.3485.The signal to open a deal for sale will be a breakdown and consolidation below the support at 1.3575 in order to decrease to the next level of 1.3497 and in case of its breakdown - further to 1.3397. Stop loss with this strategy can be placed at the level of 1.3675.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of a breakdown at the end of the hour and consolidation above the resistance level of 1.0477 in order to increase further to the area of 1.0502-1.0527. We put the stop loss below 1.0440.I recommend opening short positions after the breakdown at the end of the support hour at 1.0455 in order to reduce to support at 1.0426-1.0397. Stop loss above 1.0485.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed and the average is urgently predisposed to an increase.In this technical situation, the pound can be bought when the 1.2097 level is broken, you can also place a pending buy order at 1.2020 in order to increase the resistance area at 1.2437-1.2534 levels, stop loss with this strategy can be placed at ...
Forex. EURUSD: the pair remains in the range of 1.04-1.05
EUR/USD, currency, Forex. EURUSD: the pair remains in the range of 1.04-1.05 FOREX Fundamental analysis for EURUSD on December 7, 2022Investors' hope for easing of the Fed's monetary policy and reduction of risks for the U.S. economy recession cancelled the unconditional superiority of the US dollar. EURUSD has recovered 9.6% from its September lows, but remains 8% below its year-beginning level. Experts think that the single currency has no reason to continue its growth so far.At the same time the three main drivers of the dollar's strengthening - the tight monetary policy of the Fed, the exceptional nature of the American economy and the high demand for protective assets - have worn out a little. The dollar lost 5% in November, its worst performance since September 2010. For the first time in 16 months, speculators were active sellers of the greenback.On the other hand, against the backdrop of a slowing economy, the surge in stock indices looks strange. According to analysts, at the moment US shares are overestimated, moreover, according to forecasts corporate revenues in the fourth quarter will reduce quite noticeably.Due to the potential decrease in the stock indices, and through the correlation of currencies and risky assets, the consensus forecast for EUR/USD is 1.02. According to Reuters analysts after 12 months the pair will reach 1.07, that is not able to fully recover the losses of 2022.The main factors of the pair's recovery next year will be the reduction of divergence between the USA and the Eurozone economic growth, the victory of China over COVID-19 and the improvement of risk appetite. The United States is likely to face an economic slowdown in the second half of next year.The dollar may have passed its peak of strength, but it is unclear from which heights it will begin a steady decline. The USA economy is still stronger than the European one, and geopolitical tensions do not allow investors to give up on protective assets.On December 13th is the US inflation report and on December 14th the FOMC will announce its interest rate decision. Investors are unlikely to intensify forex trading until this news. We expect EUR/USD to stay in the range of 1.04-1.05. Hence we will buy from the lower boundary and sell at the upper ...
Forex EURUSD: U.S. macroeconomic statistics return faith in the dollar
EUR/USD, currency, Forex EURUSD: U.S. macroeconomic statistics return faith in the dollar Forex Fundamental Analysis for EURUSD on December 6, 2022The Fed can meet the inflation target in two ways. The first is to quickly drive the interest rate above 5% and then begin easing financial conditions just as quickly, or the second is to conduct unhurried acts of monetary restriction, carefully analyzing the effect of the measures taken.Jerome Powell and his colleagues have chosen the second path, but the strong macroeconomic statistics of recent days may change their decision.Financial markets assess the Fed's work according to their market criteria and it is often investors' expectations that change the dynamics of assets, break trading strategies and cause losses for traders, who believed in the exclusivity of fundamental analysis. Currently, traders and investors believe that the US regulator will bring the rate to 5%, and only in a few months will start to reduce it. Perhaps, investors' opinion is influenced by recession risks, as the yield curve has been signaling an economic downturn for a long time.At the same time, US economic indicators cast doubt on the likelihood of a recession, which means the Fed has no reason to cut rates. The central bank would benefit from keeping them at high levels longer in order to finally beat inflationary pressures.Yesterday's services purchasing managers' index, which strengthened in November from 54.4 points to 56.5 points, sent stock indices back down and Treasury yields and the dollar back up.Of course, the EURUSD trend change was also affected by long positions being closed by buyers around 1.06. Most likely, on the eve of the US inflation report and FOMC meeting few people wanted to open new positions. Forex trading is very volatile, so it is often better to wait away from the market than risk your deposit during unpredictable market movements.I think that we are expecting a long consolidation in the EUR/USD pair, the boundaries of which the pair will determine soon. For now we will use a breakthrough of support at 1.0475 for short-term ...
Forex signals for USDCAD, EURUSD and GBPUSD on 06/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 06/12/2022 USDCAD signalsThe USDCAD pair is trading within an uptrend on a 4-hour chart. On the chart, you can see that the USD/CAD pair is trading above the moving average with a period of 55 na (1.3450 level), which generally contributes to the price increase in the short term. I recommend buying for this pair based on the current wave model.The signal to open a long buy position will be a breakdown of resistance at 1.3597 in order to increase to resistance at 1.3667 and in case of its breakdown - further to 1.3756. I recommend placing a stop loss at 1.3485 with this strategy.The signal to open a short position for sale will be a breakdown of support at the level of 1.3497 with the aim of the smallest decline to support at the level of 1.3393 and in case of its breakdown - further to 1.3301. With this strategy, it is better to place the stop loss at the level of 1.3615.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the 4-hour chart. I recommend opening long buy positions in case of a breakdown of resistance at the level of 1.0539 with a further goal of growth to resistance at the levels of 1.0566-1.0593. We place the stop loss below the 1.0470 level.I recommend opening short positions after the breakdown at the end of the support hour at the level of 1.0544 in order to reduce to support at the level of 1.0514-1.0485. The stop loss is above 1.0605.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed and the average is urgently predisposed to an increase.In this technical situation, the pound can be bought from the level of 1.2153, you can also place a pending buy order at the level of 1.2051 in order to increase into the resistance area at the levels of 1.2437-1.2534, stop loss with this strategy can be placed at the level of ...
Forex analytical forecast for today, December 5, for NZDUSD, USDCHF, EURUSD and cryptocurrencies
EUR/USD, currency, USD/CHF, currency, NZD/USD, currency, Bitcoin/USD, cryptocurrency, Forex analytical forecast for today, December 5, for NZDUSD, USDCHF, EURUSD and cryptocurrencies NZDUSD: updating local lowsThe New Zealand currency shows a slight strengthening, revealing the potential of the "bulls" in the pair NZD/USD. The instrument is near the level of 0.6430 with the prospect of strengthening, continuing to update the local maximum of August 15.Investors attribute the positive trend of the asset to a number of technical factors, while the fundamental data was quite contradictory. "The American" got a short-term impulse for the positive dynamics on the background of the release of statistics on the employment market at the end of last week. Thus, the reporting reflected the increase of new vacancies, opened outside of AIC sector for November by 263 thousand, having earlier strengthened by 284,0 thousand for the previous month, at expectations of the market of increase by only 200,0 thousand.Resistance levels: 0.6450, 0.6500, 0.6535, 0.6600.Support levels: 0.6400, 0.6350, 0.6288, 0.6250.USDCHF: The US labor market put pressure on dollarIn the Asian trading session the currency pair USD/CHF showed moderate decline, approaching the level of 0.9350.The "bears" resumed its advantage over the American currency, having unsuccessfully attempted to strengthen on Friday amid investors' reaction to the release of the national labor market data in November, according to which the level of new vacancies rose by 263.0 thousand, By the end of October experts adjusted the value of the same indicator to 264.0 thousand from the previous 261.0 thousand, and unemployment remained at 3.7% for November, while the value of average hourly earnings rose to 0.6% monthly from 0.5% while analysts expected correction to 0.3% and annual to 5.1% from 4.9%, with expectations of 4.6%.Resistance levels: 0.9400, 0.9478, 0.9550 and 0.9600.Support levels: 0.9350, 0.9300, 0.9200, 0.9100.EURUSD: Russian oil is under EU sanctionsThe EUR/USD trading instrument is testing the 1.0562 mark.The currency pair is rapidly gaining in value amid the adoption by the European authorities of the price cap on the "black gold" from the Russian Federation. Thus, the sea routes of supplies will be capped at $60/bbl, including insurance costs, freight, etc., which will reduce the actual purchase price by several more dollars. According to Alexander Novak, the Minister of Energy of the RF, such manipulations are contrary to the market pricing mechanism and official Moscow reserves the right to cut the supplies of raw materials to the Eurozone countries which have approved this ban even in spite of the need to reduce hydrocarbon production. Economists assume that the execution of Russia's threats to start supplying energy resources to the alternative market could become a driver for inflation in the EU. Meanwhile, macroeconomic data block displays a negative sentiment. Thus, EU manufacturers in October reported a decline of 2.9% in the price index, having earlier strengthened in September by 1.6%, which lowered the annual rate from 41.9% to 30.8%. Manufacturing capacity in France also continued its strong decline which saw October industrial production decline 2.6%, previously down 0.9% in September.Resistance levels: 1.0640 and 1.0850.Support levels: 1.0490, 1.0320.Cryptocurrency Market AnalysisWithin the previous week, BTC undertook an upward correction, even managed to recover the losses incurred the day before, which helped it to trade at 17400.00 at present.The cryptocurrency market is affected by two opposing factors. First, market participants are frightened by the likely consequences that may occur due to the bankruptcy of the FTX platform, which caused them to reduce investment in the digital segment of the market, as evidenced by the decline in the level of "whales", which, according to statistics from Glassnode, updated the two-year low at 1.662 thousand. Second, cryptocurrencies should find support from monetary factors as announced measures a week earlier by U.S. Federal Reserve officials to lower the pace of interest rate hikes at the December summit weakened the U.S. currency against major competitors, which include digital. Some analysts expect the change in the regulator's rhetoric to start the traditional pre-Christmas "Santa Claus rally," in which market leaders can regain their positions.Resistance levels: 17830.00, 19100.00, 20000.00.Support levels: 16600.00, 15000.00, ...
Forex. EURUSD: US labor market statistics supported stock indices
EUR/USD, currency, Forex. EURUSD: US labor market statistics supported stock indices Forex Fundamental Analysis for EURUSD on December 5, 2022Forex market trading based on the news once again had a surprise. Not quite a bad report on the US labor market supported not the US dollar, as most traders expected, but the US stock indices, though traders' initial reaction was in favor of the dollar.According to NFP, 263,000 jobs were created for the month, better than expected. Unemployment remained at 3.7% and average wage growth accelerated to 5.1%. This is the highest growth rate in a year.The EURUSD fell to 1.043 after the news, but then investors remembered that the Fed was going to slow the pace of monetary tightening anyway, which led to a recovery in the price. The pair's dynamics was also affected by the closing of positions before the weekend.Investors believe that the maximum rate of the Fed will not exceed 4.9% and even the strong employment report could not break this belief.We should note that December is a favorable month for EUR/USD. Statistically, in December the pair rose 15 times out of 22.I believe that the pair is heading towards the target at 1.061. This is where we will take ...
Forex signals for USDCAD, EURUSD and GBPUSD on 05/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 05/12/2022 USDCAD signalsThe USDCAD pair is trading within a downtrend on a 4-hour chart. It shows that the USD/CAD exchange rate is trading below the moving average with a period of 55  слоые to the level 1.3428, which generally contributes to the price reduction in the short term. I recommend sales on this pair based on the established wave model.The signal to open a long position (buy) will be a breakdown of the resistance level at 1.3597 with the aim of growth to the resistance at 1.3667 and in case of its breakdown to 1.3756. The stop loss for this strategy can be placed at the level of 1.3485.The signal to open a short position (sell) will be a breakdown of support at 1.3393 with the aim of reducing to support at 1.3301 in case of its breakdown at 1.3227. The stop-loss for this strategy can be placed at the level of 1.3515.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of a breakdown at the end of the resistance hour at the level of 1.0585 with the aim of rising to the resistance at the level of 1.0613-1.0640. Stop-loss below the 1.0530 level.I recommend to open short positions after the breakdown at the end of the support hour at 1.0544 in order to reduce to support at 1.0514-1.0485. Stop loss above 1.0605.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed, and the average is urgently predisposed to increase.In this technical situation, the pound can be bought from the level of 1.2286, you can also place a pending buy order at the level of 1.2128 in order to grow to the resistance area at the level of 1.2437-1.2534, a stop with this strategy can be placed at the level of ...
Forex analytical forecast for today, December 2, for EURUSD, GBPUSD, USDJPY & USDCAD
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, USD/JPY, currency, Forex analytical forecast for today, December 2, for EURUSD, GBPUSD, USDJPY & USDCAD EURUSD: consolidation at the local maximumDuring Friday's trading session the EUR/USD currency pair is developing a sideways trend on the market, being at a local high of 1.0520 on June 28.In the last two trading sessions the EUR has rapidly strengthened on the trading floors on the statements of the head of the US Federal Reserve about his intention to decrease the activity of interest rate strengthening. Meanwhile, positive data on consumer prices gave additional support to the instrument, which contributed to the reduction of panic moods about the depth of economic recession in the region. Thus, the EU annualized inflation rate for November fell to 10.0% from 10.6%, while experts expected it to be 0.4% higher, and the monthly calculation showed a deflationary process - a decrease of 0.1%, having earlier strengthened by 1.5% for October. Moreover, economists were able to estimate retail sales in Germany for October which showed a decrease of 2.8% against expectations of 0.6%, and an annual value of 5.0% against expectations of 2.8%. This situation is due to an increase in the cost of goods and services due to which households have reduced the level of demand in all segments. Economists are preparing for a downturn in holiday goods at Christmas and a recession in the German economy by Q4.Resistance levels: 1.0550, 1.0600, 1.0640, 1.0700.Support levels: 1.0500, 1.0450, 1.0400, 1.0350.GBPUSD: waiting for signals from the statisticsThe British currency shows mixed dynamics, having kept the local maximum of June 27 updated earlier. GBP/USD is at 1.2240, reinforcing a positive trend, but investors are refraining from excessive trading activity on the threshold of the weekend.Today market participants will want to get acquainted with the announced publications on the US employment market. The current estimation foresees the downfall of the new vacancies, without taking into account the AIC sector, for November down to 200.0 thousand from the current 261.0 thousand. Taking into consideration the previous day released by Automatic Data Processing (ADP) corporate reporting on the private sector employment, which came to 127.0 thousand to the expected 200.0 thousand, the probability of the real dynamics worsening is still high. Experts allow for a moderate decline in the rate of increase in hourly earnings to 0.3% from the current 0.4%.Resistance levels: 1.2311, 1.2400, 1.2500, 1.2600.Support levels: 1.2152, 1.2027, 1.1939, 1.1853.USDCAD: pair is moving in the sideways trendDuring the Asian trading session the pair USD/CAD is demonstrating sideways movement of quotations, testing the level of 1.3440.Investors are gradually reducing the activity at the session, waiting for the US and Canada employment data in November, the "American" meanwhile is under the influence of the negative factors after the US Federal Reserve Chairman Jerome Powell`s statement the day before. The official announced plans to reduce the rate of interest rate hike, so it is more appropriate to reduce the degree of "hawks" in tightening of monetary policy. Analysts believe that the U.S. Federal Reserve will strengthen the key indicator at the December meeting to a maximum of 0.50%, followed by an analysis of the situation. Employment expectations call for a 200,000 increase in the non-farm payrolls rate, having previously strengthened by 261,000 in the previous period. Data from Canada may turn out to be even more negative, as market participants expect an increase in the level of employed population by only 5.0 thousand for November, while for October the same indicator was increased by 108.3 thousand.Resistance levels: 1.3450, 1.3500, 1.3550 and 1.3600.Support levels: 1.3400, 1.3356, 1.3300, 1.3226.USDJPY: pair is under the influence of the bearsThe weaker USD/JPY has allowed the pair USD/JPY to consolidate under the key level of 139.00, after which there is an opportunity to consolidate at the levels of 132.00-130.00.Meanwhile, the situation in the economy of Japan is positive. Thus, the retail sales for October rose by 4,3% mom, which did not meet the market expectations of 5.0%, however it was quite a strong result, capital investments for Q3 added 9,8% yoy, exceeding analysts' estimates of 6.4% and the previous 4,6%. Investors reacted positively to the statistics because it significantly strengthened Japanese Yen.Economists are expecting the publication of the labor market in the United States, announced for today at 15:30 (GMT+2), which according to preliminary data will amount to 200.0 thousand. However, if the actual statistics does not match the expected one, trading instrument USD/JPY has a chance to develop the momentum of "bears".Resistance levels: 139.50, 142.50.Support levels: 135.00, 132.00, ...
The EU economy will not recover until 2023
EUR/USD, currency, The EU economy will not recover until 2023 ECB Council member Pablo Hernandez de Cos believes that the EU economy will not reach the pre-pandemic level until the end of the second half of 2023.The governor of the Spanish central bank has joined the chorus of ECB policymakers calling for the first rate hike in more than a decade to curb the highest inflation rate since the creation of the euro and prevent price increases from taking hold.The ECB is lagging behind global competitors in raising borrowing costs and is even still pouring money into the financial system through its asset purchase program, a legacy of a decade of fighting too low inflation.Inflation in the eurozone reached a record 7.5% in April, and was well above the ECB's 2% target. Now the ECB's key rate is 0%, 0.25% on margin loans, and minus 0.5% on deposits.The official also believes that a gradual increase in rates should be expected, especially if the medium-term inflation forecast remains at the current target level.According to de Cos, the completion of the bond purchase program should be completed at the beginning of the 3rd quarter, and soon after that the first interest rate increase will follow. The gradual abolition of extraordinary monetary incentives is adequate in the current ...
Weekly review. January 10, 2022
EUR/USD, currency, US Dollar Index, index, Brent Crude Oil, commodities, Gold, mineral, Weekly review. January 10, 2022 The year 2022 on world markets will largely be determined by the tightening of monetary policy in the United States, and the first week of the new year confirmed this. The minutes of the Fed's December meeting published last week showed a significant tightening of the position of the regulator's representatives – Fed members believe that the rate can be raised as early as March, and also see a faster reduction in the balance sheet as appropriate. Representatives of the regulator believe that the current economic conditions are already in many ways conducive to tightening the labor market, some even noted the recovery of the labor market already sufficient for such actions, although the majority still expects further improvement in the labor situation. Against this background, it is worth noting the publication of December labor data in the United States, which came out ambiguous. On the one hand, employment in December increased by only 200 thousand. The Bloomberg consensus forecast assumed an employment growth of 450 thousand, and the actual growth rate of the indicator was the lowest since the beginning of 2021. Nevertheless, in many respects such weak employment growth is explained by seasonal adjustment, and the unemployment rate in December fell more than expected. Thus, the indicator has updated the next lows since the beginning of the pandemic, dropping to 3.90% against the expected 4.10%. The unemployment rate continues to approach a historic low of 3.40%, and labor statistics have further increased fears in the market of an imminent tightening of the PREP in the United States. As a result, on Friday, the yields of ten-year US treasuries at the moment exceeded 1.80% per annum - the maximum since the beginning of the pandemic. Today they have returned to these levels again.This week, the dynamics in the market will continue to be determined by expectations for the actions of regulators - investors will follow the statements of representatives of the Fed and the ECB, as well as the publication of price data in the United States for December. Statistics published last week showed an increase in inflation in the EU to 5.00% YoY. As a result, the topics of price growth in December updated the historical maximum, while analysts expected a slight slowdown in price growth. The situation on the supply side also has high inflation in the United States. The December business activity indices indicated a slight easing of logistical problems, however, the further deterioration of the epidemiological situation again intensified disruptions in logistics chains, which does not lead to a significant slowdown in price growth. The FAO World Food Price index fell in December for the first time since July, but food inflation remains at elevated levels. Against this background, US inflation data is likely to continue to bring the Fed rate hike closer, intensifying the negative in the markets.The main event for the oil market in early 2022 was the OPEC+ meeting. However, as expected, it was decided to stick to the current plan to increase production. Nevertheless, the cartel lowered its forecasts for a surplus in the oil market, which allowed Brent crude futures to exceed the level of $80/bbl. Moreover, against the background of interruptions in the supply of black gold from Kazakhstan and Libya, quotations were close to $83/bbl. However, at the end of the week they declined from these levels, today Brent futures are growing by 0.35% and are trading around $82.05/bbl. The main negative for oil this week may be related to the potential strengthening of the dollar amid expectations of a tightening of the PREP in the United States. However, in the absence of a significant strengthening of the dollar, Brent futures may still exceed the levels of $83/bbl– - the quotes may be supported by another weekly decline in oil ...
Forex and Binary Options - which is better?
EUR/USD, currency, Gold, mineral, Forex and Binary Options - which is better? Recently, I see that more and more traders are starting to switch from Forex to binary options. This is understandable, because it is easier to trade binary options, and profitability, of course, is also higher. In general, I myself gave up Forex in favor of binary options 6 years ago. But since the topic is so relevant now, let's figure out which is better – Forex or binary options, comparing the pros and cons of both types of earnings.Forex and binary options: a brief comparisonGet and sign up: profitabilitySo, let's start our comparison with such an important point as profitability. When trading binary options, the profit ranges from 75 to 95% of the invested investments. In Forex, the profit is unlimited. However, in order to get a high percentage of earnings on Forex, you will have to correctly predict large price fluctuations, whereas only 1 point is enough on binary options. I think there is no need to explain that binary options trading is more profitable in the long run.Read more: What are binary options?Is risk a noble cause? What is the difference between Forex and binary options?The next difference between binary options and forex is the risks themselves. Forex trading involves constant manual work with risks due to the correct placement of orders for opening and closing transactions (stop losses and take profits). On the one hand, this is convenient, since it is always possible to rearrange orders and wait for the very moment when it will be possible to make a profit or breakeven… But on the other hand, as a rule, a Forex trader needs to have an impressive deposit in order to withstand long drawdowns. In addition, the trader is constantly experiencing psychological pressure (whether he closed the deal on time, whether he placed orders correctly, etc.). It is also important to say that traders who do not have large deposits are forced to use the broker's leverage, which multiplies not only the profits received, but also, of course, losses.Binary options brokers relieve traders of psychological responsibility for placing orders. It is enough for a trader to decide on:the size of the bet (as a rule, its size ranges from $5 to $25),the end time of the transaction.Thus, all work with risks consists in trading with a minimum percentage of the deposit. So, in fact, Forex differs from binary options only by a risk management system. It is not enough for a forex trader to open a deal in the right direction, he also needs to calculate how many points the chart will pass and where to put a stop loss / take profit correctly.Read more: What is Forex in simple wordsAnalysis is the mainThe same tools are used for analysis and forecasting in both types of trading: indicators, news, volumes, price patterns, etc. It turns out that, other things being equal, it is easier to do analysis for binary options, since it is enough to correctly predict only the direction of the price. In Forex, in addition to the direction, as I wrote above, you need to determine the approximate number of points in order to correctly place orders to close transactions.Time is moneyThis point can be interpreted in two ways. For someone, it is important how much time trading takes in total, for someone this moment is not fundamental. In any case, it is clear that Forex takes much more time than binary options. After all, you need to constantly work with orders to influence the outcome of the transaction.Number of assetsThe most popular assets on binary options and Forex are currency pairs and precious metals (in particular, EUR/USD and Gold). However, if the choice is limited for a Forex trader, then a binary options trader has alternative options. This:stocks,indexes,futures,the so-called "pairs" (the ratio of shares of one company to shares of another, for example: google/apple).Thus, a larger number of potentially profitable trades will be available to you on binary options.Read more: What is a spread in trading Forex and stocksOnce again about money: commissions and spreadsActually, the difference between Forex and binary options is also the trading conditions themselves. Forex traders must necessarily pay the broker the spread from each open transaction.  What is a spread? The spread is the difference between the purchase price of an asset (bid) and the sale price of an asset (ask) (roughly speaking, the same difference can be seen at any currency exchange point). At the same time, traders do not pay any commissions to the binary options broker, either from investments or profits.Lend a shoulder to a friend: leverageA very important point, in my opinion. Applies only to Forex, but nevertheless it is important to pronounce it. The minimum lot (financial contract) on Forex is $100,000. Naturally, an ordinary person cannot start trading with such amounts. In this regard, the Forex broker is ready to provide its clients with leverage. For example, with a deposit of $1,000, the broker is ready to "add" $99,000 to the trader so that he can enter the market. However, the broker will not risk his money, instead he will limit the maximum amount of losses on the account to 1% (the same $ 1000). What does this lead to? To the fact that traders often start trading large lots and quickly lose money.What to choose, forex or binary options?So, binary options or still Forex? My answer to this question will not be objective, because I made my choice a long time ago. For those who have not yet decided, I can give one piece of advice – decide for yourself which type of trading is most suitable for you. It is difficult to predict in advance which method or strategy will bring the greatest profit, but one thing I can say for sure - binary options today provide the lowest entry barriers to the world of trading, making it simple and accessible to everyone. And a large number of binary options brokers allows everyone to find the most convenient platform for themselves. By the way, some brokers have forex simulators built into the platform.Well, I suggest that all novice traders read the article about the main mistakes that beginners make in trading.Read more: Forex or Binary Options? The difference between Binary Options and ...
Forex trading: understanding the forex market
EUR/USD, currency, GBP/USD, currency, USD/JPY, currency, Forex trading: understanding the forex market The foreign exchange market is better known as Forex or FX. Trading in this market has become very popular in recent years. However, this is not the case - Forex trading raises a number of questions. For example: what is the foreign exchange market? Which currency pairs are best to trade? Is currency trading risky? Some of the answers to these questions will be found in this article.What is the Forex market?The foreign exchange market is also called the Forex market or the English foreign exchange market. It is simply a market where currencies are exchanged. According to the Bank for International Settlements (BIS), the foreign exchange market is the largest market in terms of total volume, with up to USD 5 trillion traded daily. It is not a physical place, but rather an electronic network where institutions or individuals trade with each other.The left-hand currency is called the base currency and the right-hand currency is called the quote currency. The second currency indicates the value relative to 1 unit of the base currency. For instance, the formula EUR/USD = 1.4000 implies that EUR/USD trades at 1.4000, i.e., 1 Euro has a value of $1.40. The first currency is always expressed in the second currency. USD/JPY at 110.50 means that one USD is worth JPY 110.50. EUR/USDWhat are the best currency pairs to trade?The best currency pairs to trade effectively depend on your trading style. If you have a short term strategy, for example, if you like to scalp, then the major currency pairs will be most profitable for you because of the low spreads.On the other hand, for a fundamental trader, smaller currency pairs will be of interest based on long-term analysis. The most profitable currency pairs may be those involving the Australian dollar, Japanese yen or Canadian dollar.The best forex currency pairs:EUR/USD: this pair has the lowest spread and is not very volatile.GBP/USD: this pair is interesting in terms of spreads and possible gaps, but it is quite volatile.USD/JPY: this pair has low spreads and offers some interesting possibilities. GBP/USDHow to get started trading currencies online?To start trading currencies online, follow these steps:- Choose a regulated and reputable broker- Choose a broker by the quality of execution of trading instructions- Decide on the trading style that suits you best (scalping, intraday trading, swing trading - you keep your position open for several days)- Determine the appropriate leverage effect in the stock market according to your strategy and experience.- Do not invest more than you can afford to lose.- Choose an intuitive, simple and secure trading platform such as MetaTrader 4.- Try all the above steps on a demo account, before trading live.Read more: Features of intraday trading on the Forex marketGoldIs online currency trading dangerous?Like any financial investment, currency trading online is subject to risks. However, there are different methods to control these risks:- Determine the price of the currency pair at which you want to close a position if developments are unfavourable (for example, if you buy and the price falls, or if you sell and the price rises),- Determine the size of the trade so that your potential loss should not exceed 2-3% of your capital per trade,- Estimate your risk/return ratio (loss/profit) before you open the trade. By default you should have a greater potential for profit than loss, e.g. risk 50 pips, but try to make a profit of e.g. 100 pips.For proper money management and risk reduction it is advisable to start trading on a demo account and try things out on the dirt first. Such an account will allow you to trade in real market conditions, but with fictitious capital, so that you have a complete understanding of the foreign exchange market without any risk.Read more: Forex broker: how to choose a good ...
How to become a trader from scratch
EUR/USD, currency, How to become a trader from scratch Making money from price movements is the fastest way to make a profit. You can double or triple your investment in just a few minutes. This is what many people, tired of overwork or unemployment, would like to do. And so most of these people began to wonder how to become a trader from scratch, what it takes and how promising this kind of activity is. The answers to these questions are covered in the following overview.Who is a trader?To begin with, we must try to understand who a trader is. Essentially, he is a common speculator, who buys cheaper and sells dearer. To do this, he needs to have a stock of money - in today's world, this is electronic money. Also, he needs access to the quotes and assets to be traded, all these conditions are provided by numerous brokers.The trader earns money on the difference between the buy and sell price. And it does not matter whether the price is falling or rising. Anyway, with accurate analysis, he will always be in the black.Professional skills and knowledge of the traderTo have such prospects let's consider what you need to become a trader:Firstly, one needs to have a trading terminal or access to one online;Secondly, you need to understand how to evaluate the possible rise or fall of quotes. And for this you need to have your own trading strategy;Thirdly, you need to know how to manage your money. This science is called money management;Fourthly, to become a trader from scratch you have to manage your emotions and control your behavior when analyzing or opening a deal;Fifthly, you need to choose fundamental or technical analysis.Read more: The main components of a Trading StrategyBut these are not all the conditions. Although they are easy to follow, you will have to develop or strengthen your existing skills and personal qualities. A trader must be stress-resistant, ready to process huge amounts of information, and make numerous calculations. They must also:Know how to use his calculations;be able to stop and rest on time;be disciplined in their analyses, keep notes, and not disregard trivialities.At the same time, a future trader should not be complacent. This work is constant professional growth. Experienced traders never stop at their achievements. They have to improve their trading systems and find brokers with more favorable conditions. And in recent years, such traders have to master automated trading, where trading experts, expert advisors, systems, and robots are used.What else a true expert in trading should possess is the ability to choose assets for trading. There are hundreds of currency pairs available for those who want to become a Forex trader.The cryptocurrency market is gaining particular interest, especially among young traders. There are already hundreds of trading instruments with different volatility and yields.There are about the same number of commodities, stocks, options, and futures. This direction will be of interest to those who wish to become a trader in the stock market.Read more: Volatility: types, how to track and how to useClassification of tradersProfitability and speed of making profit are the main criteria in classifying traders. There are such types of currency, stock, and cryptocurrency speculators:Scalper - trades in time intervals of no more than 5-15 minutes. They can open dozens of deals during a day and always have a lot of false signals, so they take as little profit as possible from each deal;Intraday trader (intraday) - works with timeframes from 15-30 minutes to 1 hour chart. He closes all his orders before the end of the trading day;Mid-term - trades for several days. As a rule, it is executed until the next weekend. Leaves deals with positions rollover to other days; analysis is conducted on H1-H4 timeframe;A trader with a long-term outlook - opens positions only on daily, weekly, and monthly charts. Its transactions can be active from 2-3 weeks to a year.You may become a trader in any of these categories, the main thing is to follow the sequence described below.Read more: What timeframe is the best to trade onThe 6 steps of becoming a traderThere are only a few steps to become a trader - some of them are very simple, others will take some time. So - how to become a trader, step by step:Get training - on the basis of the chosen broker, on books of famous speculators, on third-party resources, professional webinars.To choose the broker with the necessary set of instruments, official registration, financial license, and obligatory registration at the international regulator.Develop your own trading strategy.Open a demo account, which you can use to test the broker's conditions, service quality, and testing your trading system.Open and deposit an objective real account.Make a trading plan.That's basically it. Now become a professional trader, start earning and take pride in your new profession. Having passed all these stages, in the near future you will see whether it is worth becoming a trader or not. The fact is that you can earn by investing in trading. But it is a separate topic for discussion.Read more: Forex broker: how to choose a good brokerAmount of profit and tips for beginnersProfit depends on the size of the trading deposit, the number of opened orders, and the number of profitable deals. The trading lot size, the amount of leverage, broker's fees - all this affects the final sum of the profit. In practice, you will have to learn how to calculate all these things.Traders with experience advise not to make mistakes. For example - do not rush headlong into trading, leaving your main work. There is no need to borrow money to replenish your deposit - only use your own, even if it is small.Do not treat this activity as a game, an extra income - it is a job like any other.And now that you know everything you need to know about this job, take the first steps in mastering the profession and become a successful trader, and earn as much as you need for full financial well-being!Read more: What is a Leverage in ...
Who are traders and why do they earn so much
EUR/USD, currency, Who are traders and why do they earn so much Acquaintance with the financial market begins with the identification of participants and the exact clarification of their functions. The market assumes the presence of the main actors on it – traders.  That is, a trader is a person who directly trades, the main market participant. This term can be applied to all types of markets. If we talk specifically about the financial market, then the trader here operates with assets, earning on their sale and purchase.Categories of tradersThe entire trading corps can be divided into two groups – professional traders and private traders (amateurs). Professionals are part of the staff of various funds, banks and other financial organizations. Accordingly, in the market they act on behalf of these organizations, making transactions with their assets. Simply put, these are certified financiers who go to auctions as if for work. The category of professionals also includes traders who work exclusively for themselves and operate with their own funds. Since they have no other profession, they can also be classified as professionals.The most numerous category is private amateur traders. Trading is not their main profession, and in the financial market they are engaged exclusively in additional earnings. Such traders do not have a specialized education, and they have to study independently. The financial market is attractive for the possibility of good earnings. That is why the number of amateurs exploring the market is constantly growing. The contingent of amateur traders is very mobile: someone, having failed and disappointed, leaves the market, counting on easy earnings also do not stay for a long time, but new, active and ambitious traders are constantly arriving.Trading in the financial marketIn order to make a deal on the financial market, a trader needs to give an order to a broker about the desire to sell or buy an asset. Of course, the result of such operations should be profit. In order for trading to be profitable, you need to deeply know the market processes and patterns of movement of the value of assets. Not everyone can boast of fundamental knowledge, so success does not accompany everyone. But perseverance and hard work are usually rewarded.Forex is not easy for a beginner, but the financial market has never been easy. If a trader from our days could be transferred to the stock exchange a century ago, he would also hardly be able to work right away. Firstly, he would be deprived of electronic devices and the Internet, from which you can draw the necessary information for trading, while maintaining contact with the broker. Secondly, he would be very limited in the possibilities of technical analysis. The theory of technical analysis itself did not exist at that time, and traders used separate provisions of Charles Dow, which were later systematized into a single theory.Today, the trader has all the tools to make the right decision. Prices are presented in graphic images of more than a dozen types, clearly demonstrating current and future fluctuations. The latest developments in the markets are published by many media outlets, including such reputable ones as Bloomberg or Reuters. Current currency quotes are transmitted online.The revolution in trading in financial markets has taken place in just a hundred years. Previously, a small circle of people had the opportunity to become a trader, but today the market is open to almost everyone.Read more: Five stages of becoming a traderFinancial market trading instrumentsFinancial market traders use technical and fundamental types of forecasting in their work. The technical one is presented graphically, and the fundamental one is based on economic data. By tracking the information on the terminal, based on the learned patterns, the trader predicts future quotes.The terminal is the most important tool of a trader, which is a platform for communication with a broker and an analytical tool. Modern terminals provide information on prices, various indicators and graphical tools.Modern trading is also impossible without automated trading systems, which are called robots or Expert Advisors in the professional slang of traders. Such systems trade autonomously according to the initial parameters. Such a parameter, for example, can be the volume of transactions. There is a lot of talk about the feasibility of using robots, but, in any case, no machine can be more effective than a competent trader.Another serious tool can be considered an economic calendar with announcements of economic events: speeches by economists and heads of banks, politicians, publications on economic topics, etc. So, a modern trader trades on the Internet using Internet trading platforms.Before the appearance of platforms on the Forex market, only large financial organizations participated in trading – banks, funds, etc. With the advent of the Internet, exchange trading has become accessible to ordinary users – knowledge and only a few hundred dollars are required.Trading strategyTraders have different views on the market situation – it is they who determine the trading strategy. One of the important characteristics of the strategy is the duration of transactions. According to this characteristic , several types of investors can be distinguished:long-term, making long-term transactions for several years. The analysis is based on global characteristics and indicators;short-term, making several trading transactions during the year;positional, working on a long-term strategy. Transactions last for several days with profit taking during periods of reduced activity (holidays, vacations, etc.);a day trader who makes transactions during the day (one trading session). As a rule, such traders have a small trading capital, and trading positions are realized quickly;a scalper who makes trades in a very short period (from a few seconds to 10 minutes). With a large number of operations, profitability is not ensured for every transaction. Traders working on this strategy are forced to constantly stay at the monitor and monitor suitable transactions.Read more: The main components of a Trading StrategyWhat does a currency player doFirstly, he trades various currencies. The principle of successful trading is simple – it is cheaper to buy and more expensive to sell. The trader operates with currency pairs consisting of two currencies. The most popular currency pair is EUR/USD. When buying such a pair, a trader buys euros for US dollars.The main advantage of the Forex market for traders is its liquidity. There is a constant supply and demand in Forex, and trading is conducted without interruptions five days a week. The choice of currency pairs for trading is wide: you can trade "majors" (the so-called pairs that are traded through the dollar) or "crosses" (without using the dollar).A trader should be ready to trade not only theoretically. No less important is the right psychological attitude, which is often ignored by beginners. Having familiarized themselves with a couple of strategies, they rush headlong into trading, risking losing all their money and forgetting about the two main enemies of the trader – fear and greed. Greed often kills capital, and fear does not allow it to increase.Many newcomers seek to get rich instantly by opening deals and not thinking about money management. Most often, such traders simply lose all their money. Trying to quickly increase the capital from $100 to $1,000, the trader opens transactions with a large volume, increasing the psychological burden. Mistakes appear, and money goes away. Risk management is very important for a trader. When opening a trade, a trader must accurately imagine the possible volume of not only profits, but also losses. Minimizing risks is the main task that a trader should be able to solve.Read more: How to become a trader from scratchFrom amateurs to professionalsA successful amateur of stock trading can become a professional. Professional trading has clear advantages: the trader now works only for himself, he does not need to go to work in the office, he plans his own working hours. But the main thing now is that the trader is the owner of his own capital, and only his well–being depends on his work.A professional stock market player lives by certain interests - news related to stock markets, currencies, economics, stock statistics, commodity prices. Plunging into this atmosphere, after a while the trader begins to understand this, makes decisions based on independent analysis. For a professional, there is no limit to the accumulation of information and knowledge. He is constantly improving – only this is the key to his success in the ...
USDPLN - description, characteristics, forecasts and feautures of the pair
EUR/USD, currency, USDPLN - description, characteristics, forecasts and feautures of the pair Another "exotic" of the international currency market is the US Dollar vs Polish Zloty pair. The instrument does not stand out with any special advantages, therefore it will mainly be attractive to Polish traders and investors, while for the majority of other Forex participants, USD/PLN is not of particular interest, since it does not stand out either with a higher yield or a lower spread value.In addition, Poland's intention to completely switch to the euro does not favor the popularization of this instrument.USD PLN forecast for todayAs for most other exotic pairs with a small trading volume in general, USD/PLN is characterized by such features as: unpredictability, difficulty in making a forecast, high volatility and large spreads due to low liquidity. Zloty is a specific currency and is not widespread in the foreign exchange market.To analyze the exchange rate, it is necessary to pay attention not only to the actions of the Polish leadership, but also to monitor pan-European events (of course, we are talking about long-term dynamics on timeframes from H1 and more).Due to its specifics, the pair is more exposed to fundamental factors, which must be taken into account when compiling analytics, and there will be a lot to analyze, since this tool is very rare, and it is not worth hoping for a sufficient amount of high-quality analytics from brokers and freely available on the network.The way out of this situation can be thematic forums where ordinary traders constantly publish their thoughts on the further movement of currency pairs, although relevant and useful information can be found in Polish and English.Read more: GBP/USD exchange rate (Online Chart), forecast for todayUSD/PLN exchange rate chart (online) on the stock exchange with indicatorsLooking at the chart of the Zloty-Dollar pair, it is clearly visible that, like most other exotic currency pairs, this one is highly volatile and can pass hundreds of points in both directions per day.General characteristicsThe display of the US Dollar to the Polish Zloty in most trading platforms and on websites with streaming charts is carried out up to four characters after the separator, for example, at the moment it is 4.0799. Some terminals (Meta Trader5) output a value of up to five characters after the separator (4.07943).USD/PLN is a direct quoted currency pair, considered exotic.It is most active during the European trading session, when local exchanges are open in Poland.In terms of volatility on the days of the week, there are no special differences from other "exotics": Monday is traditionally the quietest trading day, but by the next day the pair is swinging at full strength and, practically, does not slow down its activity.Although the USDPLN currency pair is exotic, this does not mean that it will be more difficult to earn on it or the profit will be less.Read more: GBP/PLN: quotes, signals and forecasts for today, chartFactors influencing USD/PLN and what the exchange rate depends onPoland is a former socialist state of the Eastern Bloc, which joined the EU after democratic reforms in 2004 and is still a member of it. The country's economy has undergone major changes over the past decades. Today , its structure by sector is as follows:Services and trade – 64.3% (hotel and restaurant business, insurance, legal services);Mining and manufacturing industry, as well as industrial production – 31.2% (metallurgical, chemical, coal, light);Agriculture – 4.5% (pig farming, fruit gardening, crop production).Poland's main trading partners are other EU countries (Germany, Great Britain, etc.). The main export goods are machine-building, shipbuilding, chemical products, textiles, agricultural products.Although Poland has been a member of the European Union for more than 10 years, it cannot fully switch to the euro yet due to non-compliance with some economic requirements for joining the pan-European currency system (too large budget deficit and instability of the Zloty).However, Poland is doing everything to completely abandon the national currency as soon as possible and switch to the euro, in which case the USD PLN pair will simply cease to exist.The American economy, as much more developed in comparison with the Polish one, is characterized by a significantly greater shift of the vector towards the service sector, which is about 80%. The share of industry accounts for almost half as much of GDP as in Poland (about 19.2%). Agriculture in the United States provides only 1.5% of income.Read more: USD/DKK: exchange rate, online chart, signals & forecasts for todayToday, the exchange rate of the Polish zloty to the dollar is very strongly correlated withUSD/NOK – 97.6%,USD/CHF – 97.1%, USD/SEK – 94.8%, USD/SGD – 94.6%, USD/JPY – 93.8%, USD/THB – 93.2%, USD/CZK – 92.4%,USD/HUF – 91.6%. The inverse correlation of -95.7% for the pair with NZD/USD, as well as EUR/USD – -92.3%, AUD/USD – -91.2%, XPT/USD – -91%. Quite high is the inverse correspondence with the chart of the price of gold (XAU/USD) – up to -89.6% and silver (XAG/USD) – about -85.5%.All the data given relate to the D1 timeframe (that is, to the daily one), on smaller segments the correlation of this pair with others begins to fall and already on H4 USD/PLN does not correspond to any of them by more than 77-78%, and with a decrease in the interval this figure falls even more (on H1 it already falls short of 70%). The Dollar-Zloty pair has a strong correlation at the level of 80-70% with a huge number of different instruments, lists and graphs of which can be easily found on the Internet.For a clear and correct analysis of the pair with the Polish zloty, you need to take into account many factors from various sources, mainly:economic indicators (Poland, EU, USA);trade balances (of both countries and the EU);the situation on the market of brown coal, ferrous and non-ferrous (lead, copper) metals and world commodity markets in general;central Bank rates of both countries;labor market (USA, Poland and EU in general);business activity in industry (Manufacturing PMI index).Due to not only economic, but also its national specifics, Poland practically did not suffer from the pan-European migration crisis, which has a positive effect on tourism, but the agricultural sector was hit hard by the sanctions war with Russia. This has a negative impact not only on the dynamics of agricultural exports, but also on the labor market, increasing the unemployment rate.Read more: USD/CNH - description, characteristics, forecasts and feautures of pairFeatures of the currency pairThe complete abandonment of zloty and the transition to the euro in Poland should have happened a long time ago, but for one economic reason or another it is constantly being delayed. And, despite the fact that they kept saying that the refusal "will happen within the next 2-3 years," it never came to fruition either in 2010, 2014, or 2020, and it still continues to this ...
Fiat money
EUR/USD, currency, GBP/USD, currency, Fiat money According to the general opinion, the origin and functioning of monetary systems are among the most difficult to understand issues of economic theory. In this situation, it is important at the initial stage to give clear and functional definitions of the basic concepts.Types of moneyMoney is considered to be assets that perform the functions of a means of circulation, account units and savings funds. Depending on the method of issue, three types of money can be distinguished:commodity moneycredit moneyfiat money.Commodity moneyCommodity money has been known since ancient times. Their value was determined by the value of the material from which they were made. Commodity money played an important role in metal monetary systems.Credit moneyCredit money (inside money) appeared with the emergence of the first banks. They were debt obligations of banks – banknotes or deposits. Their value was secured by the assets of the issuing bank. Credit money was important in countries where there was no state monopoly on the issue of money.According to the alternative history of money, the first money is often considered to be debts on commodity loans – they were used as a unit of account. After a while, the temples (as organizations that enjoyed unconditional trust) began to recognize these debts, and they became a means of circulation. Subsequently, with the emergence of large-scale production, for the organization and launch of which large-scale investments were required, money-debts turned into a full-fledged means of accumulation.Thus, according to representatives of the alternative concept, metal coins, traditionally considered "universal equivalent" and "real money", appeared later than debts and were derivatives in relation to them. An alternative history of money can provide another explanation for the development of the monetary sphere in the past, as well as its features in the present. According to this version, banks are not "money warehouses", but buyers of debts. Recognizing debts, modern banks, like temples in ancient times, turn them into money accepted by everyone. To do this, they do not need to accumulate goods (precious metals) or other types of means of payment.The basis of the value of a loan is the creditworthiness of its counterparty, that is, the confidence that the counterparty will repay its debt on time. This confidence was provided by organizations that, thanks to their reputation, massively accepted (bought) debts: in ancient times – temples, later – banks. The value of the accepted debts was ultimately given by the state:in the law, these funds were declared a national monetary unit, they were guaranteed state support;they were taken into account for the payment of taxes;citizens were obliged to repay their debts to each other with them.Fiat moneyFiat money or fiat currencies (outside money, from Lat. fiat - decree, instruction) were issued by the state in the form of treasury notes. Their value was based on trust in the state. With the emergence of the state monopoly on the issue of credit money created by banks, they were equalized in rights with fiat money. Therefore, all modern money can be considered fiat.Their value is based on trust in the monetary system as a whole. The state, represented by the central bank, not only issues cash, but also maintains confidence in non-cash money that banks create. In the future, we will use the term "fiat money" in relation to all modern money that is not provided with goods or other material values.Modern fiat money can be cash or non-cash. Cash and non-cash money can be exchanged in a ratio of 1:1. With the development of financial technologies, the popularity of cash is decreasing. The basis of the money supply in modern fiat money systems is non-cash money.From time to time, the attention of researchers and the general public is attracted by assets that can perform certain functions of money. Since the mid-2010s, cryptocurrencies issued by the private sector have been claiming this. Cryptocurrencies have separate properties of commodity and credit money.Digital currencies of central banks (central bank digital currencies) is one of the widely discussed projects in the field of monetary circulation in the early 2020s. If they fully perform the functions of money, by their nature they will belong to fiat money.Issue of fiat moneyIn metal monetary systems, the size of the issue is limited by bank reserves (liquid assets of banks). In fiat systems, such restrictions disappear. But it does not follow from this that the issue of fiat money is not limited by anything.Today, the credit activity of commercial banks is influenced by:interest rate policy of central banks;regulatory standards and measures aimed at achieving financial stability;strict limitations of modern banking risk management.Why did states switch to fiat moneyThe gold standard once played a certain positive role, contributing to the development of world trade and industry. At the same time, he had serious shortcomings:the flow of gold between countries, accelerated by higher rates, led to periodic crises;the more countries switched to the gold standard, the more gold was lacking;under the conditions of the gold standard, the central bank could not adequately perform the functions of a lender of last resort.The emergence of fiat money systems solved the problem of the lack of "money metal". But from the very beginning there were risks:for price stability - historically, the state has a reputation for "living beyond its means";for financial stability, fiat emission can lead to bubbles, and due to the growing interdependence of national economies, crises are becoming more "contagious".Maintaining financial stability for 2021 is still an unresolved ...
The best Forex pairs for scalping
EUR/USD, currency, GBP/USD, currency, USD/JPY, currency, The best Forex pairs for scalping Scalping or scalping is a strategy that makes many demands on traders. Perhaps the most serious of them is to accept that everything you think you know about Forex trading will be wrong in this context.Forget about it. Scalping is an opportunity to quickly make money on price changes when transactions last 5-10 minutes.Avoid "political" currenciesDo you want to make money by trading a large amount of money in anticipation of some serious movement? No, scalping is earning money on small price movements. And, what is even more likely in relation to the Forex market, it is worth forgetting about searching for highly volatile pairs in the hope of getting a big profit. George Soros managed to do this in 1992, and you can try to repeat it on a smaller scale, but this will be an example of ordinary trading, not scalping.Successful scalping is based on the use of relatively insignificant price movements. And it depends on a good and thorough analysis of the relevant currencies.First, which currency pairs to choose for scalpingHighly "political" or inflation-prone currencies are not suitable in this context, because they are likely to be very volatile, and high volatility should be avoided.Read more: Volatility: types, how to track and how to useLanguage barriersIt is much better to find a currency pair that is relatively stable, so that its movement can be analyzed and predicted.The obvious candidate would be the EUR/USD exchange rate. This is the most popular currency pair in the world, for which the most transactions are made, and it has many functions that we need.But it has drawbacks.First, it may seem at first glance that these two currencies are, by and large, equivalent. Both are equally popular, issued by developed democratic states, controlled by independent central banks, but in fact they are not comparable.Read more: Causes of inflation and scientific approaches to their studyThe dollar is the currency of a successful political union, it is supported by the federal government and the national treasury, and the central bank, the Federal Reserve System, enjoys broad public support. The euro, the currency of 19 national states, is not supported by the federal government, is prone to crises, as can be seen from what happened to Greece after the 2008 financial crisis, and its management is often criticized.The second drawback is the complexity of the analysis of the European Central Bank, unlike the Fed. There are many, many variables; the position of individual members of the board of directors, the demands of the" southern", poorer countries, the position of the European Commission, which is responsible for economic affairs, and the wishes of Germany, a powerful economy of the European Union.This is compounded by various language barriers that need to be overcome when studying the statements of those who determine the behavior of the ECB.Finally, the ECB is much more autonomous than the Fed.Perhaps the USD/JPY pair may be a more suitable option? The Japanese currency, like the dollar, is the currency of a single state, and the two economies conduct extensive trade with each other. But the language barrier is even more pronounced, and the Bank of Japan is not independent, which means that it is potentially open to political interference.Read more: The European Central Bank (ECB)Communication across the AtlanticThe best candidate for scalping may be USD/GBP. The Fed and the Bank of England are independent but accountable central banks, there is no language barrier, and the legal systems of the two countries are very close.The recent dynamics of the pound against the dollar was quite high, which gives scalpers the opportunity for significant profits. The reasons for this movement include the signing of a trade agreement with the European Union and hopes for the recovery of the UK economy.To predict strong movements in the short term, traders need a thorough and constant analysis of the factors that affect the movement of currencies: economic expectations, fiscal policy and, of course, interest rates. Scalpers will be helped by the fact that both countries have the same attitude to economic management, giving priority to a strong private sector, competitive tax rates and high growth rates.Plus, the US and the UK have a long history of bilateral inter-Atlantic trade.Transactions with GBP/USD may lack the attractiveness of exotic currency pairs, but scalping is not an adventure in the Forex market, but a way to make a profit.Read more: Rich history of the Bank of ...
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