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Trading signals and online forecasts GBP/USD

IndexaCo Signals Marketplace - trading signals with real-time results on the financial markets from professional traders

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 ...
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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 ...
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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 ...
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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, ...
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Forex analytics & signals for USDCAD, EURUSD & GBPUSD on 02/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analytics & signals for USDCAD, EURUSD & GBPUSD on 02/12/2022 USDCAD signalsUSDCAD is trading in a downtrend on the 4-hour chart. You can see on the chart that the USD/CAD is trading above the moving average with a period of 55, which corresponds to the level of 1.3431. This generally contributes to the rise in price in the short term. I recommend to sell on this pair.The signal to open a long position will be a breakdown of the resistance at 1.3597 with the aim of further rise to the resistance at 1.3667. In case of breakdown at 1.3667, further down to 1.3756.  Stop-loss may be placed at the level of 1.3490.The signal to open a short sell position will be a breakdown of support at the level of 1.3393, with the aim to decrease to the support at 1.3301. In case of its breakdown - further to 1.3227. Stop loss in this strategy can be placed at the level of 1.3515.EURUSD signalsEURUSD is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of breakdown of the resistance at 1.0532 with the aim of going up to the resistance at 1.0559-1.0585. I recommend to place stop loss below 1.0490.I recommend opening short positions after breakdown of support at the level of 1.0506 with the aim to go down to the support in the range of 1.0480-1.0456. I recommend putting a stop loss above 1.0555.GBPUSD signalsOn the basis of technical modeling on pair GBP/USD there is a forecast of the further movement and the pair is inclined to rise.In the given technical situation pound can be bought from the level of 1.2221, you can also place pending buy order at the level of 1.2095 to increase to the resistance area in the range of 1.2360-1.2468, stop-loss in the given strategy can be placed at the level of ...
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GBP/USD: US jobs report disappoints investors. GBPUSD analysis for December 1, 2022
GBP/USD, currency, GBP/USD: US jobs report disappoints investors. GBPUSD analysis for December 1, 2022 On Thursday the pair GBP/USD keeps the uptrend and tries to hold above the broken resistance level of 1.2100.The day before the rise was caused by the speech of Jerome Powell in which the head of FRS confirmed the regulator's intention to reduce the monetary restriction rate but keep the course for the further toughening of the monetary policy. Jerome Powell believes that the fight against inflation requires caution as it can provoke unwanted consequences, so the rates should be raised without too much haste, analyzing the effectiveness of the measures taken.The dollar was also pressured by the U.S. labor market report from ADP. The US economy created only 127 thousand jobs in October against the forecast of 200 thousand and the previous indicator 239 thousand.In the UK, Rishi Sunyak's government has come up with a new tax in the form of a duty, which can essentially wipe out all the small oil production companies.On the daily chart, the pound-dollar pair remains within the boundaries of the ascending channel and is approaching its upper boundary. The Alligator indicator is correctly open to the upside, and the awesome oscillator is in the positive area.If the price fixes above the level of 1.2180, I recommend to keep buying the pair with the next target of 1.2650. Stop-loss is set at 1.2000.At decrease below support level of 1.1940 we will switch to short positions with the final target at 1.1490. Stop-loss is set at the price of ...
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Forex analytics and signals for USDCAD, EURUSD and GBPUSD on 01/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analytics and signals for USDCAD, EURUSD and GBPUSD on 01/12/2022 USDCAD signalsThe USD/CAD pair is trading within an uptrend on a 4-hour chart. The chart shows that the USD/CAD rate is trading below the moving average with a period of 55, which corresponds to the level of 1.3432. This helps to reduce the price in the short term. Recommendation - sales for this pair based on the established wave model.The signal to open a long position, to buy, will be a breakdown of resistance at the level of 1.3497 in order to increase the rate to resistance at the level of 1.3597. If this level is deflected, it will move further to 1.3667. At the same time, I recommend placing the stop loss at 1.3380.The signal to open a short position, to sell, will be a breakdown of support at the level of 1.3393 with the aim of further decline to the next support level of 1.3301. When it breaks through, it goes further to 1.3227. I recommend placing the stop loss with this strategy at the level of 1.3515.EURUSD signalsThe EUR/USD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of breakdown and consolidation of the resistance at 1.0449 by the hourly candle in order to further increase to the resistance at 1.0475-1.0498. It is desirable to set the stop loss below 1.0390.I recommend opening short positions after the breakdown at the end of the support hour at the level of 1.0403 and with the further aim of reducing to support in the range of 1.0379-1.0354. We set the stop loss above the 1.0455 level.GBPUSD signalsBased on technical modeling for the pound dollar pair, a technical forecast of further movement has been formed and the pair is predisposed to increase in the medium-term perspective.In this technical situation, the British pound can be bought from the level of 1.2027 and place a pending buy order at 1.1981 with the aim of further increasing to the resistance area in the range of 1.2337-1.2468. With this strategy, it is better to place the stop loss at ...
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Forex analysis & signals for USDCAD, EURUSD & GBPUSD on 30/11/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analysis & signals for USDCAD, EURUSD & GBPUSD on 30/11/2022 USDCAD signalsUSDCAD is trading on the 4-hour chart in an uptrend. On the chart, you can see that the USD/CAD is trading above the moving average with a period of 55 (level 1.3425), which generally contributes to the growth of the price in the short term. I recommend to buy on this pair on the basis of the existing wave pattern.Breaking through the resistance at 1.3597 will be a signal for opening a long position, with the aim to reach the resistance at 1.3667 and if it is broken through, further to 1.3756. I recommend placing a stop-loss for this strategy at 1.3490.The signal to open a short position will be a breakdown of support at 1.3393 with the aim to lower it to the next support at 1.3301 and if it is broken down, further to 1.3227. Stop loss in this strategy may be placed at 1.3515.Taking into account that the moving average and the location of the technical figure boundaries move over time, it is necessary to make adjustments in their positions on the 4-hour chart.EURUSD signalsThe EURUSD is trading in the descending price channel on the hourly chart. I recommend opening long positions in case it breaks through the resistance at 1.0361, aiming for further rise to the resistance at 1.0383-1.0407. Stop loss should be set below 1.0310.I recommend opening short positions after breakdown of support at 1.0319 with the aim of further decline to the support at 1.0293-1.0266. Stop-loss is set above 1.0375.GBPUSD signalsOn the basis of technical modeling on pair pound/dollar the forecast of the further movement was formed. The pair is inclined to the decrease.In this technical situation it is possible to put the pound on sale from the level of 1.2024 and also to place pending sell order at the level of 1.2115 with the purpose of decrease to the support area at the level of 1.1603-1.1333; stop-loss for this strategy can be set at the level of ...
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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 ...
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GBP/USD exchange rate (Online Chart), forecast for today
GBP/USD, currency, GBP/USD exchange rate (Online Chart), forecast for today In the foreign exchange market, the GBP/USD quote (the British pound against the United States dollar) is among the four most liquid instruments.Traders call the pair the word "cable". This jargon seemed to have arisen in the interval when the values of quotations were sent from the Old World to the New through a special wired highway passing through the bottom of the ocean.GBP/USD forecast (online) for todayIn one day, the pair passes from 150 to 200 points, therefore it is considered very mobile, it should be traded with all caution and foresight. The forecast for GBP/USD is based on 20 indicators and shows a fairly accurate picture.General characteristics of GBP USDThe total share of the pair's trading turnover in the foreign exchange market is about 14%.The quote demonstrates how much American dollars should be paid to buy one pound sterling.The GBP/USD exchange rate is characterized by sharp, emotional movements. Volatility is significantly higher than other pairs, for example, twice ahead of the swings of EUR/USD. When calculating the stop-loss level, it is necessary to take into account this feature of the quotation and focus on the furthest highs and lows that are only possible in the considered interval of the price chart.Factors of influence on GBP USD and what the exchange rate depends onThe forecast for GBP/USD should be checked with your own analysis, and in order to conduct it yourself, you need to know the factors influencing the currency pair.The decisions of the Monetary Policy Committee of the Bank of England (an analogue of our Central Bank) have an important impact on the GBPUSD rate. It is this state body that regulates the establishment of official interest rates. The committee consists of 9 people who represent both employees of the Bank of England, including its chairman, and independent experts.Meetings and publication of their results take place monthly. The decision is published on the second day after the start of the work of the ministers. This happens at 16:00 Moscow time. Directly voting on decisions and official resolutions are made on the second day. In two weeks, a detailed countdown of the meeting is provided, including the points of view of the majority and minority of the voters.The quarterly "Inflation Report" and the "Quarterly Bulletin" can be distinguished from official documents.The first document describes in detail the possibilities of economic growth and the target inflation rate in the next 2 years. The second report includes the results of the current monetary policy and the prospects for the development of the UK economic system.Changes in the rates of the US Federal Reserve and the UK Monetary Policy Committee are reflected accordingly in the quotations of national currencies. Investors who have started working with this pair should be advised to enter the position in small lots and closely monitor the volume of transactions taking place. The price does not hold the overcome levels well, so GBP/USD very often rolls back, even after overcoming strong resistance lines. This feature is largely due to the fact that GBP/USD is noticeably suffering from low liquidity.The correlation of GBP/USD with another currency quote – EUR/USD is always noticeable. This connection is very logical, because the euro also stands on the side of the Europeans, sharing all the main news affecting the currency quotes of the EU member states.Read more: How much can you really earn on the Forex marketHow best to trade on the GBP USD currency pairThe GBP/USD currency pair has a ticker identical to its name. Most forex brokers have this tool in their arsenal, so there should not be any problems with finding this tool.The minimum lot, according to interbank standards, is 100,000 GBP. Naturally, the broker makes it possible to work with fractional parts.The spread is approximately 0.00005 - 0.00015.The trading session with this instrument coincides with EUR/USD, which allows you to work seamlessly with quotes.Given the dynamics of the pair and its predisposition to long trends, Moving Average indicators should be used in combination with power indicators, among which the most relevant are RSI and MACD. The Ichimoku indicator works successfully to determine the price levels of support and resistance on a currency pair. Also, as a more functional alternative to the RSI indicator, you can use Stochastic, which determines the oversold and overbought levels in the foreign exchange market.A sign of professional trading is a combination of technical and fundamental analysis data to open a position. This is also true for the GBP/USD pair.One of the interesting ways to make money on a currency pair is trading digital options. This is a very simple tool based literally on two buttons - UP and DOWN.Read more: Key participants of the forex marketFeatures of the currency pairEngland officially has a market economy with limited state control. The economy of the United Kingdom is the largest in the world and ranks sixth. In Europe, in terms of economic indicators, the UK is overtaken only by Germany.  The Government includes the Treasury, which is headed by the Chancellor, who is responsible for the creation and implementation of economic and social policy by the British government.The Bank of England acts as the central bank of the island kingdom and is responsible for the issue of pounds sterling. Any news concerning these organizations can significantly change the dynamics of the GBP/USD exchange rate.The pound is the 3rd largest reserve currency in the international economy, after the euro and the dollar. Since 1997, the Monetary Policy Committee has been responsible for publishing the key interest rate at the required level. In fact, the responsible person is the Chancellor of the committee.GBPUSD is a complex currency pair that is very closely interrelated with EUR/USD. At the same time, it lacks such high liquidity, the lack of which translates into increased volatility. Nevertheless, working with GBP/USD is a great chance to increase or strengthen the position already opened on EURUSD. Technical analysis shows relative efficiency. Unjustified price breakouts in any direction will force the trader to adjust his strategy all the time, and will not allow him to earn on one trading idea for a long time.Read more: What time is better to trade ...
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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 ...
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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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