Trading signals and online forecasts GBP/USD

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Forex analysis and forecast of GBPUSD for today, August 12, 2022
GBP/USD, currency, Forex analysis and forecast of GBPUSD for today, August 12, 2022 On Friday, GBP/USD continues to retreat from the local maximum. In the Asian session, the bears attempted to gain a foothold below the 1.2200 level.The strengthening of the pair took place on the release of the US inflation report on Wednesday, according to which the consumer price index for July fell from 9.1% to 8.5%, and core inflation remained at 5.9%The report allowed investors to doubt the need for aggressive tightening of the Fed's monetary policy. The probability of a rate hike in September by 75 basis points has fallen, and the chances of a 50-point monetary restriction have risen sharply.Even the speeches of FOMC members, assuring that the Federal Reserve will continue its policy of raising rates, as the inflation rate is at record highs and far from the 2.0% target, could not convince buyers of risky assets.Today's release of data on the pace of economic growth and the volume of industrial production in the UK did not have a noticeable impact on the dynamics of GBP/USD.Technical analysis GBP/USDThe MFI indicator, as well as the Bollinger Bands, are growing moderately.The MACD histogram has moved into a positive area and continues to rise, forming a weak buy signal.The stochastic oscillator is growing and approaching the 80% level. A test of the overbought area boundary will take place in the near future.We consider the formation of short positions after the price has fixed below the support of 1.2176. The target mark is 1.2054. We set the stop loss to 1.2236.If a breakout is above 1.2236, we consider buying the pair with a target of 1.2400. In this case, we take out the stop loss at ...
GBPUSD: How will the US inflation report affect sterling?
GBP/USD, currency, GBPUSD: How will the US inflation report affect sterling? Trading idea for GBP/USD on August 10, 2022During Wednesday's Asian session, the volatility of currency pairs remains low. GBP/USD shows flat dynamics and consolidates near the level of 1.2100, waiting for the release of the United States inflation report.Analysts expect the consumer price index to show a decline from 9.1% to 8.7% (YoY), while core inflation, which does not take into account energy and food prices, will rise from 5.9% to 6.1%.The growth of any of the indicators will provoke a strengthening of the US dollar, as it implies an even more aggressive tightening of the Fed's monetary policy, especially since the optimistic Non-farm Payrolls published last Friday, as they say, untied the regulator's hands, as it greatly reduced the risks of an economic downturn.So far, analysts assume that in September the Fed will raise the rate by 75 basis points, but the probability of a rate hike by 1.00% is growing day by day.In the UK, meanwhile, the race for the post of prime minister continues. To date, Liz Truss is leading among the two Tory candidates, promising to reduce taxes for citizens and businesses.The Bank of England announced a recession of the British economy, which could last for 15 months and announced the continuation of the rate hike cycle.We believe that GBP/USD will return to the downtrend and suggest placing a pending sell orderSell-limit 1.2120 take-profit 1.1950 stop-loss ...
Analytical Forex forecast for today, August 9, for EURUSD, USDCHF, GBPUSD & Gold
EUR/USD, currency, GBP/USD, currency, USD/CHF, currency, Gold, mineral, Analytical Forex forecast for today, August 9, for EURUSD, USDCHF, GBPUSD & Gold EUR/USD: "European" is trading without a single dynamicEuro shows mixed trading dynamics, being at the level of 1.0200. Traders are in no hurry to increase trading activity in anticipation of new signals for market movement.To date, there are no publications that can encourage investors to restore activity in the market. Analysts note that key publications on inflation in the US, China and Germany for July will be released on Wednesday. According to preliminary estimates, economists expect a decrease in the growth rate of consumer prices in the United States to 8.7% from the previous level of 9.1%, giving the regulator the opportunity to raise the interest rate by 0.75% during the September meeting. Regarding Germany, the forecasts remain neutral, since analysts do not see any reasons for strong changes in the inflation rate from the previous 0.9% monthly and 7.5% for the year. But the PRC has risks of showing an increase in inflation to 0.5% from the previous 0.0% on a monthly basis and to 2.9% from 2.5% for the year.Resistance levels: 1.0200, 1.0253, 1.0300, 1.0350.Support levels: 1.0150, 1.0100, 1.0050, 1.0000.USD/CHF: the market expects consumer price statistics from the USADuring the trading of the Asia-Pacific countries, the USD/CHF instrument is testing the 0.9550 mark, waiting for additional signals of further growth.The Swiss franc has received restrained support thanks to national macroeconomic statistics. Thus, the published indicators on the eve showed zero dynamics of changes in unemployment, which now stands at 2.2%, which remains a strong indicator for the country. For the Swiss Central Bank, the reason for tightening monetary policy continues to be rising inflation, which has successfully consolidated above the threshold of 3.0%, which does not prevent investors from now putting into the value of the franc probable increases in basis points within the framework of the announced meeting of the regulator on September 22. It is expected that then the US Federal Reserve will tighten monetary policy.Resistance levels: 0.9650, 0.9700, 0.9762, 0.9847.Support levels: 0.9520, 0.9469, 0.9400, 0.9300.GBP/USD: the dollar started the week with a correctionThe British currency shows mixed dynamics, being at the level of 1.2080. The GBP/USD instrument is attempting to restore positions with the onset of the current week, after a strong fall the day before, where the US dollar gained a positive momentum due to the release of data on the strong employment market in July.At the same time, the Postal service of England (Royal Mail), which also provides a range of banking services to the subjects of the Kingdom, notes the active withdrawal of funds from personal accounts by residents of the UK in a record figure of 801.0 million pounds, which is 20% higher than the same period last year. Representatives of Royal Mail associate such indicators with the active use of transport for movement within the country and the intention of customers to transfer their savings into cash for more detailed planning of their travel budgets within the current difficult situation in the national economy. This year, more than 68% of Britons who took a vacation spoke in favor of the need to keep fiat money in their hands. But economists note that this trend is temporary, because there is an irreversible process of popularization of digital tools both in the matter of investment and when paying for goods and services.Resistance levels: 1.2133, 1.2236, 1.2292, 1.2400.Support levels: 1.2054, 1.2000, 1.1933, 1.1854.Gold PricesQuotes of the precious metal are trading with multidirectional dynamics in the session on Tuesday, trying to overcome the solid resistance level of 1800.00.Earlier, the asset made attempts to cross this psychological level, enlisting the support of corrective sentiment against the US dollar. At the same time, market participants took a wait-and-see attitude ahead of the release of the main data on the US inflation rate by the middle of the week. The key expectations of economists are inclined in favor of the retreat of inflation from record thresholds, thereby justifying the policy of the "hawks" from the US Federal Reserve. Under favorable circumstances of the macroeconomic background, the "American" will significantly strengthen its position, and investors can focus their attention around the risks of a recession in the United States. Economists note that the reduction in consumer price pressure will signal the US regulator to continue the course of tightening monetary policy.Resistance levels: 1775.00, 1784.31, 1800.00, 1816.62.Support levels: 1752.87, 1730.00, 1720.00, ...
GBPUSD - Forex technical analysis of the GBP/USD currency pair on August 9
GBP/USD, currency, GBPUSD - Forex technical analysis of the GBP/USD currency pair on August 9 With the opening of trading in Asia on Tuesday, this currency pair is trading with a decrease in quotations, remaining within the current support level at 1.2036 and the resistance level at 1.2178, where the market chart progresses below the exponential moving averages with a period of 21 and 55 days, demonstrating the development of the downward trend of this market in the short term.On the four-hour chart, the moving averages turned down and formed a sell signal, increasing the discrepancy, which indicates in favor of the bearish scenario of this market in the short term.The technical picture also demonstrates the sellers' advantage, since the MACD histogram remains in the area just below its central line, and the strength indicator of the current RSI movement progresses near the 40 line, confirming the bearish mood of this market in the short term.Thus, we intend to sell this trading instrument within the framework of intraday trading ...
GBPUSD - Forex technical analysis of the GBP/USD currency pair on August 5
GBP/USD, currency, GBPUSD - Forex technical analysis of the GBP/USD currency pair on August 5 With the opening of trading in Asia on Friday, this currency pair is trading with a decrease in quotations, remaining within the current support level at 1.2105 and the resistance level at 1.2199, where the market chart progresses slightly below the exponential moving averages with a period of 21 and 55 days, demonstrating the development of the upward trend of this market in the short term.On the four-hour chart, the moving averages continue to move down, maintaining the divergence, which indicates in favor of maintaining the bearish scenario of this market in the short term.The technical picture also demonstrates the sellers' advantage, since the MACD histogram remains in the area just below its central line, and the strength indicator of the current RSI movement progresses below the 50 line, confirming the bearish mood of this market in the short term.Thus, we intend to sell this trading instrument within the framework of intraday trading ...
Forex analysis and forecast for GBP/USD for today, August 3, 2022
GBP/USD, currency, Forex analysis and forecast for GBP/USD for today, August 3, 2022 The day before, the pair was actively declining, as investors began to buy the dollar as a protective asset against the backdrop of deteriorating relations between the United States and China in connection with the visit of the Speaker of the House of Representatives Nancy Pelosi to Taiwan. Beijing considers the island state an integral part of RYH and reacted extremely negatively to this visit, threatening sanctions not only to Taiwan, but also to the United States.On Thursday, the Bank of England will hold a meeting on interest rates. It is expected that the regulator will carry out a monetary restriction by 50 basis points. Taking into account the previous increases, it can be said that the BA demonstrates the fastest tightening of monetary policy since 1997.The election campaign for the post of Prime Minister continues in the UK. Former Finance Minister Rishi Sunak promises, if elected, the largest reduction in income tax and adjustment of value-added duties on electricity.In the United States, the index of business activity in the service sector will be released today.Technical analysisAccording to Daily, the Bollinger Band indicator is steadily growing, but it shows a narrowing of the range, which indicates the multidirectional dynamics of the pair in the short term.The MACD indicator has moved into a positive area, but is just above the zero line.The stochastic oscillator has come out of the overbought area and is developing a decline.After a confident breakdown of support 1.2133, we form short positions with a take profit of 1.2000. We set the stop loss at 1.2200.The breakout of resistance 1.2236 will tell about the continuation of the upward movement. The buyers' target will be 1.2400. We will put the stop loss of the transaction at ...
Analytical Forex forecast for today, July 29, for AUDUSD, EURUSD, USDTRY & GBPUSD
AUD/USD, currency, EUR/USD, currency, GBP/USD, currency, USD/TRY, currency, Analytical Forex forecast for today, July 29, for AUDUSD, EURUSD, USDTRY & GBPUSD AUD/USD: the development of an upward correctionThe Australian currency is revealing its growth potential against the US dollar thanks to the official confirmation that the economy has been in recession since September. At the time of writing, the tool is testing the 0.7000 level.The economic situation in Australia has all the signs of the same scenario, but the flexible policy of the national regulator, which combines tightening monetary strategy and continuing to buy government bonds on the market, has the prospect of success in the fight against inflation. Thus, the report released on the eve confirms that in June the volume of retail sales did not meet market expectations, showing an increase of only 0.2%, with forecasts of 0.5%, due to the situation with households that faced pressure due to rising consumer prices for goods and services. The export price index for Q2 reached 10.1%, which is inferior to the previous level of 14.6%, and the position of the producer index strengthened by 1.4% against Q1, while the annual figure was 5.6%.Support levels: 0.6870, 0.6682.Resistance levels: 0.7052, 0.7282.EUR/USD: investors continue to study US GDP dataThe EUR/USD trading instrument is trading in correction at 1.0217.The main stimulus for growth in the future may be indicators from France, which reflect the strengthening of gross domestic product for Q2 by 0.5% against the decline in the first quarter by 0.2%. Economists note that the economic situation in the current situation is delaying the onset of a recession. The data showed an increase in spending in the consumer basket of ordinary people by 0.2%, contrary to forecasts of a fall of 0.6%. This day, market participants are waiting for a report on the consumer value of goods and services in France and, according to preliminary estimates, there is a probability of zero dynamics. Earlier, preliminary estimates confirmed the July dynamics of inflation from Germany in a positive way – the monthly expression showed an increase to 0.9% from the previous 0.1%, and the annual decreased to 7.5% from 7.6%.Support levels: 1.0113, 0.9952.Resistance levels: 1.0271, 1.0495.USD/TRY: Turkish regulator revised inflation forecastThe positions of the Turkish lira continue to fall in pair with the US currency, being at around 17.9560. The key reason for the downward correction is the growing cost of living, in particular, the rise in prices of food and services.If you pay attention to the main driver of the strengthening of the instrument – the US dollar, which, contrary to yesterday's statistics on GDP, which lost 0.9% in Q2, continues to hold the lead in the USD/TRY pair. The prospects of the instrument for the medium term do not portend significant changes against the background of the vulnerability of the economic situation in Turkey, which will keep the national currency in low positions, much inferior to the strengthened US dollar. If the "American" begins to lose its position, then the asset is able to show a correction, the prerequisite for which may be negative data on the US employment market, which has already recorded an increase in the level of requests for benefits for the unemployed in recent weeks from 243.00 thousand to 249.25 thousand in the present.Support levels: 17.4300, 16.4900.Resistance levels: 18.2500, 19.0000.GBP/USD: long-term dynamics will remain downwardThe published data, which disappointed economists the day before in the US, caused the sale of the US currency, which allowed the GBP/USD instrument to start an upward trend and reach the 1.2210 mark.In the UK, key macroeconomic statistics were not expected during the current week, except for the release of data on the industrial orders index for July according to the CBI (Confederation of British Industrialists) – the indicator's positions sank to 8.0 points, contrary to forecasts of an increase to 13.0 points, against the recorded indicator in the past at around 18.0 points. The value of indicators does not take a key importance, because investors have focused their attention more on data from the United States.Resistance levels: 1.2180, 1.2385.Support levels: 1.1950, ...
GBPUSD - Forex technical analysis fot the GBP/USD currency pair on July 28
GBP/USD, currency, GBPUSD - Forex technical analysis fot the GBP/USD currency pair on July 28 With the opening of trading in Asia on Thursday, this currency pair is trading with a slight decrease in quotations, remaining within the current support level at 1.1958 and the resistance level at 1.2193, where the market chart progresses noticeably above the exponential moving averages with a period of 21 and 55 days, demonstrating the continuation of the upward trend of this market in the short term.On the four-hour chart, the moving averages continue to move up, increasing the divergence, which indicates in favor of further development of the bullish scenario of this market in the short term.The technical picture also demonstrates the advantage of buyers, since the MACD histogram remains in the area slightly above its central line, and the strength indicator of the current RSI movement progresses near the 60 line, confirming the bullish mood of this market in the short term.Thus, we intend to buy this trading instrument within the framework of intraday trading ...
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 ...
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 ...
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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