Sign The US Dollar may rise

Bullish  Trend For U.S. DollarThe preliminary set of July’s Eurozone CPI figures headlines the economic calendar in European trading hours. The benchmark year-on-year inflation rate is expected print at 0.2 percent, unchanged from the prior month.

The release seems unlikely to inspire meaningful follow-through from the Euro considering their limited implications for near-term ECB monetary policy. Indeed, the central bank appears effectively on auto-pilot as it continues to implement its €60 billion/month QE effort through September 2016.

US economic data will enter the spotlight in the day. The second-quarter Employment Cost Index report is in focus, where expectations point to a slight deceleration for a print at 0.6 percent compared with 0.7 percent in the three months through March.

US news-flow has increasingly outperformed relative to consensus forecasts recently, opening the door for an upside surprise. Such a result – particularly if it is bolstered by an upside revision on July’s University of Michigan Consumer Confidence gauge – stands to reinforce bets on an on-coming Fed interest rate hike following this week’s hawkish shift in FOMC rhetoric, boosting the US Dollar.

EUR/CAD Buying Pullbacks

EUR-CAD Buying PullbacksThe EUR/CAD pair broke higher amid the session on Thursday, as we keep on seeing the uptrend in this pair. The Euro has been breaking higher throughout the day, and accordingly it bodes well that we ought to keep on going higher. This likewise is aggravated by the way that the Canadian dollar keeps on battling. The unrefined petroleum markets are falling, and accordingly the Canadian dollar has no genuine backing as of right now. The pair has been breaking higher for quite a while, so this is simply straightforward continuation.

The 1.43 level being broken is a decent sign also, as the union was broken to discharge the purchasers. This pair ought to now go to the 1.45 level next, as it is resistance on the more drawn out term graphs. It is likewise the vast, round, and noteworthy number because of brain research of it.

Purchasing pullbacks

I am purchasing pullbacks in this pair, as the business sectors ought to keep on coming to more elevated amounts, yet there will likewise be a considerable measure of instability. Actually, the business sectors ought to keep on showwing instability, as we are unquestionably inclined to seeing it in the mid year, and particularly since the European Union has quite recently risen up out of such a great amount of inconvenience in Greece. There is obviously going to be a somewhat of a help rally, yet it could be more than that before it is all said and done. All things considered, Canada doesn’t take a gander right now.

I am not intrigued by offering as of right now, and to speak the truth would need to see this business sector fall the distance beneath the 1.3750 level with a specific end goal to do as such. The 100 exponential moving normal is only above there too, so this would be a break of a few specialized hindrances of backing. With this, I feel sure about the uptrend, and that it will proceed. Oil can just help right now too…

US Dollar Still Feeling the Pinch

US Dollar Still Feeling the PinchThe Euro had edged over the $1.10 level on Thursday, as FX dealers still consider deserting ship on the US Dollar. In the previous month, the US Dollar had surged about 5% against the Euro, yet this week its positive energy has blurred, with investigators communicating some carefulness that the year-long rally may be at long last coming to the end of its course. Indeed, even disregarding the solid probability that the Federal Reserve Bank appears to be set to raise premium rates, money strategists trust that probability has as of now been to a great extent calculated in.

As reported at 11:26 am (BDT) in London, the EUR/USD was exchanging at $1.0933, an addition of 0.60%, moving far from the session low of $1.0921 and back toward the day’s high of $1.1005. Against the Japanese Yen, the dollar was lower with the USD/JPY pair exchanging at 123.81 Yen, a loss of 0.12%.

Kiwi Lifted by RBNZ Surprise

Among monetary standards, the New Zealand Dollar encountered the most noteworthy development, with a 1.5% ascent after the Reserve Bank of New Zealand brought premium rates down to 3% from 3.25%; some FX brokers had been cheerful that the cut would be bigger given the RBNZ’s late talk. The Kiwi Dollar had as of late struck a 6-year trough and however the RBNZ had said that they were endeavoring to debilitate the coin, it appears that that sort of debilitating was an excessive amount to shoulder. The NZD/USD was exchanging at $0.6687, an increase of 0.70% and well off the session high of $0.6696.

Use Leverage with Realistic Attitude

single forex Like it or not forex trading business risk is very high. Most traders must have lost money. And worse, not only the capital loss suffered but will also be wiped clean if not very clever to take advantage of leverage.

To become a successful forex trader, trading suppose looking like a business in general. That is, the benefits still requires a process and time. Capital may not $ 50 you invest in your forex account increased to $ 20,000 in an instant. It is likely to remain there, but very few people are lucky like that. So do not rely on luck.

One of the advantages of forex investing is you can borrow as much money as you like from the broker to use this leverage facility. However, it is important to remember that borrowing money to trade will not only increase profits, but will also increase your losses. There is no universal rule to declare how much to borrow. Many new traders try to borrow more funds, if possible. And of course, it depends on the type of strategy used.

If you have a $ 10,000 trading account, most brokers will direct you to open a position with a minimum value of $ 500,000. If you buy a pair of the USD, the ratio is 50: 1. Position size is 50 times the size of your account.

Many new traders start with a small account balance. The same principle can be applied to a $ 100 account trading for $ 5,000. The position of the minimum allowed by the broker generally $ 10,000, but they still can provide tolerance for traders to open an account with $ 100.

Brokers do not mind giving loans because they know that 99% of clients who do this will be a loss. It is indeed true and realistic attitude and a real happening.

Treat forex as if a business. What goal? Another not to have a realistic attitude. Compare with the stock market or mutual funds. The average profit of the two types of investment is less than 10% per year. If you can make 30% per year on forex trading, it is higher than the stock or mutual fund! But, do not expect to generate $ 1,000 per month from your account that is only worth $ 100. This is almost certainly not going to happen, and ultimately went bankrupt.

Forex Trading: How Leverage Works

Forex MarketThe concept of leverage is very profitable in forex trading, but also can be dangerous if you are not careful in using it, especially if you are using very high leverage (over leverage). High leverage will cause the minimum margin or minimum guarantees that you pay each time fewer and fewer transactions. This will psychologically affect your trading.

One character successful forex traders are those who can eliminate the influence of emotions when trading. When people talk about the advantages of forex trading, the first time they put forward is usually a high leverage facility, or even very high. With certain leverage, you can open the tens or even hundreds of positions with relatively little capital. This can be done only by a relatively small margin collateral, and that makes one of the charms of forex trading. Nowadays many brokers that offer leverage of 1: 100, 1: 200, 1: 400 and even 1: 1000.

If you are trading on a broker with facilities leverage 1: 1000, then for a contract value of USD 10,000 (commonly called a mini lot) you only pay a margin of (USD 10,000 / 1000) = $ 10 for each transaction (0.1 lot for mini lot ), with the value per pip (pip value) as determined by the value of the contract mini lots (eg for EUR / USD with a contract value of USD 10,000, its value per pip is $ 1). Thus if your capital USD 500 and you open 30 positions (each 0.1 lot) with leverage 1: 1000, the total margin that you need only $ 10 x 30 = $ 300.

If for any position you derive profit of 10 pips, then your total profit is $ 10 x 30 = $ 300, or 60% of your capital. Conversely, if you are experiencing an average loss of 10 pips, then your loss is also 60% of your capital, and in the forex markets such events can take place in a matter of minutes, even if your broker spreads given is zero (no spread).

Psychologically, the higher the leverage you use, then you will be more brave (a lot) in open trading positions, because the value of the minimum margin that you will pay less. Just as if you are driving a car, driving with a speed of 60 km / h and 200 km / h is certainly very different in anticipation if anything happens. Semaki speed you drive, the greater the risk you face when things are not profitable. In many cases, accidents due to driving at a very high speed end in death.

Trading forex with very high leverage can be likened to driving with a very high speed. The risk is big enough. As you know that the brokers lend to you for the rest of the contract value which should be reduced to the minimum margin that you pay. In case you are trading mini lots with leverage 1: 1000, the broker lends USD 10,000 – USD 10 = USD 9.990 for every 0.1 lot (for mini lot) that you open. Have you ever wondered why the brokers do not charge interest on loans to you even if such trading position you hold for days or even weeks?