Category Archives: General Forex

Forex Trading Articles, General Forex

Best Time To Trade Forex

Often novice traders assume that any time is a good time for trading, but this is not right. The movement of the forex market is strongly influenced by forex trading hours in the global financial markets, namely:
– Tokyo session
– London session
– New York session

Trading activity on the forex market hours in the London session more than the other sessions. In addition, there are certain days where the activity of market movements will occur more.

From the following table we can see moving average pips every day of the week:
Currency Sunday Monday Tuesday Wednesday Thursday Friday
Best Trading Time

We can see from the table above, that in those days in the mid-week movement occurs more frequently, then the day is what is the best day for forex trading.

When you look at the schedule on the forex market, we see that Friday was a pretty busy day until at 12:00 ET (00:00 pm or Saturday), after which the activity will drop dramatically until the close of the New York market hours at 5 : 00 pm.

The days where there is a high market movement this is the best time for forex trading because it is likely to get into a bigger profit.

Pick The Right Time To Trading

Although the forex market is open 24 hours a day does not mean that an activity transaction (price movements) in a non-stop at any time. Therefore, it is important for traders to wisely manage and choose the best forex trading hours.

It is not possible for a trader to trade every day in every session forex. Everyone needs a break, as it is for the trader.

In addition to learning about the forex trading strategies and ways, each trader must understand exactly WHEN the hours of the best forex trading, or vice versa can also be said: Every trader must understand WHEN schedule forex market is not appropriate for trading.

By knowing and running the trading activities at the right time will help increase opportunities for profit / profit in trading.

Considerations Choosing the Best Forex Trading Hours:

The time when the two trading sessions take place at the same time (overlap). Usually at this time of financial news broadcast anyway and the result would be the movement of the market in a particular direction. You can easily search for information on the opening hours of the forex market.

European Session (London) tend to be more active than the other sessions.

On the days in the middle of the week usually occur more market movement, where the difference in the price difference will be large enough for couples major currencies.

Schedule Missing Forex Trading Right For:

Sunday where most people rest and not work

Friday afternoon American time (ranging on Saturday 1: 00-5: 00 pm), which decreases market liquidity due to a transition period to the end of the week.

Feasts where many people enjoying a day off

The days where there are certain major events

You can use this information to set up and choosing the right forex hours for you to undertake trading activities, but if you do not have time during the hours recommended, do not be discouraged. There are other ways that can be used, for example using the strategy as ‘swing trader’ or ‘position trader’.

After you determine when the best time for forex trading, there are also other things that you should know, that the effect of the news on the forex market. Use the forex calendar for information on economic news broadcast because often this will lead to currency price movements is very large in a short time. In addition, also learn what the most influential forex news on the market.

General Forex

Bullish Trend For U.S. Dollar

Bullish Trend For U.S. DollarUS dollar up trend is in the spotlight today. The greenback rose to a seven-month high against the yen earlier Wednesday, while US dollar index, which monitors the value of the dollar against six major currencies, rallied almost four percent since early July respond to positive economic sentiment US On Tuesday, the index reached 82 930, highest level of the year, after experiencing weakness in the first four months was 1.2 percent.

Hope that differences in monetary policy will continue to widen US policy in Europe and the UK will push up the value of the dollar index investors in line with consideration for US interest rate hikes, according to Capital Economics.

“The dollar rose against other major currency pairs in one year. But we do not believe this rally will stop, look at the prospect of monetary policy considerations US and other countries, “wrote an analyst at Capital Economics.

“At the end of 2015, we predict the dollar will strengthen further against the euro to $ 1.25, $ 1.60 against sterling, and 120 yen,” they added. On Tuesday the greenback (dollar) trading at $ 1.3121 against the euro, $ 1.6584 and 104.81 yen against sterling.

Fueling speculation the Federal Reserve in mid-2013 when the institute issued a plan to slash its quantitative easing program. But the current implementation of the increase in interest rates remains uncertain.

Last month the Fed minutes showed some policy committee members want to raise interest rates when the economy looks repair. However, overall the other members feel the need to monitor the data further before action.
By contrast, Europe looks dovish policy. Estimates of the increase in interest rates by the Bank of England faded amid concerns that arise as a result of the weakening of the wage data, while the European Central Bank (European Central Bank – ECB) is expected to take a step easing quantitative easing.

“We agree with the overall market view on interest rates in the future in the UK respond to market expectations of growth recently. And we also agree with the general view that interest rates in the euro zone will remain at the lower threshold for the foreseeable future, “said Capital Economics.

“Nevertheless, we still feel that the investors were too optimistic about the outlook for interest rates in the United States and that the Fed will tighten monetary policy more aggressively than originally envisaged, along with the strengthening labor market that affect the appearance of upward pressure on wage inflation,” added analysts.
“Our view is that the dollar will go higher,” said Ray Attrill, head of FX strategy at National Australia Bank.
If the Fed indicates a more hawkish tone again at the next meeting, investors may begin to take into account the rise in interest rates in the second quarter of 2015 rather than mid-year, thus encouraging the strengthening of the greenback, he said. “The next Fed meeting will be a catalyst for further strengthening”.

However, he acknowledged the risks: “When the moon is a statement similar to the statement issued in June – when they repeat the wording then there is a risk that the initial curve moved to the United States will respond to price adjustment due to tightening plan in 2015 that has been done in the weeks later. ”

Standard Chartered’s Callow index predicts the dollar will rally until the end of the year, but the dollar is not going to give too good results against some of the major currency pairs Asia.
“Our forecast is $ 1.27 to the euro and 106 yen to the dollar-motivated by positive economic developments in the United States, compared with Japan and the euro zone,” he said. “What are the factors determining a fundamentally better.”

General Forex, General Investing

Quantitative Easing – That You Should Know

Quantitative EasingQuantitative easing (QE) is a monetary policy of the Central Bank is used to stimulate the economy when monetary policy is no longer effective standards. Central bank implements quantitative easing by purchasing financial assets in the manner specified number of commercial banks or other private institutions, thus raising the price of financial assets and lower yield, and at the same time increase the monetary base (money supply).

This is different from the usual policy of buying or selling short-term government bonds that aim to establish the value of inter-bank lending rate at a specific target.

Expansionary monetary policy (easing) to stimulate the economy is usually carried out by the Central Bank by way of purchase of government bonds with the aim of lowering short-term interest rates in the short term. However, when short-term interest rates already close to or reaches zero, this method can not work anymore. QE can then be used by the authorities to stimulate the economy further by buying long-term assets, thereby decreasing long-term interest rates further.

Quantitative easing can be used to help keep inflation in order not to fall over again at the bottom of the target. This policy is often seen as the final step in an effort to stimulate the economy.

The purpose of QE is to increase the money supply rather than to lower the interest rate can not be lowered anymore. However, if the Central Bank also purchases financial assets are more risky than government bonds, it can cause a decrease in the yield of the asset.

QE will only be applied if the Central Bank has control over the currency used by the country concerned. Central banks in the euro zone countries as a whole cannot take action to increase the money supply so that the policy should be set by the European Central Bank (European Central Bank – ECB)

History of Quantitative Easing

before 2007

First implemented quantitative easing by the Bank of Japan (BOJ) to fight deflation in early 2000, began on March 19, 2001 Bank of Japan for several years, even until February 2001, states that “quantitative easing” was not effective, and refused to implement the monetary policy. The BOJ has set short-term interest rates at zero level since 1999.

With the QE, liquidity flooded commercial banks to support lending to the private sector, and lead to excessive reserves. BOJ achieve this by buying more government bonds than required for setting interest rates at the zero level. BOJ then do also purchase securities with collateral assets (asset-backed securities) and extend the term of the purchase program.

BOJ to raise commercial bank account balance of 5 trillion yen to 35 trillion yen (approximately $ 300 billion) over a period of four years starting in March 2001, the BOJ also increase the number of long-term Japanese bonds that can be purchased per month.

After 2007

After the events of the global economic crisis in 2007 – 2008, a similar policy has been adopted by the United States, United Kingdom, and the euro zone. Quantitative easing implemented by countries such as the short-term nominal interest rates are at or near zero. In the United States, this rate is called the federal funds rate, in the United Kingdom called the official bank rate.

At the height of the financial crisis of 2008, the Central Bank of the United States and United Kingdom implementing quantitative easing as a monetary policy that aims to get out of the financial crisis.

THE EFFECTIVENESS OF QE

According to the International Monetary Fund (IMF), the QE policy implemented by the Central Bank of developed countries since the financial crisis of 2008 contributed to the decrease in systematic risk (systemic risk) that occur after the bankruptcy of Lehman Brothers. The IMF also stated that these policies contribute to the restoration of market confidence and the release of the G7 economies from the lowest point in mid-late 2009.

Economist Martin Feldstein argues that QE2 (quantitative easing phase 2) the cause of the rise in the stock market in mid-2010, which resulted in economic growth in the United States in late 2010 Former Federal Reserve Chairman Alan Greenspan calculated that since July 2012 there has been little influence on the economy. Jeremy Stein Federal Reserve officials said that the policy of quantitative easing asset purchases massively large role in supporting economic activity.
Economic Impact of QE

Quantitative easing could lead to a rise in inflation is higher than the targeted amount of easing in the event of excessive and too much money is created by way of purchase of assets.

However, there is the possibility of failure in achieving the goal of QE if the banks remain tight in lending to consumers and businesses. However, QE can impact yields lower. However, there will be time lag between monetary growth and inflation; inflationary pressures with respect to monetary growth caused by QE may occur before the Fed acts to anticipate. Inflation risk will be reduced if the economic development of the system exceeds the speed of increase in money supply due to easing.

When the factors of production in the economy grew because of the increase in the money supply, the value of the currency unit can be increased, even though the currency is available in large quantities in the circulation. For example, if the economy of a state to output at a rate equivalent to the amount of debt, inflation pressure can be neutralized.

This will only happen when banks issue loans, rather than precipitating his money. In a period of high economic output, the Central Bank always has the option to restore the backup level to a higher level by increasing the interest rate or other means, thereby effectively reversing (neutralize) easing measures that have been taken.

Increasing the amount of money supply tends to weaken the exchange rate of the country’s currency relative to other countries, through the interest rate mechanism. Low interest rates led to a lack of foreign interest against the currency, resulting in a flow of capital out of the country, resulting in the weakening of the country’s currency.

This brings advantages for exporters in the country, and low interest rates will also benefit the borrower, because less interest to be paid. But otherwise bring harm to the creditors as yields obtained from fewer loans because interest rates are low. Currency debasement is also bad for importers, as the cost of imported goods is higher due to the devaluation of the currency.

General Forex

Euro Regroups

The monetary unit suffered solely a modest loss against the U.S. greenback due to a rebound once a tough fall that came once the discharge of a key economic report from European nation showed that business sentiment all over again deteriorated, currently for the seventh straight month. The German ZEW Survey, that measures economic sentiment, fell to 8.6 in August, a vast slide from July’s reading of twenty seven.1 and much off analysts’ expectations of a drop to one8.2. The ZEW Survey for the eu Union additionally fell sharply to twenty three.7 from 48.1. consistent with JP Morgan analysts during a consumer note, the big misses suggests that there’s an additional momentum loss leading to yet one more major disappointment; alternative analysts believe that things between Ukrayina and Russia is additionally exacting a toll on economic sentiment.

The EUR/USD had nearly hit a 9-month low at $1.333 once the ZEW reading, before convalescent to $1.3369 later; as at 12:26 p.m. (JST) in Tokyo, the combine was commercialism at $1.3365, a loss of solely concerning zero.1%. The EUR/JPY hit a session low of 136.37 Yen before border higher to 136.75.
Asia attracts Market Focus

Market focus had turned to Asia as ordinal quarter gross domestic product from Japan showed a contraction on each a quarterly and annual basis; although slightly off analysts’ expectation, it’s possible to extend expectations that the Bank of Japan can give a lot of information which might more weaken the japanese Yen. Retails sales associated industrial production date back China may sadden region currencies just like the Aussie and Kiwi greenbacks; the Aussie Dollar gained some support on an improvement within the client confidence reading, with the AUD/USD combine commercialism higher at $0.9281.

General Forex

Social Trading With IC Markets And Tradeo

Popular forex and CFD broker International Capital Markets Pty Ltd (IC Markets) has joined forces with the company Tradeo in order to provide a new social trading network and platform. The partnership of the two companies allows traders to connect with each other and share their success.

The Tradeo Network is known for its advanced Cloud Trader functionality. This allows traders to follow automatically follow other traders and execute the actions taken by them. Traders will have the possibility to follow the best and most successful traders in the business and set their accounts so that they authentically mirror the decisions taken by these people.

But the Tradeo Network goes one step further and apart from allowing trader accounts to automatically mirror the trades of successful traders, it also allows traders to share information with each other. Traders will have the possibility to share their actions takes and give feedback and advice to each other. This is especially useful for new traders who are looking for advice from experienced professionals in the business.

The best way to connect with other traders is through live chat. This is especially useful if traders would like to discuss issues that are happening at the very moment and require prompt action. If an experienced trader, for example, discovers a great opportunity, he or she may share it immediately to his or her group of friends so they could also profit from the event.

Traders will also have the possibility to broadcast live signals to their aquantances in order to allow them to take prompt action in case a profitable opportunity arises. Additionally, traders are also able to create polls in order to survey other traders’ opinion regarding a certain subject.

The Tradeo Network will be powered by the services offered by IC Markets, such as its MetaTrader 4 platform, 60 currency pairs, 17 indices, 400:1 leverage, web-based trading, micro-lot trading and a large variety of others.

About Tradeo

Tradeo is an emerging social trading service provider launched in April 2012. The venture was first known as a portal that allowed traders to share information and experience with each other. The company also provides trading analytics to traders in order to allow them to take better decisions.

The company’s first main product was the Cloud Trader that allows traders to automatically follow and mirror the trades executed by their friends. The Cloud Trader also allows traders to manually execute trades in their MetaTrader 4 accounts.

About IC Markets

IC Markets is a forex, CDF, futures and binary options broker based in Australia which was founded in 2007. The broker offers a large selection of assets in these categories that include more than 6,000 CDFs, 20 indices and 20 currency pairs. The services offered by the broker are available on a large selection of trading platforms such as ProDeal, MetaTrader 4, MetaTrader 5, eToro and webIRESS.

It’s also one the brokers that offer a lot of educational material to new traders. The large selection of guides and glossaries explain all aspects of the online trading business to beginners and newcomers. The broker also offers some advanced strategy guides that are recommended even to some of the more experienced traders in the business.