With the growth in popularity of mechanical trading systems and algorithmic or “black box” trading, there have also been one too many instances of forex scams offered by firms claiming to give signal services. Of course this is not to assume that forex signal services are automatically scams, but proper caution must be exercised in … Continue reading Avoiding Forex Scams
Monetary policy and interest rate expectations play a central role in fundamental analysis, as these determine the rate of return for holding a country’s assets and therefore the demand for its currency. As mentioned in the previous section, central banks’ decisions carry a major influence in this regard. Of course these decisions are based on … Continue reading Monetary Policy and Central Banks
The forex economic calendar is one of the most useful tools for traders, especially those who incorporate fundamental analysis in determining their currency biases. A typical forex calendar lists the upcoming data releases and indicates whether those could have a strong or low impact on the currency involved. These also post the previous period’s data … Continue reading Economic Releases You Can Trade
Aside from watching economic data releases or keeping track of central bank policy biases, monitoring other financial markets can also be helpful in predicting forex price moves. To be specific, there are currencies that move in tandem with asset prices or precious metals while others are negatively correlated to other financial markets. For one, the … Continue reading Correlations in Other Financial Markets
Briefly introduced in the earlier sections is the concept of market sentiment, which involves gauging whether traders are in the mood to take on more risk in their portfolios or not. This is relevant in the forex market because higher-yielding currencies or those with central banks offering higher interest rates tend to benefit during risk-on … Continue reading Understanding Market Sentiment
