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EURUSD EUR/USD is consolidating in the lower end of the weekly range around 1.1280 as market participants continue to adjust to the appointment of IMF’s Christine Lagarde to succeed  Mario Draghi  at ECB. EUR/USD comes under pressure near 1.1280. Yields of the 10-year Bund drop to all time lows near 0.40% The renewed dovish stance from the  ECB  and USD-dynamics should dictate the price action around the pair in the near term, helped at the same time by the broad risk-appetite trends and the recent positive developments from the US-China trade front.  USDJPY USD/JPY struggles near weekly lows, just above mid-107.00s Reviving safe-haven demand benefits the JPY and keeps exerting downward pressure.  USD/JPY struggles near weekly lows, just above mid-107.00s Having failed to capitalize on the weekly bullish gap, the pair remained under some selling pressure for the second consecutive session. The latest optimism over the US-China tra...

Forex Currencies and Gold shares important correlations as follows: Gold and USD During times of Economic Unrest, investors shows lack of interest in Dollar(USD). Hence, when gold goes up, USD falls. Gold and AUD/USD Australia is the third largest gold producer in the world, selling approx. $5Billion/year. So AUD/USD raises when gold goes up. Gold and NZD/USD New Zealand is also one of the biggest gold producer in the world. With gain in gold, NZD/USD also goes up. Gold and USD/CHF CHF raises when gold goes up as 25% of Switzerland's reserve are backed by gold and pair moves down. Gold and USD/CAD CAD raises when gold goes up as Canada is 5th largest producer of gold. Hence, when gold raises up, USDCAD goes down Gold and EUR/USD Both Gold and Euro are ANTI_DOLLARS. If price of gold goes up then EUR/USD may go up as well. Oil and USD/CAD CAD raises when Oil goes up as Canada is one of the top Oil Producer that exports 2 Million Barrel/Day . USDCAD goes down w...

Best Forex Signals and Insights from Equidious Research USDJPY Analysts explained that USD/JPY has eroded the 55-day ma and the 2-month uptrend at 110.25/33 USD/JPY is currently trading at 110 the figure, trading between a range of 110.24 and 109.70. Japanese yen near six-week highs on global growth fears and moved for its biggest gain since January as safe-haven buying propelled the currency. USD/JPY attempts the retrace the sharp decline following the Federal Reserve meeting, with the pickup in volatility spurring a more material shift in FX sentiment, but recent price action raises the risk for a further decline in the dollar-yen exchange rate as it extends the series of lower highs & lows from the previous week. EURUSD Euro firmed on Monday as a stronger-than-forecast German business confidence survey allayed some fears about a recession and pulled the safe-haven yen from a 6-week high against the dollar. Euro gets a boost as IFO survey data beats ...

As the prefix “macro” in the name suggests, macroeconomics deals with the bigger picture. It is not only one specific economy that traders consider, but the implications in the overall global picture.  Forex market is primarily driven by overarching macroeconomic factors. These factors influence a trader's decisions and ultimately determine the value of a currency at any given point in time. GDP- Gross Domestic Product This is the measurement for goods and services that were finished over a period of time. GDP may be the most obvious economic report, as it is the baseline of a country's economic performance and strength.  The GDP is broken down into 4 categories: Business Spending Government Spending Private Consumption Total Net Exports Inflation Inflation is also a very important indicator, as it sends a signal of increasing price levels and falling purchasing power.  This is the measure of increases or decreases in pricing levels over a ...

Economic diversity shows a greater impact on underlying currencies than absolute export numbers. When a country’s principal export is oil or a commodity, its  currency exchange rate  tends to track the global price of that export. When the price rises, so do the exchange rate. The rising global price tends to attract inward investment and resources to the extractive industry, while other export industries struggle due to the high exchange rate – a phenomenon known as “Dutch disease” in which the economy becomes increasingly dependent on its extractive industries. When the prices of  oil and commodities  fall, the currency exchange rates of exporting countries fall in tandem. If the dollar weakens, crude oil prices should rise since oil is priced in dollars. If the dollar is cheaper, purchasers of crude can convert their local currencies into the dollar-denominated crude at a cheaper exchange rate, thus buying crude oil at a cheaper level based solely on the exch...

Forex Spread: The foreign exchange spread (or bid-ask spread) refers to the difference in the bid and ask prices for a given currency. The bid price refers to the maximum amount that a  foreign exchange trader  is willing to pay to buy a certain currency, and the ask price is the minimum price that the currency dealer is willing to accept for the currency. The Bid-Ask Spread Defined The forex spread represents two prices: the buying (bid) price for a given currency pair, and the selling (ask) price. Traders pay a certain price to buy the currency and have to sell it for less if they want to sell back it right away. Example: consider that when you purchase a brand-new car, you pay the market price for it. The minute you drive it off the lot, the car depreciates, and if you wanted to turn around and sell it right back to the dealer, you would have to take less money for it. Depreciation accounts for the difference in the car example, while the dealer's profit accou...

Crude Oil: Oil prices were stable supported by hopes that talks in Beijing between U.S. and Chinese officials might defuse trade disputes between the world's biggest economies OPEC-led supply cuts also tightened markets. There is also concern that a worldwide economic slowdown will dent fuel consumption. Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia. Brent crude futures were at $57.42/barrel rose 0.2% from their last close. WTI crude oil futures were at $48.56/barrel rose 0.1% Gold: Gold prices slid on Tuesday in Asia, as the U.S. dollar rebounded after falling for four straight sessions amid expectations that the U.S. Federal Reserve may shift its position and slow down future increases in interest rates in 2019. Gold Furures for February delivery declined 0.5% to 1,283.50  Price...

What is Currency Correlation? Currency correlation depicts an extent to which two currency pairs have moved in same, opposite, or totally random directions over a period of time. Thought Process: Why a certain currency pair rises, another currency pair falls? Why same currency pair falls, another currency pair seems to copy it and falls also? This is because of correlations between currencies. Correlation is the numerical measure of the relationship between two variables. The range of the correlation coefficient is between -1 and +1 . Positive Correlations: A correlation of +1 denotes that two currency pairs will flow in the same direction. For Example: Correlation between EUR/USD and GBP/USD is an epitome as if EUR/USD rises then GBP/USD is moving the same direction. Negative Correlations: A correlation of -1 indicates that two currency pairs will move in the contradictory direction 100% of the time. For Example: Correlation between EUR/USD and USD/CHF is an epitome of n...

What is a Carry Trade? A  carry trade  is when you buy a high interest currency against a low interest currency. For each day that you hold that trade your broker will pay you the interest difference between the two currencies as long as you are trading in the interest positive direction. Carry Trade Offers Two Ways To Profit The forex carry trade is a type of strategy in which traders sell currencies of countries with relatively low interest rates, and use the proceeds to buy currencies of countries that yield higher interest rates. Forex carry trading leverages the differences in interest rates between countries. For example, one country’s central bank may lower interest rates in order to create economic stimulation, while the central bank in another country maintains higher interest rates. In effect, the forex trader borrows money in one country with a lower interest rate, and invests it in another country with a higher interest rate, and keeps the differ...