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Trust me we will be getting some nice tradesQuote:
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Twitter.today dollar assumed to skyrocket. . .nothing. Waiting for trump to mention a phrase. . .that is fundamental ribbon is opening?Quote:
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I will be following this thread to find out more about fundamental trading.
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Fundamentals Introduction:
This initial segment will be temporarily going over what pushes price in the currency market. This launch is brief into the reason for investing based on fundamentals.
What Makes Price?
I am sure you guessed it, supply and demand. But what makes currencies different compared to things that are driven by supply and demand is how every currency has a major central bank that has control over the currencies provide. Even though supply and demand perform drive currencies, what they do and what really has control of these would be the central banks.
We have established that Central Banks and the tools that they use are the main driving force behind the markets.
And what decides the monetary policies these banks implement? Economic Indiors.
So what pushes price? Central Banks and Fundamental Info, that then cause fluctuations in supply and demand of their currency.
Happily these central banks also tell us what indiors they are watching, their targets for those indiors, what actions they will take should they hit or miss that target, and what this might look like for the price of the currency.
By way of instance, in the Feds final statement, they said, The stance of monetary policy remains accommodative, thus supporting some further strengthening in labor market conditions and a return to 2 percent inflation. (2/1/17)
Knowing This
So we understand, for them to really hike rates, they would love to see better employment data and inflation yield to 2 percent or higher. We'd trade this and also be listening for these economic releases in the same way I mentioned in the AUD analysis I gave.
We all know both AUD and USD desire inflation of 2 percent and are attempting to achieve there. If we see RBA is looking as though they will strike their target, and the Fed won't, the Fed will cut rates and they will be hiked by the RBA. This will produce a lot of volatility that is tradable on the market.
The principal key in all this is that mentally consider why the hell that the currencies are really moving. It's easy and just a baby could say it is just supply and demand! But what is vital is understanding the supply and needs of currencies are influenced by the monetary policies being employed from the bank for specific reasons.
Banks do not hike and reduce rates for no reason. You need to have inside their mind mentally. This is the reason why I labeled it Funda-MENTAL Trading. Technical trading is autopilot for zombies. Buy green market red. Literally, a dog could figure out it. Thinking about how Macro/Micro Economic will affect the monetary policies created by central banks and also how that will play to some currency price is an entirely different game.
Not sure what you're asking me. Why are you taking trading advice out of twitter?Quote:
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Well done Sis.yphusQuote:
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I never thought I'd read something like this on FF
Obviously the President of the USA has the capability to move marketsQuote:
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http://news.forexlive.com/!/video-wh...olicy-20170209
Following!
Audio intersting. . Thank you very much for sharing knowledge and your prespective
Due Infinitus, a kindred spirit, someone that does a researchQuote:
Originally Posted by ;
Will definitely be paying more attention to 3 month T Bills going forward
My time is spent monitoring inflation tendencies, central bank/ers statements/speeches
Totally agree about disposition - it's so important
Looking at this week;
Maybe somewhat quieter than past week
Dollar
I had been hoping for a more muted risk-off tone on USDJPY in light of North Korea current announcements, but a lot will depend on Trump's response
Pound
Obviously its bearish at the moment. The UK will ship the EU its proposals to take care of a number of the problems that Barnier had raised- lets see what the EU states (I understand that the banks are looking at this). Carney referred to Brexit enough in the Inflation Hearings.
GDP figures on Thursday will be significant as is the agents reports by the BOE (newest one under)
http://www.bankofengland.co.uk/publi...y/2017/aug.pdf
Good fortune and green pips! https://www.forexforum.co.za/attachments/1524714337.png