Understanding Market Conditions are a Key to Successful Trading
Market conditions generally prove to be a powerful determining factor when examining historical trading results. An investor should be aware of the many different types of market conditions that exist, prior to risking capital in the financial markets. Understanding how to identify the different types of market conditions, is an important lesson for any trader [...]
Technical Analysis – Momentum Keeps the Market Moving
Technical indicators give investors a tools that acts as a guide line and can be used in tandem with fundamental analysis to find trades where the risk/reward characteristics are in prudent and profitable. Momentum is an indicator that helps an investor target a market in which the velocity of the price action is increasing. Momentum: [...]
Fundamental Analysis Enhances Currency Trading
When traders start following the financial markets they quickly learn that there are many forces that create capital flows and short term movements in the market. Asset prices changed based on market sentiment as fear and greed dominate short term market movements. Successful trading is based on the ability of an investor to analyze the [...]
Euro Caught in Conflicting Flow
The euro is caught in the midst of a conflicting flow of factors, as higher peripheral yields are countering the potential higher rates from the ECB this summer. The 2yr German-US yield spread tightened to 110 basis points moving down from 120 basis points at the beginning of the week. Speaking in Luxembourg on Friday, [...]
European Periphery Returns to the Spotlight
Peripheral yields soared on Friday with the yield on Greece’s 10-year government bond rising to record levels as speculation that of a default continued to gain steam. At the same time yields on the equivalent German note, eased to 3.12 per cent as Bunds were sought as safe havens. The debate over whether Athens should [...]
Currency Flows Dominate Capital Market Sentiment
Macro flows into and out of the US dollar continued to control capital movement during the week. Riskier assets such as commodities and equities gyrated as investors were pushed and pulled as the currency markets fluctuated. Market participants continued to focus on the need for a potential re-structuring of Greek debt, which has widen peripheral [...]
Soft CPI Pressure Swiss Franc
The CHF is amongst one of the worst performers on the day versus the dollar, plunging nearly 0.8% after reporting softer-than-expected CPI data. April prices came in at 0.3% y/y and only increased 0.1% m/m. With the SNB thought to be moving towards policy tightening, the sharp deceleration in prices may reintroduce the threat of [...]
Silver Takes the Spotlight in Volatile Week
The de-leveraging of the commodity market, spilled over into other riskier assets generated a round of liquidation of the markets. Silver was in the spotlight for most of the week sliding close to 17 dollars per ounce, as high frequency investors quickly exited positions. During the week, oil prices were also hammered sliding close to [...]
Sterling Hit After Lackluster Economic Data
Sterling has taken a hit after worse than expected PMI data was released, followed up by a weak outlook by retailers for future sales. Manufacturing has been the bright spot in the UK economy, but today’s PMI at 54.6 was the weakest in 7 months, below expectations, and as well, the prior month’s figure was [...]
Dollar Slide Generates “Risk On” Trade
The US dollar is set to end the week on a whimper with the combination of month end selling and momentum taking the dollar to new lows. An acceleration of euro zone inflation reinforced the divide between the Fed and ECB policy and prompted the euro to move above $1.485, while the Swiss franc advanced [...]
Loading ...
