Forex System

★ Curso Forex COMPLETO Gratis en Español El MEJOR Curso de FOREX TRADING
Crude Oil Reignites for Bulls As OPEC+ News Sinks In. Can WTI Make a New High?
SAP FSCM Treasury & Risk Management Application Designer
International Relationship Manager – Business Banking
Cómo ganar más pips en Forex | Winpips
Gold Price Outlook Turns to Fed Chair Jerome Powell as XAU/USD Breaks Resistance
Beginner Trading System | Custom Indicators | Forex Factory
AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices
The Most Powerful MT4 Indicator Buy Sell Signals – Combine with Advanced Supertrend + MACD
How CPI Data Affects Currency Prices

★ Curso Forex COMPLETO Gratis en Español El MEJOR Curso de FOREX TRADING

Posted: 08 Nov 2021 12:03 AM PST

Halloween Sale! Buy 1 get 10% off, Buy 2 get 15% Shop Now https://www.dresslily.com/promotion/Halloween-pre.html
Hot deals ,ALL $12.99
Hot deals ,ALL $9.99
Hot deals ,ALL $6.99
------------------------------------

SUSCRÍBETE: http://goo.gl/JFCEuh

A continuación explicaremos cuales son los términos mas utilizados en el mercado Forex y cual es la forma correcta de analizarlos y de evaluarlos respecto de la operativa.

SÍGUEME EN:
Facebook: https://www.facebook.com/pages/Experiumes/387544691317701
Twitter: https://twitter.com/experiummarkets
Instagram: http://instagram.com/experiummarkets
Pinterest: http://www.pinterest.com/experiummarkets/

http://www.experium.es

manual de forex, curso de forex, como invertir en forex, que es forex, vocabulario forex, trading forex, forex online, que es forex, forex tutorial, forex blog, curso gratis, como funciona forex, inversion en forex, curso de inversiones, invertir en divisas, invertir en bolsa, como invertir, saber invertir, empezar a invertir, aprenda a invertir, forex markets, forex tutorial, manual forex, manual gratuito de forex, curso forex, curso de forex gratis, forex curso, curso completo forex, trading forex, forex inversiones, manual de inversion, curso de inversion, invertir en forex,

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

source

Click to rate this post!

[Total: 0 Average: 0]

Crude Oil Reignites for Bulls As OPEC+ News Sinks In. Can WTI Make a New High?

Posted: 07 Nov 2021 11:41 PM PST

Crude Oil, China, Coal, Baltic Dry Index – Talking Points

Crude oil prices find support as supply issues are still unresolved
APAC equities were mixed in a quiet Asian session despite strong Chinese data
All eyes on inflation data later in the week. Will crude resume trend?

Crude oil continued higher today as the reality of OPEC+ not adding to production output seems to be sinking in. The market also questioned if the US Strategic Petroleum Reserve would be tapped or not. The WTI oil contract traded as high as US$ 82.47 in the Asian session.

Despite record highs for US stocks on Friday, APAC equities were mixed with Australian and Japanese stocks a bit soft while Hong Kong were slightly up. The kiwi was the best performing currency today.

In China, the communist party meets this week where it is believed that President Xi Jinping is likely to get an extension of his term as leader of the party. The implementation of his 'shared prosperity' policy has seen many sectors of the economy come under regulatory scrutiny. This has created a degree of uncertainty for some companies.

Over the weekend, China reported a larger than expected October trade surplus, coming in at US$ 84.54 billion, well ahead of forecasts of around US$ 65 billion. Exports ramped by 27.1% for the year to the end of October while imports increased by only 20.6%.

Today, the National Development and Reform Commission (NDRC) reported that coal output has hit its' highest level in several years. State Grid Corp. of China stated that power supply is back to normal. The utility supplies 88% of China's power.

It's possible that supply chain congestion might be easing as indicated by shipping costs. The Baltic Dry Index that measures the cost of shipping in the 3 largest categories of cargo ships, is roughly half of where it was at the peak in early October. However, it is still above levels not seen since 2010.

Today we have US PPI figures due out and then on Wednesday, US and China inflation will be released.

Crude Oil Technical Analysis

WTI crude oil moved below an ascending trend line last week. On the run down it also went below the 10 and 21-day simple moving averages (SMA). It is now challenging to move back above these 2 SMAs.

It has remained above the longer term SMAs as represented in the chart by the 100-day SMA. This could suggest that shorter term momentum is directionless while underlying longer term bullish momentum is potentially still intact.

The recent high of 84.88 and 85.41 may offer resistance. On the downside, the previous lows of 78.25 and 74.96 and a pivot point at 73.14 are possible support levels.

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

Source link

Click to rate this post!

[Total: 0 Average: 0]

SAP FSCM Treasury & Risk Management Application Designer

Posted: 07 Nov 2021 11:38 PM PST

Job title: SAP FSCM Treasury & Risk Management Application Designer

Company: Accenture

Job description: ability to build, manage and foster a team-oriented environment -Desire to work in an information systems environment -Excellent… to meet business process and application requirements. Management Level : 9 Work Experience : 6-8 years Work location…

Expected salary:

Location: Bangalore, Karnataka

Job date: Sun, 07 Nov 2021 23:21:19 GMT

Apply for the job now!

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

Click to rate this post!

[Total: 0 Average: 0]

International Relationship Manager – Business Banking

Posted: 07 Nov 2021 11:07 PM PST

Job title: International Relationship Manager – Business Banking

Company: HSBC

Job description: or professional's interaction with HSBC. Work in partnership with colleagues across the HSBC network to deliver exceptional standards… information, including KYC requirements in Group systems Resolve any/all identified issues promptly, and escalate concerns…

Expected salary:

Location: Mumbai, Maharashtra

Job date: Mon, 08 Nov 2021 07:05:12 GMT

Apply for the job now!

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

Click to rate this post!

[Total: 0 Average: 0]

Cómo ganar más pips en Forex | Winpips

Posted: 07 Nov 2021 11:02 PM PST

En este video, veremos cómo ganar más pips en forex con algunos consejos.

Explicaremos qué tipo de pares de divisas son los más adecuados para una mayor volatilidad, cuánto tiempo debes dejar tus operaciones abiertas según el time frame (temporalidad), cuántos pares es conveniente que operes a la vez, cuáles son los ratios riesgo beneficio óptimos y cuál es la mejor actitud para cada vez hacer mejores trades y maximizar nuestras ganancias.

Bienvenidos a Winpips, el canal donde te ayudamos a mejorar tu trading.

Suscríbete gratis al canal:
http://goo.gl/Fquk4i

Síguenos en redes Sociales:
Google+: https://plus.google.com/u/1/113402302120040697679
Facebook: https://www.facebook.com/winpips
Twitter: https://twitter.com/winpips

Más información en:
http://www.winpips.es

Hasta pronto!

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

source

Click to rate this post!

[Total: 0 Average: 0]

Gold Price Outlook Turns to Fed Chair Jerome Powell as XAU/USD Breaks Resistance

Posted: 07 Nov 2021 10:37 PM PST

Gold, XAU/USD, NFPs, Treasury Yields, Fedspeak, Technical Analysis – Talking Points:

Gold prices closed at highest since early September last week
Fed may reiterate transitory inflation outlook, Powell in focus
XAU/USD approaching key resistance as retail traders sell

Gold prices traded quietly as the new trading week began with the Asia-Pacific session. Treasury yields trimmed losses from Friday. The yellow metal closed at its highest since early September last week following fairly supportive fundamental developments. That would be the combined disappointment that hawks were looking for from the Reserve Bank of Australia, Bank of England and Federal Reserve.

The key takeaway between the three of them was their stance on inflation being transitory, cooling 2022 rate hike expectations. The 10-year Treasury yield closed at its lowest since late September. This is something that the anti-fiat XAU/USD likely took well advantage of. But, persistent strength in the US Dollar likely capped its upside potential.

Over the remaining 24 hours, gold prices will eye Fedspeak, including Chair Jerome Powell and Vice Chair Richard Clarida. This follows last Friday's stellar non-farm payrolls report, which struggled to bring forward hawkish Fed monetary policy expectations in the wake of patient commentary around interest rates. Reiterating similar language may continue keeping yields at bay, supporting XAU/USD.

Check out the DailyFX Economic Calendar for more key events!

Gold Technical Analysis

On the 4-hour chart, gold prices broke above the 1813 – 1808 resistance zone, exposing the 1825 – 1834 zone above. The latter is made up of peaks from July. A bullish Golden Cross between the 20- and 50-period SMAs may form, opening the door to an upward technical bias. These lines may also come into play as key support in the event of a near-term decline.

XAU/USD 4-Hour Chart

Chart Created Using TradingView

Gold Sentiment Analysis – Bullish

According to IG Client Sentiment (IGCS), roughly 66% of retail traders are net-long gold. Downside exposure has increased by 10.30% and 48.34% over a daily and weekly basis respectively. We typically take a contrarian view to crowd sentiment. Since most traders are net-long, this suggests prices may fall. But, recent shifts in positioning are resulting in a bullish-contrarian trading bias.

*IGCS chart used from November 8th report

–— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

Source link

Click to rate this post!

[Total: 0 Average: 0]

Beginner Trading System | Custom Indicators | Forex Factory

Posted: 07 Nov 2021 10:01 PM PST

I test the Daylight Trading Strategy by LauraT that has become a trending thread on Forex Factory. This system is a simple mechanical method that is great for beginner traders and those looking for a non-discretionary trading system.

SUBSCRIBE NOW for more content like this: https://bit.ly/SubTL

Trader's Landing is a trading system review and education channel. By testing indicator based trading strategies we are able to learn and understand a system's performance by using a repeatable and clearly defined trading criteria that has a predictable performance through a series of many setups. These trading systems can be ported over to many instruments such as Forex (FX), Cryptocurrency (Crypto), Options, Stocks, or anything that has a chart and a significant amount of volume and market participants.

If you are looking for trading systems to test out on your own here is a playlist of systems that I like: https://bit.ly/SystemsILike
WARNING: Be sure to do exhaustive backtesting and forward testing before you actually start trading real funds. For your convenience below is a link to the official Trader's Landing backtesting spreadsheet and tutorial video.

Link to my Testing Performance Spreadsheet: https://bit.ly/TLResults
Total amount of trading systems tested so far: 27

Link to my backtesting spreadsheet: https://bit.ly/TLTestSheet
Link to the backtesting spreadsheet tutorial: https://bit.ly/BTTutoiral

See a trading system you would like tested on this channel? Be sure to let me know, including links where you found it, and any other pertinent information. In many ways you are the eyes and ears of this channel.

Link to thread by LauraT on Forex Factory https://www.forexfactory.com/thread/1086170-daylight-trading-strategy

Chapters:
00:00 – Introduction
00:59 – Indicators
01:45 – Rules & Examples
04:58 – Test
05:22 – Testing Results
06:06 – Find the Crumbs

System Specifics
Time Frame
H1

Indicators
pbfx_Williams %R
https://uk.tradingview.com/script/Bfdpu4DA-pbfx-Williams-R/
pbfx_Daylight
https://uk.tradingview.com/script/GSFfNSGQ-pbfx-Daylight/
ATR Bands
https://uk.tradingview.com/script/uTetNB3s-ATR-Bands/

Long Entry
Green MA over Red MA on main chart and daylight exists between them.
Price closes above Green MA on main chart.
Blue MA above the Red MA in the Williams %R Indicator.

Short Entry
Green MA below the Red MA on the main chart and and daylight exists between them.
Price closes below Green MA on main chart.
Blue MA below the Red MA in Williams %R indicator.

R:R
1:1 for ½ position.
Then move stop to breakeven.
Then target 2:1.

Where to place stop-loss
2 times ATR

Indicators tested on this channel so far:
ATR Bands, Donchian Channels (DC), Double Exponential Moving Average (DEMA), Dynamic Structure Indicator, Exponential Moving Average (EMA), Heikin-Ashi Candles, Ichimoku Cloud, Money Flow Index (MFI), Interstellar Buy/Sell, Interstellar Trend, Multi Timeframe EMA, QQE (Qualitative Quantitative Estimation) Mod, Relative Strength Index (RSI), SSL Channel, SSL Hybrid, Stochastic (STOCH), Stochastic RSI, SuperTrend STRATEGY, Time Segmented Volume (TSV), VuManChu Swing Free, Waddah Attar Explosion V2, Weighted Average Price (VWAP), Williams %R

Captions Available in: Arabic, Chinese, English, German, Hindi, Italian, Japanese, Korean, Norwegian, Portuguese, Punjabi, Russian, Spanish.

#BeginnerTrading #TradingSystem #ForexFactory

Disclaimer
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

source

Click to rate this post!

[Total: 0 Average: 0]

AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices

Posted: 07 Nov 2021 09:34 PM PST

Australian Dollar, AUD/USD, China, Coal, Crude Oil, BOK – Talking Points

Australian Dollar rises overnight versus USD despite Wall Street stocks closing lower
Chinese floods force mines to close, sending coal prices surging higher in Asia
AUD/USD looks to hold above the 50-day SMA after strong overnight gains

Tuesday's Asia-Pacific Forecast

The Australian Dollar remains on a solid footing after gaining overnight despite a weak performance in US stocks on Wall Street. The Dow Jones Industrial Average (DJIA) closed 0.76% lower on Monday. Rising energy costs are fueling concerns that inflation may be stickier than most economists and central bankers have predicted. Those higher costs could very well eat into consumer spending in other parts of the economy. A downbeat GDP report from Goldman Sachs also weighed on sentiment. The US bank cut its growth target to 5.6% for 2021.

AUD/USD rose as coal prices surged in Asia. Beijing ordered energy producers to increase production last week, which relieved some upward pressure on prices. However, flooding across China is halting mining operations. That sent coal futures in China to record highs on Monday, which lifted the Australian Dollar. Australia is a major coal exporter, and China has reportedly allowed small amounts to clear customs despite a ban on coal imports from the southern neighbor.

Oil prices also rose overnight, further spurring inflationary concerns as crude oil hit its highest level since October 2014. The demand for energy products is rising as economies come back online following Covid restrictions put in place versus the highly contagious Delta strain. New South Wales, Australia's most populated state, loosened restrictions on Monday. Vaccination rates in Australia have seen significant progress in recent months, allowing the reopening.

Elsewhere, New Zealand reported a 0.9% rise in electronic card spending for September on a month-over-month basis. Later today, Japan will report bank lending and producer prices data for September. The Bank of Korea (BOK) is set to keep its benchmark interest rate on hold at 0.75%. Traders will also have a close eye on the United Kingdom's July employment report in the European session.

AUD/USD Technical Forecast

AUD/USD put in a solid move higher overnight, breaching above the 50-day Simple Moving Average (SMA). Upward momentum eased prior to hitting the psychologically important 0.74 handle, but bulls appear to be in control for the time being. If prices head lower, the 50-day SMA will come back into focus as potential support.

AUD/USD 8-Hour Chart

Chart created with TradingView

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

Source link

Click to rate this post!

[Total: 0 Average: 0]

The Most Powerful MT4 Indicator Buy Sell Signals – Combine with Advanced Supertrend + MACD

Posted: 07 Nov 2021 09:00 PM PST

Trade with World Top Broker And Enjoy Exclusive Benefits.
1. Xm – https://clicks.pipaffiliates.com/c?c=594203&l=en&p=1

Now open Forex account with this link and actively trading on the same account to get on my Future Copy Trading program or Money Management and other more benefit

#macd #supertrend #POWEROFTRADING #mt4indicator

Indicator Download Link:- on my telegram channel ( https://t.me/POWEROFTRADINGrv )

How to Install Indicator In MT4 ( Step by Step ) – https://youtu.be/ztcYw9Q_LTg

In this video, we look at the top technical indicators successful spread betters create their trading strategies from. We look at what the indicators mean and how they should be applied to the markets. We look at real-world examples as to how the signals and indications can lead to profitable trades.

Discover the best Binary and Forex indicator for your trading strategy so you can improve your winning rate and profit

I Hope This Indicator Brings Success For You.

Business Contact Email : poweroftrading7@gmail.com

Twitter : https://twitter.com/PowerOfTrading2?s=09
Facebook : https://www.facebook.com/power.oftrading.12
Instagram : https://www.instagram.com/poweroftrading7/

Indicator Download Link:- on my telegram channel ( https://t.me/POWEROFTRADINGrv )

Subscribe Our Channel To Received Binary And Forex Profitable Indicators And Strategy (FULL FREE )
I Hope This Indicator Brings Success For You.

***** Watch Our Popular Video *****

FOREX: Top Best Technical Indicator for Profitable Trading ( FREE INDICATOR ) – HINDI – https://youtu.be/KwyXOz2Z6Bk

Thanks For Watching Video …….

Forex,Trading,Daytrading,Forex Trading,FX Trading,Swing Trading,Forex Market,Market,Indicator Trading,Forex Indicator,Price Action,FX Trader,Trading Tips,How To Trade,How To Trade Forex,Forex Trading For Beginners,Strategies,trend lines,trend line,trendline,trendlines,trading strategy,trading strategies,price action,swing trading,day trading,forex,stocks,wysetrade,price action trading,Forex Trading Lessons,Forex lessons,trading lessons,Forex trading tips,trading tips,stock market lessons,stock market tips,best forex tips,best forex trading,the secret trading techniques,Trading,Investing,Entrepreneur,Equities,Forex,FX,Stock Investing,Day Trading,Swing Trading,Trading Strategies,Price Action Trading,The Secret Trading Shares,forex,forexsignals,trading,room,forex trading,forex trader,scalping forex,scalping trading,scalpingforex scalping,forex scalping strategy,forex scalping live,forex scalping 1 minute,forex scalping 5 minute,forex scalping indicators,scalping forex,scalping trading,best forex scalping strategy,what is scalping in forex,what is scalping trading,what is scalping in day trading,what is scalping in options trading,what is scalping trading forex,best 5 minute forex strategy,forex 500 to 30000,forex 500 dollars,forex 5 minute scalping strategy,forex trading,candlestick patterns,candlestick pattern,candlestick chart,candlestick patterns for beginners,candlestick
TradingInvestingEntrepreneurEquitiesForexFXStock InvestingFinancial AdviceHow To Make Money TradingMake Money OnlinePassive IncomeTrading Financial MarketsForex CFD TradingStock Market TradingFX And CFD TradingCFD Day TradingDay TradingSwing TradingTrading
Profitable indicators for trading
Biggest mistakes made with indicators
How to use indicators
Technical analysis for Forex
Technical analysis for trading
“5 minute scalping strategy”
“scalping trading strategy pdf”
“1 minute scalping strategy”
“profitable forex scalping strategy”
“best scalping indicator mt4”
“scalping strategy india”
“price action scalping pdf”
“forex price action scalping strategy”
“5 min price action scalper system”
“price action scalper ea”
“candle scalping strategy”
“price action 15 min”
“master scalping pdf”
“forex 15 min scalping strategy”
“1 minute scalping strategy pdf”
“simple scalper hfx”
“forex scalping profits”
“5 minute scalping strategy pdf”
“option scalping tool by siva”
“best scalping indicator in tradingview”
“ysg scalper indicator”
“1 minute scalping indicator”
“scalping zerodha”
“simple scalper im academy”
“warrior trading scalping”
“rty scalping”
“simple scalper strategy”
“forex trading profitable strategy”
“btc scalping strategy”
“powerful 1 min scalping system”
“best forex pairs to scalp 2020”
“scalping trading india”
“scalp trading forex”
“scalping trading quora”
forex trend finder indicator
that actually work
trading system
#supertrend #ea
#priceactiontrading #forex

#poweroftrading #forexdaytrading #forexindicator #buysellsignal #Forex_strategy_for_beginners #forex_scalping_strategy #trend_forex_indicator #best_scalping_strategy #forextrading #forexindicator #Forex #forex_Strategy #non_repaint_indicator #IQoption #Signal #Earning_Money #poweroftrading #forex #factoryforex

UP TO 70% OFF
BUY 1 GET 1 FREE
UP TO 70% OFF
DressLily 9th Anniv Mega sale! Up to 25% off with code: DL9TH from 10th Aug to 18th Aug

source

Click to rate this post!

[Total: 0 Average: 0]

How CPI Data Affects Currency Prices

Posted: 07 Nov 2021 08:31 PM PST

In this article, we'll explore CPI and forex trading, looking at what traders should know about the Consumer Price Index to make informed decisions. We'll cover what CPI is as a concept, the CPI release dates, how to interpret CPI, and what to consider when trading forex against CPI data.

What is CPI and why does it matter to forex traders?

The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels.

Inflation tracked through CPI looks specifically at purchasing power and the rise of prices of goods and services in an economy, which can be used to influence a nation's monetary policy.

CPI is calculated by averaging price changes for each item in a predetermined basket of consumer goods, including food, energy, and also services such as medical care.

It is a useful indicator for forex traders due to its aforementioned effect on monetary policy and, in turn, interest rates, which have a direct impact on currency strength. The full utility of knowing how to interpret CPI as a forex trader will be explored below.

CPI release dates

CPI release dates usually occur every month, but in some countries, such as New Zealand and Australia, quarterly. Some nations also offer yearly results, such as Germany's index. The US Bureau of Labor Statistics has reported the CPI monthly since 1913.

The following table shows a selection of major economies and information about their CPI releases.

Country/jurisdiction	Compiling body	Frequency of releases
Australia	Australian Bureau of Statistics	Quarterly
Canada	Statistics Canada	Monthly
China	National Bureau of Statistics of China	Monthly
Eurozone	European Central Bank	Twice monthly
Germany	Federal Statistical Office of Germany	Monthly, yearly
Italy	Istat	Monthly
India	Ministry for Statistics and Programme Implementation	Monthly
Japan	Statistics Japan	Monthly
UK	Monetary Policy Committee	Monthly
US	US Bureau of Labor Statistics	Monthly

Why forex traders should follow CPI data

Understanding CPI data is important to forex traders because it is a strong measure of inflation, which in turn has a significant influence on central bank monetary policy.

So how does CPI affect the economy? Often, higher inflation will translate to higher benchmark interest rates being set by policymakers, to help dampen the economy and subdue the inflationary trend. In turn, the higher a country's interest rate, the more likely its currency will strengthen. Conversely, countries with lower interest rates often mean weaker currencies.

The release and revision of CPI figures can produce swings in a currency's value against other currencies, meaning potentially favorable volatility from which skilled traders can benefit.

Also, CPI data is often recognized as a useful gauge of the effectiveness of the economic policy of governments in response to the condition of their domestic economy, a factor that forex traders can consider when assessing the likelihood of currency movements.

The CPI can also be used in conjunction with other indicators, such as the Producer Price Index, for forex traders to get a clearer picture of inflationary pressures.

What to consider when trading forex against CPI data

When using CPI data to influence forex trading decisions, traders should consider the market expectations for inflation and what is likely to happen to the currency if these expectations are met, or if they are missed.

Similar to any major release, it may be beneficial to avoid having an open position immediately before. Traders might consider waiting for several minutes after the release before looking for possible trades, since forex spreads could widen significantly right before and after the report.

Below is a chart displaying the monthly inflation rates for the US. For the latest month, expectations are set at 1.6% inflation compared to last year's data. If CPI is released higher or lower than expectations this news event does have the ability to influence the market.

Chart to show US inflation levels in 2018/19. Source: TradingEconomics.com. US Bureau of Labor Statistics

One way the effects of CPI data can be interpreted is by monitoring the US Dollar Index, a 2018/19 example chart for which is below. If CPI is released away from expectations, it is reasonable to believe this may be the catalyst to drive the Index to fresh highs, or to rebound from resistance.

Since the Index is comprised of EUR/USD, USD/JPY, and GBP/USD, by watching the US Dollar we can get a full interpretation of the events outcome.

Chart to show movement in the US Dollar Index. Source: TradingView.com

As can be observed in the example above, as inflation rose during the first half of 2018, the US Dollar Index went up accordingly. But with US inflation drifting lower in the following months and with a missed target of 2%, this pushed US interest rate hikes off the agenda. As a result, the dollar struggled and weakened against a basket of other currencies.

Not every fundamental news release works out through price as expected.

Once the CPI data has been released and analyzed, traders should then look to see if the market price is moving through or rebounding off any areas of technical importance. This will help traders understand the short-term strength of the move and/or the strength of technical support or resistance levels, and help them make more informed trading decisions.

Forex System

Forex System

Crude Oil, China, Coal, Baltic Dry Index – Talking Points

Crude Oil Technical Analysis

Gold, XAU/USD, NFPs, Treasury Yields, Fedspeak, Technical Analysis – Talking Points:

Gold Technical Analysis

XAU/USD 4-Hour Chart

Gold Sentiment Analysis – Bullish

Australian Dollar, AUD/USD, China, Coal, Crude Oil, BOK – Talking Points

What is CPI and why does it matter to forex traders?

CPI release dates

Why forex traders should follow CPI data

What to consider when trading forex against CPI data

Read more on CPI, inflation and forex

No comments:

Post a Comment