Fundamental analysis is a vital weapon –if you keep on top of the data November 18, 2013 AFTER last week’s focus on technical analysis in forex – where I looked at how analysing charts and data trends can assist a trader’s performance – this week, I’ll consider another important element in trading forex: fundamental analysis. Fundamental analysis is the interpretation of statistical reports and economic indicators. Interest rates, employment reports, and the [...]
CNBC Comment: Romania risk hinges on euro fine print November 18, 2013 COUNTRIES once fell over each other to gain membership of the exclusive Eurozone club. But following four bailouts, the rich crowd now looks more like a liability. Romanian Prime Minister Victor Ponta’s face twisted into a wry smile when I asked him if he is waiting to see how the Eurozone appears in several years’ [...]
DailyFX: Analyst picks November 18, 2013 CURRENCY ANALYST CHRIS VECCHIO My pick: Stopped flat on euro-dollar and Aussie-dollar, long sterling-yen Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few days Both my short Aussie-dollar and euro-dollar positions started off strong, but were both stopped out at break-even after Janet Yellen made clear her intent [...]
How to apply technical charts to improve your performance in trading November 11, 2013 TECHNICAL analysis is based on the idea that historical prices can provide insight into future prices. Using technical charts, traders seek to determine the likelihood of the continuation of the current trend, as well as the potential point at which the trend may reverse. While there are countless types of technical charts, most will fall [...]
Italy a ticking timebomb for the fragile Eurozone November 11, 2013 Improvements elsewhere in the periphery contrast with the worryingly slow progress in Rome In parts of the Eurozone periphery, there are signs that struggling economies are finally turning a corner. Spain, for example, has returned to growth – albeit at the slow pace of 0.1 per cent in the third quarter – and Portuguese unemployment [...]
CNBC Comment: FX market probe raises Libor fears November 11, 2013 YOU DON’T have to read one of John Le Carre’s spy novels to believe his maxim that “bankers will always get away with whatever they can get away with”. The latest scandal afflicting the industry is the fast-moving investigation into the $5.3 trillion (£3.3 trillion) FX market: just three months in, it has embroiled 10 [...]
DailyFX: Analyst picks November 11, 2013 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Short euro-dollar and pending short Aussie-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks The European Central Bank (ECB) meeting, the third quarter US GDP figure, and the October US non-farm payrolls (NFP), all generated immense volatility in euro and [...]
How to employ market volatility indicators to build a trading strategy November 4, 2013 FOR LESS experienced forex traders, the correlation between volatility and market prices – and how this relationship can be used to help build trading strategies – can prove elusive. Volatility expresses the degree of price change over a given time period. And one of the more common means of measuring market price volatility is the [...]
Deflation fear prompts Eurozone rate cut talk November 4, 2013 But a single data point is unlikely to convince the ECB that immediate loosening is necessary European shares traded close to five-year highs yesterday amid speculation that the European Central Bank (ECB) will cut its policy rate on Thursday. The FTSEurofirst 300 Index rose above 1,296, a near 6 per cent increase from Friday’s levels. [...]
CNBC Comment: Vanilla trading for the end of 2013 November 4, 2013 IT ALL got a bit catty behind the scenes on the set of SquawkBox this week. During one of our daily market open strategy debates, one of my guests told the audience that his big idea for the rest of the year was to “buy the winners of 2013 and sell the losers”. At this [...]