This is your monthly EarnForex.com newsletter.
To cancel your subscription, please use the link at the bottom of this message.
EarnForex.com Monthly Newsletter
| | | | Welcome to the latest issue of EarnForex.com newsletter — January 2016. In this issue of EarnForex.com newsletter, I will remind you about the most important Forex-related events of the last month and will also show you the list of the site's latest updates. | | The interest rates are the major moving force in Forex. When there is no rate change in years, an anticipated shift has an increased potential to affect the related currency. The last time the US Federal Reserve had updated its interest rate (before last month) was in December of 2008. The current rate hike produced no significant movement that would be noticeable above 4-hour timeframe. The reason is that the markets had expected it and had already priced it in. But what will the Fed's monetary strategy bring to the FX market in 2016? Here are some thoughts on how the Fed's latest statement could be used in actual trading this year: - Short EUR/USD seems like a viable long-term trade. The gradual normalization of the US federal funds rate combined with prolonged quantitative easing and negative rates in the eurozone will create perfect conditions for selling EUR/USD. A safer strategy would be to short the upward spikes instead of keeping one constant sell position.
- Upcoming FOMC meetings will create significant USD-negative market sentiment each time the rate is held unchanged. Buying GBP/USD or selling USD/JPY prior to the US monetary policy meetings might be a risky yet lucrative intraday strategy.
- Lower role of US economic data. Traders will now pay a little less attention to nonfarm payrolls, US GDP, and inflation reports. It means that they will now produce much less volatility on release, making it hard to employ news trading strategies.
- Dollar can become an attractive long side of a carry trade. Particularly interesting case is USD/CHF — the rate difference already stands at 0.375% − (−0.75%) = 1.125% there. The trick here is finding a Forex broker that offers the best long-side swap as many companies will continue giving near-zero return despite the aforementioned difference.
Needless to say that a U-turn in the Fed's stance would mean a total disaster for the US dollar. The good thing is that it is can be traded. Scan the words of the FOMC meetings' statements and minutes for any hint of dovishness. If you find any, prepare to short the USD. | | Overview of the major currency pairs' performance in December | | EUR/USD — after rallying during the Dec 3 trading session, the currency pair traded sideways. It was at the maximum at 1.1059 on December 15, at its minimum at 1.0517 on December 3, finishing the month at 1.0865. GBP/USD — was in a downfall after some bullish days in early December. The highest monthly rate was at 1.5239 on December 11, while the lowest — at 1.4732 on December 31. GBP/USD finished December trading at 1.4733. USD/JPY — showed a lot of volatility by falling, then rising, then falling again. The pair rose to as high as 123.66 on December 2, reaching a bottom at 120.00 on December 31 and closing the month with the 120.19 rate. EUR/JPY — traded similarly to EUR/USD but with a steady downtrend in place of a sideways part. The monthly high was at 134.58 on December 4, the monthly low — at 129.75 on December 1. Trading ended at 130.59 for this currency pair. GBP/JPY — was falling down during the whole month. The maximum level for this pair was 186.33 on December 7, while the minimum — 177.06 on December 31. The month's trading ended at 177.08 for GBP/JPY. | | Fundamental background of the past month | | The major event during December was an interest rate lift-off from the Federal Reserve, which should have supported the US dollar. Indeed, the greenback rallied after the announcement, but the rally was short-lived, making the future of the US currency unclear. Meanwhile, the European Central Bank disappointed markets, failing to expand monetary stimulus to the degree expected by market participants. This made the euro relatively strong. Slowing economic growth and decelerating wage inflation made the Great Britain pound very vulnerable. On the opposite end of spectrum was the Japanese yen, which got boost from GDP data and the decision of the nation's central bank not to expand the asset purchase program. The Swiss franc was supported by the decision of the ECB even though domestic data (including deflation) was not supportive for the currency. The Canadian dollar was among the biggest losers last month as it was tracking the decline of crude oil prices. The Australian dollar got support from the decision of the European Central Bank and the relative weakness of the US dollar after the Fed's rate hike. Domestic macroeconomic indicators also gave some support to the Aussie. The New Zealand dollar was also rising, undeterred by the interest rate cut from the Reserve Bank of New Zealand. Gold fell after the Fed hike initially but bounced later along with other commodities as traders were digesting the language of the policy statement. | | Interest rate changes in December | | Chile | 3.25% | +0.25% | 3.50% | | Mexico | 3.00% | +0.25% | 3.25% | | New Zealand | 2.75% | -0.25% | 2.50% | | Taiwan | 1.75% | -0.125% | 1.625% | | United States | 0.125% | +0.25% | 0.375% | | | One MetaTrader indicator has been updated since the last issue of the newsletter: - Schaff Trend Cycle has been converted for cTrader platform and now features all sorts of alerts.
You can always view the all the free Forex indicators available on EarnForex.com. | | MetaTrader expert advisors | | One new expert advisor has been added to EarnForex.com since the last newsletter issue: You can always browse the previously added MetaTrader EAs. | | One new interview has been published on EarnForex.com since the last issue of the newsletter: You can always read the previous interviews published on EarnForex.com. | | Top 5 Forex brokers of the last month | | Five new Forex brokers have been added to EarnForex.com since the last issue of the newsletter: - Kawase — a regulated Cypriot broker with a Japanese name. They offer cTrader STP accounts starting with $1. Spreads are quite low, but they charge commission. Multiple trading instruments are available with up to 1:100 leverage.
- LMFX — a brand new unregulated Macedonian Forex broker with MetaTrader 4 platform and up to 1:1000 leverage on currency pairs and CFDs. Their minimum account size is just $50.
- OneTrade — a British company with FCA regulation. It claims to offer straight-through processing accounts with direct market access via MetaTrader 4 starting with $500. The maximum leverage is 1:100.
- MTI Markets — an offshore (Belize) broker with mini STP, standard STP, and ECN accounts. Mini accounts start from $100, and all their account types support MetaTrader 4 platform.
- Bolmax Management — unregulated Estonian FX broker with MT4 trading platform in Standard and ECN accounts. Standard accounts start at $100, ECN accounts require at least $5,000.
You can always view our full list of Forex brokers. | | There were the following important Forex industry news since the last issue of the newsletter: - We have published a forecast for the year 2016. It offers a view on currency pairs, gold, oil, and interest rates.
- Finexo has become a part of Markets.com broker.
- OctaFX launched support for cTrader platform.
- Capital Index became regulated by FCA.
- Finam became the first company to get the new Russian license for Forex brokers.
- Liga Forex broker ceased all business operations.
| | Until the next newsletter issue! | | That is all for the January issue of the EarnForex.com newsletter. If you have questions, comments or just want to see something else in the next monthly issue, please let us know. | | |
--
If you do not want to receive any more newsletters, please click this link: Unsubscribe
To update your preferences and to unsubscribe visit this link
Forward a Message to Someone this link 
|
ليست هناك تعليقات:
إرسال تعليق