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 — February 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. | | EDITORIAL: Economic Benefit of Forex | | They say that the huge 5-trillion a day Forex market is useless or is a burden to the economy, that its only purpose is for the banks to siphon money out of the common people. I will not deny that banks use retail financial trading as a means to enrich themselves at a cost of the less knowledgeable public. However, I argue for the actual economic benefits of the global FX market in its current shape: - The global FX market creates unprecedented level of liquidity for all market counter-parties. Non-speculative participants can exchange almost any amount of one currency for another currency within a short period of time without drying out the market. Should the foreign exchange market be restricted to only commercial use, the low liquidity would become an obstacle for the remaining participants.
- A large number of transactions distributed in time combined with a large number of participants helps price discovery. A smaller market would mean a less flexible price, which could be easily manipulated and would change much more dramatically with every big transaction.
- Equal rights is also an important issue. If we think about restricting the Forex market, the only alternative is a completely regulated marketplace, where a handful of participants (central banks, licensed banks, or big transnational corporations) trades. It would remove the access of smaller companies and common people to the Forex market at fair conditions. Basically, it would just concentrate the potential benefits of Forex trading at the hands of the big players. Current situation is not ideal but offers more equality.
No matter what people say, the Forex market went through forty years of evolutions to reach its current form. I am sure that it will continue evolving and the future changes will make it even more resilient, efficient, distributed, decentralized, and bigger. Some useful reading: Triennial Central Bank Survey — Global foreign exchange market turnover in 2013 | | Overview of the major currency pairs' performance in January | | EUR/USD — traded in a whipsaw market during the first month of 2016. It was at the maximum at 1.0984 on January 15, at its minimum at 1.0707 on January 6, finishing the month at 1.0832. GBP/USD — after falling significantly during the first 20 days, it recovered somewhat and entered a sideways market. The highest monthly rate was at 1.4815 on January 4, while the lowest — at 1.4078 on January 21. GBP/USD finished January trading at 1.4241. USD/JPY — posted a high-range V-shape. The pair rose to as high as 121.68 on January 29, reaching a bottom at 115.97 on January 20 and closing the month with the 121.09 rate. EUR/JPY — moved similarly to USD/JPY. The monthly high was at 132.37 on January 29, the monthly low — at 126.16 on January 21. Trading ended at 131.17 for this currency pair. GBP/JPY — fell sharply during the first 20 days and recovered about two thirds of its loss during the final 10 days of January. The maximum level for this pair was 177.36 on January 4, while the minimum — 163.96 on January 20. The month's trading ended at 172.46 for GBP/JPY. | | Fundamental background of the past month | | This year has started with risk aversion, mostly due to poor macroeconomic data from China, and this theme persisted throughout January (especially the first half of the month). It allowed safe currencies, including the US dollar, to rally. Yet the cautious policy statement from the Federal Reserve led to speculations that the Fed would be forced to scale back its plans for monetary tightening. Such talks resulted in reversal in trends of many currencies. Unsurprisingly, the greenback became a lot more vulnerable. The same risk-negative sentiment as well as eurozone's own economic troubles were dragging the euro down. ECB President Marion Draghi hinted at possibility of additional monetary stimulus in March, giving the shared 19-nation currency another reason to go down. Yet the euro was not as weak as one could have expected, rising by the end of the month. The Great Britain pound reached multi-year lows due to soft economic data and talks about Brexit were not helping the currency either. The Japanese yen started the year extremely strong thanks to risk aversion but has lost almost all gains by the end of January, especially after the Bank of Japan shocked markets, implementing negative interest rates. As it has been happening for some time now, the Canadian dollar was following crude oil prices closely. This means that the currency was falling at the first half of January, reaching the lowest level since 2003, but bounced by the end of the month. The Australian dollar was less successful, remaining with monthly losses, though it too recovered a bit, not the least due to China's attempts to calm the markets. The New Zealand dollar was even weaker as the Reserve Bank of New Zealand left the doors open for additional interest rate cuts. Gold was rather strong in January, showing surprising correlation with the US dollar by the end of the month. | | Interest rate changes in January | | Indonesia | 7.50% | -0.25% | 7.25% | | Japan | 0.10% | -0.20% | -0.10% | | South Africa | 6.25% | +0.50% | 6.75% | You can see the current interest rates by the world's central banks in our interest rate table. | | One MetaTrader indicator has been updated since the last issue of the newsletter: - Market Profile now supports weekly and monthly trading sessions in addition to daily ones.
You can always view the all the free Forex indicators available on EarnForex.com. | | Top 5 Forex brokers of the last month | | Three new Forex brokers have been added to EarnForex.com since the last issue of the newsletter: - Trade360 — a CySEC-regulated Forex broker with focus on "crowd trading". The minimum account size is $1,000 and the spreads are above average with them. Leverage is capped at 1:200.
- Vipro Markets — a classic Cypriot Forex broker with MT4 platform and $25 minimum account size.
- StoxMarket — an unregulated Russian broker with $1,000 minimum size, MetaTrader 4, and a custom trading platform.
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: - Bank of Japan surprised the Forex market with an unexpected cut of their interest rates into negative territory, driving the Japanese yen down against the major currencies.
- IG opened an office in Dublin, Ireland.
- We have redesigned EarnForex.com to make it more flexible and accessible to traders. Some parts of the website may still work poorly, but we are working to fix it.
| | Until the next newsletter issue! | | That is all for the February 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