Trading CFDs carries considerable risk of capital loss. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
February 05, 2018
There are no appointments in the month of February with the two most important central banks in the world, ECB and FED.
Draghi was very accommodating with the Euro focusing on volatility and not on the absolute level reached. The US government has clarified how a weak dollar is welcome. Two views that will be summed to the first Fed meeting with Mr Powell from which we will be able to understand the ideal path of interest rates for the coming months.
As regards the macroeconomic data of the main G20 economies, it is evident that the risk of commercial and especially currency wars after the declarations of prominent members of the Trump government is rising significantly. The recession of South Korea is just one example of what is causing the dollar weakness and it is quite clear that in the coming months we could witness volatile reactions especially within the Forex world. For this reason, it becomes fundamental to map the main macro data that will be provided monthly by the market to understand what and when volatility could provide interesting trading opportunities.
The month of February immediately starts with the data on ISM manufacture scheduled for February 1st, which will be followed by the data on unemployment, factory orders and durable goods orders on February 2nd. On February 5th another important data on ISM services, while the day after we will get the trade balance figure, fundamental for the dollar devaluation and especially the widening of the deficit in recent months. On February 9th, inventories will anticipate the much more important inflation data of February 14th. A leap forward of the CPI would put pressure on interest rates that are still close to 3% on the 30-year maturities. At the same time, a rising inflation would force the FED to accelerate the rise of rates. On February 15th, producer prices, Phily Fed and industrial production will be published. On February 21st, focus on the publication of the minutes of the Fed, while on February 27th and 28th consumer confidence and fourth quarter GDP respectively.
Concerns about a too strong Euro are putting the ECB in troubles as the beneficial effects of the economic growth are neutralizing due to the deflationary effects of the dollar devaluation. According to a study by the ECB a few years ago, a strengthening of the Euro by 10% leads to a decline in inflation of around 0.4 / 0.6% over a period of 24 months.
The most interesting data to follow in Europe in February will be on February 5th, the PMI data, on February 14th the GDP of the fourth quarter, on February 20th the ZEW index, on February 22nd the IFO index and finally the inflation rate on February 23rd.
The main data coming from Japan in the coming month will be represented by the GDP of the fourth quarter (on February 14th), industrial production (on February 15th) and inflation (on February 23rd).
Monetary policy appointments among the other G20 economies:
- India and Brazil (February 7th)
- Mexico (February 8th)
- Russia (February 9th)
May 15, 2018
The volatility of the forex world is one of those factors that attract a huge number of beginner and professional traders.
April 13, 2018
What really drives the forex market? This is a question that is difficult to answer especially due to the complexity of the forex market and all the variables that influence the quotations of a currency.
April 02, 2018
At the beginning of April, we can expect a rise in rates of the Fed, in a very uncertain market moment, especially on the stock market.
March 01, 2018
A list of important events that can move the markets in March...
February 18, 2018
For those trading on forex it is essential to understand all the signals that the market offers daily. Technical analysis tools help the trader understand who is dominating the market: bulls or bears.
January 20, 2018
Good traders always use a stoploss when they open a new trade. You can use a regular stop, but you can also use a trailing stop.
January 02, 2018
Last year closed with important performances that were not seen for a while, especially concerning Euro and Dollar.
December 18, 2017
Among the most relevant macroeconomic data for forex traders, inflation must absolutely be included, or even better all the data on production price trends (PPI) and consumption (CPI).
December 01, 2017
December is crucial for the currency market, but not just because of the important meeting of the Federal Reserve scheduled for the 13th.
November 21, 2017
Forex trading can create significant error margins and for this reason the combination of money management, continuous training and common sense is crucial to get the success you want.
November 02, 2017
November starts with the Federal Reserve meeting that should lead to the rise of rates in the month of December.
October 21, 2017
The Forex market allows each trader to operate not only on major currencies like EurUsd, UsdJpy or GbpUsd (the so-called majors), but also on the so-called exotic cross currencies.
October 04, 2017
The month of October is dense with appointments, especially with reference to the news that might come from Central Banks.
June 30, 2017
As always, the month of July represents the antechamber to the month of August, a usually volatile month for financial markets due to the low amount of trades and lower presence of institutional transactions.
May 21, 2016
What are the benefits of trading CFDs over traditional forms of trading?