Posts Tagged "Foreign Exchange"

Kiwi in Flight

Posted by on Mar 14, 2014 in Commentary, Featured, Market News

It’s been a long time coming. Of the major currencies commonly traded, there have been no interest rate increases since 2010 when Australia last increased its overnight rates. Australian rates didn’t last long at those levels and were reduced in stages soon afterwards, matching the other major economies. This time though, things feel different. On Wednesday evening this week, the Reserve Bank of New Zealand announced a rise in interest rates from 2.5% to 2.75% (well, Thursday morning in New Zealand at the time). An interest rate increase in any of the major currencies is as rare as New Zealand’s national bird, the kiwi. It’s currency, nick-named the kiwi was already strong and on the announcement, it flew higher. This might not be great news for mortgage holders in New Zealand and it might not get picked up by many commentators, but to me, this is a significant turning point. New Zealand is a small economy, not even in the top 50 in terms of GDP. Yet it’s currency is traded as one of the 8 majors. During the economic crisis and fall out after 2008, interest rates have been slashed. Other major economies went further and adopted measures such as quantitative easing (QE) to stimulate their economies. The talk is still of how to reduce the dependence of measures such as QE and “normalise” economies. In this regard, the Fed has its own tapering programme running at the moment. To me, the significance of the announcement is that it marks the beginnings of what could be called “normal” again. The New Zealand economy has been growing strongly. Export demand is healthy and many economic indicators suggest strong demand in the local economy with the prospect of inflation. How refreshing to see interest rates being used once more as a weapon to protect against inflation. As for the rest of the Western economies, I suspect they’ll be looking enviously at the Kiwi success. In Europe and the USA, the spectre of deflation has not been totally eliminated. In Japan, they are still working at creating inflation. In the UK and USA, we still have greatly indebted consumers, companies and governments. We’ve had the artificial stimulus of ultra-low interest rates for several years to get our economies bumbling along. Let’s hope the kiwi in flight is the light at the end of the tunnel we all hope...

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Invest the Time

Posted by on Mar 11, 2014 in Featured, Learning to Trade?

Invest the Time

There is a lot of white noise around trading. People seem to think of it as a get rich scheme, whereas the reality of it is quite different. Trading is a skill and like all skills it takes time and effort to develop and learn. Think of the job that you are currently in. Are you good at your job? I’m hoping that the answer is yes! Now think back to your first day at your job, chances are your skill set has developed significantly since then and this is the same as in trading. People ask my advice on forex trading nearly every day and my advice will always be the same. Invest the time to really understand the market, the terminology and even what you hope to achieve by entering such a lucrative and rapidly-changing market. Use all the materials that are available to you and one thing I cannot emphasise enough is to accept the help that is on offer to you. Not just at the beginning of your journey but throughout the course of your trading career. Seek out guidance and advice from experts, even if you are not a novice to the forex market. The market is a volatile place and things can change almost instantly. If something has not worked out the way you had anticipated it to do not be ashamed to ask others why. Chances are that people will be more than willing to share their answers and advise you on factors you may have overlooked. If you do have any questions about the forex market please do not hesitate to get in touch. If you are ready to invest the time and to invest in educating yourself and your future I would recommend one on one training. Here at Plan B Trading we offer 30, 60 or even 120 minute consultations to help you advance on your trading...

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My 5 Favourite Traders

Posted by on Feb 24, 2014 in Featured, Learning to Trade?, Uncategorized

My 5 Favourite Traders

It’s always interesting to see the trades that other people are making and the advice that they are giving. Here are my 5 favourite traders on Twitter at the moment, please note they are in no particular order.   The first is @MWellerFX. Matt Weller is a global market strategist and has been actively trading since 2005. Enthralled by the liquidity and the accessibility of the market, Mr Weller now offers timely updates on a vast range of currency pairs. Follow him now for great guidance.   @break_retrace3. Howard Friend also offers information on his trading activities, giving information about the time he sells and exits the market. Having been in financial markets since 1988 his information on currency pairs is definitely to be taken into consideration.   @forexfortress offers followers information on short and long trades on a number of different currency pairs – always advising users on when to get out. Good luck and good trading! Another of my favourite traders is @optionalpha. Kirk Du Plessis offers a great variety of content not only on the foreign exchange market but also on current affairs. His tweets include relevant blog posts and great quotes. Last but by no means least we have a personal friend of mine @FXTraderPaul. Paul Walas (surprisingly no relation) offers frequent updates on the forex market and stock exchange (mainly gold), when you have a spare 5 minutes take the time to read his great blog too. So there you have it my 5 favourite traders at the moment. Who do you love to follow? Leave me a comment and let me know, or get in touch via Twitter...

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Out of the Woods

Posted by on Feb 18, 2014 in Featured, Market News, News

Out of the Woods

The non-farm payroll (NFP) figures a week ago did not suggest to me that we are out of the woods just yet. After strong numbers for several months on the spin, January’s low numbers weren’t significantly revised upwards and the numbers for February came in on the low side. This suggests that while growth in the world’s largest economy is continuing, it is not doing so at the pace set last quarter. This is two months of lower than expected jobs growth. Not the end of the world by any means, as it is only two months of data. Maybe the frozen weather conditions are slowing the rate of growth? Once spring arrives, it will be full steam ahead again? I have a niggling doubt in the back of my mind though. It is not just the USA with figures that aren’t as optimistic. We saw GDP figures for Japan today, which while they are growing, are hardly setting the world alight. As for the Eurozone, it seems that growth of 0.3% is treated as really great news. When I look at the UK economic figures for the past month or so, they too have been as damp as the weather. The levels of growth talked about in the final quarter of last year seem to be on hold for now. The sharp drop in CPI does not suggest a strong demand in the UK economy. Confidence is a word frequently associated with the conditions for economic growth. Where is this confidence right now? One look at some of the emerging economies tells a story. Take Turkey for example. Its exchange rate has been hammered recently, leading to the Turkish Central Bank intervening in the markets to protect its currency. Within 48 hours, the impact of the intervention was lost and the Turkish Central Bank responded by raising interest rates quite dramatically to protect the currency. Turkey was not the only emerging market to suffer. Several others raised interest rates as money flowed out of these countries back to “safe haven” assets. For a fortnight or so, there was a real sense of “risk off” again. Growth figures from China are often cited as a trigger for changes in economic expectations and a trigger for the risk attitude. We could be on the verge of economies slowing again. That could be a bit tough for the Eurozone, as it hasn’t really got started. With Yellen, the new lady in charge at the FED, I wouldn’t want to bet on the current taper in QE continuing at the same rate if weak figures continue. This afternoon, Yellen signalled she wants to review more data prior to making any changes. She also said the recovery has been slow by historical standards. The confidence levels seem to be weaker now than a few weeks ago. Mark Carney, governor of the Bank of England gave a similar message last Wednesday. The tales of caution are all around, rather than descriptions of economies that are out of the...

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My Top 3 Trading Apps

Posted by on Feb 13, 2014 in Featured, Learning to Trade?

My Top 3 Trading Apps

In a world where everyone is constantly on the move, I have found that apps on smart phones are a great way to constantly keep up to date with rates, charts and even the local currency rates when you’re overseas. Here are my top 3 trading apps at the moment: 1. XE Currency – This is extremely user friendly and easy to use. It offers the user live information on market rates as well as daily, weekly, monthly and even yearly charts on currency pairs. It’s extremely popular with over 20 million downloads worldwide. 2. Citi Foreign Exchange Rates – This another easy to use mobile app that allows users to view up-to-date exchange rates for a large number of currencies. Their app covers over 60 currency pairs and offers users charts on these currencies. It is very straight-forward with a basic layout making it exceptionally easy for users to use and see the information they are looking for.   3. OANDA fxTrade Forex – This app is more technical and allows you to monitor the forex market and react accordingly in real-time! You can manage your accounts while on the go which is perfect if trading is not your full-time profession. It provides the user with advanced charting allowing them to draw trend lines and pivot points. It also sends the user notifications when limit, stop cross or take profit orders are triggered. Please leave a comment or get in touch via Twitter @PlanBTrading and share your favourite apps. Happy...

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