Interest

One of the questions that a forex trader may ask is should I trade spot or futures? This article compares the differences in trading the cash market compared to the futures market and looks at the pros and cons of each.

The carry trade has a simple aim: Borrow low and lend high. Japanese yen is often the borrowed currency in carry trades. This is because it’s cheap.

Gold has gained more than 8% in 2016 after a volatile year. The 1st half of the year was driven by fears of a worldwide recession and uncertainties around the BREXIT vote.

If you’ve been watching stock markets lately you’ll know that since the beginning of the year the banking sector has had a pretty rough time.

The US dollar was locked in directionless trade on Monday ahead of a crucial meeting of the Federal Reserve. This week’s two-day Fed meeting is the first one in nine years in which markets see a realistic chance that interest rates could actually be raised.

The US dollar dipped into negative territory today after Fed vice chair Stanley Fischer said that inflation is low, but this would be a temporary situation.

The jobs market is a barometer to the health of the economy. Other than interest rate announcements from the Federal Reserve there are few pieces of economic data that will move markets as much as employment data.

The reverse carry trade is what’s called an event driven strategy. It’s not a trading system you can use every day – yet at the right time it can generate enormous profits very quickly, and is therefore one you should keep up your sleeve ready to use.

Yield curves for a currency pair can reveal a wealth of valuable information. They tell you the expectations for the economies and the interest cycle.

Because interest rates and the debt markets have such a significant effect in forex, it pays to keep a close eye on them. It isn’t enough just to wait for the announcements and guidance from central banks.