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Mastering the ICT Trading Strategy: Key Techniques

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Mastering the ICT Trading Strategy: Key Techniques

In today’s rapidly evolving global economy, Information and Communication Technology (ICT) has become a cornerstone for innovation and growth across various sectors. The ICT sector itself presents numerous opportunities for trading and investment, driven by technological advancements and increasing demand for digital solutions. However, mastering the ICT trading strategy requires a deep understanding of market dynamics, technological trends, and strategic approaches to capitalizing on opportunities while mitigating risks.

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Understanding the ICT Sector

The ICT sector encompasses a broad range of products and services, including software development, hardware manufacturing, telecommunications, internet services, and digital content creation. Each sub-sector within ICT is characterized by its unique set of challenges and opportunities, requiring traders to adopt specialized strategies tailored to the specific dynamics of these markets.

Key Techniques for Success

To excel in ICT trading, one must adopt a multifaceted approach that leverages both quantitative analysis and qualitative insights. Here are some key techniques:

1. Market Analysis
  • Trends and Forecasting: Stay abreast of emerging technologies and industry trends through continuous research and analysis. Utilize forecasting models to predict future market movements.
  • Macroeconomic Indicators: Understand how broader economic factors can influence the ICT sector, such as changes in interest rates, inflation, and regulatory policies.
2. Technological Insights
  • Innovation Cycles: Recognize the cyclical nature of technological innovation and adapt strategies accordingly. Identify companies that are leaders in research and development (R&D).
  • Disruption: Be aware of disruptive technologies that could alter the competitive landscape, such as artificial intelligence, blockchain, and quantum computing.
3. Financial Metrics
  • Valuation Models: Apply appropriate valuation models to assess the intrinsic value of ICT companies. Common models include discounted cash flow (DCF), price-to-earnings (P/E) ratio, and enterprise value-to-revenue (EV/Revenue).
  • Profitability Ratios: Analyze key financial ratios like return on equity (ROE), return on assets (ROA), and operating margin to gauge profitability and efficiency.
4. Risk Management
  • Diversification: Implement diversification strategies to spread risk across different segments of the ICT sector and geographic regions.
  • Hedging: Use hedging techniques, such as options and futures contracts, to protect against adverse market movements.
5. Strategic Investment
  • Long-term Vision: Adopt a long-term perspective when investing in ICT, focusing on sustainable growth rather than short-term gains.
  • Partnerships and Acquisitions: Consider the strategic value of partnerships and acquisitions that can enhance a company’s competitive position or expand its market reach.

If you wish to get the latest forex brokers, you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

Mastering the ICT trading strategy involves a combination of technical knowledge, market insight, and strategic planning. By staying informed about industry trends, employing robust analytical tools, and implementing effective risk management practices, investors can navigate the complexities of the ICT sector and capitalize on its potential for growth and innovation. As technology continues to evolve at an unprecedented pace, those who can adapt their strategies will be best positioned to succeed in this dynamic field.

How Can You Use GDP? What Is GDP? Important Economic Figures for Investors

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How Can You Use GDP? What Is GDP? Important Economic Figures for Investors

Gross Domestic Product (GDP) is a critical economic indicator that measures the total value of all final goods and services produced within a country’s borders over a specific time period, usually a year or quarter. It serves as a fundamental gauge of a nation’s economic health and is widely used by investors, economists, and policymakers to make informed decisions. Understanding how to interpret GDP data can provide valuable insights into the economic landscape, which is essential for investors looking to capitalize on market trends.

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What Is GDP?

GDP is calculated by summing up the monetary value of every good and service produced in a country during a specified time frame. There are three main methods to calculate GDP:

  1. Expenditure Approach: This method sums up all expenditures made by households, businesses, government, and net exports.
  2. Income Approach: This method calculates GDP by adding up all income earned from producing domestic goods and services, including wages, rents, interest, and profits.
  3. Value-Added Approach: Also known as the production approach, this method involves adding up the value added at each stage of production.

How Can You Use GDP?

Investors can leverage GDP data in several ways:

  1. Economic Health Indicator: A growing GDP suggests a healthy economy, while a declining GDP might indicate recessionary pressures. Investors can use this information to anticipate changes in consumer spending, corporate earnings, and employment rates, which could influence investment strategies.
  2. Market Trends Analysis: By tracking GDP growth rates, investors can identify potential shifts in market trends. For example, strong GDP growth might correlate with rising stock prices, whereas negative GDP growth could signal a downturn in the markets.
  3. Policy Expectations: GDP figures can inform expectations about future monetary policies. If GDP growth is sluggish, central banks might lower interest rates to stimulate economic activity, which could impact bond yields and currency values.
  4. Comparative Analysis: Comparing GDP figures across different countries can help investors understand relative economic performance and potentially identify undervalued investment opportunities.
  5. Sectoral Insights: GDP data broken down by sector can reveal which parts of the economy are expanding or contracting. Investors can use this granularity to focus their investments in growing sectors or avoid those in decline.

Important Economic Figures for Investors

While GDP is a cornerstone metric, it is just one piece of the puzzle. Other key economic indicators that investors should monitor include:

  • Inflation Rates: Measured by indices such as the Consumer Price Index (CPI), inflation impacts purchasing power and interest rates.
  • Employment Data: Unemployment rates and job creation numbers reflect the health of labor markets and consumer confidence.
  • Interest Rates: Central bank policies affecting borrowing costs can influence stock valuations and capital flows.
  • Retail Sales: Indicate consumer spending levels, which drive a significant portion of economic activity.
  • Housing Starts and Building Permits: Reflect confidence in the real estate sector and broader economic conditions.

If you wish to get the latest forex brokers, you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

Understanding GDP and its implications is crucial for investors seeking to navigate the complexities of global financial markets. By integrating GDP data with other economic indicators, investors can gain a comprehensive view of economic trends, helping them make more informed decisions and potentially improve their investment outcomes.

Top Forex Trading Robots of 2024

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Top Forex Trading Robots of 2024

The foreign exchange market, commonly known as Forex or FX, is one of the most liquid financial markets globally. With trillions of dollars traded every day, it’s no surprise that technology has taken center stage in facilitating trades and enhancing profitability. Automated trading systems, also known as Forex robots or EAs (Expert Advisors), have become increasingly popular among traders of all levels, from beginners to seasoned professionals. Here we present a list of some of the top Forex trading robots available today.

1. MetaTrader 4 (MT4) Expert Advisors

MetaTrader 4 remains one of the most widely used platforms in the Forex industry. Its robust infrastructure supports custom programming through MQL4, enabling users to create their own automated trading strategies. MT4’s Expert Advisors can execute trades automatically based on predefined rules, providing traders with a powerful tool to enhance their trading experience.

2. Cryptohopper

Primarily designed for cryptocurrency trading, Cryptohopper has expanded its capabilities to include traditional currency pairs as well. With a user-friendly interface and support for multiple exchanges, this robot allows traders to automate their trading strategies across different markets. It offers advanced features such as social trading, where users can copy the trades of successful traders.

3. OANDA Automated Trading Systems

OANDA, a well-known name in the Forex industry, offers an API that enables developers to build custom trading solutions. The OANDA API can be used to create automated trading systems that interact with the market in real-time. This flexibility makes it a preferred choice for those who wish to implement sophisticated algorithms.

4. PostBank’s “邮小助” (Yóu Xiǎo Zhù)

In the realm of institutional trading, China’s Postal Savings Bank has introduced “邮小助,” an AI-powered trading assistant specifically designed for the domestic currency market. Leveraging the China Foreign Exchange Trade System (CFETS) iDeal platform, this robot facilitates intelligent online inquiries and responses for repurchase agreement transactions, streamlining the process for financial institutions.

5. Industrial and Commercial Bank of China’s AI Trading Robot

The Industrial and Commercial Bank of China (ICBC) has also ventured into AI-driven trading with its own AI trading robot. This system integrates machine learning and natural language processing technologies to perform functions like trade inquiry, risk management, and data analysis, enhancing efficiency within the bank’s operations.

6. OTFX’s AI-Powered Trading Solutions

OTFX offers innovative trading solutions by integrating AI and machine learning techniques into its systems. These advancements allow for more precise market data analysis, providing investors with tailored advice and improved risk management tools.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

Each of these robots brings unique features to the table, catering to diverse needs within the Forex community. Whether you’re looking for speed, customization, or advanced analytics, there’s a trading robot that can fit your requirements. As the technology evolves, these systems continue to adapt, offering traders new ways to engage with the market effectively.

Swimming with Turtles: Lessons from a Legendary Trading System

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Unleashing the Power of Persistence: The Turtle Trading System Explained

In the world of trading, few systems have achieved the legendary status of the Turtle Trading System. Born out of a famous experiment conducted by commodities trader Richard Dennis in the 1980s, this method has since become a cornerstone of trend-following strategies. Let’s delve into the principles behind the Turtle Trading System and why it remains relevant for modern traders.

Origins of the Turtle Trading System

In 1983, Richard Dennis and Bill Eckhardt made a bet regarding the nature of successful trading. Dennis believed that he could teach anyone his trading principles and turn them into successful traders. To test this hypothesis, he recruited a group of individuals with diverse backgrounds and trained them in his methods. These trainees were dubbed “Turtles” because Dennis joked that he could turn even turtles into traders.

Over the next few years, the Turtles achieved remarkable success, generating impressive returns in various markets. Their methods were eventually published and have since been adopted by traders around the globe.

Core Principles of the Turtle Trading System

The Turtle Trading System is built upon several key principles that emphasize disciplined trading practices and a focus on long-term trends.

Entry Rules

  • Breakout Method: Turtles used a simple breakout strategy to enter trades. For buying, they would enter long positions when the price exceeded a specific high over a defined period (e.g., 20 days). For selling short, they would enter when the price fell below a specific low over the same period.

Risk Management

  • Position Sizing: To control risk, Turtles adhered to strict position sizing rules. They calculated the number of contracts or lots based on the size of their account and the volatility of the instrument being traded.
  • Stop Losses: Protective stop losses were set at predetermined levels to minimize losses if the trade moved against them.

Exit Strategies

  • Profit Targets: For exits, Turtles used trailing stops that would lock in profits if the market continued to move in their favor. They also had fixed profit targets that varied depending on the strength of the trend.

Why It Works

The success of the Turtle Trading System can be attributed to its adherence to systematic trading rules and disciplined approach to managing risk. By focusing on capturing large moves in the market rather than trying to predict every twist and turn, Turtles were able to achieve consistent results over time.

Modern Applications

While the original Turtle Trading System was developed decades ago, its core concepts remain relevant today. Many traders continue to apply these principles in contemporary markets, adapting them to current trading technologies and market dynamics.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

The Turtle Trading System exemplifies the power of systematic trading and disciplined risk management. Its enduring legacy is a testament to the fact that, in trading, consistency and adherence to a well-defined strategy can lead to long-term success. Whether you’re a novice trader looking to establish a solid foundation or an experienced trader seeking to refine your approach, the principles of the Turtle Trading System offer valuable insights into achieving sustainable profitability in the markets.

Top 5 Forex Trading EAs: Automation for the Modern Trader

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Top Forex Trading EAs: Automate Your Way to Success

In the realm of automated trading within the foreign exchange market, Expert Advisors (EAs) have become increasingly popular among traders looking to leverage technology to optimize their trading strategies. Forex EAs are software programs that automate trading decisions and can execute trades on behalf of the user. They operate within trading platforms like MetaTrader 4 or 5 and follow predefined rules for entering and exiting trades. Here’s a list of some of the most reputable and effective Forex EAs available today:

1. Trend Following EA

Description: Trend Following EAs identify trends in the market and attempt to capitalize on them by opening positions in the direction of the trend. These systems often use moving averages and other trend indicators to detect momentum shifts.

Pros: Can be highly profitable if the market is trending strongly.

Cons: May suffer drawdowns during sideways markets or when trends reverse suddenly.

2. News-Based EA

Description: News-based EAs are designed to react to economic news releases that can cause volatility in the markets. These systems typically place trades immediately after news events, aiming to capture short-term price movements.

Pros: Potentially high returns during significant news releases.

Cons: High risk due to unpredictable market reactions to news events.

3. Scalping EA

Description: Scalping EAs focus on making small profits from numerous trades over a short period. They exploit minor price changes and aim to capitalize on slight movements in the market.

Pros: Can generate frequent profits if the market has sufficient liquidity.

Cons: Requires very tight stop-losses and may incur high transaction costs.

4. Arbitrage EA

Description: Arbitrage EAs take advantage of discrepancies in prices of the same asset across different markets. They simultaneously buy and sell these assets to profit from the price differences.

Pros: Low risk and can produce steady returns if arbitrage opportunities exist.

Cons: Opportunities are rare and often short-lived, requiring fast execution speeds.

5. Machine Learning EA

Description: Machine learning EAs use advanced algorithms to learn from historical data and adapt their trading strategies over time. They aim to improve performance by continuously refining their predictive models.

Pros: Ability to adapt to changing market conditions and potentially improve over time.

Cons: Requires substantial computational resources and expertise to develop and maintain.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

Selecting the right Expert Advisor depends on various factors, including your trading preferences, risk tolerance, and the specific market conditions you aim to exploit. While automation can streamline trading processes and potentially increase profitability, it’s crucial to understand the underlying mechanics of these systems and to carefully manage risks. Before committing to an EA, it’s advisable to conduct thorough research, backtest the system, and perhaps start with a demo account to see how it performs under real market conditions.

Invest Forex Markets with the Best Forex Trading Systems

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Finding the Perfect Forex Trading System

In the vast and dynamic world of foreign exchange (Forex) trading, having the right tools can make all the difference between success and failure. The best Forex trading systems are those that not only help traders navigate the complexities of currency markets but also enhance their decision-making process. We will explore what constitutes a top-tier Forex trading system and provide insights into choosing one that suits individual needs.

Understanding Forex Trading Systems

A Forex trading system is a set of rules or guidelines that dictate when to enter or exit a trade. These systems can be manual, involving human decision-making, or automated, using software algorithms to execute trades based on predefined parameters. The primary goal of any Forex trading system is to generate consistent profits by identifying profitable trading opportunities.

Key Components of Effective Forex Trading Systems

Market Analysis Tools

Effective trading systems incorporate sophisticated tools for market analysis. These may include technical indicators such as Moving Averages, Relative Strength Index (RSI), and Bollinger Bands, which help in predicting future price movements based on historical data.

Risk Management Features

Risk management is paramount in Forex trading. The best systems incorporate features like stop-loss orders and position sizing strategies to limit potential losses while maximizing gains.

Backtesting Capabilities

Backtesting involves simulating historical market data through a trading system to evaluate its performance under real-world conditions without risking capital. This process is crucial for validating the effectiveness of a trading strategy before deploying it in live markets.

Types of Forex Trading Systems

Manual Trading Systems

These systems rely on traders’ discretion to interpret market signals and execute trades accordingly. They are suitable for traders who prefer hands-on involvement and have a good understanding of technical and fundamental analysis.

Automated Trading Systems

Automated systems use pre-programmed software to execute trades based on specific criteria without human intervention. They are ideal for traders looking to implement complex strategies consistently and without emotional bias.

Selecting the Right Forex Trading System

When choosing a Forex trading system, consider the following factors:

  • Experience Level: Beginners might benefit more from simpler systems with educational resources, whereas experienced traders might prefer advanced platforms with customizable features.
  • Trading Style: Scalpers, day traders, and swing traders each require different types of systems tailored to their specific timeframes and risk profiles.
  • Market Conditions: Some systems perform better during volatile periods, while others are designed for more stable markets.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

The “best” Forex trading system varies depending on individual trader needs, experience, and objectives. What works for one trader may not work for another. Therefore, it’s essential to thoroughly research and test different systems to find the one that aligns with your trading style and goals. Whether manual or automated, the key lies in selecting a system that provides reliable signals, incorporates robust risk management, and can be effectively backtested to ensure its viability in real trading scenarios.

When and How to Enter the Forex Markets ?

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When and How to Enter the Forex Markets: A Comprehensive Guide

How-to-Choose-the-Best-Forex-Brokers

Entering the forex (foreign exchange) market can be both exciting and challenging. Knowing when and how to enter the market can significantly impact your trading success. This guide will provide you with a comprehensive understanding of the best times to enter the forex markets and the strategies to employ for effective entry points.

Table of Contents

  1. Understanding Market Timing
  2. Identifying Entry Points
  3. Strategies for Entering the Forex Markets
  4. Risk Management and Position Sizing

1. Understanding Market Timing

Market timing in forex trading refers to the practice of entering and exiting trades based on the timing of market movements. Successful market timing requires a deep understanding of market cycles, economic indicators, and the psychology of traders.

  • Market Cycles: Forex markets typically move in cycles, transitioning between periods of high volatility and low volatility. Understanding these cycles can help you determine the best time to enter the market.
  • Economic Indicators: Economic data releases, such as GDP, employment figures, and inflation rates, can significantly impact forex market movements. Paying attention to these indicators can help you anticipate market reactions and plan your entries accordingly.
  • Psychology of Traders: Market psychology plays a crucial role in determining market movements. Fear and greed often drive market participants, and understanding these emotions can give you an edge in timing your entries.

2. Identifying Entry Points

Entry points are specific price levels or market conditions that suggest a high probability of a profitable trade. Here are some common methods for identifying good entry points:

  • Technical Analysis: Tools such as moving averages, support and resistance levels, and candlestick patterns can provide clear signals for entry.
  • Fundamental Analysis: News events, central bank announcements, and economic data releases can create opportunities for strategic entries.
  • Volatility Breakouts: High volatility periods can indicate significant price movements, providing ideal entry points.

3. Strategies for Entering the Forex Markets

Different strategies can be employed depending on your trading style and objectives:

  • Trend Following: This strategy involves entering the market in the direction of the prevailing trend. Key indicators include moving averages and trend lines.
  • Counter-Trend: This approach involves trading against the prevailing trend, often after a significant move. It requires careful risk management and a clear exit strategy.
  • Breakout Trading: Breakouts occur when the price moves beyond a key level of support or resistance. Trading breakouts requires patience and confirmation of the breakout.
  • News Trading: This strategy involves entering trades immediately before or after significant news events, capitalizing on the immediate market reaction.

4. Risk Management and Position Sizing

Effective risk management is crucial for long-term success in forex trading. Here are some key principles:

  • Stop Losses: Set stop-loss orders to limit potential losses on any given trade. Adjust them based on the volatility of the currency pair.
  • Position Sizing: Determine the size of your position based on your account size and the risk you are willing to take. Typically, risk no more than 1-2% of your account on any single trade.
  • Diversification: Spread your risk across different currency pairs and markets to reduce exposure to any single event or market.

Entering the forex markets at the right time and with the right strategy can significantly enhance your trading results. By understanding market timing, identifying clear entry points, employing effective strategies, and managing risk properly, you can improve your chances of success in the forex markets.

Remember, trading is a continuous learning process, and staying adaptable to changing market conditions is key to long-term profitability.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

Predicting : When the United States Will Cut Interest Rates

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interest rates

Predicting when the Federal Reserve (Fed) will cut interest rates is a complex task that involves analyzing a wide range of economic indicators and global events. Interest rate cuts are typically made to stimulate economic growth during periods of economic slowdown or to prevent a recession. In this article, we will explore the factors that influence the Fed’s decision-making process and attempt to predict when the next interest rate cut might occur.

Factors Influencing Interest Rate Cuts

  1. Economic Data:
    • Gross Domestic Product (GDP): A slowing GDP growth rate is a strong indicator that the economy may need a boost.
    • Unemployment Rate: An increase in unemployment could signal economic weakness.
    • Inflation: If inflation remains below the Fed’s target (currently around 2%), it may prompt rate cuts to stimulate demand and push inflation higher.
  2. Financial Market Conditions:
    • Stock Markets: Persistent declines in stock markets can lead to reduced consumer confidence and spending, prompting the Fed to cut rates.
    • Bond Yields: Inverted yield curves (where short-term rates are higher than long-term rates) often precede recessions and may trigger rate cuts.
  3. Global Economic Trends:
    • Trade Policies: Tariffs and trade disputes can negatively impact the U.S. economy, leading to calls for rate cuts.
    • Foreign Exchange Rates: A strong U.S. dollar can hurt exports, which might necessitate rate cuts to weaken the currency and improve competitiveness.
  4. Geopolitical Events:
    • Political Instability: Uncertainty caused by political events can dampen economic activity and encourage rate cuts.
    • Natural Disasters: Major disasters can disrupt economic activity and require stimulus measures.

Analyzing Current Conditions

As of July 31, 2024, the U.S. economy shows mixed signals. While the unemployment rate remains low, there are concerns about slowing GDP growth and inflation below the target level. Financial markets have been volatile, with some signs of an inverted yield curve. Global trade tensions have eased somewhat, but they remain a concern.

Forecasting the Next Rate Cut

Based on the current economic landscape, we can make an educated guess about when the next rate cut might occur. If the following conditions persist or worsen:

  • Economic Growth: If GDP growth continues to slow or enters negative territory.
  • Inflation: If inflation remains stubbornly low.
  • Financial Market Stress: If stock markets experience prolonged downturns or bond yields continue to invert.

Prediction:

Given the current state of the economy and assuming no significant improvements, we predict that the next interest rate cut by the Federal Reserve could occur in the fourth quarter of 2024 or early 2025. This prediction is contingent on the persistence of the aforementioned economic pressures and the absence of significant positive developments.

While predicting exact dates for interest rate cuts is challenging, analyzing key economic indicators can provide valuable insights. The Federal Reserve’s decisions are influenced by a variety of factors, and the timing of the next rate cut will depend on how these factors evolve. Traders and investors should monitor economic data releases, Fed statements, and market movements to stay informed about potential changes in monetary policy.

Disclaimer: This article provides a general forecast based on current conditions and should not be taken as financial advice. The actual timing of interest rate cuts will depend on various factors and can differ significantly from predictions. It is always advisable to consult with a financial advisor and conduct thorough research before making investment decisions.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

https://www.topforexbrokerscomparison.com

EURUSD BREAKS KEY LEVEL AND LOOKS WEAK

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2016-12-09_09-50-38

EURUSD, Daily               

The euro eked out a fresh low versus the dollar while yen edged out a new low as most stock markets in Asia picked up the risk-on vibe imparted by the ECB’s announcement of a net increase in stimulus. EURUSD posted a four-day low at 1.0589 in Asian trade before settling to a narrow range in the low 1.06s. USDJPY logged a four-session peat at 114.56, nearing the 114.82 10-month peak seen on November 30. Yen crosses were also firmer today, pointing to a generally soft tone in the Japanese currency. Elsewhere, USDCAD consolidated above the two-month high of yesterday, despite a second day of gains in oil prices. AUDUSD oscillated around 0.7450, holding well within yesterday’s range.  European Stock markets, which rallied in the wake of the ECB announcement yesterday, are mixed, with the DAX down -0.11%, against a gain of 0.11% in the French CAC 40 and a rise of 0.13% in the FTSE 100. Eurozone peripherals, which outperformed yesterday, are underperforming and the Italian MIB is down nearly 1%.

The EURUSD closed significantly below the key 20 DMA last night and a SHORT position was opened at 1.0620.There could be some consolidation around this key level, as the Parabolic SAR remains positive and the Bollinger bands are compressing.  Target 1 is 1.0550 and then a retest of recent low at 1.0503 and Target 2 1.0500.Thereafter, next support appears at 1.0160, parity 1.000 and 0.9880.  The MACD, RSI and OBV are all suggesting more weakness ahead.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

EURUSD BREAKS 1.0800 AS ECB TAPERS QE

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2016-12-08_14-55-02

EURUSD, Daily               

ECB disappoints with QE tapering. The ECB left rates unchanged, but while the QE program was extended, monthly asset purchases were cut to EUR 60 bln from EUR 80 bln. The central bank said in the initial statement that QE will be increased if the outlook turns less favourable, but that wasn’t enough to prevent a sharp drop in Bund futures, which already declined going into the announcement and are now down 132 ticks on the day, while the cash yield is up 9.3 bp and spreads widen sharply, with the Italian 10-year up 15.2 bp, the Spanish up 13.4 bp and the Portugeuse 10 bp.  ECB settles for less monthly QE for longer, in what looks like a typical European compromise. Monthly purchase volumes were cut back, but instead of the 6 months QE extension markets had been looking for the ECB committed to a 9 months extension and also reserved the right to increase monthly purchases if the overall situation changes. And with officials previously stressing that there will be no abrupt end to monthly purchases, this means the ECB will remain in the market for the foreseeable future and the balance sheet will continue to expand with today’s package amounting to at least half a trillion Euros in additional stimulus. So still much for markets to cheer, even if the initial reaction clearly shows disappointment Draghi will hope that things settle down quickly, when the details start to sink in.

EURUSD which had broken 1.0800 earlier falls 50 pts to 1.0750, the ECB press conference up next will be more interesting than usual.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.