Tag: Forex

Mexico’s central bank was divided in its decision to keep the key interest rate at a decade high Thursday, with one board member voting for a quarter-point cut as the economy sputters.There’s a consensus building that the U.S. will join central banks from Chile to Australia and cut rates next month amid prospects of slower global growth, and while analysts have been expecting no change from Mexico through year-end, the board may be preparing the way for an eventual reduction, said Alberto Ramos, the chief Latin America economist at Goldman Sachs Group Inc.“We still believe interest rate cuts this year

10,000 Ft View – 4 Hr Chart

Lets zoom in for the trade set-up. The sellers took out the pivot low, then price was range bound for a couple of days before return to the 4 hr supply.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

A divided Federal Reserve held the line on interest rates Wednesday and indicated formally that no cuts are coming in 2019. The decision came amid divisions over what is ahead and still leaves open the possibility that policy loosening could happen before the end of the year depending on how conditions unfold.

The central bank predicts one or two rate cuts in its set of economic predictions, but not until 2020. Despite cautious wording in the post-meeting statement Wednesday, markets are still betting the Fed cuts, as soon as July.

Source

Not only are the Equity Markets still betting on a Fed cut,

Some of the world’s
currencies are accepted for most international transactions. The most popular
currencies are accepted for most international transactions are the U.S.
dollar, the euro, and the yen. However, the U.S. dollar is the most popular.
And in the foreign exchange market 90 of forex trading involves the U.S.
dollar. Thus, when assessing the relative strength of the most popular
currencies in the world, it’s always against the U.S. dollar, using the daily
time frame chart.

The “major” forex
currency pairs are the major countries that are paired with the U.S. dollar
(the nicknames of the majors are in parenthesis).

AUD/USD – Australia dollar (Aussie) vs. the U.S. dollar

EUR/USD

BlackRock Inc. is shorting the Australian dollar on a bet the central bank will cut interest rates to as low as 0.5% to revive the struggling economy.The Aussie will extend recent declines and probably fall as low as 65 U.S. cents next year, said Craig Vardy, head of fixed income for Australia in Sydney at BlackRock, which oversees $6.52 trillion. The Reserve Bank of Australia will keep easing as the economy cools and U.S.-China tensions weigh on global growth, he said.BlackRock isn’t alone in expecting the RBA to keep easing. Franklin Templeton Investments and JPMorgan Chase & Co. say Aussie

BlackRock Inc. is shorting the Australian dollar on a bet the central bank will cut interest rates to as low as 0.5% to revive the struggling economy.The Aussie will extend recent declines and probably fall as low as 65 U.S. cents next year, said Craig Vardy, head of fixed income for Australia in Sydney at BlackRock, which oversees $6.52 trillion. The Reserve Bank of Australia will keep easing as the economy cools and U.S.-China tensions weigh on global growth, he said.BlackRock isn’t alone in expecting the RBA to keep easing. Franklin Templeton Investments and JPMorgan Chase & Co. say Aussie

Australia’s central bank is likely to lower interest rates again to drive increased hiring and boost households’ confidence that inflation will return to target.

The Reserve Bank made the comment in minutes of its June 4 policy meeting, when it eased the cash rate to 1.25% in the first reduction in almost three years. The report was released in Sydney Tuesday.

“The July meeting is clearly live, but we marginally favor August for the next 25 basis-point cut because it coincides with the Statement on Monetary Policy,” said Gareth Aird, senior economist at Commonwealth Bank of Australia, referring to the RBA’s quarterly

Russia joined a growing pack of emerging-market nations lowering interest rates and signaled more reductions to come, boosting bonds and the ruble and leaving traders to guess the timing of its next cut.The first reduction in more than a year had been expected and strategists said Bank of Russia’s dovish tone was justified given weak growth and slowing in inflation, meaning further cuts wouldn’t hurt the world’s best-performing currency this year. With the Federal Reserve predicted to lower rates in the U.S., Russia’s carry-trade appeal should endure, ensuring further flows into the nation’s bonds.Piotr Matys, currency strategist at Rabobank in

10,000 Ft View – Daily Chart

Lets zoom in for the trade set-up.

What I like about the set-up is the buyers took out the pivot low in yellow circle. In addition, the 0.6545 level appears to be a level that price likes as indicated by the purple circles.

This trade is a position trade, meaning I’m willing to hang on to the trade for months/years if price moves in my favor as my trade is 500 pips away.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making

Some of the world’s currencies are accepted for most international transactions. The most popular currencies are accepted for most international transactions are the U.S. dollar, the euro, and the yen. However, the U.S. dollar is the most popular. And in the foreign exchange market 90 of forex trading involves the U.S. dollar. Thus, when assessing the relative strength of the most popular currencies in the world, it’s always against the U.S. dollar, using the daily time frame chart.

The “major” forex currency pairs are the major countries that are paired with the U.S. dollar (the nicknames of the majors are in