Tag: forex

How Do Interest Rates Impact Forex Trading?

Interest rates play a significant role in the forex market, with the currency’s interest rate being the key factor that influences trading. Money tends to flow towards the currency offering the highest real interest rate, which is the nominal interest rate adjusted for inflation. Forex traders closely monitor central bank interest rates and their expected […]

Feasibility of a BRICS Currency: Balancing Benefits and Challenges

As the BRICS nations contemplate the introduction of a common reserve currency, concerns arise regarding its viability and the potential advantages it may offer. This article critically examines the BRICS bloc’s capacity to develop a global currency comparable to the US dollar, with a particular focus on India’s challenges in embracing this initiative. While internal […]

Nigeria’s Foreign Exchange Policy: A Step Forward, But No Magic Wand

Nigeria’s foreign exchange market has been buzzing lately, thanks to some significant changes announced by the Central Bank of Nigeria (CBN). These changes, which have sparked a wave of cautious optimism, shift the responsibility of determining currency rates from the central bank to market forces. This move aligns with President Bola Ahmed Tinubu’s administration’s push […]

Mastering Forex Market Hours: A Guide for Traders

For those venturing into the exciting world of forex trading, understanding the dynamics of forex market hours is crucial. The global forex market operates 24 hours a day, providing ample opportunities for traders worldwide. In this article, we will explore the significance of forex market hours, the four major trading sessions, and the best times […]

Understanding Short Covering in Stock Trading: Explained

Short covering plays a significant role in the process of short-selling shares, impacting both investors and speculative traders. It involves buying back shares to close out a short position, typically after borrowing them from a third party. This article delves into the mechanics of short covering, its implications, and the potential outcomes for traders. Short […]

Japanese Authorities Vigilant of Japanese Yen Volatility

The Bank of Japan (BoJ) plans to maintain its ultra-loose monetary policy as Governor Ueda reaffirms the need for accommodative measures until sustainable inflation of 2% is achieved. Expectations are that price pressures will decrease significantly by the middle of next year. This stance aligns with the central bank’s commitment to continue large-scale monetary easing […]

DAX and USD/JPY Show Mixed Outlook Amid Global Economic Concerns

DAX Index Faces Headwinds on China’s Growth Worries and German Inflation Data The DAX index has experienced a downward trend for the past three consecutive days and six out of the last seven sessions. Alongside other European equities, the DAX is being affected by mounting concerns regarding the economic recovery in China and increasing fears […]

Canadian Dollar Weakening Despite Strong Crude Oil Prices: USD/CAD Price Forecast

Fundamental Background of the Canadian Dollar The Canadian dollar’s performance is closely tied to the ongoing negotiations regarding the US debt ceiling, which has resulted in increased support for the US dollar (USD). Additionally, the recent rally in crude oil prices has somewhat limited the upside potential for USD/CAD bulls before the start of the […]

Dollar Retreats from Five-Week Highs as Investors Secure Profits

Dollar Retreats in European Trade: Breaking Five-Week High Streak In European trade, the dollar experienced a decline, breaking its three-session streak of reaching five-week highs, as investors engaged in active profit-taking. The focus now shifts to crucial remarks from Federal Reserve officials, particularly Fed Chair Jerome Powell, and upcoming US data that will provide insights […]

What’s Happening? US Dollar Pulls Back After Strong Rally

The US dollar, represented by the DXY index, found itself on the back foot this Monday, retreating after a strong performance last week. Despite the upward movement in US Treasury yields across various time frames, the dollar couldn’t maintain its rally. By early afternoon in New York, the DXY index had slipped by 0.23%, landing […]