How Do Interest Rates Impact Forex Trading?

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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

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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: Promising, but Not a Miracle Solution

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The recent changes in Nigeria’s foreign exchange market, announced by the Central Bank of Nigeria, have sparked optimism. The shift allows market forces, rather than the central bank, to determine currency rates, reflecting the Bola Ahmed Tinubu administration’s commitment to market-driven valuation of the naira. Previously, Nigeria had multiple exchange rates, a situation the International […]

Mastering Forex Market Hours: A Guide for Traders

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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

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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

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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

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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

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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

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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 […]

U.S. Dollar Retreats Despite Rising Treasury Yields, Prompting Gold Rally

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The U.S. dollar, represented by the DXY index, experienced a decline on Monday after a strong rally the previous week. This came despite the rise in U.S. Treasury yields across various time frames. By early afternoon in New York, the dollar gauge was down 0.23% at 102.46, stepping back from its five-week high reached overnight. […]