Forex

The ECB Changes Monetary Policy Strategy to Symmetric Target On 8 July the ECB announced its new monetary policy strategy of symmetric 2% inflation over the medium term. The target is symmetric in that any deviation, be it positive or negative, is regarded as "equally undesirable." Market participants were eager to learn more and there was a keen focus on the ECB statement and President's Lagarde's press conference on 22…

When it comes to active forex trading, there are three basic types of analysis: fundamental, technical and hybrid. Each features a collection of unique advantages and may be integrated within the context of a comprehensive trading plan. However, for legions of traders around the globe, technical analysis is the go-to methodology for crafting astute market-oriented decisions. What Is Forex Technical Analysis? Technical analysis is the exclusive study of past and…

For active forex traders, properly locating orders is a key part of conducting day-to-day business. Understanding order functionality and how different types impact trade execution is critical to interacting within the market competently. If not, untimely mistakes can lead to lost opportunity, or worse, lost capital. On the buy-side of the equation, there are two order types that market participants need to be familiar with: buy limits and buy stops.…

In forex trading, selecting the proper order type for the job is an important task. No matter if one is a short-term scalper or long-term investor, the way in which the market is entered and exited plays a key role in sustaining profitability. After all, achieving optimal trade execution depends greatly upon how efficiently one interacts with the market itself. Types Of Forex Orders The world's financial markets are competitive…

The foreign currency exchange, or forex (FX), is a decentralised, electronic marketplace. It's the world's single largest trading venue and includes a wide variety of participants from every corner of the earth. Institutional investors, retail traders and liquidity providers engage the forex on a 24/5 basis, generating average daily volumes upwards of US$6 trillion. The robust participation promotes consistent liquidity and volatility, two attributes conducive to the creation of hedging…

Over the course of human history, certain periods of time have proven especially tumultuous. Racial divides, famine, pandemic and political upheaval all pose unique challenges. In some cases, these events stimulate extreme social conflict. From the late-18th century French Revolution to the end of South African aparthied 200 years later, civil unrest has been a disrupter of financial markets, economic systems and the global currency exchange. Although the forex is…

ZARUSD Currency Pair The rand (ZAR) has been the official currency of South Africa since 1961 when the country first became a republic. As the biggest US trade partner in Africa, in 2018 South Africa traded a dual value of US$14 billion. United States is the third-largest trading partner to South Africa, and a dual bilateral trade agreement has been in existence since 1994. History Of ZARUSD In 1789 the…

Throughout the COVID-19 pandemic of 2020, emerging market (EM) currencies faced a collection of unprecedented challenges. As a result, many EM currencies experienced a swift devaluation due to falling commodity prices and a large-scale migration to financial safe-havens. Although renowned for their volatility, these currencies encountered extreme forex turbulence as COVID-19 brought the global economy to a standstill. What Is An Emerging Market Currency? An EM currency is one that…

The South African rand (ZAR) is a free-floating currency, local to Africa's second-largest economy. Operating without a commodity or currency peg, the rand's value is relative to evolving levels of supply and demand. As individuals, banks, corporations and foreign nations stockpile the rand, it appreciates in value. Conversely, a perceived lack of worth depresses demand, leading to bearish pressure being placed on the ZAR's forex performance. According to the Bank…

According to the Bank of International Settlements' (BIS), the foreign exchange market accounts for US$6.6 trillion in aggregate daily turnover. Monies of all types contribute to this enormous figure, making the forex the largest marketplace in the world. Among the most prominent are the major, minor, exotic and commodity currencies. By definition, a commodity currency (also known as "commodity dollar" or "comdoll") is one that exhibits a quantifiable correlation to…