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Forex Market Unfazed By North Korea Provocations

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Dear Traders,

There was not much to gain for daytraders yesterday or, more explicitly, the Forex market was unfazed by the developments on the North Korea front. Following North Korea’s nuclear test and latest provocative actions, there was an increasing demand for safe havens such as Gold but on the currency front, there was no clear trend on Monday. In recent times, markets generally tend to ignore large risks, rather, they are betting against them. Whether this behavior is an underestimation or the right preparation remains to be seen.

EUR/USD hovered around 1.19 but with US markets closed for a holiday, insufficient liquidity hindered the currency pair to rally. We now focus on the short-term resistance at 1.1920. If the pair is able to break through that barrier, we expect higher targets at 1.1960 and possibly even another run for 1.20. On the bottom side, traders should pay attention to a break below 1.1860. A lower target could then be at 1.1825, followed by 1.1785.

GBP/USD trended lower but remained well above 1.29. As noted in yesterday’s analysis, the cable would need to break significantly below 1.29 in order to invigorate fresh bearish momentum. As long as 1.29 remains unbroken we favor a neutral stance in this pair. A break above 1.2960 could encourage buyers for another test of 1.30.

The U.K. Services PMI is scheduled for release at 8:30 UTC.

From the U.S., we have Durable Goods Orders due for release at 14:00 UTC but this report is not expected to have a significant impact on the greenback.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

 

Quiet Summer Months

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Dear Traders,

It was a quiet start to the new week with both major currency pair fluctuating within narrow trading ranges. Generally, the summer months of July and August are traditionally the quietest time of the year in the financial markets. Hence it is not unusual that the market is sluggish. Given these moderate market conditions we advise traders to take profits even at smaller targets as the market may fail to generate major moves and do not invest too much during the summer period.

The euro traded slightly higher against the U.S. dollar after figures showed the German Ifo index fell less than expected in July. However, the euro was not able to break through the 1.10-hurdle and remained in a sideways movement. Once it climbs above 1.10, we expect the 1.1025/30-level to act as a resistance for the currency pair. Today’s price action will hinge on the appetite for dollars as the focus will be on important U.S. data such as Consumer Confidence due for release at 14:00 UTC.

The cable traded sideways between 1.3165 and 1.3080. We will now focus on a break below 1.3070 in order to sell sterling toward lower levels. On the upside gains might be capped at 1.32.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2016 Maimar-FX.

www.maimar.co

 

 

 

The Forex market

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The word Forex or FX describes the trading in the Foreign Exchange market (or currency market).

The Forex Market is the largest financial market in the world and turns over  up to  $ 5 trillion per day!

The main participants in the Forex market are larger international banks (central banks and federal governments), followed by insurance companies, hedge funds, other financial firms and last but not least the speculative retail traders all over the world.

Trading currencies was not always available for retail traders:

  • Since 1971, after the Bretton Woods system broke down, the trading with Forex was restricted only to the large companies as banks or large financial institutions.
  • The world finally accepted the use of floating foreign exchange rates during the Jamaica agreement in 1976.

 Since 1996 the speculative retail traders have been able to trade Forex. It was the first generation of forex online trading platform based on the internet.

The forex market is the most liquid financial market in the world and the average daily turnover is continuously growing.

The foreign exchange market is unique because of:

  • its continuous operation – 24 hours a day (except weekends)
  • trading costs are less
  • no market manipulation due to high liquidity
  • the use of leverage to enhance profit and loss margins
  • its geographical dispersion