Sergey Kamenshikov, Ph.D.
IFC Markets
Summary
There is a conventional division of classic trading systems into classes: mean reversion and trend-following. In current webinar we disclose using of synthetic instruments that initially possesses trend behavior with long term memory. In this case a trader controls volatility structure with the use of technical and statistical analysis. We consider currency cross rates and some mixed instruments to reach reverse spreads. A negative correlation between underlying currencies/assets means that a basic asset growth corresponds to a quoted asset drop and vice versa. Under certain conditions these instruments are distinguished by long-term trends and short-lived flat periods. A flat movement pattern becomes unstable. We consider the trading results of a simple moving average approach filtered by correlation analysis. It has been proven that reverse spread is a perfect instrument for trend following with higher winning rate than major currency pairsLatest Live Videos
Editors’ Picks
USD/JPY slides back below 156.00 as Tokyo CPI backs further BoJ rate hikes
USD/JPY attracts fresh sellers for the second straight day following the release of Tokyo CPI, which grew slightly more than expected in February. This comes on top of hawkish comments by BoJ officials and backs the case for further policy tightening, providing a modest lift to the Japanese Yen. Apart from this, sustained safe-haven buying, amid trade-related uncertainties and geopolitical tensions, benefits the JPY's safe-haven status. However, reduced Fed rate cut bets underpin the US Dollar and could help limit losses for the currency pair.
AUD/USD consolidates around 0.7100 as trade and geopolitical uncertainties counter hawkish RBA
AUD/USD steadies around 0.7100 following the previous day's modest pullback and remains on track to register gains for the sixth week in a row as the RBA's hawkish stance continues to underpin the Aussie. However, reduced bets for a more aggressive easing by the US Fed keep the US Dollar close to the monthly peak. Furthermore, trade uncertainties and threats of imminent US strikes on Iran act as a headwind for the risk-sensitive Australian Dollar.
Gold remains below $5,200 despite tariff jitters and geopolitical risks
Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.
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Artificial Intelligence (AI), blockchain technology and stablecoins are emerging as core pillars of a new global economic system, according to Circle’s CEO, Jeremy Allaire.
Changing the game: International implications of recent tariff developments
The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.
Here is what you need to know on Friday, February 27:
Initial Jobless Claims in the week ending February 21 came in at 212K, below economists' expectations of 215K but slightly above the previous reading of 208K. Continuing Claims also declined to 1.833 million, signaling stabilization in labor market conditions.