In extreme circumstances, for instance after a strong trend or imbalance in a currency exchange rate, keep a close eye on central bankers rhetoric and actions, as an intervention may be adopted in an attempt to reverse the exchange rate and nullify a trend set by speculators.
This is not something which happens often but can be seen specially at times when exchange rates get a bit out of hand, either falling or rising too rapidly.At those times central banks may step in in order to generate a specific reaction. They know the market participants pay close attention to them and respect their comments and actions.
Their sheer financial power to borrow or print money gives them a huge say in the value of a currency. The opinions and comments of a central bank should never be ignored and it is always good practice to follow their comments, whether in the media or on their website. Read More
VIDEO: How to Beat the Central Banks at Their Own Game - Rob Colville
VIDEO: The Impact of Central Banks on your Trading Strategy - Richard Perry
VIDEO: Technical Analysis in a Central Bank World - Joseph Trevisiani
This is not something which happens often but can be seen specially at times when exchange rates get a bit out of hand, either falling or rising too rapidly.At those times central banks may step in in order to generate a specific reaction. They know the market participants pay close attention to them and respect their comments and actions.
Their sheer financial power to borrow or print money gives them a huge say in the value of a currency. The opinions and comments of a central bank should never be ignored and it is always good practice to follow their comments, whether in the media or on their website. Read More
Do you want to learn more?
VIDEO: Are Central Banks major players in Forex industry? - Jarratt DavisVIDEO: How to Beat the Central Banks at Their Own Game - Rob Colville
VIDEO: The Impact of Central Banks on your Trading Strategy - Richard Perry
VIDEO: Technical Analysis in a Central Bank World - Joseph Trevisiani
Editors’ Picks
EUR/USD tumbles out of recent range, tests below 1.0770 as markets flee into safe havens
EUR/USD slid below the 1.0670 level on Tuesday after an unexpected uptick in US wages growth reignited fears of sticky inflation, chopping down rate cut expectations and sending investors into safe haven bids.
GBP/USD holds below 1.2500 ahead of Fed rate decision
The GBP/USD pair holds below 1.2490 during the early Asian session on Wednesday. The downtick of the major pair is supported by the stronger US Dollar amid the cautious mood ahead of the US Federal Reserve's interest rate decision later on Wednesday.
USD/JPY holds higher ground near 158.00, Fed in focus
USD/JPY holds the rebound near 158.00 in Asian trading on Wednesday. The US Dollar remains on the bid amid a risk-off market environment, underpinning the major. The interest rate differential between Japan and the US is likely to maintain a bullish pressure on the pair ahead of the Fed decision.
Editors’ Picks
AUD/USD stays defensive below 0.6500 ahead of Fed
AUD/USD is on the back foot below 0.6500, consolidating the previous decline early Wednesday. China's holiday-led thin conditions and pre-Fed policy decision caution trading leave Aussie traders on the edge.
USD/JPY holds higher ground near 158.00, Fed in focus
USD/JPY holds the rebound near 158.00 in Asian trading on Wednesday. The US Dollar remains on the bid amid a risk-off market environment, underpinning the major. The interest rate differential between Japan and the US is likely to maintain a bullish pressure on the pair ahead of the Fed decision.
Gold pullbacks on rising US yields, buoyant US Dollar as inflation heats up
Gold prices drop below the $2,300 threshold on Tuesday as data from the United States show that employment costs are rising, thus putting upward pressure on inflation. XAU/USD trades at $2,296 amid rising US Treasury bond yields and a stronger US Dollar.
Bitcoin price dips into $60K range as spot traders flock to Coinbase Lightning Network
Bitcoin price slid lower on Tuesday during the opening hours of the New York session, dipping its toes into a crucial chart area. It comes as markets continue to digest the performance of Hong exchange-traded funds after their first day of issuance.
Federal Reserve meeting preview: The stock market expects the worst
US stocks are a sea of red on Tuesday as a mixture of fundamental data and jitters ahead of the Fed meeting knock risk sentiment. The economic backdrop to this meeting is not ideal for stock market bulls.
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