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 climbs to daily highs near 1.1820
EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.
GBP/USD trims losses, retests 1.3460
After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.
Japanese Yen gives back half of early gains against USD ahead of US PPI data
The Japanese Yen (JPY) surrenders half of its early gains against the US Dollar (USD) during the European trading session on Friday. The USD/JPY pair rebounds to near 155.90 as the JPY falls back, but is still 0.15% down.
Editors’ Picks
EUR/USD: Fed calm, ECB steady, but the Dollar still leads Premium
EUR/USD is still struggling to find real traction. The pair has tried to stabilise, but momentum keeps fading, leaving the door open to further weakness.
Gold: Falling US yields, geopolitics help XAU/USD hold ground Premium
Gold (XAU/USD) gained traction and climbed above $5,200, ending the fourth consecutive week in positive territory. The next round of US-Iran talks and crucial macroeconomic data releases from the US will be watched closely by market participants in the short term.
GBP/USD: Will Pound Sterling defend key 1.3450 support ahead of US jobs data? Premium
The Pound Sterling (GBP) entered a bearish consolidation phase against the US Dollar (USD), after having tested critical support near the 1.3450 level on several occasions.
Bitcoin: Another month of losses, and it’s been five
Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.
US Dollar: At a crossroads; Fed steady, tariffs in flux Premium
The US Dollar’s (USD) upward momentum from the previous week seems to have encountered a tough nut to crack in the 98.00 region, as measured by the US Dollar Index (DXY).
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