Forex Crunch British Rate Hike – Not So Soon – Pound falls |
- British Rate Hike – Not So Soon – Pound falls
- You’re Married?… Not When You’re Trading You Aren’t
- Forex Daily Outlook – July 21 2010
- Bank of Canada lowers expectations – USD/CAD rises
| British Rate Hike – Not So Soon – Pound falls Posted: 21 Jul 2010 01:31 AM PDT
The MPC Meeting Minutes revealed that there’s still only one member, Andrew Sentance, who wants a rate hike. So, the rising inflation will continue to be disregarded. Without an upcoming rate hike, GBP/USD doesn’t have fuel to rise. This sends GBP/USD down from 1.5330 to 1.5260. Andrew Sentance surprised with his vote last time, and created the impression that the rising inflation will force the BoE to raise the rates. He repeated this opinion in interviews that he gave in the past month. Nevertheless, Mervyn King, that disregarded rising inflation again and again, did it once again. Also the other members weren’t impressed. British CPI is currently at an annual rate of 3.2%, above the government’s target range of 1-3% but already below the peak of 3.7% that it reached at the beginning of the year. GBP/USD back to the range The Pound broke out of a tight range last week, and made a move towards the all-important resistance line of 1.5520. It didn’t manage to end the week in these levels and fell back down below 1.5350, an important pivotal line. Also now, 1.5350 caps the pair. Looking down, 1.5230 is minor line of support, and it’s followed by 1.5130 and then by 1.5050. Earlier today, the Pound made a roller coaster move down from 1.52 to 1.5174 and back up all the way and even higher, in a time span of less than an hour. Want to see what other traders are doing in real accounts? Check out Currensee. It's free..       |
| You’re Married?… Not When You’re Trading You Aren’t Posted: 20 Jul 2010 11:04 PM PDT
Guest post from visionsofaffluence.com Being able to trade and make a living from your own home has many benefits. You avoid commuting, you can set your own hours , and you can work in your pajamas just to name a few. However there is one great drawback to working from home. A force that threatens to derail your attempts at financial independence and send you back to 9-5 world. And the name of this debilitating force, this scourge of traders is… Distraction
You see when you work from an office there really isn't much to distract you. There is no couch calling to you telling you to come relax. There is no television begging you to watch it. No children running around or a spouse asking for help with something. However, all of those things and more are in your home just waiting for an opportunity to distract you from what you should be doing and that's trading. So, with all of these distractions how are you ever supposed to get any trading done? The key is to set boundaries. You have to create a work friendly environment and that means setting a time and place for your trading. You need to decide on hours when you are going to trade and let the people in your home know that during that time they should act as if you aren't in the house unless it is an emergency . This might be hard for them at first but if you stick to it and are firm in the beginning they will get used to it. In addition to setting boundaries with others you also need to set a workspace and tell yourself that when you are working this is your office and to act as if your home is not right outside your doors .That means no leaving, your office to get a snack or to do anything else other than use the bathroom because if you were working a job you wouldn't be able to just leave and go home when ever you wanted to so you shouldn't do it now. If you feel like you may want a snack bring it with you when you start trading, because once you enter you trading space there is no leaving until your job is done. This may seem a little harsh but trust me your bank account will thank you. Like this article? Vote for it on Forex Factory!    |
| Forex Daily Outlook – July 21 2010 Posted: 20 Jul 2010 02:00 PM PDT
Some interesting and important news In the U.S., Fed chair Ben Bernanke is to testify in Washington and also data on crude oil inventories, In the U.K. MPC Meeting Minutes, Canada will produce important data on wholesale sales and more. Let’s see what awaits us today. In the US, Federal Reserve Chairman Ben Bernanke; Testifies on the semi-annual monetary policy report before the Senate Banking Committee, in Washington DC, His comments will be closely watched by traders for clues to the future direction of monetary policy.
Later in the US, the weekly report regarding Crude Oil Inventories that measures the change in the number of barrels of crude oil held in inventory by commercial firms shows a rise of 4 Million, it is a US indicator but affects the loonie due to Canada’s sizable energy sector, and affects inflation, but also impacts growth as many industries rely on oil to produce goods. Meanwhile, in Canada Wholesale Sales an important monthly report and a leading indicator of consumer spending In Canada stabilizes on 0.3% over the last 2 months. For more on USD/CAD, read the Canadian dollar forecast. In the U.K. the Bank of England is to release the Bank’s Monetary Policy Committee (MPC) Meeting Minutes It’s a detailed record of the BOE MPC’s most recent meeting, providing in-depth insights into the economic conditions that influenced their vote on where to set interest rates, and offering clues on the outcome of future votes. Read more about the Pound in the GBP/USD forecast. In Australia, Melbourne Institute (MI) Leading Index, this monthly report index is designed to predict the direction of the economy and as indicators of economic growth. For more on the Aussie, read the AUD/USD forecast. In New Zealand, Credit Card Spending, monthly report that measures the Change in total spending facilitated with a credit card and is a leading consumer spending indicator. Later in New Zealand, Visitor Arrivals, monthly report that tourism plays an important role in the economy – about 10% of the population is employed by the tourism industry, and a sizable portion of the nation’s GDP is indirectly related to tourism. In Japan, Monetary Policy Meeting Minutes, It’s a detailed record of the BOJ Policy Board’s meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. That’s it for today. Happy forex trading! Want to see what other traders are doing in real accounts? Check out Currensee. It's free.    |
| Bank of Canada lowers expectations – USD/CAD rises Posted: 20 Jul 2010 06:07 AM PDT
The Bank of Canada did it again – the rates were raised by 0.25% to 0.75%. There was a consensus for this move. What wasn’t expected was a weaker forecast for the Canadian economy. So, the decision hurts the Canadian dollar. USD/CAD now trades at 1.5560, about 40 pips higher than before the release. Will it convincingly break above the resistance line? In the statement that accompanied the rate hike, Mark Carney and his team said:
The initial rate hike, from 0.25% to 0.50% was also expected by economists and failed to boost the loonie. It then traded lower on worries about the future. When a big hint for the rate hike was released, the Canadian dollar jumped, but when it happened in reality, it wasn’t impressed. Also now, the rate hike was overshadowed by the lower forecast. Earlier this week, USD/CAD was trading in a narrow range. After jumping on Friday above the resistance line of 1.04 and flirting with the 1.0550 resistance line, USD/CAD traded in a range between 1.0485 and 1.0550. In the hour before the release, trading became more choppy. USD/CAD reached 1.0585 before dropping to 1.0526 just before the release. Significant support for the pair is found at 1.04, followed by the 2009 low of 1.02 and the ultimate line of support – parity. Above, 1.0680 recently served as a line of resistance, and it’s followed by a veteran line – 1.0750, that stopped the pair several times in recent months. The last significant line in sight is 1.0850. Want to see what other traders are doing in real accounts? Check out Currensee. It's free..    |
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