Market confidence surged, led by Nvidia’s strong Q1 2024 forecast.
Nvidia’s success propelled the S&P 500 to record highs; Japanese index topped after 34 years.
Gold prices climbed, and the USD sought equilibrium amidst positive market sentiments.
Anticipated January PCE inflation results could prompt continued USD decline and boost gold.
Sterling remained strong with minimal impactful data expected to affect its position.
The Euro’s rally against major G7 currencies may be losing momentum as the week ended.
STOCK MARKET:
Economic data: Dallas Fed Manufacturing Activity, February (-27.4 previously); New home sales, January (684,000 annualized rate expected, 664,000 previously); New home sales, month-over-month, January (+3% expected, +8% previously)
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on February 26, 2024 at 8:18 am, by anakin
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on February 26, 2024 at 8:17 am, by anakin
As we approach the end of February 2024, the financial world turns its focus towards a series of crucial economic updates slated for release. These reports, spanning from Japan’s inflation rates to the ISM Manufacturing PMI in the United States, are poised to provide fresh insights into the global economic landscape. Among these, the Reserve Bank of New Zealand’s rate statement stands out as a particularly significant event. Here’s what to expect in the week ahead:
February 27, 2024: Japan’s inflation rate
The annual inflation rate in Japan has seen a decrease, landing at 2.6% in December 2023, down from 2.8% the previous month. This marks the lowest inflation rate since July 2022. Analysts are now eyeing a further drop to 2.1% for January 2024, with the data expected to be unveiled on 27 February. This anticipated decrease could signal easing inflationary pressures within the Japanese economy, offering a glimpse into the country’s current economic health.
February 27, 2024: US durable goods orders
In the United States, new orders for manufactured durable goods showed no significant change in December 2023, a stark contrast to the 5.5% rise observed in November. The forecast for January 2024 is less optimistic, with analysts predicting a 4.5% decline. Set to be released on 27 February, this data could reflect the changing dynamics in U.S. manufacturing and consumer confidence.
February 28, 2024: Australia’s CPI
Australia’s Consumer Price Index (CPI), a key indicator of inflation, increased by 3.4% in the year to December 2023, a slowdown from the 4.3% climb seen in November. Projections suggest a slight easing to 3.2% for January 2024, with the figures due on 28 February. A moderation in CPI growth may indicate that inflationary pressures are beginning to stabilise in Australia.
February 28, 2024: Reserve Bank of New Zealand’s rate decision
The Reserve Bank of New Zealand (RBNZ) previously held its official cash rate (OCR) steady at 5.5% during its November meeting. This pause, consistent for the fourth consecutive time, met market expectations. Analysts widely anticipate that the RBNZ will maintain the OCR at 5.5% in its upcoming 28 February meeting. The decision is keenly awaited, as it could signal the central bank’s outlook on New Zealand’s economic conditions and inflationary trends.
February 29, 2024: Canada’s GDP
Canada’s GDP growth for November exceeded expectations, registering a 0.2% increase. This improvement followed three months of stagnant growth. The forecast for December 2023 points to a further rise of 0.3%, with the announcement scheduled for 29 February. A consecutive growth increment would signify a strengthening in the Canadian economy’s recovery momentum.
February 29, 2024: US core PCE price index
The core PCE price index in the US, an important measure of inflation that excludes food and energy costs, experienced a slight uptick of 0.2% in December 2023. Analysts are now expecting a more pronounced increase of 0.4% for January 2024, with data due on 29 February. This anticipated growth could reflect persisting inflationary pressures within the core sectors of the U.S. economy.
March 1, 2024: US ISM manufacturing PMI
The ISM Manufacturing PMI in the United States showed signs of improvement in January 2024, reaching 49.1 from 47.1 in December, marking the highest level since October 2022. The forecast for February remains optimistic, with analysts predicting the index to hold at 49.1. The upcoming release on 1 March will be closely watched as an indicator of the health and direction of the U.S. manufacturing sector.
Written on February 26, 2024 at 3:43 am, by anakin
U.S. Dollar Maintains Strong Position: The USD continues to show a strong upward trend; focus is on EUR/USD, GBP/USD, and gold prices.
Date and Analyst: Article written by Diego Colman, Contributing Strategist, on February 23, 2024.
Anticipation for Core PCE Data: Markets are on alert for the upcoming U.S. core PCE data release, a key inflation indicator favored by the Fed.
Potential Market Volatility: The upcoming economic event may cause significant fluctuations in the FX market, requiring traders to stay alert.
Core PCE Projections: Expectations suggest a 0.4% rise in core PCE for January, potentially lowering the annual rate to 2.7% from 2.9%.
Inflation and Economy Dynamics: Recent CPI and PPI reports indicate potential for higher than expected inflation rates.
Fed’s Response to Inflation: Persistent inflation and strong labor market data might postpone the Fed’s easing cycle, possibly tilting rate expectations higher.
Interest Rates and U.S. Dollar: Prolonged higher interest rates could increase U.S. Treasury yields, potentially boosting the dollar’s upward momentum.
Impact on Currency Pairs and Gold: A strong dollar could hinder gains in EUR/USD and GBP/USD pairs, as well as pressure gold prices.
Technical Analysis Ahead: The article will next delve into the technical analysis for EUR/USD, GBP/USD, and gold prices, highlighting important price levels for traders.
STOCK MARKET:
Nvidia’s Earnings Drive Markets: Nvidia’s significant earnings report spurred markets to all-time highs across the US, Europe, and Japan.
Record Market Capitalization: Nvidia’s market cap surged by $277 billion in a single session, marking the largest increase ever.
Sustainability of the Tech Rally: Questions arise about the tech rally’s longevity and its potential spread to other sectors.
AI’s Role in Growth: UBS Global Wealth Management highlights generative AI as a key growth theme, driving Nvidia’s success and potential market broadening.
European Market Movements: The Stoxx Europe 600 index hits a record, driven by gains in the mining sector and positive corporate earnings.
Megacap Influence in Europe: A few large companies significantly contribute to the Stoxx 600’s performance, mirroring US market concentration risks.
Global Equity Outlook: Citigroup strategists predict a broadening of global equity returns beyond a narrow first quarter.
Asian Market Trends: Continued gains in China’s CSI 300 and steady performance in other Asian markets, despite Japan’s holiday closure.
Fed’s Interest Rate Strategy: Hawkish comments from Fed officials suggest rate cuts are on the horizon, but not imminent.
Commodity Market Updates: Mixed movements in oil, gold, and metals, with iron ore experiencing a notable weekly drop.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on February 23, 2024 at 8:36 am, by anakin
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on February 23, 2024 at 8:36 am, by anakin
Dans le marché financier en évolution continue et en croissance, la Génération Z fait des vagues en plongeant dans le domaine dynamique du trading Forex. Avec des trillions de dollars échangés quotidiennement et plus de 100 devises avec lesquelles trader, le marché Forex accueille une nouvelle génération de traders.
Pour les jeunes traders commençant leur voyage Forex, la recherche est essentielle. VT Markets, une plateforme de courtage de premier plan, est à l’avant-garde, fournissant une passerelle essentielle pour les jeunes traders pour naviguer dans le paysage excitant des marchés des changes. Cet article explorera les complexités du marché Forex, discutant des bases pour encourager la prise de décision éclairée à chaque échange.
Paires de devises
Dans le trading Forex, les devises sont échangées par paires, telles que EUR/USD ou GBP/JPY. La première devise de la paire est la devise de base, et la seconde est la devise de cotation. Comprendre la relation entre ces paires est crucial pour prendre des décisions de trading éclairées qui s’alignent sur la stratégie d’un trader.
Les paires de devises sont classées soit comme mineures, majeures ou exotiques. Une paire de devises majeure comprend les devises les plus largement échangées à l’échelle mondiale, incluant le Dollar Américain (USD) et une autre devise forte et reconnue mondialement, telle que l’Euro (EUR), le Yen Japonais (JPY) ou la Livre Sterling (GBP). Une paire de devises mineure implique le Dollar Américain (USD) apparié avec une devise d’une économie plus petite ou émergente, tandis que les paires de devises exotiques combinent une devise majeure avec une devise d’un marché plus niche, comme le Dollar Singapourien (SGD).
VT Markets permet aux traders d’accéder à plus de 40 paires de devises, offrant de nombreuses opportunités de diversification pour leurs portefeuilles Forex.
Analyse technique et fondamentale
Pour les traders de la Génération Z aspirant à prospérer en Forex, comprendre le pouvoir de l’analyse fondamentale et technique dans le trading Forex est la clé du succès continu. L’analyse fondamentale implique d’évaluer les indicateurs économiques, les événements géopolitiques et les actualités du marché pour évaluer la santé globale d’une devise. Les traders à succès utilisent ces connaissances pour prédire les mouvements futurs des prix et prendre des décisions stratégiques.
Il n’est donc pas surprenant que la jeune génération, étant à l’aise avec la technologie, trouve dans l’analyse technique une parfaite adéquation avec ses préférences. En utilisant des graphiques, des modèles et des indicateurs, les traders de la Génération Z sur VT Markets peuvent analyser les données historiques de prix pour prévoir les mouvements potentiels du marché.
Trading de CFD (Contracts for Difference)
Alors que de nombreux traders de la Génération Z se préparent à plonger tête première sur le marché des changes Forex, sécuriser les moyens financiers pour le faire peut s’avérer difficile, incitant les jeunes traders à considérer des méthodes alternatives. Les Contracts for Difference (CFDs) sont des dérivés financiers qui permettent aux traders de spéculer sur les mouvements de prix de divers instruments financiers, y compris les devises, sans posséder les actifs sous-jacents.
Pour ce faire, les traders utilisent l’effet de levier — la capacité de contrôler une taille de position plus grande sur le marché avec une quantité relativement plus petite de capital. Cela permet aux traders de la Génération Z sur des plateformes comme VT Markets de s’engager dans des marchés haussiers et baissiers et d’amplifier leurs opportunités de trading au-delà de la possession traditionnelle d’actifs.
Embrasser la technologie en Forex — MT4, MT5 et l’application VT Markets
Alors que le marché Forex continue de devenir plus numérique, les traders de la Génération Z sont habilités par la technologie de pointe, avec MetaTrader 4 (MT4) et MetaTrader 5 (MT5) en tête de ligne. Ces plateformes hautement développées offrent une expérience de trading transparente avec des outils de graphiques avancés, des capacités de trading automatisées et une analyse de marché en temps réel.
Avec ces plateformes, la Génération Z peut accéder à une mine d’informations et exécuter des trades avec facilité, tout cela à portée de main. Les jeunes traders peuvent télécharger et installer ces plateformes via le site web de VT Markets et accéder à un support complet pour les guider à travers le processus.
VT Markets se révèle également être un changement de jeu pour la jeune génération de traders en quête d’une expérience de trading fluide. L’application VT Markets offre une interface conviviale, permettant de trader en déplacement, de recevoir des mises à jour du marché en temps réel et de gérer leurs portefeuilles Forex sans effort. La conception intuitive de l’application s’aligne parfaitement avec les préférences de la génération technophile : un trading rapide, efficace et précis.
La voie à suivre avec VT Markets
Alors que le monde accueille une nouvelle génération de traders, le marché Forex ne cessera de croître. En tirant parti des ressources éducatives disponibles sur le site Web de VT Markets, les jeunes traders peuvent construire une base solide et gagner en confiance pour naviguer dans les complexités du marché Forex.
À propos de VT Markets
VT Markets est un courtier multi-actifs régulé présent dans plus de 160 pays. Le courtier a remporté de nombreux prix internationaux, y compris celui du Meilleur Courtier Multi-Actifs et du Courtier à la Croissance la Plus Rapide. Sa mission est de rendre le trading facile, accessible et fluide pour tous.
Pour plus d’informations, veuillez visiter www,vtmarkets.net ou envoyer un email à info@vtmarkets.com.
Written on February 23, 2024 at 8:04 am, by anakin
ETFs, or Exchange-Traded Funds, are gaining popularity among investors for their simplicity and versatility. They provide an easy way to invest in a range of assets, making them accessible for non-professional traders.
Imagine being able to invest in a diverse basket of stocks or bonds without the complexity of managing individual assets—that’s the power of ETFs.
In this article, we’ll explore why ETFs matter for forex traders, covering their basics, advantages, popular categories, and practical trading tips.
Understanding ETFs
ETFs are investment funds traded on stock exchanges, similar to individual stocks. However, they’re different from mutual funds and individual stocks in a couple of ways.
Firstly, ETFs are like mutual funds because they pool investors’ money to invest in various assets like stocks, bonds, or commodities. But, unlike mutual funds traded at the end of the day, ETFs are traded on stock exchanges throughout the day at market prices, just like stocks.
Secondly, ETFs differ from individual stocks because they represent ownership in a mix of assets, not just one company. So, when you invest in an ETF, you’re actually buying a share of a fund holding a bunch of different securities.
ETFs track specific benchmarks like the S&P 500 for stocks or the Barclays Capital Aggregate Bond Index for bonds, aiming to mirror their performance by holding similar assets.
For forex traders, ETFs offer diversification by investing in a variety of securities within one investment. This spreads risk, ideal for those with limited capital or seeking a diverse portfolio without buying multiple securities.
ETFs provide liquidity since they trade on stock exchanges throughout the day at market prices. This allows easy buying and selling, unlike mutual funds which trade once a day.
Furthermore, ETFs offer transparency by disclosing their holdings daily, giving investors clear visibility into their investments.
Popular ETF categories
ETFs come in various categories, each offering unique investment opportunities for forex traders. Here is a breakdown of the most common types:
1. Equity ETFs
These ETFs invest in stocks, providing exposure to a particular market, industry, or region. They offer diversification across multiple companies within a single investment.
For example, the SPDR S&P 500 ETF (SPY) tracks the performance of the S&P 500 Index, offering broad exposure to large-cap US stocks.
2. Bond ETFs
Bond ETFs invest in fixed-income securities such as government bonds, corporate bonds, or municipal bonds. They offer income generation and diversification, with varying levels of risk depending on the underlying bonds.
An example is the iShares Core US Aggregate Bond ETF (AGG), which tracks the performance of the US investment-grade bond market.
Brief history of ETFs source: Investopedia
3. Commodity ETFs
These ETFs track the performance of commodities like gold, silver, oil, or agricultural products. They provide exposure to commodity prices without the need for direct commodity ownership.
The SPDR Gold Shares ETF (GLD) is a popular example, offering exposure to the price of gold.
4. Sector ETFs
Sector ETFs focus on specific sectors or industries, such as technology, healthcare, or energy. They allow investors to target areas of the market they believe will outperform or diversify their portfolio.
For instance, the Technology Select Sector SPDR Fund (XLK) invests in technology companies within the S&P 500 Index.
Each category of ETFs has its own characteristics and potential benefits, catering to different investment objectives and risk tolerances.
Advantages of trading ETF CFDs
Trading ETFs through CFDs (Contracts for Difference) involves entering into a contract with a broker to speculate on the price movement of the ETF without owning the underlying asset.
When it comes to ETF CFDs trading, there are several advantages worth considering:
Flexibility and leverage: CFDs offer traders the flexibility to control larger positions with a smaller amount of capital, potentially amplifying gains or losses compared to traditional investing.
Long and short positions: CFD trading allows traders to take both long (buy) and short (sell) positions on ETFs, enabling them to profit from both rising and falling markets.
In summary, trading ETFs through CFDs provides forex traders with flexibility, leverage, and the opportunity to profit from both upward and downward price movements in the market.
Tips for successful ETF trading
By following these tips, you can enhance your chances of success in ETF trading while managing risks effectively:
Have a well-defined trading plan: It’s crucial to establish a clear trading plan outlining your goals, risk tolerance, and strategies. Stick to your plan and avoid making impulsive decisions based on emotions or market fluctuations.
Stay informed about market trends: Keep yourself updated on market trends and news that could affect ETF prices. This includes economic indicators, geopolitical events, and industry-specific developments. Being informed allows you to make informed decisions and adapt your trading strategy accordingly.
Diversify your investments: Spread your risk by diversifying across multiple ETFs representing different sectors or asset classes. This helps mitigate the impact of volatility in any single investment and allows you to capture opportunities in various market segments.
In conclusion, ETFs serve as versatile investment vehicles for forex traders, offering exposure to various asset classes like stocks, bonds, and commodities. Trading ETFs through CFDs provides flexibility, leverage, and profit opportunities. It’s essential to have a well-defined trading plan, stay informed about market trends, and practice responsible trading strategies. By implementing these principles, traders can navigate the market confidently and responsibly, maximising their potential for success.
Written on February 22, 2024 at 1:54 pm, by anakin
In forex trading, correlations show how different currency pairs or financial instruments move together. For example, when the EUR/USD pair goes up, the USD/CHF pair often goes down, and vice versa.
source: investopedia
Understanding these relationships is crucial. It helps traders predict market movements, manage risks, and make smarter decisions. In this guide, we will explore correlations in forex trading and how you can use them to improve your strategies. Let’s get started!
Understanding correlations
Correlation in forex refers to the statistical relationship between different currency pairs or financial instruments and how they move in relation to each other.
It is measured on a scale from -1 to +1, where -1 indicates a perfect negative correlation (inverse movement), +1 indicates a perfect positive correlation (same direction movement), and 0 indicates no correlation (movements are independent of each other).
Correlation types source: Simply Psychology
Understanding correlation helps traders anticipate how one asset’s movement may affect another.
Positive correlation: This occurs when two currency pairs or assets tend to move in the same direction. For example, if the EUR/USD pair goes up, the GBP/USD pair also tends to rise. Traders can use positive correlations to diversify their portfolios by trading multiple currency pairs that move in tandem, potentially reducing overall risk exposure.
Negative correlation: In contrast, negative correlation occurs when two currency pairs or assets move in opposite directions. For instance, when the USD/JPY pair increases, the price of Gold may decrease. Traders can use negative correlations as a hedging strategy to offset potential losses in one position with gains in another, helping to mitigate risk during market fluctuations.
Neutral correlation: Neutral correlation indicates a weak or non-existent relationship between currency pairs or assets. For example, the EUR/USD and USD/CHF pairs may show little correlation, meaning their movements do not significantly influence each other. While neutral correlations may not offer direct trading opportunities, they can still provide valuable information about market dynamics and help traders avoid making decisions based on false assumptions of correlation.
The correlation coefficient formula may seem complex, but you can use a specialised online calculator. source: BYJU’S
How to identify correlations
If you’ve decided to count the correlation between two currency pairs, here’s a guide to help you get started:
1. Select currency pairs: Choose the currency pairs you want to analyse for correlation. For example, you might want to examine the correlation between EUR/USD and GBP/USD.
2. Collect historical data: Gather historical price data for the selected currency pairs. You can obtain this data from various sources such as trading platforms, financial websites, or specialised data providers.
3. Calculate correlation coefficient: Use online correlation calculators, Excel spreadsheets with built-in functions like CORREL, or trading platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5) to compute correlation coefficients between the currency pairs.
4. Interpret results: Analyse the correlation coefficient to understand the relationship between the currency pairs. A coefficient close to +1 indicates a strong positive correlation, while a coefficient close to -1 indicates a strong negative correlation. A coefficient close to 0 suggests a weak or no correlation.
5. Repeat for different timeframes: Consider calculating correlations over different timeframes (e.g., daily, weekly, monthly) to identify any changes in correlation patterns over time. This can provide valuable insights into the stability of the correlation relationship.
By following these steps, you can effectively count and interpret the correlation between currency pairs, helping you make more informed trading decisions in the forex market.
Various factors influence the correlations between currency pairs in forex trading. Understanding these nuances is crucial for traders seeking to anticipate market movements and make informed trading decisions.
Economic indicators: Gross Domestic Product (GDP), growth rates, and inflation significantly shape currency correlations. Positive GDP figures in both the Eurozone and the US can strengthen the correlation between EUR/USD and USD/CHF pairs. Divergent inflation rates can weaken correlations as traders adjust their strategies based on economic forecasts.
Market sentiment: Reflecting traders’ attitudes towards currencies, market sentiment impacts correlations. During periods of increased risk appetite, currencies like the Australian dollar (AUD) and New Zealand dollar (NZD) tend to exhibit positive correlations. Safe-haven currencies such as the US dollar (USD) and Japanese yen (JPY) may strengthen during times of uncertainty, thereby weakening correlations with riskier currencies.
Geopolitical events: Events such as elections or trade negotiations can disrupt currency correlations. Major agreements may strengthen correlations between currencies, while heightened tensions can weaken them as traders seek refuge in safer assets. Increased geopolitical risks might diminish the correlation between USD/JPY and gold.
The relationship between currencies and commodities: The interplay between currencies and commodities also influences currency correlations. For example, the Canadian dollar (CAD) often correlates positively with oil prices due to Canada’s significant oil exports. Consequently, a rise in oil prices could strengthen the correlation between USD/CAD and oil. Conversely, if gold prices surge, the correlation between USD/JPY and gold may weaken, given the status of the Japanese yen as a safe-haven currency.
USD/CAD and oil prices positive correlation source: Reuters
Using correlations in trading
Leveraging correlations in forex trading provides traders with a strategic advantage, offering insights into market dynamics and aiding in risk management. By incorporating correlations into trading strategies, traders refine their approach, optimise trade timing, and enhance overall performance in the forex market.
Strategy development: Design strategies to capitalise on currency correlations, identifying trends, and optimising trade timing.
Risk management: Utilise correlated pairs for hedging to mitigate losses and minimise risk exposure. Additionally, diversify risk across multiple currency pairs or asset classes to reduce volatility and enhance stability.
Portfolio diversification: Spread investments across various currency pairs or asset classes with low or negative correlations to minimise overall portfolio risk and enhance long-term stability.
Identifying opportunities: Utilise correlations to identify diversification opportunities by selecting currency pairs with low or negative correlations.
Asset class monitoring: Monitor correlations between different asset classes to optimise portfolio allocation and achieve risk-adjusted returns.
In conclusion, knowing how currency pairs interact is vital for smart decision-making and managing risks in forex trading. Using correlation analysis is strongly recommended as it helps traders choose the best times to trade, manage risks effectively, and get the most out of their investments.
Written on February 22, 2024 at 1:06 pm, by anakin
VT 
