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 27, 2024 at 8:30 am, by anakin
The DXY index, which measures the US dollar’s performance, showed limited movement on Monday despite a slight increase in US Treasury yields.
Investors are adopting a cautious approach in anticipation of Thursday’s core personal consumption expenditures (PCE) deflator release, a critical inflation measure favored by the Federal Reserve.
January’s core PCE is anticipated to rise by 0.4% from December, potentially reducing the annual rate from 2.9% to 2.8%, indicating a modest yet positive development.
There’s a possibility that the actual figures could exceed expectations, mirroring recent trends seen in CPI and PPI reports, which could impact traders’ outlooks.
Upcoming US PCE Report Analysis:
An unexpected increase in the PCE data might lead to higher interest rate expectations, suggesting a delayed start or smaller reductions in the easing cycle by policymakers.
Such a scenario would likely result in higher US Treasury yields, benefiting the US dollar.
Technical Analysis of USD Currency Pairs:
The latter part of the article shifts focus to the technical analysis of EUR/USD, USD/CAD, and USD/JPY currency pairs.
It will explore market sentiment and pinpoint crucial support and resistance levels that may influence the pairs’ movements in the near future.
STOCK MARKET:
Market Performance:
The Dow Jones Industrial Average (^DJI) decreased by 0.2%.
The S&P 500 (^GSPC) dropped by 0.4% after reaching new highs last week.
The Nasdaq Composite (^IXIC) experienced a 0.1% decline, following a strong performance in tech stocks.
Inflation Data Anticipation:
Investors are on edge as they await new inflation figures that could challenge the recent stock market rally, particularly after Nvidia’s (NVDA) impressive results.
Concerns are mounting over a potential surprise in the upcoming Thursday PCE index report, the Federal Reserve’s favored inflation measure, especially after a higher-than-expected CPI report earlier in February led to market volatility.
Economic Indicators and Corporate Results:
This week’s inflation report is a key focus, alongside updates on consumer and manufacturing sectors, which will provide insights into the US economy’s condition.
Berkshire Hathaway (BRK-B) is nearing a $1 trillion market valuation following a record annual profit, with Warren Buffett highlighting the company’s durability and acknowledging Charlie Munger’s contributions.
Domino’s Pizza (DPZ) shares surged 6% after announcing a dividend increase and surpassing fourth-quarter sales forecasts.
Coinbase (COIN) shares rose 16% as Bitcoin (BTC-USD) remained above $54,000, reflecting positive sentiment in the cryptocurrency market.
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
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
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