Tag Archives: financial markets

Federal Reserve seen to drop pledge to maintain low rates

Economists are expected the Federal Reserve to change their language regarding monetary policy and let go of their previous pledge to keep interest rates low for a “considerable time.”

According to 68% of economists surveyed by Bloomberg News, the US central bank is likely to make use of the term “patient” when describing its intentions for monetary policy going forward. The Federal Open Market Committee, which meets starting today until tomorrow, is seen to hike up its interest rates in the middle of 2015.

Officials of the bank are currently discussing the timing of when to tighten its policies are expected to make use of favorable jobs data bringing them close to achieving the Fed’s goal despite falling prices of crude oil that are preventing inflation from picking up. In the US, 321,000 additional workers were hired in November, the highest number in nearly three years, while unemployment fell to 5.8% to hit its lowest in six years and approach the Federal Reserve’s target of between 5.2% and 5.5%.

59% of economists forecast that a drop in unemployment will be one of the factors emphasized when debates on rate increases begin, while 41% said that inflation lingering below the target level will be enough to delay the timing. The central bank has held its borrowing costs to near zero since December 2008 even after ending its final round of quantitative easing last October.

Committee members are expected to make an announcement and release updated economic data tomorrow afternoon which will be followed by a press conference led by Fed chair Janet Yellen.

The US economy is predicted by economists in a separate survey conducted by Bloomberg News to grow by 2.9% in 2015, the best rate in ten years.

Get to Know the Daily Forex Sessions

Because of its accessibility, convenience, and potential for profits, the Forex has become the runaway leader in the list of the world’s biggest financial markets.

Part of the reason it has achieved this is that each major region around the world has its own home market. When the sessions of these markets are put together, the Forex practically becomes a 24 hour market that can be accessed by anyone around the world.

Not only do these sessions vary in terms of opening and closing times, they oftentimes have differences when it comes to activity levels or which currency pairs become more traded. Among the most active sessions that traders like you should be aware of are the London, New York, and Tokyo markets.

Since currency movements vary from session to session, it would be beneficial for you to know about these three.

London

Europe’s primary Forex market is the London session, which accounts for the most activity among all Forex markets. Not only is it the central financial district of Europe, it is also one of the most recognized and sought after locations for investors looking to become traders.  Because of this, almost all currency pairs become active when London is open, especially when it overlaps with Tokyo for its trading hour and with New York during the entire afternoon.

New York

The next most active market is in New York, which is the financial center of the United States. Since this is the home of dollar where news and policy changes are first announced, it is one of the most influential sessions that can spark a change in the direction of markets.

Tokyo

The Tokyo session is considered as the first market to open internationally. Among these three, it has the lowest level of activity since other locations around the world are likely to be closed. However, Tokyo is still an important market to keep track of since trends that begin here can continue to other sessions.

 

The Forex’ Dominance in 3 Simple Points

People around the world looking for a place to invest their money have plenty of options nowadays. They can enter the traditional stock market for company shares, hire a fund manager to create a portfolio for them, or even trade contracts for commodities from gold to wheat.

The most popular choice today, however, is the Forex where millions of individuals from around the world make trades that amount to more than three trillion dollars each day. No other market even comes close to matching the daily turnover of the Forex, which is probably because no other market offers the same level of profit opportunities and ease of use.

If we had to to explain why a budding trader should choose the Forex over any other financial exchange in 10 minutes, this is how we would do it.

More Profits for Less

The abundance of online brokers have made competition for new clients so fierce that it is now possible to open an account with a deposit as small as $50, making it available to a larger demographic.

If you’re concerned whether trading with a measly $50 will actually net enough profits to be worth the time of studying and analyzing, don’t worry because you have leverage. With leverage, you can open positions up to 200 times the size of your deposit, meaning that your $50 will actually act as $10,000 multiplying your profits by 200 times as well. With these mini and micro accounts that only involve risking a small capital, there’s no reason to not try the Forex out.

Trade as You Will

Forget about deadlines, curfews, and closing times. The Forex is open all day for majority of the week, meaning that you can make trades according to your own schedule, no matter the time. Plus, with trading platforms now modified to work just as well in mobile phones and tablets, you can do it wherever you have an internet connection.

A Library of Knowledge

For beginners and experts alike, there exists a massive amount of materials covering basic tutorials, creating advanced strategies, how to take advantage of automatic trading signals, and several other tools that make trading significantly easier and  more profitable. There’s no need to enroll in seminars or special courses because all the information you need to succeed can be found by doing a simple search online and by trying it out for yourself on the Forex.