Forex

British Pound Takes a Tumble




The British Pound Takes a Tumble and has helped us to profit.

The Pound weakness continues, this can be put down to the current Brexit news, we’ve seen the British Pound lose 0.5% against the Euro and US Dollar, as well as can be seen from one of our trades, trading GBPNZD.

In New Zealand Economic news on Sunday, we had the ANZ Commodity Prices m/m which is the average price for New Zealand’s main commodity exports sampled on the global market, this came in at -3.2%.

However on Monday we had the BRC Retail Sales Monitor y/y out of British Economic data at 0.5%, this would have weakened the British Pound as it’s a measure in the value of same-store sales at the retail level.

These bits of data and the news about the possible No-Deal with the EU in the Brexit negotiations, the British Pound will be weaker, so we took the opportunity to go short GBPNZD.

Noting the GBP being in a bearish position, the cheaper Pound makes imports more expensive, however the upside to this is making UK exports cheaper and competitive to other countries in the world, what will be critical is the meeting in October between Theresa May and EU leaders.

We wanted to stay in the trade for longer, though being cautious of the potential buyers building up in the zone around the 19000.0 area, we didn’t want to leave good money on the table and took the £125.90 for the fund while the going was good.

British Pound

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Profit on Japanese Yen Weakness




We entered this trade to profit on Japanese Yen weakness.

We entered this trade, taking into account forex trading news events, we hoped to stay trading longer term until price could reach at least above the 8400 mark.

On the the chart we can clearly see an area around the 8400 mark, and price appear to be trying to gain higher levels at previous times, while also dropping to lower and lower levels also.

Hoping that price could break through what was becoming a strong level of resistance, if this had happened, we may have seen price move to possible area around the 8700 area.

Noting this week we had data for the AUD we had Monetary Policy Meeting Minutes and Unemployment Rate and for the Yen, the news of Japanese Trade Balance.

So being both cautious and mindful of the sudden change in the money trading, we decided to take the profit for the fund.

Japanese Yen

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Trading CAD/JPY for Profit




Deciding this week on trading CAD/JPY forex pair for profit.

We intended on staying in the trade for only a short time rather than long term, knowing the Canadian Dollar is massively affected by oil prices, this is because of Canada’s export of energy, we had a slight concern over volatility.

Next week could be interesting for the Canadian Dollar and trading CAD/JPY due to the Bank of Canada monetary policy announcement that could add intense volatility to the Canadian Dollar.

Also the ongoing trade tensions that the Canada could have with the US with tension over trade with China is a risk for the Canadian Dollar.

We also took note of the Bank of Japan’s latest QE policy and how it deals with the latest inflation battle and at the same time, trying to give the Japanese Yen some strength to help it’s economic activity.

Still we managed to trade the CAD/JPY and take some profit of £143.90 for the fund.

Trading CAD/JPY

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Taking Profit on GBPJPY Before the Sell Off




We closed out a forex trade to begin the month of July taking profit on GBPJPY before the sell off.

With the FTSE and those markets in Europe heading lower, many markets had been fearful of the ongoing trade standoff between the US and China, so had been selling massively with concerns the imposed tariffs could have the potential to impact economic growth.

We knew buyers could have the strength previous in the market to take price up, the UK Manufacturing PMI data which is  a leading indicator of economic health came out with good results at a positive 54.4  hence our long position, however as concerns had been growing, sellers were coming in to the market taking profits, we decided on taking profit also due to the impact the sellers were having on price and could eliminate a profitable position.

A £176.80 is a good amount of profit considering it could all be lost and go in to the negative should sellers stay in the market.

Taking Profit

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Trading Long EURJPY




In Forex we took an opportunity trading long EURJPY.

We had some economic data out this week including the German Flash Services PMI and the French Flash Services PMI from the Euro area, this is information from surveyed purchasing managers in the services industry in those countries.

We had some positive economic data from those two countries, looking at data from Japan, export orders contracted for the first time for almost two years, a possible warning sign about overseas demand, this we feel had weakened the JPY for our forex trading opportunity to trade place a buy trade and go long.

We had hoped to stay in position for a longer however looking at the large wick the last candle on the right and some positive Flash Services PMI data from Japan, we decided to take our profits for the fund at £102.00

trading long

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Caution on Shorting Kiwi Dollar




Entering Short with caution that the Kiwi Dollar had been to areas that tested support in the zone that contained the NZD’s moves against US Dollar since 2016.

While knowing that a hike in US interest rates would further strengthen the USD and the NZDUSD looking to remain almost directionless and fluctuate within a range, we had expected a drop and so entered a sell trade and went short NZDUSD.

Our analysis was showing that the hike in US interest rates would give the US Dollar strength to break out that zone, however if for only a short period of time, as can been seen on the chart and confirming our expectations, a large candle has developed at the right of the chart with a large wick at the bottom, if the downward price of the NZDUSD was happening then it was probable that this would only be temporary.

We believe a build up of buyers had been waiting at around or just below the 7000 mark stopping any further drop for the Kiwi Dollar, we waited patiently for a further drop in price as sellers battled with the buyers for supremacy.

We didn’t have to wait long before the sellers had control and took price downward, we decided profit is still profit and be grateful and to move on to the next trade before the buyers enter back into the market for more.

Kiwi Dollar

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Interest Hike gives Strength to the Dollar




With good data coming from the US we entered the USDCHF with expectation on the Dollar gaining strength from an interest rate hike.

Federal Reserve Chair Jerome Powell briefed the media on the Fed decision, markets had been waiting eagerly. Many had been anticipating a hike including ourselves, so wanted to get priced in to the market.

A recent downfall in price from above the 10000 mark had shown a quick sell off so investors and speculators of the Dollar and Swiss Franc could hope for a good position in the market.

We could see buyers at around about the 9800 mark waiting for the moment.

When the announcement  of the interest hike and been made by the Fed Chair we were in a good position to enter a Buy trade.

We still had to be a little cautious as always, knowing some news from coming out of Switzerland on the same day for the Swiss PPI m/m data – a leading indicator of consumer inflation, this data was released before the US data, coming in better than forecast gave some analysis on it’s potential impact on the USDCHF direction.

We entered the Buy trade for a short period of time, the Dollar strength could only be temporary, a huge amount of sellers could be lurking at around the 10000 and above zone.

We still managed a good profit.

Interest Hike

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




 

GBPCAD First Trade of the Week




In to the started June with the first trade of the week on GBPCAD.

We had some UK data from the Construction PMI showing perhaps modest improvement within the UK construction activity as we are midway through the second quarter of the year at 52.5 for the month of May.

We also had Services PMI at 54.0 above what was forecast at 52.9 meaning possible industry expansion however in recent months we have seen business volumes continued to rise at a relatively subdued rate and weak customer demand so how long the increase can hold is anyone’s guess.

These result had given the GBP some strength.

With Canadian Labor Productivity q/q out, the last result back in March had been 0.2% which was more than forecast, on today’s expected result some investors could be waiting nervously expecting a further drop in strength for the CAD.

We entered our first trade of the week for the short term given the new releases.

And with possible Sellers at around the 17600 area looking to short, we didn’t want to hang around for long.

So still managed a nice profit of £153.80 for the fund.

first trade

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Taking a Loss on USDJPY




We don’t always get it right in trading! This week we ended up taking a loss on USDJPY.

A very important thing to remember in trading is losses will happen to everybody, this is why proper money management and an understanding of leverage are a must for every trader.

We had expected from our analysis that the USD was going to weaken further for a small amount of time, while good date was coming out of Japan regarding it’s current account and BoJ Lending.

So we entered a Short Position on USDJPY, however some positive data from the US including unemployment claims and the federal budget balance had given the USD some strength.

Within the chart we could see a bear trend with sellers mainly in control at certain areas.

Bulls were starting to gain strength and the positive data from the US gave them that extra confidence to get into the market and take the USDJPY higher.

So we made a loss, we don’t dwell too much, instead we move on to the next trading opportunity.

loss on USDJPY

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Taking Profit on GBPCAD before a downturn




We went in to the trade to profit on the GBPCAD with possible strength gain for the trade, however with recent news about the unlikely rate hike at the BoE on Thursday, this may mean the GBP weakening.

We had a long position in an area of buyers around the 17400 mark, we could have waited for the retracement to complete at the area of sellers at around the 18000 area, however with news due out later today on the UK  10-year bond auction and the BRC Retail Sales Monitor looking like a reduction in the value of same-store sales the GBPCAD might not manage to reach the mark.

Instead we took our profit before the downturn continues.

gbpcad

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Binary Options and Forex trading can carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




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