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USD Erases Gains after FED Minutes

The anticipated FED minutes were released today, and has caused a bearish reaction to the USD.
The main take away from the meeting, was as follows
Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labor market, and inflation, these condiitions could well be met by the time of the next meeting.

Essentially, confirming the rate hike. Sounds quite good for the USD
So why the sell off? This is the essence of …
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USD Catching a strong bid at NY Open

The USD remains strong to start the week as New York bid up the Dollar strong at the open.
According to Bloomberg the market is now pricing in a 70-75% chance of a rate hike at the December meeting.
USDCAD has been quite strong, the chart below shows it trading within a 1H Channel up, which offers some potentially low risk entries to climb on the USD Bull train.
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NFP Numbers contribute to divergent monetary policy outlook

The numbers coming out of the United States were nothing short of fantastic.
Unlike any previous release, dynamics have changed in the markets.
For a large part of the week, the US Dollar was receiving a strong bid. There was some contributing factors such as negative data out of NZD and GBP, and the markets still considering the negative view point of the EURO where the ECB is seriously considering further QE..
The negative outlooks on several economies, combined with positive data out of the U
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Central Banks looking to cause some moves this week

This coming week we will have some speeches from several of the central banks.
Early in the week RBA Gov Stevens is up, and later we have the Fed's Yellen and ECB Draghi to finish off the week.
The overall expectation for the week does not call for much, but I will be looking for any type of surprise announcement that can shake out the market.
From the RBA - I have blogged about this before. We may see a shift in monetary policy, it all depends on which area they decide to focus on. In the last …
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Bimlesh avatar
Bimlesh 18 8月

Frankly speaking, I understand nothing about fundamentals, actually haven't even tried to know what they mean.. and I never cared to know in detail about the ECB or the central bank or RBA... or how has inflation or interest rate effected.........................just I understand the end result, whether it is going to have movement or not and would be best if I understand which side...  :)

Jignesh avatar
Jignesh 18 8月

I lean more to technicals myself as well.  But I think it is worthwhile reading what the central banks have to say, it often gives good clues for the direction, and then use technicals for the trades.

Bimlesh avatar
Bimlesh 18 8月

its worthwhile but Its very difficult for me to understand.. have tried few times trying to understand the fundamentals....

Jignesh avatar
Jignesh 18 8月

I'll try to write a blog post this week to provide some insight on how I use fundamentals personally to trade the markets if that helps

Bimlesh avatar
Bimlesh 18 8月

personally I thank you in advance for that.. that would really be of gr8 help

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Yellen does it again! 1.3800 Targets looking even better

Yellen has once again managed to dodge the subject of interest rates.
The market largely expected her to talk about raising rates, either by providing a guideline, or at the very least sound a bit more hawkish as the important data releases (inflation, NFP, unemployment) have all showed improvement.
In fact, targets that were set out earlier this year have all been met, and some even exceeded. The irony is, that she cited these exact data releases as the reason why it would be too early to look …
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Bimlesh avatar
Bimlesh 22 7月

well presented.. and best of luck..!

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