There are numerous economic reports that come out every day. Some reports are important and some not so important. How do we keep track of all these reports and how do we know which ones we should pay attention to? Many Forex brokers provide an economic calendar on their website that traders can access to help you keep track of all the reports. We looked at IBFX’s website & accessed their economic calendar which provided a listing of economic reports and the time and country where the report was initiated […]
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Correlation of U.S. Dollar to the Stock Market
July 6, 2012 in Analyze Market Conditions, FOREX
Correlation of U.S. Dollar to Stock Market Over the last couple of months, there has been a particularly strong correlation of the stock market to the US dollar. When the stock market strengthens or weakens, the dollar does the opposite. During the month of May, the stock market dropped sharply. During the same time frame, the dollar strengthened significantly on all the major pairs except for the Japanese yen. The first half of June saw a jump in the stock market. During the same time, the dollar weakened against all […]
The Power of the US Dollar
January 13, 2012 in Analyze Market Conditions, FOREX, Weekly Podcast
The stock market prefers a weak dollar… By Carl Anderson
What is risk Appetite or Risk Aversion?
October 13, 2011 in FOREX
Risk Appetite- The term “Risk Appetite” refers to low yielding currencies, such as the CHF, and the JPY. When we are longing the Base pair associated with them (GPBJPY, USDCHF, USDJPY, GBPCHF) and shorting the counter pair expecting an uptrend, the term used to describe this action or posture is called Risk Appetite. Risk Aversion- Risk Aversion is essentially shorting the Higher Yielding currencies against the shorter yielding currencies aforementioned, and looking for a down trend in those currencies. Factors that we look for to describe either of these events […]