If you want to trade forex, you need to understand the forces that move the market and make the value of currencies change.
By knowing this, you'll be in a better position to trade profitably.
Let's take a closer look…
Supply and demand drives the forex market
Like all financial markets, the main factor driving the forex market is supply and demand. When one currency is in more de... ››› more
After weakening substantially in the middle of last week, the rand is holding onto gains it made on Friday.
Locally, the rand has two main focuses this week.
This is the release of consumer inflation data for last month on Wednesday. And the Reserve Bank's statement after its monetary policy committee meeting, where interest rates will be on the table for discussion.
Let's take a closer l... ››› more
Once you've conducted your analysis and pinpointed the forex trade you're going to put on, there's one more thing you should check.
You need to see if there's any important economic data due out. Certain data can have a large impact on the forex market. And this could cause your trade to react in a very different way to what you expect.
So what sort of economic events should you look out for... ››› more
Since the Reserve Bank hiked interest rates, the rand has enjoyed some brief respite. But the local currency looks set for a rocky ride as more data could show what a sorry state the economy's in. Add to this crucial data due out in the US, and the rand could face more pressure. Let's take a closer look at what's going on…
The rand is trading weaker this morning
So far this morning, the... ››› more
Since the Reserve Bank hiked interest rates 0.25% nearly two weeks ago, the rand has found some support.
But this week sees the release of a bout of domestic economic data. And there's the release of crucial data out of the US too. So how is the rand going to react?
Let's take a closer look…
The week is full of rand-moving data releases
The rand started the week on the quiet side,... ››› more
Last week, was a little volatile as our local stock market reacted to a number of economic data releases as well as the start of earnings season. But what happened? And will it have an effect on the stock market this week? Let's have a look…
The World's Best-Kept Commodity Secrets revealed...
A way to make double-digit gains from ‘Star... ››› more
Hopefully you read my last article and acted on my recommendations. If you did so via a derivative you could have made a 30% gain over the weekend on the New Gold ETF. But that's enough of boasting of past glories and onto new business. Let's look at what's happening in the market right now and how the economic data coming out in the next week will affect the global stock market.
All eyes are... ››› more
Unrest in Thailand, Venezuela and Ukraine, as well as precarious governments in Turkey and Argentina have all conspired to give emerging markets a black eye over the last few months. This week the Ukrainian situation took the spotlight as protestors struggled to form some sort of government after the ouster of the former Prime Minister.
Here's what's going on and how it's affecting our stock m... ››› more
Last week, we had some surprisingly positive news about the South African economy. Unemployment came in at a mere 24.1%, retail sales grew by a massive 3.5% and the rand seems to be heading below R11/$. But is this really a sign that things are looking greener for our local economy?
If you can detect a whiff of sarcasm in my first paragraph, your nose isn’t deceiving you. Though all the numbe... ››› more
After a dreadful start to the year, global markets consolidated towards the end of week. Though the recent fall was quite painful for investors, it wasn't exceptional. Since 2009, the S&P 500 has fallen by 5% or more 18 times. Twice by more than 10%. This week's fall was only around 6%. If history holds, we can expect another two similar pullbacks this year alone! Despite this, since 2009 the S&P ... ››› more
I recently received a question on the InvestorsClub.co.za.
It asked; "Why are so many South African traders worried about American markets and economic data?"
Now this is an excellent question, and is essential for anyone planning on trading the financial markets for profits.
In fact, understanding this could not only prevent your trade getting blindsided by a data released in the US, but... ››› more
Investors around the globe are watching the US and the important economic data coming out this week. With expectations high that the non-farm payrolls out tomorrow will be good, speculation is rife that the US Federal Reserve may start to taper its stimulus programme soon. This is putting severe strain on the rand. Let's take a closer look at what's going on…
This morning, the rand “fell to ... ››› more
November is over and it may go down in history for a rather interesting reason: It's likely the last month ever that South Africa is listed as the largest economy in Sub-Saharan Africa. The mantle of the continent's biggest may soon be taken on by Nigeria as it completes a long overdue rebasing of it GDP calculations… Here's how it'll affect as the SA economy… As well as what you can expect f... ››› more
The JSE ended last week on a down note even as the Dow hit a new all-time closing high. Statements from the South African Reserve Bank (SARB) were partly responsible for this. Today, we look at why as well as analyse what we expect to when GDP figures are announced later this week…
In the latest SARB announcement, Governor Gill Marcus highlighted the fact that SA’s inflation remains uncomfo... ››› more
Earlier today, Stats SA released retail sales data covering September. The figures showed that retail sales grew at a much lesser rate than the month before. And data showed it was much less than forecast. The rand weakened on the news. Let's take a closer look at what the data revealed…
Retail sales in South Africa “grew at a sluggish 0.2% in September compared with the same month last year... ››› more
There's an age old saying that goes: “To know where you're going, you need to know where you've been” and this week, investors should remember this. After all, news flow that came out of major economies like the US and China have a huge effect on the stock market. So let's have a look at what happened last week, starting with America…
Speculation that the Federal Reserve will begin windin... ››› more
For weeks the market has been heading steadily higher. And the start of last week was no different.
In fact, our market reached an all-time high by the middle of the week.
And if you've been sitting long in your trading positions, then you've likely been enjoying the ride.
But three positive data figures out last week signal that now's the time for you to start trading smaller… Now's t... ››› more
Yesterday, yet again, the JSE closed in record territory. Despite the local bourse only edging up slightly, it was enough to hit the record books once again. But, with such a string of record finishes under its belt, how much longer can this continue? Let's take a closer look at what happened on the JSE yesterday…
The JSE crept up slightly higher yesterday, “booking another record finish,”... ››› more
Last week, we saw a deluge of data out of the US. And it makes sense considering that during the shutdown, the processing and publication of economic data was deemed a non-essential service. And so incredibly influential stock market figures such as the Non-Farm Payroll number were kept under wraps. Luckily, there were no major surprises when the figures were released, and the stock market continu... ››› more
As I write this article, the US federal remains shut and we're approaching an even larger deadline next week when the US debt ceiling will need to be raised. So what awaits investors in the week ahead? Let's explore…
Thus far, the talks between President Obama and the Republicans have failed to result in a resolution.
While some analysts believe we won’t get one until the stock market c... ››› more
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