Category Archive: 4) FX Trends
(1.2) Explaining price movements in FX rates
We indicate the main factors that influence FX rates in the longer term. We explain the movements of currencies based on these factors.
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(2) FX Theory: Purchasing Power Parity
An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.
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Trading a Non trending market. A look at the GBPAUD
In this video, Greg Michalowski of ForexLive.com will discuss how to trade Non trending markets using the GBPAUD. SUBSCRIBE TO OUR EMAIL LIST! http://forexlive.us7.list-manage.com/… LET’S CONNECT! Google+ ► https://plus.google.com/1026488501294… Facebook ► http://facebook.com/forexlive Twitter ► https://twitter.com/ForexLive Linkedin ► https://www.linkedin.com/company/fore… High Risk Warning: All news, opinions, research,...
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Forex technical trading: Is the GBPUSD basing for a move higher?
The GBPUSD found support buyers against the 200 hour MA after Yellen’s initial comments on Capitol Hill. The rally higher has run into topside resistance but the gains are being maintained. Is the price action a suggestion of further gains to come? There is room to roam if the support can hold and the ceiling …
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Preview: Fed Chair Yellen Senate Testimony Feb 24 2015
In this hangout, Adam Button and Greg Michalowski from ForexLive.com will preview Fed Chair Yellens Senate testimony and how to trade the event.
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(2.2) Purchasing Power Parity: Big Mac and Starbucks Tall Latte
The following table compares the Big Mac and the Starbucks Tall Latte index among different countries. It explains the issues with these measurements.
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(2.3) Differences in global CPI baskets
Typically poorer countries have a basket with a higher weight for food and other consumption goods, but richer states give them a smaller weight. Here the full details over different countries
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A technical look at the GBPUSD for the week starting February 23, 2015
The GBPUSD has been in a corrective mode since bottoming in January. Last week the pair made a new corrective high but ran into a cluster of resistance that slowed the rise. Will the new trading week, break above that resistance or is the upside correction over for now? SUBSCRIBE TO OUR EMAIL LIST! http://forexlive.us7.list-manage.com/… …
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A technical look at the USDJPY for the week starting February 23rd
The USDJPY remains contained and non trending with defined high and low levels. These levels traders should use as clues to their trading in the week starting January 23rd. Greg Michalowski, director of technical analysis and trader education will outline his technical focused views on this currency pair and how best to trade it. SUBSCRIBE …
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A technical look at the EURUSD for the week starting Feb 23rd
The EURUSD is trading in an up and down trading range. How can traders take advantage of the trading environment. Greg Michalowski of ForexLive.com gives an overview of the non trending environment and outlines how he would trade the market. SUBSCRIBE TO OUR EMAIL LIST! http://forexlive.us7.list-manage.com/… LET’S CONNECT! Google+ ► https://plus.google.com/1026488501294… Facebook ► http://facebook.com/forexlive Twitter …...
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(2.5) Real Effective Exchange Rate, Swiss Franc, Yen and Renminbi
The weighted average of country's currency relative to index or basket of other major currencies adjusted for inflation. We explain the Real Effective Exchange Rate for the Franc, the Yen and Renmimbi
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(2.6) CPI-based Real Effective Exchange Rate Since 1965: Yen Still Most Overvalued Currency
If we calculate Real Effective Exchange rates on the base year 1965, the Japanese yen remains the most overvalued currency.
This analysis is based on the real effective exchange rate (REER) provided by the Bank of International Settlement (BIS) and a consumer price-index adjusted exchange rate.
The real value of the yen is around 50% higher than 1965, the same applies to the Swiss franc.
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Marc Chandler on the Negative Interest Rate Trend in Europe
Feb 20 – Cris Sheridan welcomes Marc Chandler, author and Global Head of Currency Strategy at Brown Brothers Harriman. Marc discusses the reasons behind the negative interest rate trend in many European countries. http://www.financialsense.com/subscribe
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Forex technical trading (VIDEO): AUDUSD inches higher, but approaches strong resistance
The AUDUSD was supported in trading today by minutes from the RBA meeting which were less dovish than expectations. Favorable technicals also played a part in the pairs move to the upside in trading today. Can that momentum continue into the new trading session? Greg Michalowski, director of technical analysis and trader education will outline …
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(2.7) The Most Complete Real Effective FX Rate Comparison
In August 2013 the Bruegel blog offered one of the best comparison of long-term real effective exchange rates (REER). The data is CPI based and therefore not as good as the producer price index (PPI) that reflects tradable goods better.
However the data is huge with three different sources - BIS, World Bank, Eurostat, OECD and Bruegel. The data indicates how the real value of the currencies of China and many other Emerging Markets (EM) have...
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ForexLive: A technical look at the forex week ahead (Feb 16th, 2015)
What does the technical picture look like for the major currency pairs for the week starting Feb 16th. Greg Michalowski of ForexLive.com shows the levels to eye in trading for the week and explains why..
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(3) Inflation, Central Banks and Interest Rates
In this chapter we connect three related concepts: inflation, central banks and interest rates.
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