Volatility made a roaring comeback in August, as political risks emanating from North Korea and the Trump White House weighed on the bull market.CBOE Volatility Index SpikesThe Chicago Board Options Exchange (CBOE) Volatility Index spiked to nine-month highs on 10 August, as stocks sold off following President Trump’s confrontation...
Over the centuries, the United States dollar better known to traders as the USD, has emerged as the world’s most actively traded currency and the core of the global financial system. The evolution of the currency is long and storied.The USD has a history of over 240 years!1775Although the...
US NFP would impact the gold price Technicals are showing some important signalsInvestors have one focus, which is what the impact of the US non-farm payroll data on the Fed interest rate hike will be. The odds are very low that we are going to see another rate...
You probably know the euro as one of the biggest currencies in the world, so it’s easy to forget, but the euro is one of the world’s youngest currencies. Less than 20 years ago the euro did not exist! It was established in 1999 in 11 of 15 European Union (EU)...
Price Action is one of the forex basics you can use in trading and as s a new trader, you’re strongly encouraged to develop a basic understanding of the technical charting patterns before you progress to more complex techniques.In other words, charts with fewer squiggly lines are probably the...
New Tory Minister Affirms ‘Hard Brexit’ Amid Waning SupportTalks of avoiding a hard Brexit are a fatal show of weakness for the United Kingdom, according to new Conservative minister Steve Baker, who insists there will be no compromise on Prime Minister Theresa May’s exit plan.Capitulating on Mrs. May’s hard...
The euro has been a star performer in 2017 and it looks like it could be set for further gains as we head into the second half of the year.Euro net long positions as recorded by the US Commodity and Futures Trading Commission jumped to their highest level in...
Brexit Negotiations: Day 1 RecapIt was said that Brexit negotiations were not about “punishment” or “revenge”, but the talks between Chief European Union (EU) negotiator Michael Barnier and the UK’s Brexit Negotiator David Davis did look a lot like kicking a man while he is down.After an initial exchange...
Welcome to day one of 730Brexit negotiations begin after nearly a whole year of speculation and build up. Yesterday at 11 a.m. BST in Brussels the door to the negotiation table opened. Theresa May’s government already appears to be on the ropes with a failed attempt to strengthen her...
May Day, May Day, Theresa May’s gamble backfires as hung parliament is confirmed.Theresa May’s gamble of calling a snap general election to strengthen her position in Brexit negotiations has backfired, with results confirming a hung parliament for the UK. After 6 weeks of campaigns and continuously changing opinion polls,...
Just a wobble; or something more? The general election is starting to look like it could spark some serious volatility as we head into June. For the first time a Tory landslide is not a given and there is reason to think that this alone could introduce a new...
A volatile market, due to its unsteady nature is automatically viewed as a fearful enemy by many new traders but it implies many connotations which do not carry any truth.Before you love it or hate it, you must understand it.Volatility is the extent to which a market can be...
Trump is sitting on a hot seat once again while investors question impeachment The dollar weakness helping the euro to stay strongToday is a risk off trade for investors as Mr Trump is badly engulfed by political turmoil. This has pushed the demand for the safe haven and we are...
How does the UK general election affect the pound? Traders are second-guessing where sterling is headed before the nation goes to the polls again on June 8th as politics seem to remain front and centre in the forex markets.Snap judgmentThe surprise move by Theresa May to call an early...
With the United Kingdom gunning for Brexit and France being pulled in the direction of Euroscepticism, we take a hypothetical look at how the European Union (EU) would deal with two exits simultaneously.For many, the U.K.’s decision to leave the EU was a death knell for the pan-European project....
Last month, U.K. Prime Minister Theresa May shocked the world by announcing a snap parliamentary election for June 8. The unnecessary appointment with voters was an attempt by the ruling Conservative majority to earn a stronger mandate to negotiate their exit from the European Union (EU). Although opinion polls...
Where is the global economy going? With the Trump trade and global reflation, the outlook has improved a lot in recent months, according to some of the world's top money managers at least.The latest Global Fund Manager survey from Bank of America Merrill Lynch shows optimism remains firm despite...
The EUR/USD pair rebounded as much as 0.7% last night, before retracing back to the 1.058 area this morning, following European Central Bank president Mario Draghi’s hawkish speech.Mr Draghi declared victory against deflation and the ECB no longer had a sense of urgency to take further actions to drive...
On the 7th of October 2016, there was a flash crash in the value of the Great Britain pound, where it dropped by 6% against the USD within two minutes. It was the GBP lowest level against the greenback since May 1985.Though the pound managed to recover in the...
The United Kingdom’s decision to leave the European Union (EU) was more than a one-off; according to political analysts, it may have sowed the seeds of regional disintegration.The pan-European project will be put to the test this year as several EU countries head for elections. France, Germany and the...
Forex trading is a technical profession and there are factors in forex trading that are extremely import to understand for a forex trader to succeed.  One of these factors is forex correlations.  Forex correlation of currencies gives the trader a firm understanding of the risk associated to a combinations...
Snapchat IPO – where does it fit in the grand scheme of US tech listings of recent years?The hotly-anticipated Snap IPO has finally been announced. Small on detail, but large on promise, some say the proposed listing on the NYSE would value the company at around $20-25bn.That would place...
2016 was a fascinating year in the global financial markets. Brexit, Donald Trump’s election victory and growing monetary divergences between the United States and the rest of the world were just three of the major themes that dictated trade over the past 12 months. These forces will continue to...
Trading on the Dow Jones industrial average – the US 30 or Wall Street for short – is just like trading on the S&P 500. Only it’s not; and for anyone trading on the Dow it’s vital to understand the idiosyncrasies of this stock market index.What is the Dow...
Sterling fell and then recovered some of the losses following the Supreme Court’s ruling as the judges’ decision casts a pall of uncertainty over the triggering of Article 50. We've seen the pound move around a lot on these kind of political decisions but just how will the Supreme...
There are probably five defining stages for the “Trump trade”: Trading i) ‘the promise’; ii) the deal-making; iii) the enactment; iv) the economic impact, and, v) the payback.i) The promise stage is done. It has been powerful, precisely because it has involved a possible paradigm shift in cyclical stimulus and...
Boaz Weinstein is a derivatives trader and hedge fund manager. He is the founder of Saba Capital Management. His net worth is estimated at $450 million as of September 2012.FactsBoaz Weinstein was born in 1973 to Israeli and American parents. He grew up in a secular Jewish family, with...
Whether you consider 2016 a good or a bad year, it was by no doubt the year of surprises. Not just because Donald Trump was elected the 45th president of the United Stated or because the UK decided to leave the EU, but the markets’ reactions to these events...
2016 was a year full of market surprises and shocks. The pound made some drastic losses, the euro limped along, while the US dollar ended the year stronger than ever. With a new year coming up and a new US President in the White House, let’s look at what...
Bill Williams is a trader and author of books on technical analysis, trading psychology, and chaos theory that applies to various financial markets such as forex, stocks, and commodities. He has developed indicators such as the Alligator, Awesome Oscillator, Accelerator/Decelerator Oscillator, Fractals, Gator Oscillator, and Market Facilitation Index.He believed...