Bid-Ask Spread explained: What Traders Need to Know

The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset (the bid) and the lowest price a seller is willing to accept to sell it (the ask or offer).  This spread is a fundamental element of market liquidity and represents the transaction cost that traders need to consider when entering and exiting po...

August 14, 2023
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The Economics of Currency Pegs: Stability vs. Risk

A currency peg is a policy in which a country's government or central bank fixes the exchange rate of its currency to the value of another currency or a basket of currencies. The pegged rate is enforced by the country's central bank, which will exchange currency at that rate. Commonly, countries that participate in this practice prefer to peg th...

August 14, 2023
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Understanding Monetary Policy: A Guide to Hawkish and Dovish Approaches

Familiarity with terminology used in financial markets is arguably highly important for those investing in financial products. This understanding can assist with both entry and exit decision-making in the context of an individual's risk profile and objectives.  Two terms that are often used to describe the overall position of a central bank are...

August 14, 2023
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Crude Realities: The extent of OPEC’s influence on financial markets

OPEC stands for the Organization of the Petroleum Exporting Countries. Founded in 1960, OPEC's main objective is to coordinate and unify the petroleum policies of its member countries to secure fair and stable prices for petroleum producers.  This article briefly outlines who this organisation is and their significant influence on the pricing o...

August 14, 2023
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From Data to Dollars: An introduction to Quantitative Trading

Quantitative trading, often referred to as quant trading, is a trading strategy that relies on the use of mathematical models, statistical analysis, and data-driven approaches to make trading decisions. Often associated with the creation of specific automated trading systems, terms Expert advisors (EAs) on MetaTrader platforms, it a perceived as a ...

August 14, 2023
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Share Buybacks: A Double-Edged Sword for Investors?

Share buybacks refer to the practice where a company purchases its own shares from the open market or directly from its shareholders.  In practice this results in a reduction in the number of outstanding shares available in the market, and so buybacks can also have an impact on the stock's price, as the reduction in supply can drive up demand a...

August 14, 2023
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FX analysis – markets turn risk-off on weak Chinese data, Moody’s downgrade – USD bid, AUD sinks

Global markets were buffeted by a risk-off catalysts in Tuesdays session. Weak Chinese trade data, hawkish Fed-speak and a Moody’s downgrade of US regional banks saw stocks and yields tumble FX Markets USD was firmer Tuesday in a session that was firmly risk-off following the Chinese trade data and Moody’s downgrade. Later in the session ...

August 9, 2023
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$APPL: Apple finds key support after August sell-off.

Apple has had a spectacular start to 2023, locking in 7 consecutive positive months and putting in an increase of 52.16% year to date at its peak. However, August so far isn’t looking as healthy. Despite the positive financial performance beating Q3 earnings expectations, Apple shares are down 8.48% for the start of August. Profit taking aft...

August 9, 2023
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Bank of England Decision could send the Pound Lower

Since March 2023, the GBPUSD had been trading higher as the US Federal Reserve and the Bank of England (BoE) maintained along their path to continue raising rates, as they battled to bring inflation down to their 2-3% target level. As the DXY recovered in strength, this led the GBPUSD to reverse from the high of 1.3130, trading down toward the l...

August 2, 2023
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Nasdaq cements its best start to a year since 1975

The Nasdaq Composite Index has kicked off 2023 with a historic performance, achieving its most impressive start since 1975. Despite concerns about a potential recession, the index has displayed remarkable resilience, surging over 37% year-to-date as of the end of July. The upward trend has been consistent, with green months recorded in 6 out of ...

August 2, 2023
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FX Analysis – USD Catches a Bid, AUD outperforms ahead of RBA, JPY struggles

USD rallied modestly into month end with DXY pushing to the top of its recent range to again test the big 102 resistance level. The data highlight out of the US was the Chicago PMI figure which rose from the prior 41.5 to 42.8, but missing expectations of 43.3.  in FedSpeak,  Governor Goolsbee added little new from the FOMC statement last week st...

August 1, 2023
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FX analysis – USD up on rising yields, EUR down on dovish ECB, JPY surges ahead of BoJ

US equity markets snapped a record-breaking run of up sessions in Thursdays trading, with the Dow Jones looking set to close in the green for a 14th straight session (for the first time since the Dow’s inception), before seeing a sell-off on rising yields after a report that the BoJ is looking to tweak their YCC at their meeting today. FX Mark...

July 28, 2023
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FOMC Preview – One and Done, or More to Come? The Charts to Watch

The long-awaited July FOMC meeting is finally upon us where rates markets are pricing in a sure thing for a 25bp hike (even a small chance of a 50bp), the question that traders will be looking for to be answered is “is this it?”. With a growing number of economists calling this the top in rates, butting up against the FOMC June statement and un...

July 26, 2023
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Gold eases heading into FOMC

After a fortnight of trending north, Gold has fallen over the past 5 days. It is currently trading at around $1960, showing a slight decline of approximately 1.35% from its recent high of $1987.53. Price is currently trying to break out of the downward channel that it has been in since late last week, so something to keep an eye on going into th...

July 26, 2023
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FX Analysis – Treasury Yield surge Pushes USD Higher, AUD Outperforms on Hot Jobs Report

The US Dollar was firmer Thursday, continuing its bounce from extreme oversold levels, the DXY peaking at 100.97, just short of the major resistance at the big 101 figure. A much lower than expected initial jobless claims figure saw a jump in US treasury yields, propelling the USD higher with the DXY having it biggest up day since May. AUD w...

July 21, 2023
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