by Ntombi Malatsi | Nov 21, 2016 | ECONOMIC NEWS
How is the Forex Market impacted by the Bank holidays
A very short post about forex trading on bank holidays and the effects it has on the markets. The Forex Market consists of big banks, hedge funds and retail traders. The big banks are the major players in the markets. A large portion of Forex comes from the banks, when the banks are closed it also mean less activity which may lead to low liquidity on the currencies that are involved. If Canada, America or any other bank is closed, traders should try to avoid the currencies that are involved due to the minimal activity and the fact that there won’t be large volumes of trade coming from those particular banks that are closed. As a result, a currency may become extremely volatile and that can be too risky. Forex trading on bank holidays can be very tricky. During a bank holiday the markets tend to react abnormally, It can either be too volatile or very sleepy.
We are approaching December holidays and the market will not be as liquid as it was during the year. Year after year I have witnessed this during December holidays, the market just slows down. This is due to the fact that most traders are taking holidays and there are less participants in the markets. Less participants also mean less liquidity. Even though the Forex market is opened 24 hours 5 days a week, there are worst and best days to trade Forex. The market remains open during December holidays and only closes on Christmas day and New Year’s day. It is important to know when to trade and when to stay away. There are so many distractions during December holidays, don’t let it be the time to loose all your money. I choose to stay away from currencies that are involved in a bank holiday. This week on the 22nd the Japanese banks will be closed in observance of their Labor Thanksgiving holiday (I will avoid the Yen/JPY) and the US will observe theirs on the 24th (I will avoid the Greenback/USD) . Thank you for stopping by, I hope you found this post informative. If you, kindly share with your peers.
by Ntombi Malatsi | Nov 20, 2016 | ECONOMIC NEWS
Economic news to watch this week as. The Japanese bank will be closed on the 22nd in observance of their Labor Thanksgiving day. U.S will have their Thanksgiving holiday on the 24th.
by Ntombi Malatsi | Nov 13, 2016 | ECONOMIC NEWS
Economic news to watch this week. Please note that the United States has moved their clock backwards to save daylight (I am having difficulties understanding this concept), therefore we (South Africa) are currently 7 hours ahead instead of the usual 6 hours and the events that are usually released at 2:30pm S.A time are now at 3:30pm S.A time till further notice.
by Ntombi Malatsi | Nov 6, 2016 | ECONOMIC NEWS
Economic news to watch this week
Recap from the previous week: Our week kicked off with Bank of Japan (BOJ) deciding on their policy rate which held steady at -0.10% as well as Reserve Bank of Australia (RBA) left their cash rate unchanged at 1.50%. Canada GDP also held steady at 0.2%. New Zealand Employment change increased by 0.8% while unemployment rate decreased by 0.2% from expected 5.1% to 4.9%. We also had several speeches from different governors throughout the week with BOE Gov Mark Carney deciding to stay as a governor of Bank Of England (BOE) beyond 2018, that on its own shook the markets and had an impact on GBP. These are the news or reports that you won’t see on economic calendar sites but official central banks sites, you can check the Bank of England for the latest statements and reports on their official site HERE.
GBP was the best performing currency as it rose more than 1% against the U.S Dollar after British high court ruled out the request to start the process to leave EU saying that it cannot be done without the vote of parliament members. Apparently most parliament members were not supportive of the Brexit. The markets seemed more focused on the U.S elections on the 8th. Gold is also expected to continue to rally up as the uncertainty surrounding the greenback builds up and investors are moving their money to Gold which is considered as a safe heaven. UK Construction PMI rose by 0.5. Federal funds rate held steady at <0.50%. UK Services PMI rose to 54.5 from 52.5 expected. BOE left their official rates unchanged at 0.25%. Australia retail sales increased by 0.2%. Canada Employment change increased and their unemployment held steady at 7.0%. US Earnings increased by 0.1% . U.S created 161k jobs while unemployment rate held steady at 4.9%. The U.S is expected to create 250k jobs every month just to keep up with the population. The Federal reserve is also expected to hike their rates in December. My eyes are on Gold as we wait for the U.S elections. Please note that during bank holiday, a currency involved may either be extremely volatile or extremely sleepy. read more about the best days to trade Forex HERE. Below are the economic news to watch this week. If you wish to receive weekly economic updates, subscribe to this blog. Thank you for stopping by, happy trading.
by Ntombi Malatsi | Oct 30, 2016 | ECONOMIC NEWS
Economic news to watch ahead of NFP
by Ntombi Malatsi | Oct 23, 2016 | ECONOMIC NEWS
Recap from our previous week
Our week kicked off with New Zealand’s CPI increasing to 0.2% from 0.0% forecast. UK CPI also increased from 0.9% forecast to 1.0%. Canada manufacturing sales increased by 0.6% from 0.3% expected to 0.9% actual. U.S CPI held steady at 0.3% while the Core CPI dropped by 0.1% from 0.2% forecast to 0.1% actual. UK Average Earnings held steady at 2.3% while Claimant count dropped from 3.4K forecast to 0.7k actual, this meant that the number of people who were claiming for unemployment related insurances have actually decreased.
The U.S Building Permits rose to 1.23M from 1.17M forecast. Bank of Canada kept their rates at 0.50%. Australia Employment change dropped to -9.8K from 15.2K expected while the Unemployment dropped by 1% from 5.7% expected to 5.6% actual. UK Retail sales dropped to 0.0% from expected 0.3%. Another highlights from Thursday was the European Central Bank (ECB) press conference, you can watch the recording and listen to the ECB president Mario Draghi HERE. U.S Unemployment claims increased from expected 251K to 260K. We wrapped up our week with Canada CPI which held steady at 0.2% while the Core retail sales dropped from 0.4% to 0.0%. Below are the economic news to watch this week.
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