Abe Cofnas is author of “Sentiment Indicators” and “Trading Binary Options: Strategies and Tactics” (Bloomberg Press). He is editor of binarydimensions.com newsletter and can be reached at abecofnas@gmail.com.
Central banks are the key catalysts for currency directions. By setting interest rates and monetary policy, central banks generate either bullish or bearish expectations about the currency direction. Central bank statements are carefully constructed, where each word is compared to the previous statements. Any differences between statements impact immediate market reactions.
While the dust has to settle from the shock of the 2016 Presidential Election, the fundamental forces that effect currency direction were clarified and unleashed on election night.
This November’s U.S. Presidential election will affect currency markets, and the challenge for the forex trader is to select the best strategy for trading it.
Brexit will be talked about, written about and analyzed for many years. It also revives the age-old argument between fundamental and technical traders.
The advantage of using technical indicators is their efficiency and precision of signals. However, the challenge to systematic traders occurs when fundamental forces change.
On June 23, Great Britain’s voters will decide in a referendum on the question: “Should the United Kingdom remain a member of the European Union (EU) or leave it?”
