Forex Trader

As oil fell for six straight months in the second half of 2014, plunging 47% to post its biggest decline since the 2008-09 crisis, the reaction in energy-dependent currencies has yet to unravel.

For at least half a decade now, Federal Reserve skeptics have leveled one complaint against the central bank above all others: that the Fed is “behind the curve.”
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.
In September 2015, this column argued that Federal Reserve hikes are largely negative for the U.S. dollar once a tightening regime begins. Let’s look at how the U.S. dollar responded to each of the last three Fed tightening cycles (1994-1995, 1999-2000 and 2004-2006) as well as the existing one. One common theme was found.
The growing parallels between 2015 and 1998 in global market forces—soaring U.S. dollar, plummeting oil prices, rising equities, rising volatility and flattening U.S. yield curve—are startling.

One can almost hear the sound of the EU

Will the Chinese Year of the Goat see a prolonged weakness in the yuan by the People’s Bank of China? (PBOC) The yuan fell 3% against the U.S. dollar between October 2014 and mid-February 2015, and lost 4% during the first five months of 2014.

It is estimated that more than 70% of trading is done by algorithms, and most fundamental-based traders are not entirely discretionary.

Recently the Internal Revenue Service (IRS) ruled that bitcoin would be treated as property. It stated: “For Federal tax purposes, virtual currency is treated as property.

The forex market has swung into action recently with big moves taking place in the U.S. dollar. After a period of historically low levels of volatility, these recent trends are music to the ears of momentum traders.