News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
Strategy Video: Wading Back into Pound Trading Post-Brexit

Strategy Video: Wading Back into Pound Trading Post-Brexit

John Kicklighter, Chief Strategist

Talking Points:

  • The Brexit vote caused unprecedented volatility for GBP/USD and the Pound last week
  • Trading through the vote was extremely risky and was unfit for any but those with the highest risk tolerance
  • Conditions are normalizing and Sterling trading is more reasonable, but caution is still necessary

See how retail traders are positioning in the majors using the SSI readings on DailyFX's sentiment page. Having trouble trading in the FX markets? This may be why.

Standing on the sidelines as the EU Referendum votes were counted was the risk-conscious trading approach last week. Yet, now after the outcome is known and the weekend anxiety has lifted, we can see the landscape of the market arise out of the fog. Venturing back into Pound trading can once again be guided by fundamental and technical analysis rather than waiting for an explosive headline to abruptly change direction and pace.

While the backdrop for Pound trading is more reasonable, it is still important to account for the market conditions we are dealing with and adapt to them. That should always be the case. Post-Brexit, the vote is known but the path of the technical withdrawal from the EU is still unclear. Furthermore, the separation of the world's fifth largest economy from its second largest aggregate economy undermines the perception of stability in the European Union and exacerbates a growing concern over the health of global risk appetite. It isn't surprising therefore that implied (expected) volatility for the Sterling remains very high and caution continues to override speculative reach.

Returning to the Pound under these considerations means accounting for volatility and the potential for sea change with reasonable stops and targets. Technical levels will carry less weight than under slower market conditions. Fundamentals will de-emphasize speculation over the potential over divergent monetary policy and instead orient towards the more elemental risk balance. For GBP/USD, the relief of implied volatility may offer the best source of bullish rebalance; but that does not guarantee timing or easier sentiment itself. GBP/JPY will not have to make a transition towards risk as it has always been the focus. EUR/GBP may remain among the most complicated fundamental pairings in the FX world. We discuss returning to Pound trading in today's Strategy Video.

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES