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.

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
EUR/USD
Bullish
Oil - US Crude
Mixed
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
Wall Street
Bullish
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/cXImPrjl8x
  • Crude Oil Forecast: Oil Prices Edge Lower Toward Trend Support -via @DailyFX WTI #CrudeOil closed the week slightly higher on balance, but the commodity is struggling at resistance as bears look to challenge trend support. Link to Full Analysis: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/05/08/crude-oil-forecast-oil-prices-edge-lower-toward-trend-support.html #OOTT https://t.co/MvtP36QxY8
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/3f5sLijsVB
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/PO93mIKAZP
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • 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/pS48NIuwqX
  • 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/gFVVZTGbe1
Account for the Bias from the Media, Analysts, Central Banks and  Others

Account for the Bias from the Media, Analysts, Central Banks and Others

John Kicklighter, Chief Strategist

Talking Points:

• Traders look to various sources to find information, analysis and idea

• Despite best intentions and the quality of source, there is always a bias on the markets and views

• Central banks are economic cheerleaders, the media depends somewhat on sensationalism and analysts are seeking action

See how retail traders are positioning in the majors using the DailyFX SSI readings on the sentiment page.

Few traders have the time and experience necessary to do a deep dive to analyze the nitty gritty for each trade opportunity they come across. Some assumptions must be made, preferences for analysis decided and third party resources utilized. Most will use analysis from another source to help make their trade selection a reasonable task on an otherwise limited time frame. However, it is important that we don't simply take all assessments and forecasts from another person or organization at face value. Despite how hard we may try, there is always a bias in our interpretations and views on the market. This is a natural occurrence when there is a 'correct' or known outcome. That said, such bias can conflict with our underlying assumptions and alter the balances of probability to a trade. Therefore, it is critical that we understand what skews come with views from different sources.

We don't cover personal distortions in this video, but they are arguably the most difficult to account for. Given that we are most confident in our own judgement and it is difficult (for many uncomfortable) to recognize our short comings and shortcut assumptions, corrections on this front are slow to come. Outside our own views, analysts' interpretations can carry a explicit or unintended bias. For myself, a default to greater caution leaves my analysis with a distinct 'risk aversion' mentality and appetite for volatility to supply meaningful trade opportunity. Though seemingly virtuous in their views and actions, central banks are another source of news that needs to be interpreted. Groups like the Federal Reserve are economic cheerleaders. Their aim is to promote strong growth and steady inflation. Concern over financial inequity could prove detrimental to their primary goal, so views are often adapted to promote stability (either through omission or outright contradiction).

Other sources of news and analysis with less explicit aim to promote views can lead traders astray unexpectedly. Financial media is one of the most common sources of forecast, and it is often presumed that there is no bias associated. While their is an effort by most respectable media to avoid explicit bias, it can arise from either understanding or business necessity. Journalists are smart people, but not the most experienced in the behavioral assessments of a group of traders. There is also a need to promote viewership (clicks) which encourages sensationalism. Oil's otherwise persistent range for example is often referenced as if it were driven to an incredible trend on a daily basis on a substantial shift from OPEC action. Perhaps some of the most interesting - if for their antithetical views - assessments as of late come from supra-national institutions like the Bank of International Settlements (BIS) and Organization for Economic Co-operation and Development (OECD). These institutions focused on financial and economic stability have explicitly lamented threats to the system. We discuss what a bias from our research and analysis sources can do to our 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