By: Frank Kaberna, tastytrade. Jan 10, 2022
It feels like it was just yesterday people were worried about US Treasury rates staying at 0% forever… while it wasn’t yesterday, it was as recent as summer of last year that short-term interest rates were as close as they’ve ever been to negative.*
Now, the likelihood of multiple hikes to the Federal Funds Rate by the end of this year has people wondering just how big the chain reaction across the Treasury yield curve can be.
Pro
TRADING PSYCHOLOGY: BEYOND THE BASICS
The psychology of trading is often overlooked but forms a crucial part of a professional trader’s skillset. DailyFX is the perfect place to learn how to manage your emotions and hone your trading psychology; our analysts have already experienced the ups and downs, so you don’t have to.
Keep reading to discover their top tips, and to learn more about:
What is trading psychology
How to get in the mindset of a successful trader
The
As the Eurozone’s annual inflation rate hits 5%, the European Central Bank remains firmly opposed to interest rate rises. But as energy prices continue to spike, the pressure to act could become unbearable.
Source: Bloomberg
Forex Commodities Inflation Euro Germany European Central Ban
Rising yields should help boost bank profitability, although JPMorgan’s stock price has struggled lately.
Source: Bloomberg
Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 10 January 2022
While headline i
FUNDAMENTAL FORECAST FOR THE US DOLLAR: NEUTRAL
While the DXY Index added +0.07%, most of its gains were given back by the end of the week following the middling December US jobs report.
Not only are there several ‘high’ ranked data releases due in the coming days, there are testimonies and speeches by several Federal Reserve policymakers that seem destined to introduce more volatility to financial markets.
According to the IG Client Sentiment Index, the US Dollar has a mixed
- Reviewed by James Stanley, Nov. 24, 2021
Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. To put simply, margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool.
Closely linked to margin is the concept of margin call - which traders go to great lengths to avoid. Not knowing what margin is, can turn out to be extremely costly which is why it is essential for forex traders to
Uranium is unloved due to its affiliation with nuclear disasters. But with its spot price surging amid political unrest in global supply leader Kazakhstan, some uranium stocks could soar.
Source: Bloomberg
Shares Commodities Uranium Nuclear power Nuclear reactor Kazakhstan
Boeing: Ready for Takeoff or Turbulence Ahead?
Jan 5, 2022 | By:James Blakeway. Tastytrade
The first two trading days of 2022 were kind to both the airlines and Boeing (BA). This New Year rally comes after an understandably difficult two years in the commercial aviation sector. While Boeing and the U.S. Global Jets ETF (JETS) are far off their 2020 lows, they have a long road of recovery still ahead. Since the start of 2020, Boeing and JETS are facing negative returns in excess of 30%
JANUARY FX SEASONALITY OVERVIEW:
The first month of the year tends to see gains for commodities and commodity-linked currencies.
January is the best month of the year for gold prices in recent history.
Typical losses by the US Dollar tend to bode well for Australian, Canadian, and New Zealand Dollars.
The beginning of the month warrants a review of the seasonal patterns that have influenced forex markets over the past several years. For December, our focus
- Reviewed by James Stanley, Nov. 24, 2021
The Morning Star candlestick is a three-candle pattern that signals a reversal in the market and can be used when trading forex or any other market. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal.
This article explores the following talking points:
What is a Morning Star candlestick?
How to Identify a Morn
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 10th January 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted o
AUD/JPY has spent 2021 in a wide trading range of 77.90 and 86.26.
While other central banks around the world have been withdrawing pandemic stimulus measures, both the Reserve Bank of Australia (RBA) and the Bank of Japan (BOJ) have maintained relatively loose policies. This is largely because inflation in both countries is not threatening economic stability.
The RBA will not meet again until early February and when they do, fourth quarter inflation data will be available.
- Reviewed by James Stanley, Nov. 24, 2021
The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move.
Rising wedges appear regularly in the financial markets and traders gravitate towards the pattern because of its simplicity in identification and application. This article will explain how to spot a rising wedge on forex charts and how to trade them.
LEARN TO TRADE THE RISING WEDGE:
The Glencore share price was one of the top risers on the FTSE 100 last year. And it could accelerate further into 2022 as the EV revolution gathers pace.
Source: Bloomberg
Indices Shares Commodities Glencore Cobalt Electric battery
US DOLLAR, US-CHINA TRADE WAR, TAIWAN, IRAN NUCLEAR DEAL, - TALKING POINTS
COVID-19, rising interest rates likely to magnify shocks of geopolitical risks
US-China tension and the upcoming US midterm elections are top of the list
Iran nuclear deal, precarious fundamentals could amplify market turbulence
STOCK MARKET 2022 OUTLOOK: GEOPOLITICAL RISKS MAY CURB INVESTOR ENTHUSIASM
Given the confluence of COVID-19 and rising interest rates, geopolitical shoc
In spring 2020, the temporary closures of professional sports leagues during the initial coronavirus pandemic lockdown, coupled with the infusion of fresh capital into financial markets by the Federal Reserve and US Treasury, anointed a new class of retail traders in financial markets. This wave of new market participants brings with it a wave of liquidity that had been otherwise out of the reach of traditional financial markets.
Click here to read 'Why a Rise in Reta
After rising to $1200 per share, the electric vehicle behemoth now boasts a market cap of $1.2 trillion. But the veil of bullish numbers is hiding headwinds for its billionaire CEO.
Source: Bloomberg
Shares Tesla, Inc. Ford Motor Company Car China Electric vehicle
- Reviewed by James Stanley, Nov. 24, 2021
Lagging indicators are often misunderstood in their foundations however, they are a great way to analyse financial markets. This article will outline:
What lagging indicators are
Examples of lagging indicators
Benefits of lagging indicators
WHAT IS A LAGGING INDICATOR?
A lagging indicator is a tool used by traders to analyse the markets using an average of previous price action data. There are multiple lagging indicato
2021 saw a record number of SPAC and IPO launches across US stock exchanges. But half are trading below their initial prices. And with Virgin Orbit already down 20%, could the lustre of new listings be losing its appeal?
Source: Bloomberg
Shares Special-purpose acquisition company Virg
The below commentary highlights some of the key factors affecting US monetary policy which should in turn dictate future price movements for the US dollar.
Source: Bloomberg
Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 07 December 2021
Week commencing 3 January
Chris Beauchamp’s insight
The first week of the new year begins quietly, but it rapidly heats up. Key data such as China PMI figures and US ISM numbers are matched by the monthly US ADP and NFP reports, as the focus on the global economy and inflation returns. Corporate news remains quiet, although UK retail giant Next is the first of the sector to
- Reviewed by James Stanley, Nov. 24, 2021
Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Being aware of these errors, can help traders become more efficient in their forex trading. Although all traders make trading mistakes regardless of experience, understanding the logic behind these mistakes may limit the snowball effect of trading impediments. This article will o