Jump to content

MongiIG

Administrators
 View Profile  See their activity

  • Posts

    9,899

  • Joined

  • Last visited

  • Days Won

    41

 Content Type 

Blog Entries posted by MongiIG

  1. MongiIG
    USD Price Analysis & News
    All Eyes on Fed Chair Powell Fed Hawks Out in Force
    Fed Chair Powell takes centre stage today as market participants look for additional clues as to when an announcement over the tapering of QE will take place. In light of Fed’s Kaplan (hawkish) comments made last week that the spread of the Delta variant could adjust his views on policy and with the Jackson Hole Symposium becoming a virtual summit this has stoked expectations that Powell may provide a more cautious statement. However, what is interesting to note is that the Fed commentary ahead of Powell’s speech has come from the more hawkish members, alongside this, Kaplan’s most recent comments suggest that his view on the spread of the Delta have not adjusted his views. In turn, the risk may be more geared towards a more hawkish than expected outcome.
    Volatility Measures Remain Subdued
    Taking a look at EUR/USD one day implied volatility, option markets are not expecting a notable move in the FX space. Although, given how the Fed has tended to surprise in recent months, volatility measures could be somewhat misleading, while summer trading conditions may also be keeping implied volatility low.
    Fed Hawks Out in Force
    Fed's Kaplan says he does not see anything at the point that would cause him to materially change his outlook, business contacts are weathering Delta at least as well as previous surges.
    Fed’s Bullard says he wants to get going on tapering this year. Reiterates that he wants taper completed by end-Q1 2022.
    Fed’s George says the Fed should start on QE tapering this year; there has been good progress on the economy, inflation is coming in strong and suggests an opportunity to dial back QE but haven't seen the labour market fully recover.
    Source: Refinitiv, Bloomberg
    EUR/USD: Near term resistance resides at the 1.1800 handle and while markets are attempting to put in a short term base, it would take a close above 1.1800 to confirm. Risks remain lower for now as EUR/USD puts in another lower high, while the RSI fails to move above 50.
    EUR/USD Chart: Daily Time Frame

    Source: Refinitiv
    EUR/USD Tech Levels


    US Dollar: Short term support at 92.80 continues to hold firm with the greenback back above 93.00. A break below 92.80 however, opens the door to 92.50, while on the topside a push through 93.20 puts 93.50-60 in focus.
    USD Chart: Daily Time Frame

    Source: Refinitiv
     
    By Justin McQueen, Strategist, 27 August 2021. DailyFX
  2. MongiIG
    - Reviewed by James Stanley, Nov. 24, 2021
    You have probably heard a financial news presenter say something along the lines of “The central bank governor came out slightly hawkish today after bouts of strong economic data”. The terms Hawkish and Dovish refer to whether central banks are more likely to tighten (hawkish) or accommodate (dovish) their monetary policy.
    Central bank policy makers determine whether to increase or decrease interest rates, which have significant impact on the forex market. Policy makers increase interest rates to prevent an economy from overheating (to prevent inflation from going too high) and they decrease interest rates to stimulate an economy (to prevent deflation and stimulate GDP growth).
    Hawkish and dovish policies affect currency rates through a mechanism central bankers like to call “forward guidance”. This is policy makers trying to be as transparent as possible in their communications to the market about where monetary policy may be heading.
    Keep reading to learn more about hawkish and dovish policies and how to apply this knowledge to your forex trades.
    WHAT DOES HAWKISH MEAN?
    The term hawkish is used to describe contractionary monetary policy. Central bankers can be said to be hawkish if they talk about tightening monetary policy by increasing interest rates or reducing the central bank’s balance sheet. A monetary policy stance is said to be hawkish if it forecasts future interest rate increases. Central bankers can also be said to be hawkish when they are positive about the economic growth outlook and expect inflation to increase.
    Currencies tend to move the most when central bankers shift tones from dovish to hawkish or vice versa. For example, if a central banker was recently dovish, stating that the economy still requires stimulus and then, in a later speech, stated that they have seen inflation pressures rising and strong economic growth, you could see the currency appreciate against other currencies.
    Some words that could be used describing a hawkish monetary policy include:
    Strong economic growth Inflation increasing Reducing the balance sheet Tightening of monetary policy Interest rate hikes Generally, words used that indicate increasing inflation, higher interest rates and strong economic growth lean towards a more hawkish monetary policy outcome.
    WHAT DOES DOVISH MEAN?
    Dovish refers to the opposite. When central bankers are talking about reducing interest rates or increasing quantitative easing to stimulate the economy they are said to be dovish. If central bankers are pessimistic about economic growth and expect inflation to decrease or become deflation and they signal this to the market through their projections or forward guidance, they are said to be dovish about the economy.
    Some words that could be used to describe a dovish monetary policy, include:
    Weak economic growth Inflation decreasing/deflation (negative inflation) Increasing the balance sheet Loosening of monetary policy Interest rate cuts HAWKISH VS DOVISH EXPLAINED
    The below graphic provides a snapshot of the main differences between hawkish and dovish monetary policy:

    The table below provides a more in depth comparison on dovish vs hawkish monetary policies, highlighting the differences between the two and how they impact currencies.
    HAWKISH MONETARY POLICIES
    DOVISH MONETARY POLICIES
    Increasing interest rates to stem inflation pressures
    → Currency could appreciate as capital flows to higher interest rate currency
    Decreasing interest rates to stimulate the economy
    → Currency could depreciate as capital flows to a lower interest rate currency
    Reducing the Federal Reserve balance sheet by selling mortgaged backed securities (MBS) and treasuries
    → Currency could appreciate as selling of treasuries and MBS could increase interest rates
    Increasing the Federal Reserve balance sheet through quantitative easing (QE). QE is the purchasing of MBS and treasuries that increase the money supply in the economy to stimulate it.
    → Currency could depreciate as an increase in money supply decreases demand for the currency
    Forward guidance from central banks include positive statements about the economy, economic growth, and inflation outlook.
    → Currency could appreciate as investors forecast further interest rate hikes
    Forward guidance from central banks include negative statements about the economy, economic growth, and signs of deflation.
    → Currency could depreciate as investors forecast interest rate cuts
    HOW TO TRADE A HAWKISH OR DOVISH CENTRAL BANK
    A slight shift in tone from a central banker could have drastic consequences for a currency. Traders often monitor Federal Open Market Committee meetings and minutes to look for slight changes in language that could suggest further rate hikes or cuts and attempt to take advantage of this.

    Monetary policy standing as at 1 January 2019
    The image above shows the different central banks current monetary policy stance. When a central banks’ monetary policy stance moves more towards the left (dovish) their currency could depreciate against other currencies. If the monetary policy stance moves more towards the right (hawkish) their currency could appreciate.
    Trading a hawkish or dovish central bank isn’t as easy as buying a hawkish central bank currency or selling a dovish central bank currency. It has to do with changing interest rate expectations. Let’s look at two scenarios:
    Scenario 1:
    If a central bank is currently in a rate hiking cycle, the market will have already forecasted future interest rate hikes. It is the job of the trader to watch for clues and economic data that could shift the tone of the central bank to either more hawkish than currently, or to dovish. Currencies could move a large amount when the monetary tones shift from what they are currently.
    Scenario 2:
    Likewise, if a central bank is currently cutting rates and economic data hasbeen negative, the market would have priced-in the current dovish monetary stance. Traders would have to watch the central bankers forward guidance and economic data, which you can find on an economic calendar, for clues to whether they may become more dovish than currently, or hawkish.
    In late 2018 the federal reserve was quite hawkish. Federal Reserve Chairman, Jerome Powell, stated that “we’re a long way away from neutral at this point” which the market perceived as hawkish (2 Oct 2018). This implied that the Federal Reserve still had to hike rates many more times to get to the neutral rate. Then on the 28th of November, the FOMC released their statement of monetary policy in which Jerome Powell said he saw rates at “just below neutral”. This shift in tone is like scenario 1 above, where the central banks shifts tone from hawkish to slightly dovish. Leading to a depreciation of the currency- see the charts below that show what happened to the Dollar Index (DXY) on the October 2, 2018 and then on the November 28, 2018.
    October 2, 2018 - Federal Reserve Chairman, Jerome Powell says “We’re a long way away from neutral at this point” leading to appreciation of the Dollar.
    15min US Dollar index chart, vertical line indicating October 2, 2018.

    November 28, 2018 Federal Reserve Chairman says that interest rates are “just below neutral” indicating a shift in tone from hawkish to dovish. Dollar depreciations.
    15min USD Dollar index chart

    Keeping up to date with central banks can be difficult. At DailyFX we have a Central Bank Weekly Webinar where we analyze central bank decisions and keep you up to date with central bank activity.
    If you are just starting out on your trading journey it is essential to understand the basics of forex trading in our New to Forex guide. We also offer a range of trading guides to supplement your forex knowledge and strategy development.
    Senior Analyst, Tyler Yell of DailyFX sat down with former Federal Reserve Advisor, Danielle Dimartino Booth in a podcast that covered global central bank developments and Danielle’s biggest lesson she learned as a Fed insider.
     
    By David Bradfield, Markets Writer, 13th December 2021. DailyFX
  3. MongiIG

    The Forces of Supply and Demand

    By MongiIG,


    Analyst piece
    - Reviewed by James Stanley, Nov. 24, 2021
    The primitive forces of capitalism rule markets like the laws of gravity. Buyers and sellers provoke a battle to find a happy medium agreement in every financial market. As prices dance around on charts, traders are often looking for reasons to explain price movements however, the underlying source of price movement boils down to the relationship between supply and demand.
    Generally, positive news means increased demand and lessened supply – equating to higher prices. Negative news usually spells lower demand and increased supply.
    This article will outline the following foundational aspects of supply and demand:
    What is supply and demand? Supply and demand zones Supply and demand in the forex market How does supply and demand work? WHAT IS SUPPLY AND DEMAND?
    Supply and demand is the relationship between buyers and sellers that is used as a measure for price determination in financial markets. The forces of supply and demand interact to affect an equilibrium price between buyers and sellers whereby the quantity of demand equals the quantity of supply.
    What are the laws of supply and demand?
    ‘Supply’ is purely the amount available, while ‘demand’ is the amount that is desired. The graphs below indicate the visual aspect of supply, demand and equilibrium respectively.
    Supply: the relationship between price and quantity

    Demand: the relationship between price and quantity

    Equilibrium: the most efficient price at which quantity demanded equals the quantity supplied:

    SUPPLY AND DEMAND ZONES
    Supply and demand zones allow traders to gain a perception into the current financial markets, and these are illustrated in the charts below.
    It is noticeable that supply and demand zones cover a broader area as opposed to support and resistance levels. These broader zones provide more reliable price regions than a single line/level which can be a better gauge for future price movements.
    The supply zone below shows an area clustered by sellers because price tends to ‘bounce’ lower off this demarcated zone. This quick price movement off these zones characterizes the features of supply and demand zones. The demand zone exhibits the same attributes as the supply zone in the opposing direction – demand zone mimics a broad area of support.

    SUPPLY AND DEMAND IN THE FOREX MARKET
    Supply and demand within a simple vegetable market is not all too dissimilar from that which takes place every day in the forex market. In some cases, these forces are moving at such high velocity that new traders can have difficulty understanding the granularity of the details.
    The forex market is the largest financial market in the world because of the heavy demand behind the traded assets. Currencies are the basis for the world’s economy and whenever one economy wants to trade with another economy (provided different currencies are used) an exchange will be required.
    HOW DOES SUPPLY AND DEMAND WORK?
    In a nutshell, supply and demand works by analysing the quantity of buyers and sellers within the forex market.
    How do supply and demand influence market price?
    Imagine that the South African Reserve Bank (SARB) enacts an interest rate change. An entire chain reaction will be set in motion due to the forces of supply and demand. When rates increase, forex rollover payments also increase.
    This means that investors that are holding the trade open at the specified rollover time (varies from country to country) will receive a higher rate of interest than they would have previously - incentive has just increased.
    All else being equal, more traders would want to buy; and fewer traders would want to sell as the opportunity cost of selling (the rollover payment) has just gotten more expensive.
    Supply and demand forex – USD/ZAR daily chart:

    As you can see, price aims to find a comfortable point and will increase until there are no more buyers willing to pay that price. At this point, sellers outnumber buyers, and price will respond by moving down.
    After price has moved down far enough (red circle) traders will come back into the picture, remembering in the increased interest rate and the additional rollover payment that can be received from holding a long ZAR position, and this lower price presents a ‘perceived value.’
    As additional buyers enter the picture, price will move up to reflect this increased demand.
    This is the process of price attempting to find its fair value as it takes place on many different time frames in every market in the world.
    For more information, read out in-depth guide to trading supply and demand.
    USING SUPPLY AND DEMAND WITH SUPPORT AND RESISTANCE
    The relationship between supply and demand along with support and resistance is important. This is because when price crosses key support and resistance levels, changes in supply and demand may occur within that currency pair.
    Learn how traders use these principles to their advantage in our guide to supply and demand vs support and resistance.
     
    Warren Venketas, Analyst, 22nd December 2021. DailyFX
  4. MongiIG

    IG Community Top Contributors Competition

    By MongiIG,


    Community Competition
    Hello IG Community,
    We are excited to announce that the community will be running a Top Contributors Competition which will be starting on the 1st June 2022 and ends 30th June 2022. We are giving away great prizes to be won for our top 3 contributors which will be awarded at the end of the month and we’ll be announcing the winners. 
     
    How does the competition work?
    The rules are we will be selecting our top 3 contributors on the IG community based on both the quantity and quality of their posts. This means the winner won’t necessarily be the person who posts the most messages, but someone who has really helped to bring the community to life by responding to other community members and bringing up relevant trading markets topics of discussion.
    Ways to increase your chances of being Contributor of the Month
    Posting quality content across a broad range of topics on the forums.  Helping others, as well as giving and receiving ‘Accepted Solutions’ and ‘Likes’. Asking questions to IG Community, submitting feedback to IG, and generally getting involved!
    This giveaway is open to every community member!
    For a start you can simply post something on this blog on the comment section and reply to this post with your story on your experience with trading and stand a chance to win as the community top contributor. Post on the community forums as well on trading related discussions following the competition and community guidelines. The winner will also have the 'Contributor of the Month' badge added to their profile and a special icon next to your name for the proceeding month so all Community members are aware of your contributors.
     
    Our top 3 contributors will receive ProRealTime for free for a full year!
    If you're new to IG Community, or trading in general, it may be daunting to post trade ideas and market discussion. It is not too late to join the competition to stand a chance to win. Here are some great tips on how to get started and be ready for the competition:
    Introduce yourself to the IG Community and tell us your experience so far as a new trader. Submit feedback on IG's offering (e.g. feedback on our platform, apps, deal execution etc.) Ask any number of questions you like (e.g. how to trade, how to use certain features etc.)
     
     
    Want to be featured in the next Community newsletter? How it works:
    To be featured: Your forum posts can include the financial markets and marco-economic news announcements, trading strategies, technical analysis and charting, and our platform’s features on the community forums.
    Read our Community guides and submit your posts. https://community.ig.com/community-guidelines/
    If you have any questions, feedback or suggestions, submit your comment we would love to hear from you. Thank you very much for sharing your valuable & useful feedback. There is also a dedicated forum to share, visit and click this link: Want to be featured in the next Community newsletter. Here at IG we want to make sure your suggestions or feedback help shape the future of the Community and future newsletters. 
     
    Like, share, comment and WIN!
    Whether you’re new to trading, or you’ve been doing it for a long time now, there must be something you love about trading to discuss about on the community and also to help and assist your fellow community members who are seeking for answers to their questions! So go ahead and share your posts with us and the community. Follow the leaderboard to track your progress daily and weekly https://community.ig.com/leaderboard/ example below:

     
     
    We are also interested to hear from you on what other prizes would you like to stand a chance on winning for future Community competitions, comment and give us feedback on this blog below in the comment section.
     
    If you have any questions please ask. We are looking forward to the forum posts and good luck!
     
    All the best - MongiIG

     
    The competition is subject to our Terms and Conditions which apply.
  5. MongiIG
    UK housebuilders have underperformed the FTSE 100 this year despite favourable pre-tax profits, attractive valuations and improved operating margins. Is now right time to buy into the sector as a hedge against inflation?
    Source: Bloomberg  Axel Rudolph | Market Analyst, London | Publication date: Monday 28 March 2022 With the UK’s fourth largest housebuilder, Bellway becoming the last company among its peers to report first-half earnings before the end of the quarter on Tuesday, should investors flock to UK real estate investments amid spiralling inflation?
    UK housebuilders have benefitted from the house price boom which defied the coronavirus pandemic with Persimmon and Taylor Wimpey, Britain’s two biggest housebuilders, handing their chief executives bumper bonuses last year.
    Persimmon CEO, Dean Finch, received a total pay and bonus package of £2.6 million last year, compared with £218,326 in 2020, the York-based builder’s annual report showed.
    At Taylor Wimpey, the outgoing chief executive, Pete Redfern, received a total pay and perks package of £2.8m last year, up from £1.1m in 2020, according to its annual report. Revenues at this housebuilder rose 54% from 2020 to £4.3 billion last year, similar to its pre-pandemic revenues, while profit before tax jumped 157% to £680m, still below its 2019 profit of £836m.
    Persimmon made a profit before tax of nearly £1bn last year, up by a quarter from 2019, as it completed 14,551 homes, generating revenues of £3.6bn, but cautioned that the Ukraine invasion could disrupt the UK economy in the year ahead. Dean Finch, Persimmon’s chief executive, said he expected continued house price rises to “mitigate build cost inflation”, suggesting higher costs for materials and labour would be passed on to buyers.
    Ahead of Bellway’s half-year results tomorrow, the company will be pleased by the UK Home Builders Federation (HBF) having awarded it a 5-star rating in customer satisfaction for the sixth consecutive year.
    At the last count it had agreed deals for a record 19,819 new plots in the year to the end of July last year, increasing its land bank to over 86,500 plots. During the second half of the last year and up to January this year, Bellway set a new company record for completed homes too. Over the next two years the housebuilder said it has plans to deliver 20% more homes than last year, a time during which it doubled pre-tax profits to £479 million on the back of a 40% increase in revenue to £3.1 billion.
    In addition, Bellway is on track to see the volume of properties it builds rise by 10% for the full year and the same again in 2022-23. From a fundamental point of view, it may thus make sense to buy Bellway and other UK housebuilders as an inflation hedge with their highly deflated share prices, currently between 18% to 35% lower than their pre-pandemic peaks, or in the case of Persimmon, last year’s peak.
    Source: ProRealTime  
    Another reason for buying UK housebuilders shares is that the UK government’s £4bn cost estimate to remedy unsafe cladding on buildings between 11m and 18m high - which it wants UK housebuilders to contribute towards - may be far off the mark as the Home Builders Federation own auditor - PwC's - cost projections are likely to come in far lower at around £1bn.
    From a timing perspective it may be wise to hold off buying UK housebuilders shares just yet, though, since the sector’s shares keep on sliding as they bear the brunt of rising costs and weakening consumer confidence amid rising interest rates and the war in Ukraine.
    The iShares UK property ETF, which gives a diversified exposure to UK real estate companies and directly invests into these, may present a better alternative for investors since, unlike most UK housebuilders single stocks, it is trending higher.
    Source: ProRealTime  
    The ETF has today broken out of last week’s sideways trading range and looks to be heading back up towards the late 2019, early 2020 as well as the January 2022 highs at £6.70 to £6.95 with the August 2015 peak at £7.29 representing another potential upside target.
    The break through the 2022 downtrend line and rise back above the 200-day simple moving average (SMA) at £6.42 bodes well for this ETF while UK housebuilder shares remain under pressure for the time being.
  6. MongiIG
    INTRODUCTION TO MOVING AVERAGES:

    Moving Average – Talking Points:
    What is a moving average? How do you calculate moving average? What is the purpose of moving averages? How do you interpret moving averages? WHAT IS A MOVING AVERAGE?
    In technical analysis, the moving average is an indicator used to represent the average closing price of the market over a specified period of time. Traders often make use of moving averages as it can be a good indication of current market momentum.
    The two most commonly used moving averages are the simple moving average (SMA) and the exponential moving average (EMA). The difference between these moving averages is that the simple moving average does not give any weighting to the averages in the data set whereas the exponential moving average will give more weighting to current prices.

    HOW DO YOU CALCULATE MOVING AVERAGE?
    As explained above, the most common moving averages are the simple moving average (SMA) and the exponential moving average (EMA). Almost all charting packages will have a moving average as a technical indicator.
    The simple moving average is simply the average of all the data points in the series divided by the number of points.
    The challenge of the SMA is that all the data points will have equal weighting which may distort the true reflection of the current market’s trend.
    The EMA was developed to correct this problem as it will give more weighting to the most recent prices. This makes the EMA more sensitive to the current trends in the market and is useful when determining trend direction.
    The mathematic formula for each can be found below:
    Simple Moving Average:
    SMA =

    Where:
    A= Is each of the data points
    n = Number of time periods
    For example, looking at a 5-day SMA on a daily chart of EUR/USD and the closing prices over the 5 days are as follows:
    Day 1: 1.321
    Day 2: 1.301
    Day 3: 1.325
    Day 4: 1.327
    Day 5: 1.326
    SMA = (1.321 + 1.301 + 1.325 + 1.327 + 1.326)/5
    SMA = 6.6/5
    SMA = 1.32
    Exponential Moving Average:
    EMA =

    Where:
    EMAt= EMA today
    Vt= Value today
    EMAt = EMA today
    s =smoothing
    d = number of days
    Steps for calculating EMA:
    1. Calculate the SMA for the particular time period
    2. Calculate the multiplier for weighting the EMA using the formula:
    [2 ÷ (selected time period + 1)]. So, for a 10-day moving average, the multiplier would be [2/(10+1)]= 0.01818.
    3. Use the smoothing factor combined with the previous EMA to arrive at the current value.
    For example, looking at a 10-day EMA for a share, the table below displays how the EMA would be calculated:
      DATE
    PRICE
    10-DAY SMA
    SMOOTHING CONSTANT 2/(10 + 1)
    10-DAY EMA
    1
    24-Apr-18
    23.24
          2
    25-Apr-18
    22.99
          3
    26-Apr-18
    22.85
          4
    27-Apr-18
    23.00
          5
    28-Apr-18
    22.96
          6
    29-Apr-18
    22.21
          7
    30-Apr-18
    21.99
          8
    1-May-18
    22.43
          9
    2-May-18
    22.24
          10
    3-May-18
    22.55
    22.65
      22.65
    11
    4-May-18
    22.15
    22.54
    0.1818
    22.56
    12
    5-May-18
    22.39
    22.48
    0.1818
    22.53
    13
    6-May-18
    22.38
    22.43
    0.1818
    22.50
    14
    7-May-18
    22.61
    22.39
    0.1818
    22.52
    15
    8-May-18
    23.36
    22.43
    0.1818
    22.67
    16
    9-May-18
    24.05
    22.62
    0.1818
    22.92
    17
    10-May-18
    23.75
    22.79
    0.1818
    23.07
    18
    11-May-18
    23.83
    22.93
    0.1818
    23.21
    19
    12-May-18
    23.95
    23.10
    0.1818
    23.35
    20
    13-May-18
    23.63
    23.21
    0.1818
    23.40
     
    WHAT IS THE PURPOSE OF MOVING AVERAGES?
    The main purpose of the moving average is to eliminate short-term fluctuations in the market. Because moving averages represent an average closing price over a selected period of time, the moving average allows traders to identify the overall trend of the market in a simple way.
    Another benefit of the moving average is that it is a customizable indicator which means that the trader can select the time-frame that suits their trading objectives. Moving Averages are often used for market entries as well as determining possible support and resistance levels. The moving average often acts as a resistance level when the price is trading below the MA and it acts as a support level when the price is trading above the MA.
    HOW DO YOU INTERPRET MOVING AVERAGES?
    There are 3 ways in which trader’s use the moving average:
    To determine the direction of the trend To determine support and resistance levels Using multiple moving averages for long- and short-term market trends 1. To determine the direction of the trend:
    When prices are trending higher, the moving average will adjust by also moving higher to reflect the increasing prices. This could be interpreted as a bullish signal, where traders may prefer buying opportunities.
    The opposite would be true if the price was consistently trading below the moving average indicator, where traders would then prefer selling opportunities due to the market signaling a downward trend.
    2. The moving average for support and resistance levels:
    The moving average can be used to determine support and resistance levels once a trader has placed a trade.
    If the trader sees the moving average trending higher, they may enter the market on a retest of the moving average. Likewise, if the trader is already long in an uptrend market, then the moving average can be used as a stop loss level. The opposite is true for down trends.
    The charts below are examples of how the moving average can be used as a both a support and a resistance level.

    3.Making use of multiple moving averages
    It is common for traders to make use of multiple moving average indicators on a single chart, as depicted in the chart below. This allows traders to simultaneously assess the short and long-term trends in the market. As price crosses above or below these plotted levels on the graph it can be interpreted as either strength or weakness for a specific currency pair. This method of using more than one indicator can be extremely useful in trending markets and is similar to using the MACD oscillator.
    When making use of multiple moving averages, many traders will look to see when the lines will cross. This phenomenon is referred to as ‘The Golden Cross’ when a bullish pattern is formed and ‘The Death Cross’ when the pattern is bearish.
    A Golden cross is identified when the short-term moving average (such as the 50-day moving average) crosses above the long-term moving average (such as the 200-day moving average), while the Death cross represents the short-term moving average crossing below the long-term moving average. Traders that are long, should view a Death Cross as a time to consider closing the trade while those in short trades should view the Golden Cross as a signal to close out the trade.

    MOVING AVERAGE INDICATOR: A SUMMARY
    In summary, the Moving Average is a common indicator used by traders to determine trends in the market. Many traders use more than one Moving Average at a time as this gives a more holistic view of the market. Moving averages are often used to determine market entries as well as support and resistance levels.
    BECOME A BETTER TRADER WITH OUR TRADING TIPS
    Learn more about the moving average and other technical indicators Learn more about how to be a successful trader with the Traits of a successful trader training guide Get tips on how to create trading plan  
    Article by Tammy Da Costa, Markets Writer, 12th July 2021. DailyFX
  7. MongiIG
    While FTSE 100 stocks rose by 1% in March, the resurgent covid-19 pandemic in China, protracted Russia-Ukraine war, and tightening monetary conditions could all conspire to see them fall next month.
    Source: Bloomberg   Indices Shares FTSE 100 BAE Systems Glencore Vodafone  Charles Archer | Financial Writer, London | Publication date: Thursday 31 March 2022  As the first quarter of 2022 comes to an end, a rising tide of bearish sentiment could be about to hit FTSE 100 stocks.
    But some may resist the trend.
    1) BAE Systems
    BAE Systems (LON: BA) shares are up 30% to 722p year-to-date, after it was boosted by sentiment over Russia’s invasion of Ukraine and encouraging full-year results which saw sales grow by 5% to £21.3 billion last year. CEO Charles Woodburn thinks the group is ‘well positioned’ for future growth; and with defence spending being reprioritised across the developed world, investors are anticipating new contracts for the largest defence contractor in Europe.
    In addition, Rolls-Royce shares spiked last week over speculation that BAE might put in a takeover bid. As the UK government maintains a golden share in Rolls-Royce over security concerns, BAE is one of the only companies that could successfully pursue the engineer.
    2) Scottish Mortgage Investment Trust
    Scottish Mortgage (LON: SMT) has fallen in value by a third since November. A toxic combination of the Omicron variant, rocketing global inflation, and the rising interest rates to combat it, are all hammering its tech-heavy holdings.
    It’s especially vulnerable to geopolitical tensions between China and the US, with its US-listed Chinese stocks NIO, Alibaba, and Meituan at risk both of being delisted in the States, and also of being caught in the crossfire of the Chinese ‘zero-covid’ policy that is seeing tens of millions returning to lockdown.
    However, the trust has made exceptional returns over the years. After falling to 835p earlier in March, its recovery to 1,030p today could represent a rare buying opportunity.
    Source: Bloomberg 3) SSE
    SSE (LON: SSE) shares are up 20% over the past year to 1,750p, as the FTSE 100 renewable energy stock benefits from the environmental focus brought on by the COP26 summit, and the volatility of Brent Crude caused by the ostracization of Russian oil.
    The operator is developing global wind farm operations from the USA to Japan. But its crown jewels are going to be Seagreen, the world's deepest, fixed-bottom wind farm, and Dogger Bank, the largest offshore wind farm in the world. Both are currently under construction.
    With the UK government likely to publish its National Energy Strategy in April, Business Secretary Kwasi Kwarteng already plans to quadruple offshore and double onshore wind capacity by 2030. SSE is investing £12.5 billion on its green investments by 2026, aiming to double its renewable capacity to 8GW.
    In February’s Q3 results, CFO Gregor Alexander exhorted the ‘significant bolstering of SSE Renewables' pipeline, the increased visibility we have over opportunities for greater growth.’ And since then, it’s already ‘adjusted earnings per share to be in a range of between 92 and 97 pence compared to previous guidance of at least 90 pence.’
    4) Glencore
    Glencore (LON: GLEN) shares are up 76% over the past year to 500p, as the FTSE 100 stock benefitted from the booming mining supercycle. The company’s cobalt, Nickel and Copper are essential for the EV revolution, with most western countries planning to phase out ICE cars long before 2040 hits.
    However, it faces a political battle in April over its stakes in Russian companies En+ and Rosneft. While BP and Shell have declared they will exit their Russian positions, Glencore has said it has ‘no realistic way’ to leave the country.
    However, it added it will ‘not enter into any new trading business in respect of Russian origin commodities unless directed by the relevant government authorities.’
    But continuing to own a 10.5% in En+ and a 0.57% stake in Rosneft could soon become a problem if the UK government continues to clamp down.
    5) Vodafone
    Vodafone (LON: VOD) shares are up 9% year-to-date to 126p, despite recent falls since mid-February. Notwithstanding declining revenue, the FTSE 100 stock has seen profits before tax increase from €2.7bn to €4.4bn over the past five years.
    But the mobile operator has a €73bn pile of debt that is only going to become increasingly expensive. It does expect free cash flow of €5.3 billion in this fiscal year, but is likely to want to spend this money on further expansion of its Africa-based MPESA mobile payments operation.
    Last month, it rejected an €11 billion bid for its Italian business, which controls 28% of the country’s market, by French operator Iliad. And it’s also in advanced discussions over the sale of its 21% stake in India’s largest mobile company, Indus Towers.
    With monetary policy tightening, Vodafone could soon be announcing sales of foreign interests to cut down its debt and weather the oncoming storm.
    Trade over 16,000 international shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading shares with us, or open an account to get started today.
    *Based on revenue excluding FX (published financial statements, June 2020).
  8. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 26th September 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 on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.
     
     

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    AEX
    RAND NA
    29/09/2022
    Special Div
    2.81
    SPX
    COP US
    28/09/2022
    Special Div
    1.4
     
    How do dividend adjustments work?  
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

  9. MongiIG
    FTSE 100, BANK OF ENGLAND POLICY DECISION, NEWS AND ANALYSIS:
    The FTSE 100 index has been climbing for most of this week and the Bank of England’s monetary policy committee will likely consider it a job well done if London stocks and GBP are stable after its announcement today. A hawkish tilt cannot be ruled out but the Bank is more likely to focus on stability and avoiding a major market reaction.
     
    BANK OF ENGLAND TO FOCUS ON STABILITY
    Torn two ways by an above-target UK headline inflation rate of 3.2% year/year in August and a robust labor market on one side, and a stalling economic recovery on the other, the Bank of England is almost certain to leave all its monetary settings unchanged Thursday.
    For now, its monetary policy committee will likely continue to see the rise in inflation as transitory and put its emphasis on stability and avoiding a major market reaction when it announces its decisions. However, a hawkish tilt cannot be completely ruled out, and that would have a negative impact on London stocks after their advance over the last few days.
    FTSE 100 PRICE CHART, DAILY TIMEFRAME (JANUARY 21 – SEPTEMBER 23, 2021)

    Source: IG (You can click on it for a larger image)
    More likely though, even the hawks on the MPC will likely have reached the conclusion that against a background of soaring UK energy prices and unease over China because of the Evergrande saga, now is not the time to signal a hawkish tilt.
    With no press conference today by BoE Governor Andrew Bailey and no new economic projections released, it’s only the actual announcement that traders will need to look at. In it, the key question will be whether any other MPC members have joined Michael Saunders in thinking that the necessary conditions for a tapering of the Bank’s QE asset-purchase program have been fulfilled.
    The answer to that question is probably no. Note that the QE program is on course to finish in December anyway, and that the MPC’s two new members will probably want to keep their heads down rather than rock the boat so soon after joining.
    Still, the Bank remains likely to tighten policy next year, when there could be rate rises in May and again in November even if that is still up in the air at the moment.
     
    Written by Martin Essex, Analyst, 23 September 2021. DailyFX
  10. MongiIG
    A quiet economic calendar to start the week and the lead-up to the key US CPI brought some wait-and-see for Wall Street, as further catalysts are being sought to follow through with last Friday’s gains.
    Source: Bloomberg   Forex Indices United States EUR/GBP United States dollar Euro  Yeap Jun Rong | Market Strategist, Singapore | Publication date: Tuesday 09 May 2023  
    Market Recap
    A quiet economic calendar to start the week and the lead-up to the key US Consumer Price Index (CPI) brought some wait-and-see for Wall Street overnight (DJIA -0.17%; S&P 500 +0.05%; Nasdaq +0.18%), as further catalysts are being sought to follow through with last Friday’s gains.
    Ahead, attention will be placed on an upcoming White House meeting between President Joe Biden and several lawmakers to discuss on the US debt limit. The 1 June debt-default deadline looms but some tendency for a compromise to be sought only at the eleventh hour suggests that a continued impasse could be on the table.
    The uneasiness around any quick resolution on US borrowing limit led Treasury yields higher, with the two-year up eight basis-points while the ten-year is up eleven basis-points. However, the US Dollar was met with muted gains at best (+0.3%), with lingering signs of exhaustion. Intermittent attempts to move higher thus far have failed to find much follow-through, as rate expectations have remained well-anchored.
    The latest CFTC aggregate positioning for US dollar against G10 currencies remains in net-short territory. Historical instances suggest that a move into net-long territory may coincide with some of the lows in the US dollar but that is still not presented currently. The 100.50 level will be a key support to watch, with any failure to hold potentially paving the way towards the 99.00 level next.
     
    Source: IG charts  
    Asia Open
    Asian stocks look set for a mixed open, with Nikkei +0.62%, ASX -0.28% and KOSPI -0.42% at the time of writing. An unexpected decline in Japan’s consumer spending and the twelfth month of decline in real wages support a continued dovish take in policy settings from the Bank of Japan (BoJ). With rate expectations already pricing for a no-change in Japan’s rate outlook at least over the next three meetings, the data release did not prompt much of a move in the USD/JPY.
    Ahead, China’s trade data will be in focus. Exports are expected to increase by 8% year-on-year while imports may turn in flat. An upside surprise may point to a better-than-expected recovery, although outlook remains challenging on external demand.
    The China A50 index has been stuck in a phase of indecision lately, struggling to find a clear direction around its 200-day moving average (MA). Recent upmove is headed to retest its April high but greater conviction could come from a move above the 13,600 level, which could pave the way towards its 2023 high.
     
    Source: IG charts  
    On the watchlist: EUR/GBP on watch ahead of Bank of England (BoE) meeting
    The EUR/GBP has thus far failed to defend an upward trendline support and its key 200-day MA, which was broken down for the first time since August 2022. With the UK economic surprise index at its highest level since 2021, it provides some room for the Bank of England (BoE) to move ahead with further rate increases, at a time where year-on-year inflation persists in the double-digit. Market pricing is pointing to three more 25 basis-point hikes from the central bank. Any hawkish hike at the upcoming meeting will be on watch to provide downward pressure for the pair. Trading below the 200-day MA line could point to further downward bias for the EUR/GBP, accompanied by a move in moving average convergence/divergence (MACD) back into negative territory.
     
    Source: IG charts  
    Monday: DJIA -0.17%; S&P 500 +0.05%; Nasdaq +0.18%, DAX -0.05%, FTSE +0.98%
  11. MongiIG

    2021: The Year in Review

    By MongiIG,


    Market News
    2021: The Year in Review
    EconomyDec 30, 2021  By Peter Nurse, Liz Moyer, Sam Boughedda and Yasin Ebrahim
    Investing.com -- The year 2021 is rapidly drawing to a close, and while it has been a significant improvement, market-wise, to the previous year, there was plenty of volatility along the way.
    As we move into 2022, here's a look back at the year that was.
    First Quarter: Biden arrives
    January: The new year started as the old one had ended with the Covid-19 virus casting an ominous shadow over the global markets. The official global death toll breached the 2 million mark in January.
    Supporters of President Donald Trump stormed the U.S. Capitol in Washington, resulting in five deaths and Trump’s impeachment, the first time in history a U.S. President was impeached twice. President Joe Biden’s inauguration did proceed smoothly in the end, and he promptly unveiled a $1.9 trillion Covid-19 stimulus package.
    Markets found a new trading theme - inflation.
    The Covid-19 lockdowns contributed to supply chain disruptions and brewing inflation, and the stimulus deal amped up the pressure. The Federal Reserve said short-term price increases were not a concern, but traders began anticipating it would have to act. U.S. bond yields started to climb, and the dollar rose in tandem.
     After starting the year around $30,000, Bitcoin jumped to over $40,000 before slumping 10%.
    So-called ‘meme’ stocks were on the rise. Video game retailer GameStop (NYSE:GME) was central to this phenomenon. Professional short-sellers had positioned themselves for a fall in the stock given the videogame retailer’s lack of an online presence during the pandemic. Retail investors, helped by social media sites and cheap trading platforms, were eager to give hedge funds a bloody nose and rushed in. GameStop’s stock soared 400% in the last week of the month.
    February: Equity markets headed higher in February, as optimism that the mass rollout of Covid vaccines, including a new one by Johnson & Johnson (NYSE:JNJ), would mean a prompt return to normalcy.
    Jeff Bezos announced he was stepping down as CEO of Amazon (NASDAQ:AMZN) after 30 years, having grown the company from his garage to the largest U.S. e-commerce retailer by market capitalization.
    U.S. government bonds saw a sharp sell-off late in the month, with yields climbing sharply after tepid demand at a Treasury bond auction.
    Bitcoin jumped 50% through the $58,000-mark, claiming a market capitalization of $1 trillion, as heavyweight institutions such as Tesla (NASDAQ:TSLA) and Mastercard (NYSE:MA) embraced the cryptocurrency.
    Crude prices continued to recover on growing confidence that oil demand would rise sharply as vaccines helped global economies reopen. A major winter storm in Texas helped, shutting down supply.
    In politics, former President Donald Trump was acquitted in his second Senate impeachment trial as the Republican Party mostly stayed loyal. Mario Draghi, former head of the European Central Bank, was sworn in as Italian Prime Minister, while civilian leaders, including Aung San Suu Kyi, were detained in Myanmar after a military coup.
    March: The search for normalcy continued. The rollout of Covid vaccines, particularly in the U.S. and the U.K., helped equity markets rise.
    The U.S. S&P 500 index rose by over 4% in March whereas the Nasdaq 100 index gained just under 0.5%, as growth stocks continued to underperform their value counterparts. 
    In the European Union, a lack of vaccination logistics organization was exacerbated when AstraZeneca (NASDAQ:AZN) struggled to deliver as many vaccine doses as promised. Then a blood clot side effect problem created doubts about its viability. 
    Inflationary fears continued to unnerve bond markets with the U.S. 10-year yield climbing steadily, ending the month at 1.73%, after the passing of the $1.9 trillion stimulus package and with a substantial infrastructure plan in the works. 
    Bitcoin broke $60,000 for the first time, before pulling back in volatile trading.
    Crude prices pushed higher, with the global benchmark Brent rallying to $65 a barrel. Late in the month, a 224,000 ton container ship, owned by Evergreen Marine, got lodged in the Suez Canal, creating a traffic jam in one of the busiest waterways in the world.
    Second Quarter: Trust me, it’s just transitory
    April: Large-cap stocks got all the attention as the second quarter kicked off a period of strong earnings and economic data. The S&P rose 5.3%, while the Nasdaq rose 5.4% and the Dow Jones Industrial Average rose 2.8%. 
    The Federal Reserve stayed committed to keeping the stimulus spigot open a year after slashing rates to zero, holding fast to its view that any price increases would be “transitory.” Inflationary pressures that showed up in March seemed to calm a bit in April, with the 10-year Treasury yield easing back to 1.63%.
    By month’s end, about 100 million Americans had received their Covid shots, a hopeful sign that the economy could recover quickly. But unemployment remained elevated at 6% and 2 million or so Americans were still missing from the labor force compared to conditions before the pandemic erupted.
    U.S. job growth disappointed in April, but the full scope wasn’t appreciated until May, when the monthly jobs report for April showed 266,000 new jobs added in the period. Economists had expected 1 million. The weaker-than-expected number sparked debate about whether extended extra unemployment benefits were keeping workers from seeking jobs. 
    Bitcoin reached a high of $63,400 in April but then tumbled back to $50,000.
    May: The Dow Jones Industrial Average climbed another 2.2% for the month, and the S&P 500 rose 0.7% while the Nasdaq dropped 1.4%. Fears about inflation started to dig in amid talk of rising costs and labor shortages.
    Consumer and producer prices continued to surge. They weighed against labor shortages, rising wages, shipping delays and material shortages.
    President Biden set July 4 as the deadline to get at least 70% of American adults vaccinated with at least one shot. By month’s end, 135 million Americans were fully vaccinated, but a variant of coronavirus called Delta was surging in India and would land on U.S. shores soon enough.
    A late-month rally in stocks was a reaction to the minutes of the Federal Reserve’s April policy meeting, where officials signaled a shift in their thinking. The minutes said continued progress with the economy could make it appropriate for the Fed to start talking about the timing of its bond purchase taper, the first step in reducing the stimulus that flowed through the economy since the beginning of the pandemic. The 10-year Treasury fell back to 1.59% at month’s-end.
    Bitcoin traded above $59,000 on May 8 and then fell to a four-month low.
    June: Though a surge in coronavirus cases caused European governments to second-guess their reopening plans, stocks continued to climb. The Nasdaq rose 5.5%, while the S&P 500 advanced 2.3% and the Dow Jones Industrial Average was flat.
    By now, Fed officials were signaling the likelihood of two interest rate hikes in 2023. Chair Jerome Powell said substantial further progress would be needed to start the taper.
    Two-thirds of workers said employers had encouraged staff to get their vaccination, with half saying they got paid time off to get it or recover from side effects. In June, 25 states withdrew the extra unemployment benefits that had been going out to people since the pandemic, arguing the extra money kept people out of the workforce. The economy added 850,000 jobs that month, and the unemployment rate was 5.9% from 5.8% in May.
    Third Quarter: It’s infrastructure week, finally
    July: The lingering Covid-19 pandemic left concerns about whether the economic recovery would continue throughout the rest of the year, creating volatility.
    U.S. equities ended the month higher, as did U.K. and European equity markets. 
    China's regulatory clampdown hit Chinese U.S. listed stocks hard. Ride-hailing company and NYSE-listed Didi Global saw its shares close the month down 27%.
    The Fed said after its July meeting that the economy was making progress. However, it maintained asset purchases and said it is appropriate to keep the current target rate range until labor market conditions have improved.
    After moving mostly sideways since May, failing to break above the $41,000 mark after a couple of attempts, Bitcoin closed the month at $41,490.
    The Senate began debate on a $1 trillion bill to rebuild the nation’s infrastructure, including money for bridges, roads, rail and ports, and the build out of broadband and clean energy projects.
    August: The tech sector helped drive U.S. equities higher in August to touch new highs. Powell made dovish comments at the Jackson Hole Symposium but also said bond purchases could be reduced before the end of 2021.
    The benchmark S&P 500 rose for the seventh-straight month after a 3% gain, the Nasdaq 100 climbed 4% and the Dow rose over 1%. This was against the backdrop of supply chain challenges, inflation concerns, the spread of the Covid-19 Delta variant, and labor market shortages.
    WTI crude oil fell 7% in August, its worst month since October 2020, as demand concerns increased once again when Hurricane Ida forced the closure of U.S. refineries.
    The U.S. dollar hit a new high for 2021 in August, touching the 93.73 level before quickly retreating throughout the rest of the month. However, the decline wasn't enough to put it into negative territory. It closed out August over half a percent higher.
    After the breakout towards the end of July, Bitcoin gained some momentum in August, closing out the month over 13% higher.
    The Senate passed the infrastructure spending bill, but not without considerable debate over whether to pair its passage with a larger spending bill focused on social initiatives. The House wouldn’t pass it until November.
    September: September saw U.S. equity markets sell off, erasing the previous month's gains and staying true to the usual seasonal September decline. The S&P 500 fell 4.8%, the Nasdaq 100 closed September down over 5% and the Dow finished the month down 4.2%.
    The majority of FAANG stocks fell in September, with Meta (formerly known as Facebook (NASDAQ:FB)) down over 10%, Amazon down over 5%, Apple (NASDAQ:AAPL) 6.8% lower, and Google (NASDAQ:GOOGL) over 7% lower. Netflix (NASDAQ:NFLX) was the outlier, gaining over 7% during the month. Elsewhere, the energy sector rose 9% after spikes in oil and natural gas prices.
    There were significant concerns for the Chinese real estate market and Evergrande bondholders after the property firm ran short of cash in the face of mounting debts, an issue that is still ongoing. China also continued to impose stricter regulatory reforms — another concern for investors.
    In the Federal Open Market Committee Meeting, Powell said tapering could begin as soon as November. He also said that rate hikes would not start until the tapering was complete.
    A promising start to September for Bitcoin was short-lived after it failed to penetrate the $53,000 level and ended being down 7% for the month.
    Fourth Quarter: Focus shifts to inflation
    October: Stocks started the fourth quarter on the front foot as investors looked ahead to the quarterly U.S. earnings season to get a sense of how companies were holding up against rising costs.
    Corporate America duly answered the call, delivering its strongest quarterly earnings in more than a decade.
    Fears that surging costs from clogged-up supply chains would hold margins hostage quickly dispersed as firms were able to pass on costs to consumers.
    The S&P 500, Dow Jones, Nasdaq, and Russell 2000 all swelled to all-time highs. Tesla was one of standout performers of the month, racking up gains of 44% en route to a record high.
    Bitcoin leapt to record highs as the wider investment world cheered the coming of age of the moment for the popular cryptocurrency: A futures-based Bitcoin exchange-traded fund. 
    The Securities and Exchange Commissions approved the ProShares Bitcoin Strategy fund.
    The traditional fourth-quarter rally in Bitcoin and stocks appeared to be a done deal.
    Bond markets, however, kept some of the optimism in check, as the yield curve continued to flatten – a traditional doomsday sign.
    November: Investors were reminded that the pandemic continued to be a main market risk event as a new variant emerged from South Africa. Armed with the tools – via several mutations – to evade our most effective vaccines, Omicron sent shockwaves through markets.
    Europe was soon under siege. Covid lockdowns in parts of Europe were back in vogue.
    As investors awaited further data to assess the threat carried by the Omicron variant, they had to contend with another negative surprise: The ‘Powell Pivot.’
    Testimony from Powell before Congress, proved to be a monumental moment for monetary policy. Against the backdrop of U.S. inflation running at the hottest pace in three decades, Powell said it was time to delete the word “transitory” from our inflation vernacular.
    The Fed chief signaled that the pace of bond tapering would be accelerated to allow enough room to begin hiking rates.
    For the first time in a while, investors were forced to remove their Fed-tinted glasses. And they didn’t like the unknowns before them.
    Is the ‘Fed Put’ dead? How far behind is the Fed on the curve? How many hikes will it take for the Fed to catch up, and could that lead to recession as the Omicron impact threatens the recovery?
    Investors didn’t hang around for answers and uncertainty soon swept through markets, delivering a blow to risk appetite.
    The Bank of England reprised its role as the ‘unreliable boyfriend.’ It unexpectedly kept monetary policy unchanged.
    December: The final month of the year was characterized by wild swings in either direction as investors started counting down the days until the Fed’s last monetary policy meeting of the year, betting that the Fed would double the speed of its bond purchase tapering to $30 billion per month.
    The consensus on rate hikes was less than straightforward, as some were in the two hikes in 2022 camp, others were clinging onto one. 
    The Fed sprung a hawkish surprise, with members forecasting three rate hikes for 2022 followed by another three in 2023.
    In the press conference that followed the monetary policy statement, Powell delivered arguably his best monetary policy Q&A during his tenure as Fed chair.
    The chief acknowledged the threat of inflation, but also reassured markets that the economy was strong enough to deal with the Fed’s tightening plan.
    Markets rallied with tech delivering strong post-Fed gains. And talk of “Apple $3 trillion valuation,” was on the agenda once again.   Some on Wall Street had even harbored hope that the “Santa Rally” would make a late appearance.
    But the positive sentiment quickly faded as the economic threat of the Omicron variant lurked in the background.
  12. MongiIG
    - Reviewed by James Stanley, Nov. 24, 2021
    WHAT IS A TRADING JOURNAL?
    A trading journal is a log that you can use to record your trades. Traders use a trading journal to reflect upon previous trades so that they may evaluate themselves, and you should too! You can use journals to evaluate where you can improve your trading. They are a useful form of record keeping.

    WHY TRADING JOURNALS ARE USEFUL
    Main reasons to keep a trading journal include:
    They help you identify weak points and strong points in your style. Journals could increase trading consistency. The journal could keep you accountable. The journal can help you choose your best trading strategy. Keeping a journal is a simple yet extremely effective way to improve a trading plan. A trading plan is a set of rules and guidelines you will follow that includes strategy, risk management, and trader psychology.
    HOW TO CREATE A TRADING JOURNAL
    Creating a trading journal is simple and you can tailor one to your specific trading goals and style. The following steps are a basic guide, which are explained in more depth below:
    Choose between a book or a spreadsheet. We recommend using a spreadsheet. Identify what information you would like to record. (Date of trade, underlying asset, position size etc.) Record your trades directly after you have finished placing your stop losses and take profits. After a designated period (daily/monthly/weekly) compile the data and reflect upon the trades. Step 1: Choose a book or spreadsheet
    We recommend using a spreadsheet because of the built-in analytical functions. These can help you reflect upon the trades as we explain in step 4.
    Step 2: Identify the information to record
    The standard format of a trading journal will include these main criteria:
    CURRENCY PAIR
    SIZE
    LONG/SHORT
    DATE
    CONVICTION
    STRATEGY USED
    POINTS
    SUCCESSFUL OR NOT?
    USD/JPY
    1 lot
    Long
    30 Jan 19
    High
    Fundamentals
    100
    Successful
    The standard format is an example of a simple trade journal. It can help you reflect on your trades, but with a few extra criteria we can enhance the journal so that it provides much more useful information.
    Useful information to consider adding include:
    Reason for trade: The reason could be due to technical or fundamental analysis or a combination of both. Once you have executed several trades you can reflect on this information to see if your reasons for trading are bearing tangible results. This could also help you determine which strategy works better for you -technical analysis or fundamental analysis.
    Conviction: Conviction is how you feel about the trade. If you are making the trade based on a technical pattern and if the pattern ‘checks off’ several guidelines, then we can list the conviction as ‘high’. However, if the pattern or fundamental story isn’t really clean, then the conviction may be ‘medium’ or ‘low’ depending on the factors basing the trade. By writing down your conviction, you can calculate the amount of successful trades you have had with each rank of conviction. This could help you determine whether you should only trade when you are very convinced or not.
    Other: You can put whatever you feel is necessary to record in your journal. Some traders add a criterion for how they feel emotionally when placing the trade. Anything you feel will help you, write down.
    Step 3: Record the trades directly after the trade
    Get into the habit of recording the details of the trade directly after the trade, while it is still fresh. This way you won’t have to remember what your reasons were for taking the trade. Make sure to do this only after placing your stop-loss and take-profit.
    Step 4: Compile the data and reflect upon the trades
    After a certain amount of time, preferably a few months so you have enough data, you can compile the data in your trade journal.
    If you have a conviction criterion in your journal, tally up the amount of successful trades made when your conviction was high, medium, and low. Once you have this data you can make the decision of whether it is worth trading only when your conviction is high or not.
    For example, if you maintained a high conviction in 10 trades and eight of them were successful trades (Take-profits were hit) that’s as 80% probability of success on your historical trades. If your conviction was low on 10 trades and only two were successful trades that’s a 20% probability of success. Therefore, you would conclude that it is only worth trading when your conviction is high.
    You can do this will all the different types of criteria so that you can reflect on your trading and improve.
    TRADING JOURNAL TEMPLATE
    Here is an example of a trading journal template that includes type of trading strategy used as a criterion.

    Having discussed the different criteria, you could include in your journal, the table above illustrates how you could organize all this information in a spreadsheet. You can download the template above for personal use from page five of our free building confidence in trading guide.
    TRADING JOURNALS: A SUMMARY
    Having a trading journal should be one of the first steps traders implement when learning to trade. A journal is of utmost important to testing different strategies and finding which trading plans work for individual traders.
    A trading journal is essential in testing whether a current trading strategy is working. To summarize:
    Trading journals are there to log your trading activity. They help traders test different trading plans and strategies. Trading journals can also help traders pinpoint strengths and weaknesses in a trading style. To add to your knowledge see the Number One Mistake Traders Make where we analyzed thousands of live trades and came to a striking conclusion.
    If you are a forex trader, you can read our article on keeping a forex trading journal that includes tips on finding the journaling method that fits you.
     
    By David Bradfield, Markets Writer, 19th December 2021. DailyFX
  13. MongiIG

    The Week Ahead On The Markets

    By MongiIG,


    Market News
    The Week Ahead
    Read about upcoming market-moving events and plan your trading week
        Week commencing 20 September
    Chris Beauchamp’s insight
    Fed, BoE and BoJ meetings dominate the week, with their discussion on policy likely to influence market volatility. Meanwhile, it is flash PMI week, providing further insight on the global economy. Also of note is the monthly German IFO data. On the corporate front, updates from Kingfisher, TUI and Royal Mail in the UK, and FedEx and Nike in the US, will be of interest.
        Economic reports
    Weekly view Monday
    None
    Tuesday
    1.30pm – US housing starts & building permits (August): starts to rise 2% and permits to fall 1.8%. Markets to watch: USD crosses
    Wednesday
    4am – BoJ rate decision: no change in rates expected. Markets to watch: Yen crosses
    3pm – eurozone consumer confidence (September, flash): index to fall to -5.7. Markets to watch: EUR crosses
    3pm – US existing home sales (August): sales to fall 1.3%. Markets to watch: USD crosses
    3.30pm – US EIA crude inventories (W/e 17 September): stockpiles fell 6.4 million barrels in the previous week. Markets to watch: Brent, WTI
    7pm – US FOMC rate decision: no change in policy expected, but the ongoing discussion regarding tapering of asset purchases will continue. Markets to watch: USD crosses
     
    Thursday
    8.15am – French, German, eurozone mfg & services PMIs (September, flash): eurozone services PMI to fall to 59 and mfg PMI to fall to 60.4. Markets to watch: eurozone indices, EUR crosses
    9.30am – UK mfg & services PMI (September, flash): mfg PMI to fall to 59, and services to rise to 55.1. Markets to watch: FTSE 100/250, GBP crosses
    12pm – BoE rate decision: no change in rates expected, but recent inflation data may prompt a discussion on policy. Markets to watch: GBP crosses
    1.30pm – US initial jobless claims (w/e 18 September), Chicago Fed nat’l activity index (August): claims to fall to 310K and Chicago Fed index to drop to 0.4. Markets to watch: USD crosses
    2.45pm – US mfg & Services PMI (September, flash): mfg PMI to fall to 60 and services PMI to fall to 54. Markets to watch: US indices, USD crosses
     
    Friday
    12.30am – Japan CPI (August): prices to fall 0.2% YoY. Markets to watch: JPY crosses
    9am – Germany IFO index (September): business climate index to fall to 98.8. Markets to watch: EUR crosses
    3pm – US new home sales (August): sales to rise 0.5% MoM. Markets to watch: USD crosses
     
      Company announcements
     
     
    Monday
    20 September
    Tuesday
    21 September
    Wednesday
    22 September
    Thursday
    23 September
    Friday
    24 September
    Full-year earnings
     
     
    PZ Cussons,
    Saga     Half/ Quarterly earnings
      Kingfisher,
    SIG,
    Adobe,
    FedEx General Mills Nike,
    Accenture,
    Costco  
    Trading update
      Compass,
    TUI   Mitchells & Butlers,
    Royal Mail,
    Investec  
     
      Dividends
    FTSE 100: Smurfit Kappa, Hargreaves Lansdown
    FTSE 250: Crest Nicholson, Essentra, Computacenter, Redrow, Wickes, LXI Reit
     
    Dividends are applied after the close of the previous day’s session for each market. So, for example, the FTSE 100 goes ex-dividend on a Thursday, but the adjustment is applied at the close of the previous day, e.g. Wednesday. The table below shows the days in which the adjustment is applied, not the ex-dividend days.
     
    Index adjustments
      Monday
    20 September Tuesday
    21 September Wednesday
    22 September Thursday
    23 September Friday
    24 September Monday
    27 September FTSE 100    
    0.78 (0.61)       Australia 200 0.2 0.1 0.5 0.4 0.0   Wall Street             US 500 0.20   0.18 0.07 0.10 0.23 Nasdaq 1.55     0.07 0.23   Netherlands 25       0.20 (0)     EU Stocks 50 2.3         2.4 China H-Shares           7.6 Singapore Blue Chip             Hong Kong HS50           13.2 South Africa 40 223 9.8         Italy 40             Japan 225      
  14. MongiIG

    Uber Q4 2022 earnings

    By MongiIG,


    Market News
    Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.
      Source: Bloomberg
      Indices Shares Uber Earnings before interest, taxes, depreciation and amortization Revenue Technical analysis
     Tony Sycamore | Market Analyst, Australia | Publication date: Friday 03 February 2023  When will Uber report its latest earnings?
    Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.
    What should traders look out for?
    In Q3 of 2022, Uber recorded a net loss of $1.2 billion, $512 million of which was attributed to revaluations of Uber’s equity investments. The company beat analysts’ estimate for revenue, which grew by 72% year over year to $8.3 billion, and reported adjusted EBITA of $516 million, exceeding its guidance of $440 - $470 million.
    Uber CEO Dara Khosrowshahi noted that behind the strong performance, several tailwinds were in place, including “cities reopening, travel booming, and, more broadly, a continued shift of consumer spending from retail to services.”
    With those trends expected to continue, Khosrowshahi provided upbeat guidance for Q4 and said he expected gross bookings to grow in Q4 by between 23% and 27% year over year (YoY) and an adjusted EBITA of $600 million to $630 million.
    How does Uber measure its performance?
    Uber has three main operating segments under which the company then measures its performance via the following metrics. Gross Bookings, Revenues and Adjusted EBITDA, all of which will be scrutinised for growth when the company reports.
    The Mobility segment is Ubers flagship ride-hailing business which connects consumers with drivers. In Q3, Revenues grew by 73% to $3.8 billion YoY for an Adjusted EBITA of $898 million.
    The Delivery segment provides a platform for consumers to search for food and either pick up the meal at the restaurant or have it delivered. In Q3, Revenues from this segment grew 24% YoY to $2.8 billion for an Adjusted EBITA of $181 million.
    The Freight segment connects carriers with shippers on the Uber platform and provides upfront and transparent pricing. In Q3, Revenues grew 336% YoY for an Adjusted EBITA of $1 million.
     
     
    Drilling down further the market will also be looking closely for:
    An increase in the number of monthly active platform users (which grew by 14% YoY to 124 million in Q3) An increase in the number of trips (which increased by 19% YoY to 1.95 billion trips in Q3) The trend of drivers returning to drive for Uber continues. An estimated 80% of the drivers who left the service during the pandemic have returned Uber One subscription adoption levels.  
     
    Uber Q4 earnings – what to expect
    Revenue: $8.47 billion vs $8.34 (Q3 2022) EPS: -$0.18c vs $-0.61c (Q3 2022) EBITA: - $614m vs $516m (Q3 2022)  
    Uber sales revenue chart
      Source: Trading Economics
    Uber shares technical analysis
    The share price of Uber fell almost 70% from the $64.05 high it traded to in February 2021 to a low of $19.90 in June 2022, the equivalent of $60 billion in shareholder capital being wiped.
    Uber weekly chart
      Source: TradingView
    Uber has experienced better fortunes in 2023, as the share price surged by almost 27% above the downtrend from September's $34.33 high. A performance that left the Nasdaq's 10.62% in its wake.
    Presuming Uber breaks higher above the downtrend can be sustained in the coming sessions, it allows for a test of the September $34.33 high before the $37.45 high of March 2022.
    Mindful that a sustained break above a band of resistance at $37.45/$38.10 is needed to suggest that the rally from the June 2022 low of $19.90 is impulsive rather than a bear market rally.
    Should Uber's share price fall back below the 200-day moving average, currently at $27.05, it would be an initial indication that the corrective rally is complete and that the downtrend has resumed.
    Uber daily chart
      Source: TradingView
    Summary
    Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.
    The market will be keen to see evidence of volume expansion in the metrics noted above, as well as guidance that the company can continue to grow despite the presence of higher interest rates and slower growth and a more competitive market place.
    Uber daily chart
      Source: TradingView
    Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.
  15. MongiIG

    The Week Ahead On The Markets

    By MongiIG,


    Market News
    The Week Ahead
    Read about upcoming market-moving events and plan your trading week
      Week commencing 21 February
    Chris Beauchamp’s insight
    The week begins quietly with a holiday in the US, but flash PMIs from around the globe will provide important updates on the economic recovery. US durable goods orders and consumer sentiment are other key events on the economic side, while in the UK plenty of full year results are released, including from major banks Lloyds and Barclays and miners Rio Tinto and Anglo American.
     

    Economic reports
     
    Weekly view Monday
    Presidents Day – US markets closed

    8.15am – 9am – French, German, eurozone PMIs (February, flash): readings expected to remain broadly above 50, i.e. in expansion territory. Markets to watch: eurozone indices, EUR crosses

    9.30am – UK PMIs (February, flash): mfg to fall to 56.3 and services to fall to 54. Markets to watch: FTSE 100/250, GBP crosses
    Tuesday
    9am – German IFO index (February): business climate index to rise to 96.6. Markets to watch: EUR crosses

    2.45pm – US PMIs (February, flash): mfg to fall to 54.4 and services to rise to 51.4. Markets to watch: USD crosses

    3pm – US consumer confidence (February): index to fall to 110 from 113. Markets to watch: USD crosses
    Wednesday
    7am – German consumer confidence (March): index to rise to -4. Markets to watch: EUR crosses
    Thursday
    1.30pm – US GDP (Q4, 2nd estimate), initial jobless claims (w/e 19 February), Chicago Fed activity index (January): GDP to rise 7% QoQ, and claims to rise to 224K. Chicago Fed index to rise to 0.25. Markets to watch: USD crosses
    3pm – US new home sales (January): expected to fall 0.1% MoM. Markets to watch: USD crosses
    4pm – US EIA crude oil inventories (w/e 18 February). Markets to watch: Brent, WTI
    Friday
    1.30pm – US durable goods orders, personal income & spending (January): durable goods orders to rise 0.5%, and personal income to fall 0.3%. Personal spending to rise 0.6%. Markets to watch: USD crosses
    3pm – US consumer sentiment (February, final), pending home sales (January): index to fall to 61.7, sales to fall 1% MoM. Markets to watch: USD crosses
      Company announcements
     
     
    Monday
    21 February
    Tuesday
    22 February
    Wednesday
    23 February
    Thursday
    24 February
    Friday
    25 February
    Full-year earnings
      Smith & Nephew,
    Hargreaves Lansdown
    Metro Bank,
    Barclays,
    Rio Tinto
    Rolls Royce,
    Lloyds,
    Aston Martin Lagonda,
    St James’s Place,
    Centrica,
    BAE Systems,
    Anglo American,
    Rathbone
    Pearson,
    IAG,
    Rightmove
    Half/ Quarterly earnings
     
    Dechra Pharmaceuticals
    Macy’s,
    Home Depot
     
    HP,
    Moderna,
    Dell
     
    Trading update
     
     
    Ted Baker
     
     
     
      Dividends
    FTSE 100: Diageo, GlaxoSmithKline, AstraZeneca, Unilever
    FTSE 250: Dunelm, Redrow, Witan Inv Trust
    Dividends are applied after the close of the previous day’s session for each market. So, for example, the FTSE 100 goes ex-dividend on a Thursday, but the adjustment is applied at the close of the previous day, e.g. Wednesday. The table below shows the days in which the adjustment is applied, not the ex-dividend days.
     
    Index adjustments
     
    Monday
    21 February Tuesday
    22 February Wednesday
    23 February Thursday
    24 February Friday
    25 February Monday
    28 February FTSE 100    
    19.78       Australia 200 4.1 2.1 41.1 2.4 7.0 1.2 Wall Street     6.5 4.6 9.1 13.2 US 500 0.06 0.02 0.45 0.48 0.37 0.13 Nasdaq 0.23   1.58 0.24   0.04 Netherlands 25     1.03       EU Stocks 50           0.1 China H-Shares             Singapore Blue Chip             Hong Kong HS50         4.3   South Africa 40   597.4         Italy 40             Japan 225       13.1    
  16. MongiIG

    What the MACD Indicator is and How it Works

    By MongiIG,


    Analyst piece
    MACD INDICATOR – TALKING POINTS:
    What is MACD? What does MACD measure? How is MACD calculated? Limitations of MACD WHAT IS MACD?
    The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA).The MACD displays a MACD line (blue), signal line (red) and a histogram (green) - showing the difference between the MACD line and the signal line.

    The MACD line is the difference between two exponentially levelled moving averages – usually 12 and 26-periods, whilst the signal line is generally a 9-period exponentially smoothed average of the MACD line.
    These MACD lines waver in and around the zero line. This gives the MACD the characteristics of an oscillator giving overbought and oversold signals above and below the zero-line respectively.
    WHAT DOES MACD MEASURE?
    The MACD measures momentum or trend strength by using the MACD line and zero line as reference points:
    When the MACD line crosses ABOVE the zero line, this signals an UPTREND When the MACD line crosses BELOW the zero line, this signals an DOWNTREND In addition, the MACD signals buy or sell orders which are given when the two MACD lines cross over as outlined below:
    When the MACD line crosses ABOVE the signal line, traders use this as a BUY indication When the MACD line crosses BELOW the signal line, traders use this as a SELL indication
    HOW IS MACD CALCULATED?
    Most charting platforms offer the MACD indicator, and implement this calculation using the aforementioned default periods. The formula below breaks down the varying components of the MACD to make it comfortable for traders to apply.

    As mentioned previously, the MACD histogram plots the difference between the two moving average lines. The histogram fluctuates in and around the zero designation on the MACD indicator. When the MACD line is above the signal line, then the histogram will be positive. The opposite is true when the MACD line sits below the signal, whereby the histogram will plot below the zero as a negative value. A zero value on the histogram indicates a crossing over of the two moving average lines thus marking buy/sell signals.
    LIMITATIONS OF MACD
    The MACD indicator is considered to work best in trending markets. This limits its use for traders depending on their trading strategies. For example, range bound/consolidating markets will generally give flawed signals when using the MACD. Traders will need to truly understand the MACD as well as when to employ the indicator for optimal use. Novice traders may find this indicator difficult to use initially, which is why going through basic moving average and EMA fundamentals will benefit traders who are looking to make use of the MACD indicator.
    The variations that can be implemented with the MACD indicator is almost infinite which makes it very personal to the trader. This subjective nature of the MACD will mean that results differ from trader to trader which take away any consistency. Traders will need to follow a basic outline when using the MACD:
    Selecting EMA parameters Using an appropriate time frame, as MACD may function differently across time frames MACD INDICATOR: A SUMMARY
    The MACD is unique in that it serves as an oscillator as well as MACD crossover indicator. This dual purpose gives two signals in one indicator allowing for a less cluttered chart. Traders may find this useful which makes understanding the MACD worthwhile.
    BECOME A BETTER TRADER WITH OUR TRADING TIPS
    Learn about other oscillators and indicators to enhance your trading for both beginner and experienced traders: Relative Strength Index (RSI) Exponential Moving Average (EMA) Simple Moving Average (SMA) Technical traders have different styles and forex trading strategies. Explore these thoroughly to find out if this type of analysis suits your personality If you are just starting out on your trading journey it is essential to understand the basics of forex trading in our new to forex guide  
    Dec 21, 2021 |  Warren Venketas, Analyst. DailyFX
  17. MongiIG

    What is the Best Time Frame to Trade Forex?

    By MongiIG,


    Analyst piece
    - Reviewed by James Stanley, Nov. 24, 2021
    “Is there a best time frame to trade forex?” is a common question a lot of traders ask, especially those new to the forex market. The truth is, there is no single answer. It all depends on your preferred trading strategy and style.
    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. Trend charts refer to longer-term time frame charts that assist traders in recognizing the trend, whilst trigger chart pick out possible trade entry points. This article will explore these forex trading time frames in depth, whilst offering tips on which can best serve your trading goals.
    Talking points:
    How to decide the best time frame to trade forex What are the main forex time frames Using multiple time frame analysis HOW TO DECIDE THE BEST TIME FRAME TO TRADE FOREX
    As mentioned above, the best time frame to trade forex will vary depending on the trading strategy you employ to meet your specific goals. The table below summarizes variable forex time frames used by different traders for trend identification and trade entries, which are explored in more depth below:
    CHART
    DAY TRADING
    SWING TRADING
    POSITION TRADING
    TREND CHART
    30 minutes - 4 hours
    Daily
    Weekly
    TRIGGER CHART
    5 - 60 minutes
    2 - 4 hours
    Daily
    MAIN FOREX TRADING TIME FRAMES
    Traders utilize different strategies which will determine the time frame used. For example, a day trader will hold trades for a significantly shorter period than that of a swing trader. Read our guide for a basic introduction to different trading styles.
    1) Position trading time frames
    The position trading time frame varies for different trading strategies as summarized in the table above. This could fluctuate from daily to yearly under the ‘long-term’ definition.
    Many new traders tend to avoid this approach because it means long periods of time before trades are realized. However, by many accounts, trading with a shorter-term (day trading) approach can be far more problematic to execute successfully, and it often takes traders considerably longer to develop their strategy.
    Position trading (longer-term) approaches can look to the monthly chart for grading trends, and the weekly chart for potential entry points.
    Position trading example
    After the trend has been determined on the monthly chart (lower highs and lower lows), traders can look to enter positions on the weekly chart in a variety of ways. Many traders look to utilize price action (as seen in the weekly chart below) for determining trends and/or entering positions, but indicators can absolutely be utilized here as well.
    Monthly AUD/JPY trend chart:

    Weekly AUD/JPY trigger chart:

    2) Swing trading time frames
    After a trader has gained comfort on the longer-term chart, they can then look to move slightly shorter in their approach and desired holding times. This can introduce more variability into the trader’s approach, so risk and money management should be addressed before moving down to shorter time frames.
    Swing trading is a happy medium between a long-term trading time frame and a short-term, scalping approach. One of the best benefits of swing trading is that traders can get the benefits of both styles without necessarily taking on all the downsides. As a result, this makes swing trading a very popular approach to the markets.
    Swing traders will check the charts a couple times per day in case any big moves occur in the marketplace. This affords traders the benefit of not having to watch markets continuously while they’re trading. Once an opportunity is identified, traders place the trade with a stop attached and monitor at a later stage to see the progress of the trade.
    Another advantage of this approach is that the trader is still looking at charts often enough to seize opportunities as they exist. This eliminates one of the downsides of longer-term trading in which entries are generally placed on the weekly/daily charts.
    Swing trading example
    For this approach, the daily chart is often used for determining trends or general market direction and the four-hour chart is used for entering trades and placing positions (see below). The daily chart shows the recent swing high and low respectively. Traders usually trade swings back in the direction of the preceding trend – in this example the preceding trend is upwards.
    Now that the trade direction has been identified, the swing trader will then diminish the time frame to four-hours to look for entry points. In the example below, there is a clear price resistance level that the swing trader will look at when entering a long trade. Once price breaks or the candle closes above the designated resistance level, traders can look to enter.
    Daily USD/ZAR trend chart:

    4-hour USD/ZAR trigger chart:

    3) Day trading time frames
    Day trading can be one of the most difficult strategies of finding profitability. Newer traders implementing a day trading strategy are exposing themselves to more frequent trading decisions that may not have been practiced for very long. This combination of experience and frequency opens the door for losses that might have been prevented had the trader opted for a slightly longer approach like swing trading.
    The scalper or day trader is in the unenviable position of needing the price to move quickly in the direction of the trade. Therefore, the day trader becomes tied to the charts as they seek the market’s trends for that day. Obsessing over charts for long periods of time can lead to fatigue. The shorter-term approach also affords a smaller margin of error.
    Generally, there is less profit potential in short-term trading which leads to tighter stops levels. These tighter stops mean higher probability of failed trades as opposed to longer-term trading.To trade with a very short-term approach, it’s advisable for a trader to get comfortable with a longer-term, and swing-trading approach before moving down to the very short time frames.
    Resembling longer-term trading, day traders can look to evaluate trends on the hourly chart and locate entry opportunities on the ‘minute’ time frames such as five or ten-minute charts. The one-minute time frame is also an option, but extreme caution should be used as the variability on the one-minute chart can be very random and difficult to work with. Once again, traders can use a variety of triggers to initiate positions once the trend has been determined - price action or technical indicators.
    Day trading example
    The charts below use the hourly chart to determine the trend – price below 200-day moving average indicating a downtrend. The second 10-minute chart uses the RSI indicator to assist in short-term entry points. In this case, the trader only identifies overbought signals on the RSI (highlighted in red) because of the longer-term preceding downtrend.
    Hourly EUR/USD trend chart:

    10-minute EUR/USD trigger chart:

    USING MULTIPLE TIME FRAME ANALYSIS
    The best time frame to trade forex does not necessarily mean one specific time frame. It is possible to combine approaches to find opportunities in the forex market. Find out more in our guide to multiple time frame analysis.
    FURTHER READING ON FOREX TECHNICAL ANALYSIS
    Get to grips with the basics of forex time frames to enhance your trading strategy. If you’re new to forex trading, download our Forex for Beginners Trading guide for an expert overview of the market.  
    By Warren Venketas, Analyst, 26th November 2021. DailyFX
  18. MongiIG
    EUR/USD, EUR/GBP Prices, Charts, and Analysis
    EUR/USD - may fade further if the Fed acts on soaring inflation. EUR/GBP - the Bank of England is in a difficult situation. Keep up to date with all market-moving data releases and events by using the DailyFX Calendar
    There are three major central bank monetary policy decisions scheduled over the next 24 hours or so that will likely boost volatility in two of the largest currency pairs. In short, the Fed is likely to trim its bond-buying program further and increase interest rate hike expectations today, the Bank of England is in a quandary whether to hike rates or not at tomorrow’s meeting, while the ECB will likely announce that the end of one bond-buying program will be partially replaced by another, flexible asset purchase program. While recent hard data from the US and the UK suggest monetary tightening is needed imminently, the damaging effect on economic growth caused by the latest covid-variant Omicron suggests otherwise. With financial markets starting to wind down for the Christmas break, these three central bank decisions may have a short-term, out-sized effect on their respective currencies.
     
    With the Fed expected to indicate further monetary policy tightening, and the ECB expected to leave policy levers unchanged, EUR/USD looks primed to fall further. With US inflation running at a near 40-year high of 6.8%, the Fed’s view over the past few months of surging price pressures as ‘transitory’ is beginning to look like a policy mistake. The Fed needs to get ahead of inflation now and the US central bank is fully expected to increase the rate of bond tapering from $15 billion to $30 billion a month, and to highlight the path of rate hikes in 2022 and 2023. This should reinforce the US dollar at current levels and push it higher over the coming weeks and months. The ECB is not expected to change any policy settings tomorrow and they may well announce that the Asset Purchase Program (APP) will pick up the slack when the Pandemic Emergency Purchase Program (PEPP) ends in March 2022. With inflation also surging in the Euro Area, alongside new Omicron cases, the ECB will have a difficult backdrop when it presents its 2022 policy outlook tomorrow.
    EUR/USD continues to stagnate near recent multi-month lows and faced with a diverging monetary policy outlook may well test these lows again. A confirmed break below the recent 1.1185 low would likely see 1.1000 as the next target.
    EUR/USD DAILY PRICE CHART DECEMBER 15, 2021

    Retail trader data show traders are net-long of EUR/USD by a ratio of 2.06/1, and when this is combined with recent daily and weekly positional changes this gives us a stronger EUR/USD bearish contrarian trading bias.

    The Bank of England is stuck between a rock and a hard place after recent economic data highlighted the strength of the UK jobs market and showed inflation hitting a 10-year high. In normal circumstances, this data would force the BoE to hike rates, but the effects of Omicron may temper the rate-setters’ enthusiasm for higher rates. If, as is most likely the case, the BoE leaves rates unchanged tomorrow, they are very likely to say that rates will be hiked at the next policy meeting in February.
    EUR/GBP has reversed its recent bout of strength that saw it touch the 0.8600 level and is now trading either of 0.8500 ahead of tomorrow’s decision. An old swing low at 0.8403 and the cluster of late-November lows all the way down to 0.8380 may all come into play if the BoE surprises and hikes interest rates.
    EUR/GBP DAILY PRICE CHART DECEMBER 15, 2021

    Retail trader positioning currently shows a mixed EUR/GBP trading bias.

    What is your view on EUR/USD and EUR/GBP – bullish or bearish?
     
    By Nick Cawley, Strategist, 15th December 2021. DailyFX
  19. MongiIG

    Improve Your Trading Bias

    By MongiIG,


    Analyst piece
    - Reviewed by James Stanley, Nov. 24, 2021
    Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. This article will cover:
    What a bias is in trading Why traders need a bias How to develop trading bias using technical indicators Further reading to develop a successful trading mindset WHAT IS BIAS IN TRADING?
    Trading bias is a predisposition or perspective of the financial markets whereby traders believe there is a higher probability of a certain outcome as opposed to any other alternate possibilities.
    These trading biases are determined by technical and/or fundamental factors that support a specific outlook that explains market behaviour. This often relates to market trends being either bullish/bearish which signals appropriate trading strategy and style.
    WHY DO TRADERS NEED BIAS?
    Traders need bias in order to form trade decisions that align with their specific trading strategy. The end goal is to make good decisions with real money on the line. There are so many decisions to be made on each trade that it can be overwhelming and can often lead to errors.
    For example, a trader needs to determine what market to trade, when to get in, how long to hold the trade, when to get out, and what trade size. There are many other decisions that enter in as well such as, do I move my stop loss, do I take partial profits and scale out (there are many more choices to be made, but you get the point).
    In the trading world, a newer trader often gets hung between the potential for profit and the possibility of loss. They don’t have enough experience to produce and overwhelming emotion about the trade set up. They in essence, lack the confidence and ability to ‘control’ a positive outcome and wind up freezing with indecisiveness. As a result, they let other things improperly anchor that emotion for them like their recent demo results.
    Newer traders tend to rely solely on outcomes to develop their perceptions. The problem with the outcomes is that even though some of those trades may have been profitable, they are likely riskier over the long run.
    The below are the main components a trader needs to determine a trading bias:
    What market to trade? What direction do I trade? When to get in? When to get out? Trade size? WHAT MARKET TO TRADE
    The market to trade is often a confusing place to begin for novice traders. Traders often gravitate toward popular markets that do not provide the relevant trade opportunities. At DailyFX, the sentiment tool can help traders select the appropriate market by producing long/short retail percentages.
    This is not the only method by which traders can select a market to trade. Many traders use their specific trading strategy (e.g. trend trading) to identify appropriate markets. Other traders prefer using fundamental analysis; exploring such as political news or macroeconomic events as a foundation as to which markets to trade.
    WHAT DIRECTION DO I TRADE
    Trade direction is usually linked to the market trend which again ties into the trading strategy. This could be short- or long-term trend indications depending on the trader's preference for trading time horizon.
    WHEN TO GET IN AND OUT
    Trading the markets encompass technical and fundamental analysis. These can be traded in isolation or a combination to determine buy and sell points. These entry and exits are generally determined by technical tools such as indicators (moving averages) or by trading breakouts using price action.
    TRADE SIZE
    Trade size is essential to any trading plan. Novice traders often overlook this aspect and trade irrationally. Trade size needs to be taken into consideration according to account size/balance. At DailyFX, we suggest using a trade size so that you are not risking more than 5% on all open positions.
    HOW TO DEVELOP TRADING BIAS USING TECHNICAL INDICATORS
    Supporting information provided by technical indicators - such as the moving average - can assist traders in acquiring a trading bias.
    Moving Average:
    Moving averages are another tool traders can use to determine a trading bias. Typically, traders use a 200-period simple moving average (MA). Traders can apply this indicator to any graph and see if price is either above or below the moving average. If price is above the average, traders can take a bias that the trend is up and look for opportunities to buy. Conversely if price is below the average, traders can say that the trend is down while having a trading bias to sell.
    The charts below show trading bias using moving averages on GBP/USD. The 200 period MA has been added, and price is trading well below the indicator. Knowing this, short term day traders can take this information and form a bias to look for sell positions. This bias could be held until prices start to move back up towards a higher high and penetrate the moving average line. The opposite is true for prices trading above the MA as seen in the second chart.
    Bearish trading bias:

    Bullish trading bias:

    Price Action:
    The first way to identify a trading bias is through price action. Traders can view a chart and see if prices are generally rising or falling through the identification of a swing high or low. If prices are getting higher, and the lows are advancing as well, traders should form a bias to buy. If prices are declining (lower lows and lower highs), traders should have a specific bias to sell. By reviewing 200-300 periods on the chart, this technique can be used with virtually any trading strategy.
    EUR/USD price action trading bias:

    The chart above depicts a EUR/USD four-hour chart. Traders will begin their analysis by looking back on nearly two months’ worth of data. This will show traders approximately 300, four-hour candles. Notice how prices are slowly moving down to new lows for the period selected. This shows that the market is in a downtrend, which can allow traders to form a bias to sell.
    FURTHER READING TO DEVELOP A SUCCESSFUL TRADING MINDSET
    Take a look at our webinar on trading psychology and how it fits into the foundations of technical analysis. DFX analyst, Paul Robinson also hosts a ‘Becoming a Better Trader webinar series’, which offers insight into consistent trading approaches. Consistency in trading begins with identifying a forex trading strategy that best suits particular needs and resources. When it comes to implementation, traders generally gravitate towards technical or fundamental analysis. Our research team analyzed over 30 million live trades to uncover the traits of successful traders. Incorporate these traits into your strategy to give yourself an edge in the markets.  
    Jan 25, 2022 |  Warren Venketas, Analyst. DailyFX
  20. MongiIG
    Germany’s DAX Index price will look to include more stocks to better reflect the underlying economy.
    Source: Bloomberg   Shares Germany Security Market liquidity Stock exchange Technical analysis  Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 07 September 2021. IG What changes are being implemented for DAX Index?
    Deutsche Boerse AG, the operator of the FrankFurt exchange in Germany will look to increase the number of stocks which make up the blue chip DAX index from 30 to 40.
    When will the DAX30 become the DAX40?
    The rebalancing of the index is scheduled to take place by 20 September 2021.
    Which new securities will be added to the new DAX40 index?
    A list of expected additions to the new DAX40 index are as follows:
    Airbus SE Zalando SE Siemens Healthineer AG Symrise AG HelloFresh SE Sartorius AG Vz Porsche Automobil Holding Brenntag SE Puma SE Qiagen N.V. Which DAX30 companies will make up the new DAX40 index?
    All of the existing DAX30 index constituents will form part of the new DAX40 index. The following table shows the make up of the DAX30 currently.
    Allianz
    Adidas
    Continental
    Deutsche Telekom
    Deutsche Wohnen
    Vonovia
    BASF
    E.ON
    Deutsche Boerse
    SAP
    Deutsche Wohnen
    Fresenius Medical Care
    Siemans
    Münchener Rückversicherungs-Gesellschaft
    HeidelbergCement
    Bayer
    Fresenius SE & Co.
    Merck
    Daimler
    Volkswagen
    MTU Aero Engines
    Infineon Technologies
    Deutsche Bank
    Covestro
    BMW
    Henkel AG & Co.
    Siemens Energy
    Linde
    RWE
    Delivery Hero
     
    Other recent changes to the DAX index
    Since the announcement that the DAX30 Index would become the DAX40 index, the Deutsche Borse has been implementing further regulatory changes for inclusion of blue chip companies into the index. These changes have been rolling out since December 2020 and include requirements such as having the most recent two of years financial reporting reflecting positive EBITDA (earnings before interest, taxes, depreciation and amortisation), more stringent financial reporting requirements and sanctions introduced for non-compliance.
    Why are changes being implemented on the DAX?
    Increasing the number of securities which make up the DAX is expected to provide more liquidity to a broader set of shares, and is expected create a better and more diverse representation of the broader German economy.
    How will the DAX change affect traders?
    The DAX30 will be renamed to the DAX40. On the IG platform, the Germany 30 will be renamed the Germany 40. Traders of the index will be able to trade it the same way as they did before, and the initial change to cash and futures prices should be marginal.
    The new diversity created by having more securities in the index should dilute the impact of sudden large moves by individual securities on the index price. Traders looking to use the DAX to hedge underlying portfolio’s might see a larger correlation to more securities than before.
    DAX30 – technical analysis
    Source: IG charts  
    The long term trend for the DAX30 (Germany 30) remains up. In the near term the price is consolidating within a range between levels $15730 (support) and $16020 (resistance).
    Traders respecting the long term uptrend will want to keep a long bias to trades on the index. Long entry might be considered on an upside break of the $16020 resistance level, or on a retest of either horizontal or trend line support. Only on a move below the major low considered at the $15065, would we reassess the longer-term trend bias.
    Summary
    The DAX30 will become the DAX40 by 20 September 2021 The new index weighting will provide a broader representation of the German economy The new index should provide increased liquidity to more companies on the German stock exchanges Stricter index inclusion criteria have been introduced by the Deutsche Borse The long-term trend for the DAX remains up The DAX trades in a rangebound fashion over the near term
  21. MongiIG

    Lockdown fears hit IAG shares

    By MongiIG,


    Market News
    IAG has given up much of its post-lockdown share price gain, and with the prospect of tighter restrictions worrying investors the shares continue to struggle.
    Source: Bloomberg  Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 22 November 2021 The news that Austria is re-implementing a lockdown, along with tighter restrictions in Germany and rising cases across Europe, has resulted in further losses for airlines, and IAG is one of those hard-hit.
    The shares certainly fell into the ‘reopening winner’ category, rising an impressive 150% from the end of October 2020 until early March, when they hit a peak of 222p. This proved to be the high water mark for the year, and since then a sense of disappointment has crept in. 
    It would not be the only stock in this category. The FTSE 100, and the global stock market generally, is full of companies that rallied too far, too fast into the first quarter (Q1) of 2021, and then have struggled to meet these heightened expectations. For IAG the situation in Europe and the (only-recently lifted) bans on travel to the US have been the major worry.
    Rising oil costs and higher interest rates have not helped either; while the surge in oil did come from the extreme lows of a year ago, and prices have cooled in October and November, we are still a long way from a complete turnaround in this rally.
    While central banks are still some way off from actually hiking rates, some front-running in the market has put pressure on companies with high debt levels, and IAG’s €12.4 billion in net debt is one thing to watch.
    IAG shares – technical analysis
    Lower highs in October and November do not bode well for the share price, while a drop below rising trendline support from the September low added to the bearish view.
    Investors will now be watching whether the price will go back to the key 135p support area, which provided a buying area in December 2020 and January 2021.
    Source: ProRealTime  
  22. MongiIG

    The Week Ahead On The Markets

    By MongiIG,


    Market News
    The Week Ahead
    Read about upcoming market-moving events and plan your trading week
      Week commencing 2 October
    Chris Beauchamp's insight
    An The Reserve Bank of Australia (RBA) rate decision and the monthly US payroll reports are the main events this week. Also key will be the ISM purchasing managers index (PMI) figures in the US. A quieter period for earnings (ahead of the start of earnings season the following week) nonetheless has first-half figures from Tesco to watch.
      Economic reports
    Weekly view Monday
    12.50am – Japan Tankan index (Q3): index expected to rise to 7. Markets to watch: JPY crosses

    3pm – US ISM manufacturing PMI (September): index forecast to rise to 48.1. Markets to watch: US indices, USD crosses

    Tuesday
    4.30am – RBA rate decision: rates expected to be held at 4.1%. Markets to watch: AUD crosses

    3pm – US JOLTS survey (August): 8.5 million jobs forecast to have been advertised, down from 8.83 million in July. Markets to watch: USD crosses

    Wednesday
    3pm – US ISM services PMI (September): index expected to fall to 53.7. Markets to watch: US indices, USD crosses
    3.30pm – US EIA crude oil inventories (w/e 29 Sept): inventories fell by 2.2 million barrels in the previous week. Markets to watch: Brent, WTI

    Thursday
    1.30pm – US initial jobless claims (w/e 30 September): claims forecast to rise to 210K from 204K. Markets to watch: USD crosses
    3pm – Canada Ivey PMI (September): index expected to fall to 49.6, into contraction territory. Markets to watch: CAD crosses

    Friday
    1.30pm – US non-farm payrolls (September): payrolls expected to fall to 150K from 187K last month. Unemployment rate expected to hold at 3.8%. Average hourly earnings forecast to rise 0.3% MoM and 4.1% YoY, from 0.2% and 4.3% respectively. Markets to watch: US indices, USD crosses
    1.30pm – Canada employment report (September): unemployment rate forecast to rise to 5.6% from 5.5%. Markets to watch: CAD crosses
      Company announcements
     
    Monday 2 October
    Tuesday 3 October
    Wednesday 4 October
    Thursday 5 October
    Friday 6 October
    Full-year earnings
              Half/ Quarterly earnings
      BooHoo Tesco Constellation Brands JD Wetherspoon Trading update*
    Greggs   Imperial Brands       Dividends
    FTSE 100: Centrica, Weir, Smith & Nephew, F&C Inv Trust
    FTSE 250: Bodycote, Spectris, RIT Capital Partners, Travis Perkins, Morgan Sindall, Murray Int’l Trust, Bank of Georgia, Hunting, Hays, AG Barr
    Dividends are applied after the close of the previous day’s session for each market. So, for example, the FTSE 100 goes ex-dividend on a Thursday, but the adjustment is applied at the close of the previous day, e.g. Wednesday. The table below shows the days in which the adjustment is applied, not the ex-dividend days.
    Index adjustments
     
    Monday
    2 October Tuesday
    3 October Wednesday
    4 October Thursday
    5 October Friday
    6 October Monday
    9 October FTSE 100     0.96       Australia 200 0.1   0.1     0.1 Wall Street 2.6   10.9 4.4     US 500 0.33 0.02 0.78 0.68   0.10 Nasdaq 3.55   0.39 0.16     Netherlands 25   0.17         EU Stocks 50         1.3   China H-Shares   0.2         Singapore Blue Chip             Hong Kong HS50   0.4       1.4 South Africa 40             Italy 40             Japan 225            
  23. MongiIG

    What is the Dow?

    By MongiIG,


    Analyst piece
    What is the Dow?
    Jan 19, 2022
    By:James Blakeway, tastytrade.
    The Dow, known formally as the Dow Jones Industrial Average, is made up of 30 large U.S.-listed companies and is an indicator of how these companies have traded during a standard trading session.
    “Dow Jones Hits 30,000”, or whichever milestone the index is finally reaching, is an extremely common headline in mainstream financial and general news media. The index is known around the world as the barometer for the U.S. market and, often mistakably, the U.S. economy.
    Tracing its origins back to the 1890s, the Dow Jones Industrial Average is inarguably a key component of American financial and market history, but perhaps that’s where it should live, as a part of history.
    The original 12 Dow companies certainly feel like relics and fittingly emblematic of the era. Components included the likes of American Tobacco, American Cotton Oil, Chicago Gas, and a more familiar name, General Electric. By the 1920’s the index had expanded to become the familiar 30 stock benchmark we know today, albeit still with vastly different components.
    Dow Jones 2022 Stocks
    In 2022, the 30 stocks represent most of the recognized equity sectors in the U.S., with the absence of Utilities and Real Estate. Compared to the other three main U.S. stock indices, the Dow clearly has an extremely small portfolio.
    How The Dow Jones Industrial Average is Priced
    The S&P 500, Nasdaq-100, and Russell 2000, all introduced after 1950, rely on market capitalization weighting, compared to the Dow’s price weighting. This means that stocks in the other three indices are given a weighting assigned by the total size of the company, not simply the stock price.
    The Dow’s archaic pricing convention means that United Healthcare (UNH), a $470 stock, now makes up 8.5% of the index in the number one slot. At $440 Billion, UNH is by no measure a small company. However, UNH makes up 3% more of the index than Microsoft (MSFT), a $2.3 Trillion firm and the fourth largest component of the Dow. UNH is the 14th largest component of the S&P 500, while MSFT is the second.

    Dow vs S&P 500 Performance
    So, we know that the Dow prices its components counter to the other stock indices but how did this impact performance and tracking of the overall market, compared to the S&P 500?

    Looking at both performance and correlations, the Dow mostly, and rather impressively, mirrored the S&P 500 over the last decade. There is some clear divergence after the pandemic slump, likely driven by the relentless surge of tech stocks that constitute a larger percentage of the S&P than the Dow.

    Outside of a performance lag in recent years, investors may believe that Dow tracking products still hold a place in their overall long-term holdings. This may be true and it’s and likely the Dow will continue to move like the S&P in years to come, given the concentration of large and mega-cap stocks in both indices.
    Is the Dow Jones Index Tradable?
    But what about active traders? Should they be scalping Dow futures or selling Dow exchange traded fund (ETF) option premium instead of the other three indices? If such traders value liquidity, then in short, no. The futures and ETF products that provide access to the Dow fall woefully short compared to the other three indices. Consider the table below analyzing both daily average for ETF share volume in 2021 and average futures volume for the December 2021 index contracts.

    The Dow Jones ETF (DIA) did only 10% of the volume of the Nasdaq-100 ETF (QQQ), on average. Even the Russell 2000 ETF (IWM) did 7 times the volume of DIA. While the volume for the Dow futures (/YM) is not as pitiful compared to the Russell futures (/RTY), it’s still bottom of the pack.
    The options markets for DIA also pale in comparison to SPY, the S&P 500 ETF. Accounting for the number of available strikes, the average contracts in open interest for DIA are extremely low. Even the at-the-money call had less than 1000 contracts at the time of writing.

    While we may not explain it often on our shows, these numbers tell the tale of why tastytrade rarely focuses on the Dow index or products that track it. As investors and traders in the American financial markets, the Dow Jones Industrial Average must always hold a place in our hearts and memories, just perhaps not our portfolios.
     
  24. MongiIG
    USD TECHNICAL OUTLOOK:
    DXY fell back to support late last week. Trust support until broken. A break is seen as leading to modest selling.
     
    US DOLLAR TECHNICAL OUTLOOK: DXY SITTING SOLID SUPPORT
    In last week’s commentary we discussed how the US Dollar Index (DXY) looked headed higher out of a developing wedge, and that outlook had some legs – for a minute. The wedge breakout quickly failed just ahead of a significant area of resistance (94.67) formed during the early days of the pandemic.
    The sharp one-day decline on Wednesday put important support back into play. How things unfold here will be meaningful to the short-term outlook. There is both horizontal and trend-line support in confluence in the area of 93.85 to 93.67.
    A peak formed there during August that become support on a pullback early in the month, and so far again it is holding as support. But price action coming off of it isn’t very forceful, but we will respect it as support until it breaks.
    A hold above could see the DXY run back towards the recent high at 94.56 up to 94.67 where the much larger level lies. This could make for some rangebound activity that sets up a move later if resistance can’t break.
    In the event we see a daily closing candle below 93.67, look for another leg lower to ensue with the next line of support coming via a trend-line dating to the May low. The sloping support was touched numerous times during that bottoming period, then again validated as a trend-line in early September.
    It currently lies down just above 93 and rising. This would certainly be an interesting test as the trend since May comes under pressure. If we see weakness to that level then we would want to pay close attention to price momentum.
    For the immediate future, would-be and existing longs may want to use support as a spot to assess stops while would-be shorts may want to wait for confirmation of a support break before entering or becoming more aggressive with existing short positions.
     
    US DOLLAR INDEX (DXY) DAILY CHART

    DXY Chart by TradingView
    Resources for Forex Traders
    Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.
    Written by Paul Robinson, Market Analyst. 18th October 2021. DailyFX
  25. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 24th 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 on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the 

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    None
           
     
    How do dividend adjustments work? 
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Markets

Forex

Indices

Shares

Other markets

IG services

Spread betting

CFD trading

Share dealing

Trading platforms

Web platform

Trading apps

Advanced platforms

Compare features

About Us

How we support you

What we do with your money

How does IG make money?

Professional trading

Contact us

Post topic on Community

Browse Help and Support

Education on Academy

Tweet us @IGClientHelp

UK

IG | Sitemap | Terms and agreements | Privacy | How to fund | Cookies | About IG

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

© 2003 - 2020

IG | Terms and agreements (UK) | Privacy (UK) | Cookies | Investors | Careers | Marketing partnership

×
×
  • Create New...
us