Stock falls and dollar hikes following the Fed meeting

The Federal Reserve lowered interest rates by 0.25% for the first time since December 2008. But at the press conference following the meeting of the Federal Open Market Committee, Fed Chairman Jerome Powell said that this rate cut was a timely adjustment and not necessarily the beginning of a prolonged cycle of rate cuts.

Wall Street stocks fell sharply during Powell’s intervention because traders interpreted that there would be no further rate cuts this year. The Fed president cited the global economic slowdown, trade war and moderate inflation as reasons to reduce interest rates by 25 basis points.

Powell also spoke about Donald Trump’s political pressure on the central bank and said the rate cut was not the result of the president’s calls, who had requested a 50 basis point reduction a day before the Fed meeting.

However, it should be noted that not all FOMC officials agreed with the decision, Boston Fed President Eric Rosengren and Kansas Fed President Esther George voted to keep interest rates without changes

Read more

The Most Popular Forex Strategies

Popular Forex trading strategies

Do you want to trade in the forex market but you still don’t know how to do it? Do you have doubts about doing short or long term operations? Don’t you know what kind of analysis to use? If you are a trader who is starting in the exciting world of Forex and doubts assail you with any of these questions, then we present a few types of strategies, the most popular in the market, so you can decide which one suits better to your needs.

If, later, you decide to train in more depth in any of these trading methodologies, you can always find more information here (see article on trading systems) or in the different publications specialized in trading strategies that we have on this website.

Read more

Monetary policy and geopolitical tensions in the spotlight of investors

Equity markets start the week lower after expectations of an aggressive interest rate cut by the US Federal Reserve and rising tensions in the Middle East fade.

At the end of last week comments from New York Fed President John Williams, noting that FOMC members could not wait for the economic slowdown to hit them to introduce monetary stimulus, raised expectations that the central bank would lower the interest rates to 50 basis points at the meeting from July 30 to July 31.

But Wall Street stock markets closed lower last Friday, after the Fed contradicted Williams’ comments saying he was referring to a possible 25 basis point cut, not 50 points. The main US indices closed with falls of 0.25% in the Dow Jones, 0.62% in the S&P 500 and 0.74% in the Nasdaq.

Read more

What loss limit can I use in my trades?

 

Again, as long as I speak of losses, I must start this article by saying that  is completely impossible to avoid losses. Sooner or later they come to all traders. A good trader simply accept them consciously, which also involves applying systematic rules to keep the losses well controlled.

This article will not discuss the position of the stop loss, it will focus on the loss limit on volume that should be applied in all trades. That is, the maximum amount of money that would be lost if the operation goes wrong. Knowing this amount is essential to calculate the size of the trade.

Read more

Market Makers Brokers – Definition and Features

Market makers brokers

What is a broker market maker?

The Market Makers are brokers in which the buy or sell transactions of financial instruments (currencies, stocks, indices, commodities, crypto, …) that their client’s request are not made directly in the market but at the broker’s trading desk of the broker itself (therefore the Market Makers are brokers with trading desk and that’s why they are also called DD or Dealing Desk). In other words, the broker creates the market for its clients and, in many cases, acts as the counterpart in the client’s transactions.

Market makers brokers create an internal market for their clients and allow them to buy or sell at any time without having to wait for a transaction in the opposite direction to make the trade. Market Makers are always prepared to offer a buy price (bid) and a sale price (ask) for each financial instrument they offer, so the trader can execute his operations at any time and with the volume it deems convenient.

Read more

Markets awaiting the Fed and trade negotiations

The markets reduced expectations of interest rate cuts by the US Federal Reserve after the unexpected improvement in the US labor market.

The United States Government reported last Friday that 224 thousand jobs were created in June, well above what analysts expected. Now investors are wondering if the US central bank will make any rate moves to support economic growth.

Powell could provide more clues about the prospect of his short-term monetary policy on Wednesday, in his half-yearly testimony before the United States Congress. On the same day, the Fed will publish the minutes of its last monetary policy meeting

Read more

Bank transfer for the deposit of funds in trading accounts

Bank wire transfer in Forex brokers

Wire transfer is one of the most used methods by online brokers (Forex, CFD, binary options, etc.) to manage funds of their clients trading accounts, either for the deposit of funds in the accounts or as a means for withdrawal the profits generated by the traders in their transactions.

When the customer transfers or receives money through wire transfer has the advantage of maintaining full control of your money. In fact, many people prefer using bank transfer because they do not like sharing the details of their credit card which is understandable. Moreover, they not rely on electronic payment systems like Paypal or Skrill, although these companies and their services have become much safer. fast and reliable.

Read more

Opinions on Pepperstone – Is it a reliable broker? – In-depth analysis

broker Pepperstone

Opinions about Pepperstone broker

One of the most important factors when making online trading is to choose a reliable and safe broker that offers a good level of service and transparent trading conditions. A broker in which our funds are completely safe and can be withdrawn when we want without problems.

In this article, it is time to analyze in-depth the opinions of clients of Pepperstone, the Forex broker of Australian origin that today is already one of the references in the online trading sector at an international level.

All the data analyzed in this article are based on our own experience and the collection of positive and negative opinions of users that we have found in various investment forums, blogs, and specialized web pages.

You can read a review of this broker in the following article: Review of the broker Pepperstone

Read more