5 Key Economic Indicators and FX trading

FX tradingWhen it comes to identifying the state of country’s economy, the main tool you will have is the currency. A country’s currency value changes depending on economic indicators that their managements produce. These values are made to evaluate the country’s economic health; and these have a direct impact in the FX trading market confidence. Hence, if you are an FX trader at the broker with negative balance protection, the economic indicators are something you will want to take into consideration.

Indicators and market

The data from each indicator is released in a specific period of time, some are released with more frequency than others. As an FX trader at the negative balance protection broker, for you it’s essential to know the releasing dates of these 5 main economic indicators because there is considerable market activity during these dates, affecting the volume generation and making prices to change. Knowing when their new versions come out to the public and learning how to read the values can make a great difference for you and your portfolio:

These key economic indicators and their release schedule are the following:

Economic Indicator Release Schedule
Nonfarm payrolls – Unemployment First Friday of the month at 8:30am EST
FOMC Interest Rate Decisions 8 meetings per year
Trade Balance Around the middle of the second month after the reporting period.
Consumer Price Index (CPI) – Inflation Monthly – around the 13th of each month at 8:30am EST
Retail sales Monthly – around the 11th of each month at 8:30am EST

Key Indicators, explained:

-Nonfarm Payrolls – Unemployment

This indicator has to do with the number of jobs that are created and held. Logically, if there are more jobs in the country, it means that the economy is growing to meet the workforce needs from the market. Then, this indicator shows how strong the labor market is, as it shows a growing tendency.

 

– FOMC Interest Rate Decisions

When the Federal Reserve Bank lends money to banks for a very short period of time, it applies a changing discount rate set by the Federal Open Market. The rate is the result of negotiations between the Federal Reserve Board and the regional banks.

– Trade Balance

The trade balance gauges how many goods have been imported, and how many have been exported. When there are more imports than exports, it is called a “deficit”. If there are more exports than imports, it is called a “surplus”.

– CPI – Consumer Price Index

Inflation is measured mostly through the CPI. In this indicator the prices of a list of main consumer goods is published. If the prices have increased since last month, it is seen as a bad economic sign. However, high inflation rates may not be negative for traders, given by the possibility of good currency exchange due to rises of interest rates.

– Retail Sales

Retail sales indicator shows figures of all the merchandise from retail stores that is bought by consumers. Retail sales reflect the state of the economy, if there’s a lot of confidence and activity from the buyers’ part, it means that the economy is better.

FX trading tip: Pay attention to market expectations

A very good advice for you as FX trader at the Forex broker with negative balance protection is that when release dates are close, you may want to hear what economists predict, as well as their market expectations, because it could be much more useful for your decisions in the near future than the actual data. Most importantly, try to agree with the person’s opinion before you get into the same trade.

Being aware of the market expectations will allow you to be prepared and take advantage of the great trading possibilities that come out just after the release of the data. After that, you will have time to analyse thoroughly the actual data and its consequences.

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Elements That Determine The Forex Market

Forex MarketThe Government And Central Banks Will Be Of Your Interest

All the laws that every central bank and governments enact will have an important role in determine what the Forex Market will be like. In order to keep a good balance for their country and a reasonable solidity, central banks have to control the amount of money that their nation has in a very thorough way, in order to these, they constantly change the rules and rates (Yes, they can do that). Especially fast their impact is seen at the ECN Forex brokers.

Let’s Talk About The Monetary Entities

A considerable part of the Forex income comes from banks. In fact, in a matter of 24 hours the amount of traded money among banks can easily be counted in billions of dollars. Whether is through a service that a customer is buying the currencies or the bank is speculating and trading itself, the amount of money traded by them in the FX Market is definitely a game changer.

Remember The Hedge Funds

Forex market has the ability to be very easily converted into liquid money. For this reason, trading is definitely an idea that most people would consider. Another important fact is that Hedge Funds have a considerably stronger degree in terms of leverage in contrast to the ones of the stock exchange.

Every Single Person Has An Important Role

This may be a little unexpected, but everybody has an important role in the Forex market, especially trading at ECN Forex brokers. Most of the times, people don’t really realise this but every time they go on vacations and travel to another country, they are exchanging currencies. Even if they don’t do it intentionally, the effect still exists and extends to the Forex market. At the end, doing this multiple times will definitely have an important effect for everyone who uses the Forex market. If the person who travels buys anything with the credit card of his/her company, the involved company will have to change the currency so the person that buys can be charged. Those trade rates are made by tightly calculated numbers, and they bring earnings to a bunch of people or companies. Its the world economy.

Enterprises And Companies Matter Too

The natural habitat of Forex Market is worldwide trade. Today, with all the new technological advances, the world is getting way shorter. The need for enterprises to need to send their products to many countries has taken a massive increase in their numbers. In order to pay for those products or even services located elsewhere, it may be necessary that currencies have to be exchanged at some point. Thousand dollars have to be exchanged every single day so trade can become easier. Furthermore, something that may seem simple such as time can produce significant effects for the company (whether this is positive or not).

Taking Speculators And Investors Into Account

Both investors and speculators have an important role in Forex. However, they are different. Investors will have a higher time range to produce a profit, while speculators forecast they upcoming future. As long as there are good chances, both investors and speculators will attempt to take the best of the Forex market so the movement of the currency pairs can be used in the wisest possible way.

 

Of course, both speculators and investors have a reason that will make them think that a specific currency has an advantageous chance for their purposes. Maybe, they are sure that Great Britain Pounds will surpass the Chinese Yen. If this happens, they would get a rewarding profit when they exit. If it doesn’t, you better exit on time.

As you can see, there are many many players in the Forex ECN brokers game. Knowing that you are actually a part of the whole thing may change your perspective from the next time you are booking a flight and check conversions. Leading you to exploitable chances of making money trading.

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How Long Will It Take to Resolve My Claim?

PPI complaintSince 2011, the amount of complaints regarding PPI has risen to astronomical levels and as such it makes it very difficult to predict how long any individual case will.

In most cases there are a few key questions to bear in mind:

  • How easy will it be for the necessary authorities to obtain any paper work?
  • Are the facts simple and down in black and white?

The banks and lenders have claimed that it is their priority to resolve any PPI complaint, quickly and efficiently. However once a case is taken to the Ombudsman, the goal will be to get the case settled as soon as possible. They will be honest in their assessment of the case and if it’s worthy of upholding and taking any further, as their word is final. The further upholding and talking are checked and established by the Ombudsman, to make the goal being done as soon as possible.

With all these factors combined, it is very difficult to assess how long the claims process will take. The less complex should be more or less cut and dry, but once the Ombudsman gets hold of a complex case, the process could be significantly.

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Lloyds Bank payment protection claims bill tops £13bn

payment protection claimsLloyds has set a further £1.4bn to compensate customers who were mis-sold PPI as it reports a 38% rise in half year pre-tax profits. The reports are the base of decision making of bank payment. The bank payment makes clear all problems associated with pre-tax profits.

This further provision means that the company has set aside £13bn compensation. The compensantion established by the company, affected the further provision.

Earlier in the year Lloyds were fined a record £117m by the FCA over the ongoing PPI scandal. The fine was largely expected, the three months to the end of June marked the last time that the bank may set aside provisions against its tax bill. Like many of the banks, Lloyds had hugely underestimated the volume of complaints they would receive. The volume of complaints cannot be underestimated, making all businesses bad. The ongoing PPI scandal gives a lot of risks relating what called as “fined”. The bank claimed that it had identified about 1.2 million previously rejected PPI complaints that were in need of a re-review, which now increases the cases needed further investigation to 1.4 million.

These cases are being reviewed because the FCA fined the bank as a result of an enquiry into the way that 2.3 million complaints were dealt with.

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Why gold is the profitable investment

asasasasGold has been becoming a friend of womankind since thousands of years ago. Its charm is able to make a woman looks shiny. Not only the jewelry, and even gold is regarded as the most appropriate type of investment. Many financial planners argue that the gold is the nature of the precious metal which has a high sensitivity to economic turbulence. The slow global economic recovery after the global financial crisis of 2008 was resulting in the weakness of exchange rate of the American currency against the currencies of various countries but the situation is actually trigger a rise in world’s gold prices.

In the country, the economic crisis is usually characterized by high inflation and interest rates, the weakening of the currency against the US dollar, and so forth. Although the country’s economic condition is not in crisis, gold would remain a profitable investment. Therefore, the price of gold can be increased by an annual inflation rate. The fact that gold investment properties would never be disturbed by the rate of inflation, making this investment is almost always profitable, as long as you understand the risks. The worst risk of gold investment is the loss of the gold itself. You should be aware of loss risk.

Therefore, trust your gold deposit in a credible bank. It would be including a gold certificate that is to be stored in a safety box, for safety’s sake. In order to keep your gold shiny, you should understand how to treat yours. Gold bullion and gold coins do not require special care. However, for gold jewelry, you should clean it regularly to avoid shrinkage of the gold content. Make sure you wash your gold jewelry in a trusted service shop. To avoid fraud, you should not leave your jewelry while cleaning process takes place.

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