Markets Responding To Expected Rate Increases
Markets have opened the week with losses, mainly due to the fact that the Fed reaffirmed its determination to put an end to the era of cheap money. To many, it may seem that a 25 basis point hike in interest rates, is a moderate hike. In absolute terms, that would be right, but in relative terms it is not. When the Fed goes ahead with the first planned rate hike in 2016, interest rates will go from 0.5% to 0.75%, which represents a 50% increase from current levels. This hike in relative terms, will make money 50% more expensive to come by, which might have a sizeable psychological effect if not a significant economic one. read more…
Fed Fueled Uncertainty Generates Volatility
Speculation has taken over the markets as a result of the consistently ambiguous language coming from the Fed, regarding interest rate hikes. Investors and analysts will be digging into the April Fed meeting minutes, to look for some clues as to how many times will the rates be hiked this year, and by how much. In the meantime the uncertainty that the Fed has created so far, has given way to volatility in the markets. Stock and bonds have been on a wild ride this week following expectations for a lower than expected rate of increase in interest rates. In any case, it seems like the Fed is keen on oincreasing rates in June if the economic indicators allow for it. read more…
Soros Bets On Gold, Price Keeps Rising
Gold has been outperforming major stocks and indices so far this year, so to many the fact that it keeps on rising is not a surprise. After all, investors are actively seeking a safe haven to avoid the equity slump that we have seen so far this year. However, when a heavy weight like George Soros decides to sell 37% of his long term stock holdings – according to Forbes – and buy into gold, then the play for gold takes on a whole different dimension. It is even more intriguing to think why would Soros wait until now to make the move?
read more…
Oil Keeps Inching Towards $50
Analysts were surprised to see lower than expected supply figures, higher than expected demand and narrowing oil surplus in world markets. As a result, the price of WTI has ticked up, gaining more than 70% since its February low. This is good news for investors who played the counter-cyclical investment strategy once oil hit the mid to upper $20’s, as well as a relief for markets looking for price stability, given that experts say oil prices will dip again come 2017. read more…
Pair Options Trading
What Are Pair Options?
Pair options trading is a relatively new form of financial trading. They are similar to regular binary options in that they have the same binary, or all or nothing outcome, as well as a fixed return.
The main advantage of pair options over typical binary options is that they focus on the relative performance of two different assets as opposed to the price increase or decrease of a particular asset. In other words, even if the asset you chose in the pair option trade decreased in value during the given time period, if it decreased less than its paired asset, you have still won the trade.
Financial Markets – Preview for Week Starting 1st May 2016
Major Events of Last Week
A crucial event, which occurred last Friday, witnessed the Yen surging towards an 18-month high against the US Dollar. Traders increased their bets that the Bank of Japan will now refrain from introducing any new stimulus measures over the coming months. The USA released data last week disclosing that its economy contracted sharply during the first quarter of 2016 (Q1) by recording its slowest growth rate in practically two years. The major catalysts driving this worrisome performance were the strengthening US Dollar and weakening consumer sentiment. However, the Eurozone did report some good news by advising that its economy expanded during Q1 at its fastest pace in nearly 5 years. The foremost US indices slumped last Friday demonstrated by the Dow Jones Industrial Average plunging 67 points; the S&P500 dropping by 12 points and the NASDAQ falling by 33 points. read more…
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
A Free Demo Account is the best way to practice trading. Test the trading platform and your trading strategies without risking any money.
A no deposit practice binary options account is the best way to simulate a real time trading experience. We have the most exclusive up to date list of Binary Options brokers with free demo accounts.
Sign up for our trading and options newsletter and get the latest market news and information directly to your inbox. Plus get access to the latest strategies and broker promotions before they’re published on the website!
