Economic News Update

Binary option and forex news update – Last week of September through first week of October 2014

Get down on it! Last week’s overall numbers reveal a persistent weakness in the economy of euro zone countries. This is going to instigate ECB President Draghi to “pull the trigger” on the euro’s own version of a Q.E. (Quantative Easing) program.

Now that the ECB will be taking a more “hand’s on” approach, it will be interesting to see what type of assets they look to buy and how much will be purchased. Program parameters should be announced next month by the ECB President. The announcement should create a high level of movement on the euro currency market forefront as the planned purchase approaches.

For the USD, the Fed’s for the time being, are holding still on an interest rate hike, but have an “itchy” trigger finger to raise rates as soon as they see any definitive sign on the “snail’s pace” improvement of the U.S. economy.

The last quarter of 2014 is on our door step.

Now onto the market news that may have an impact on your trading week for the last week of September and the first week of October 2014:

  • For the Euro – German preliminary month over month CPI and Euro CPI year over year flash estimate and the ECB press conference
  • On the Asian market forefront – China’s HSBC final manufacturing PMI and manufacturing PMI. If we continue to see a slight uptick in the PMI figures, this may bode well for Asian market currencies.
  • For the kiwi – New Zealand’s business confidence measurement and Global Dairy Trade (GDT) Price Index.
  • For the Aussie’s – Month over month retail sales numbers, building approval’s and trade balance. Will we be seeing a downtrend for the Aussie on currency pairings if these numbers reveal weakness? Aussie resiliency could be at a breaking point.
  • For the Pound – Current account announcement which show the difference in value between imported and exported goods. Manufacturing PMI and construction PMI. We may anticipate seeing the pound hark to some level of market predictability after Scotland’s bid for independence went down in defeat.
  • For the USD – The consumer composite index, with increasing indications of economic recovery beginning to inch up. The U.S. may anticipate a good number that may spur a flexing of strength for retail sales heading into the American’s holiday season.
    • Supply Management Manufacturing PMI and Supply Management    Non-manufacturing PMI. With PMI levels showing indications that may continue the uptick trend.
    • Unemployment claims, unemployment rate, non-farm employment change and trade balance. Is the U.S. economy starting to gain its footing to solid ground for the last quarter of the year?

As overall numbers for euro zone and Asian economies are trying spruce themselves up while their numbers could be getting a bit “uglier”, the USD may be flexing a bit of muscle as signs of recovery look to continue rearing its “pretty” head.

The Currency Pairing Conundrum

The currency pairing predictability conundrum

You’re sitting at your computer and crack your knuckles in anticipation of a profit producing trading session. You log on to your account and have your trading platform ready to go. You think to yourself is this the right currency market to trade? Is this the right pairing that’s going to put me “in the money”? Do I have the right strategy for this currency pairing?

If you’ve ever questioned your trading approach before you even got started, guess what… you’re not alone! It does not matter whether you’re a seasoned trader or just starting out. We all have experienced times of anxiety where we have questioned our moves in pursuit of a profit making trade.

Let’s keep it real. There are countless combinations of currency trading that can formulate success or failure. The many combinations could include:

  • Time frames you trade the market
  • Your entry points
  • Your exit points (and slippage) on the forex market
  • Your expiry’s on the binary option market
  • Your charts and trading platforms
  • Appropriate indicators
  • Currency pairings
  • Strategies and systems

These are all decisions that you have to make each and every trading session in order to execute a trade. All  in hopes that you made the right decisions that will successfully produce a profit and put you “in the money”.

On this post we are going to focus on the currency pairing conundrum.  An integral part of your trading success will be based on the currency pairings that will best accommodate your strategy.

Due to the nature of volatility in the currency markets, predictability is an important key that  will keep you “in the money” over and over again. The truth is, that points of predictability are more prevalent with certain currency pairings, than with others, based on the strategy or system you’re trading.

Imagine yourself capturing, harnessing and riding this pony of predictability as you stride into the horizon of profit.

There are currently five main currency pairings that are dominant when it comes to the all important key of predictability. (Of course, a caveat: there are always going to be exceptions in trading other currency pairings that can have you taking advantage of market movements. These can be anticipated based on fundamental analysis of events that affect the pairing.) Always bear in mind the economic season of the year and the various regional and global events that affect the currency pairing.

The current predominant currency pairings for trend, behavior and range trading predictability are as follows:

  • AUD/USD
  • EUR/USD
  • USD/JPY
  • NZD/USD
  • USD/CAD

(Although these last two pairings have more of  a trend to lean towards unpredictability, more so than the other 3, during your trading day).

With the Scottish independence vote now in the rear view mirror, we may be able to anticipate that the GBP/USD pairing will also find its way to a much more predictable pattern; moving forward as we approach the upcoming  new year.

As you well know, volatility is what drives the market. When a tremor of volatility hits, you want to make sure that you are set up with the right currency pairing, at the right time with the right strategy that lines you up on target to be”in the money”.

This is when the system you’re trading, becomes critical for your profit making success. Small Money Made Big trading systems signal to you the best opportunity for success. Our guidance will direct you to the best currency pairing for that system. The predictability features that are embedded into the systems will have you succeeding on your trades many times over.

We want you to succeed. Being equipped with the knowledge, along with a Small Money Made big trading system, will boost your profit making potential straight to the moon!

 

 

Economic Activity

Forex and binary option market news – 4th week of September 2014

Long live the queen! The ballots have been tallied and it is a big “no” for the hopeful’s of Scottish independence. The currency markets and in particular the British pound pairings were very active and reactive to the outcome of Scotland’s independence vote. The U.K. stays united, but the sterling gave way to considerable volatility in the market. Savvy short term trader’s were able to cash in on handsome profits for their trading day.

The votes are in…were you one of the winner’s? I hope you took advantage of riding that wave of small money made big profit.

Now onto the market news that may impact your trading week:

  • For the Euro – The European Central Bank, known as the ECB, president will be speaking. President Draghi has been encouraging the euro zone on reform of investment policy. He will be continuing this trend of creating a “business friendly” approach to regulation that may help stimulate anemic economic growth. We hope that he provides a more defined direction on investment policy for the euro zone economies to grasp and pursue.
  • Flash manufacturing PMI, known as the Purchasing Manager’s Index, will be released this week for the Chinese, French and Germans. These announcements may cause a stir in volatility for their respective currency pairings based on what the number’s reveal. Will we see an uptick in expansion or will we see a trend towards contraction continuing to reveal a bump on the road for Asian and euro zone economies? There doesn’t yet appear to be significant economic traction as we head into the last quarter of the year.
  • Canada’s month over month retail sales numbers. We will look to see if the “loonie” reveals looney retail activity as we approach the last quarter of the year and the season’s holiday spending. It wouldn’t be surprising  to see if the overall sector has slowed from previous month’s as the “dog days” of summer 2014 are in the rear view mirror.
  • New Zealand- The kiwi’s trade balance which is forecast to ride at a deficit may be continuing a trend from last month’s numbers.
  • The release of German business climate . This leading indicator of economic growth may have a significant impact on your Euro pairings as the data reveals what we may anticipate going forward, in terms of economic business activity, going into the last quarter of the year.
  • USD announcements this week include:

– New home sales – With slow activity on the real estate market forefront     beginning to rear it’s head it wouldn’t be surprising to see less than stellar numbers. The typical “slow down” of the real estate season may be approaching with a louder wimper than what would be preferable.

– Durable and core durable goods orders – A number that may continue to see contraction

– Unemployment claims – We’ll see if this lagging indicator shows improvement as we approach the holiday hiring season where a boost in job openings may be in order.

Always check out the economic events calendar on our menu above to receive all the economic events that affect your trading week.

Remember to also check out all the Small Money Made Big winning trading systems with custom indicators that will always signal your best opportunity to profit every time you trade.

 

 

Will the hawks or doves fly high?

FOREX AND BINARY OPTION NEWS THAT AFFECTS YOUR TRADING FOR THE 3rd WEEK OF SEPTEMBER 2014

These are the news releases that may have significant impact on your currency pairings for the third week of September 2014:

  • The Aussie’s monetary-policy meeting minutes
  • The U.K.’s year over year Consumer Price Index (CPI), unemployment claims and the average earnings index
  • For Euro’s- The German economic sentiment measurement, which has posted a positive number which shows optimism for most of this year, has been seeing a decline. Although steadily declining, it’s still in the optimistic positive range for the last few month’s. If this declining trend continues, it can be a key to a dovish perspective going forward into the last quarter for the euro markets.
  • Canada’s manufacturing sales, core CPI and wholesale sales
  • The Swiss will have their monetary policy statement and LIBOR announcements
  • U.S. Producer’s Price Index (PPI), core CPI, building permits and, of course, the Federal Reserve Economic Projections

For U.S. currency pairings, we’ll see if the Federal Reserve announcement on future monetary policy hints toward a hawkish position; where interest rate hikes will begin sooner than later.

hawk flying

 

 

 

 

 

 

 

 

 

 

 

Volatility in the market should bode heavy if the hawks win over and fly high, but with last month’s employment numbers coming in anemic, we may see the Fed’s hovering dovish for the remainder of this year.

Do You Trust Your Broker?

Do you really think your broker has your best interest at heart?

They shower you with free bogus “bonus” money in your funded account, they provide you a free demo account and they provide you with free trading strategies.

They would never hold the “house” advantage on your trading strategy, right? Yeah, right. Right up to the point that your account shows a zero balance and you have your hand’s on your head wondering what happened.

broker

Even if you’re trading a forex ECN account, it can be dangerous to your profit potential during high times of volatility. This is due to much higher pip spreads that will be required by your broker during market volatility and can leave you vulnerable. These higher pip spreads can be triggered by your broker during market open and closings for the week, holidays, economic news releases, etc. They, potentially, receive a larger piece of your profit pie or can leave you with a much bigger loss than you anticipated and therefore a much smaller balance in your trading account. This goes against the whole principle of leverage that makes your small money into big money.

Now don’t get the wrong impression, there are many positives that broker’s bring to the trading table. Many broker’s will taut free basic trading education, news articles, market trends and tutorial’s. All these incentives will introduce you or help get you into the trading game.  Which is not at all bad. They can help you discover the beauty of trading, but also the horrors of having an account wiped clean.

Over the year’s, broker’s have been experiencing increased competition and are looking for any edge to enhance their opportunity to obtain another funded account. The added competition spawns broker incentives that can be viewed as positive leverage to those regular trader’s that are coming out of their shell and finding success. You just need to be aware of what you’re getting from your broker. Some of it good, some of it NOT so good.

Broker’s are fully aware that, statistically  80%-90% of those who trade, will end up losing their money. So, if you were the broker, and you had funded trading accounts where you could leverage your funds against “green” trader’s, and knew that you were going to end up on the winning side 80%-90% of the time, would you take your chances? Oh you betcha!

Now what incentive would the broker have to keep you on the winning side of trades? Yeah, that’s what I thought! None, zero, zilch, nada! It doesn’t matter how you put it, there is no incentive, besides making sure that they leverage their money against your account. After all, 80% winning trade strategy is what we’re all trying to achieve. So why would you take the trading strategy, signals and advice from someone who is “betting” against you! You know, as well as I, that that doesn’t make any sense at all.

The inherent conflict of interest between you and your broker would breed an environment that puts into question their best interest being you. After all, they’re there to make a profit also.

Here at Small Money Made Big we want to you to gain as much good trading education as possible. The better understanding you have of market dynamics, the more successful of a trader you’ll be. Better trader = more winning trades = more profit. Simple formula, but the approach you take is what will lead you to the “promised” land more times than not.

Imagine that instead of the broker winning 80% of the trades it was YOU who possessed the winning formula to binary option and forex trading success. Would you just let all those profits that could rightfully be yours go by the way side? I don’t think so. You don’t want to just hold the “key”, but never open the treasure chest.

Here at Small Money Made Big we spend countless hours studying all this stuff (pouring over charts, platforms, indexes, signals, trends, time tables, etc.) and creating trading system’s that have you holding the key to earning profit many times over. We encourage you to open the treasure chest. Order one of our winning trading system’s. We purposely make them very affordable and easy to implement so that you can quickly start your journey to the “promised” land…profit.

Economic News Release

The economic market news releases for this week that may have a significant impact on the currency market volatility forefront include:

  • China’s trade balance – as you may already know, this is a number taken with “a grain of salt” since there has been a suspicious propensity to skew the data in a slant that can, at times, appear to be more than favorable to the Red Dragon of the East.
  • Canada’s building permit numbers
  • The UK’s manufacturing production and inflation report hearings
  • New Zealand’s monetary policy and rate statement
  • Australia’s unemployment rate
  • and the U.S. Unemployment claims and retail sales numbers

This week you may want to key in on USD pairings shortly after the release of these U.S economic market numbers.

It will be interesting to follow the USD trend as we approach U.S. unemployment claims and retail sales following the latest numbers of Non Farm payrolls that did not bode as well as anticipated. By NFP numbers missing their mark, is this just a “dog days of summer” fluke?…or is the U.S. economy sputtering it’s way to bigger problems on the horizon as we approach the last quarter of the year?

The following week we will be extracting the “tid bits” of carefully crafted verbiage from the Fed’s. This may hint towards a stance on what direction monetary policy will take in terms of interest rates. Will the status quo remain as QE tapering takes its toll? Will the Fed’s continue to hold off on interest rate hikes until some time next year?

If the U.S. economy continues to show signs of sputtering we may be able to anticipate a rally for any currency pairings pitted against the USD as the third quarter of this year comes to a close.

This type of currency impact may bode well for trader’s looking to catch a wave of volatility just after the release of these economic news announcements.

Stay updated here at SmallMoneyMadeBig.com as we continue to gauge the ongoing developments that affect your trading week. Subscribe over on your right.

Remember to always have fun analyzing the fundamentals and check out one of our winning systems below. They will always signal the best opportunity for profit on implementing your technical trades…and did you know that you can receive a system for FREE? Check out our home page to see how.