The Balance of Payments is one of the most important instruments for measuring the foreign trade of a country and represents the difference in value between imports and exports: goods, services, capital flows, and unilateral transfers during the previous period.
Description
The balance of payments is divided into two main accounts: the balance of trade and capital. The first, in the trade and exports, while the second refers to purchases and sales of financial and real assets, such as bonds, stocks or real estate.
The balance of payments is a major market mover for the forex market which is issued monthly by the central banks and Treasury Ministries.
Forex and Balance of Payments
The balance of payments, such as trade, is a market mover rather "impactful" is directly linked to demand for currency; the surplus, it indicates the presence of a larger number of foreign buyers in search of currency. It follows, therefore, that when the balance of payments is shown above the expectations of analysts, tends to have a bullish effect on the currency.
Saturday, 1 August 2015
Trade balance
The Trade Balance (in English Trade Balance) represents the difference in value between exports and imports of goods (but not services) and is a major market movers forex.
The data on the trade balance is released usually by central banks or Treasury Ministries and is a component of the Balance of Payments.
Description
The trade balance may be active (surplus), when the value of exports exceeded that of imports or, conversely, in passive (deficit), when the value of imports exceeds that of exports.
It follows that the surplus indicates the entrance of money capital, while the deficit indicates the output of capital. The correlation between capital flows and currency market is soon obvious: no need to pay for imports of the currency of the country from which you import. Therefore, the greater the exports of a country, most will increase the demand for currency.
Trade Balance and Forex
In fact, as a market mover, the Trade Balance tends to have effect particularly bullish on the currency of reference when given with a value that exceeds the expectations of analysts.
The data on the trade balance is released usually by central banks or Treasury Ministries and is a component of the Balance of Payments.
Description
The trade balance may be active (surplus), when the value of exports exceeded that of imports or, conversely, in passive (deficit), when the value of imports exceeds that of exports.
It follows that the surplus indicates the entrance of money capital, while the deficit indicates the output of capital. The correlation between capital flows and currency market is soon obvious: no need to pay for imports of the currency of the country from which you import. Therefore, the greater the exports of a country, most will increase the demand for currency.
Trade Balance and Forex
In fact, as a market mover, the Trade Balance tends to have effect particularly bullish on the currency of reference when given with a value that exceeds the expectations of analysts.
Bid Price
Literally in English "bid" means 'offering' and is the term used in Forex to indicate the price at which buyers may buy a currency pair.
This price is also called the "Bid Price" or "Bid Rate."
This price is also called the "Bid Price" or "Bid Rate."
Friday, 31 July 2015
Beige Book
The Beige Book is a report by the Federal Reserve and is considered a major market mover for the US Dollar.
The Beige Book is published eight times a year, generally one week before the meeting of the FOMC. The name, "beige book" replaces the full title: Summary of Commentary on Current Economic Conditions by Federal Reserve District.Beige Book: what is it?
Essentially, the Beige Book gathers in a unique relationship to the data provided by the Federal Districts of the Federal Reserve about production, consumption, sales, financial and banking, energy, agriculture, etc. to help provide a true and full of 'economy of the district to which they refer.
The 12 Federal Districts that make up the central body of the Federal Reserve provide different reports, each relative to its district of competence.
The contents of the Beige Book are, in substance, the representation of the topics that will be discussed at the next FOMC meeting.Beige Book: the only one open to all
The Beige Book is not the only source of information used by the Federal Reserve, but is the only one to be made available to anyone and in full online. There are in fact also the "Green Book" and the "Blue Book" containing estimates of economic and monetary policy proposals that will be subsequently discussed by the Federal Reserve and that, however, are private publications, reserved to the members of the FOMC.Beige Book and Forex: such reactions can arouse?
Although the publication of the Beige Book is always eagerly awaited, generally the release of the report has very limited effects on the short term. On the contrary, this report gives way to a series of speculations and forecasts among analysts and investors about the future of monetary policy of the Federal Reserve.
The modest impact on the very short term is also due to the linguistic style of the Beige Book, deliberately difficult to decode. However, investors and analysts are waiting for the publication of this report because it can give you, in the long run, information about the evolutionary possibilities of the Fed's monetary policy: for example, about issues that could lead to the change of interest rates and / or reduction of Quantitative easing.
The Beige Book is published eight times a year, generally one week before the meeting of the FOMC. The name, "beige book" replaces the full title: Summary of Commentary on Current Economic Conditions by Federal Reserve District.Beige Book: what is it?
Essentially, the Beige Book gathers in a unique relationship to the data provided by the Federal Districts of the Federal Reserve about production, consumption, sales, financial and banking, energy, agriculture, etc. to help provide a true and full of 'economy of the district to which they refer.
The 12 Federal Districts that make up the central body of the Federal Reserve provide different reports, each relative to its district of competence.
The contents of the Beige Book are, in substance, the representation of the topics that will be discussed at the next FOMC meeting.Beige Book: the only one open to all
The Beige Book is not the only source of information used by the Federal Reserve, but is the only one to be made available to anyone and in full online. There are in fact also the "Green Book" and the "Blue Book" containing estimates of economic and monetary policy proposals that will be subsequently discussed by the Federal Reserve and that, however, are private publications, reserved to the members of the FOMC.Beige Book and Forex: such reactions can arouse?
Although the publication of the Beige Book is always eagerly awaited, generally the release of the report has very limited effects on the short term. On the contrary, this report gives way to a series of speculations and forecasts among analysts and investors about the future of monetary policy of the Federal Reserve.
The modest impact on the very short term is also due to the linguistic style of the Beige Book, deliberately difficult to decode. However, investors and analysts are waiting for the publication of this report because it can give you, in the long run, information about the evolutionary possibilities of the Fed's monetary policy: for example, about issues that could lead to the change of interest rates and / or reduction of Quantitative easing.
Bearish and Bullish
Bearish and Bullish, sometimes even in Italian Bears and Bulls, respectively are two ways to call the approach to bearish and bullish.
Bearish may be a trend, or approach a trader bearish, bullish on the contrary indicates the bullish movement.
Bearish may be a trend, or approach a trader bearish, bullish on the contrary indicates the bullish movement.
bearish 3
The Bearish 3 is a bearish continuation pattern consists of two long candles downward (in the illustration black, or red on many platforms) with a central series of candles from the smaller body, which generally remain in the range indicated by the first bearish candle .
Monetary Base
The monetary base is the aggregate of legal currency (coins and notes) and financial assets in convertible currency. In darkened words, the monetary base is the different degrees of liquidity present in the financial system.
The monetary base is the total of notes and coins in circulation added to the reserves (mandatory and optional) and deposits held with a financial system (in our case the Eurosystem).
The monetary base is therefore a liability in the balance sheet of the central bank (in our case the European Central Bank). For this is announced periodically by the banks and is considered a market mover of medium impact.
The monetary base is the total of notes and coins in circulation added to the reserves (mandatory and optional) and deposits held with a financial system (in our case the Eurosystem).
The monetary base is therefore a liability in the balance sheet of the central bank (in our case the European Central Bank). For this is announced periodically by the banks and is considered a market mover of medium impact.
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