Everyone is a Forex investor

Globalintelhub (by JoeGelet), 2016

http://www.zerohedge.com/news/2016-07-21/everyone-forex-investor

Whether you know it or not, everyone is a Forex investor.  As we explain in Splitting Pennies – Understanding Forex – just by going grocery shopping, you’re trading Forex.  If you use US Dollars, you are trading Forex.  If you have a savings account based in US Dollars, you are investing in Forex.

Brexit was a great example of FX being in focus, but there are many.  Every week there’s an FX event, whether it be a coup or failed coup in Turkey, an NFP surprise, or cheif traders being arrested at JFK airport.

ANY global event is an FX event, ANY market event is an FX event, but NOT ALL market events are FX events.  FX is the superset of markets.  Remember, stocks are settled in US Dollars.  That’s changing, with all the Bitcoin and blockchain proposals, but we’re still years if not decades away from signficiant paradigm shift in that regard.

Investors are starting to take note of FX.  Forex is becoming part of a mainstream discussion on Wall St., although behind the scenes.  This is happening in parallel with a restructuring of the market dyamics on a technical level.

Solid reasons that any portfolio should include FX strategies:

  • Mainstream investments show a diminishing return
  • The stock market can’t go up forever
  • FX provides opportunities not seen in other markets
  • Although there are risks, the risks have a different nature, and there are also more opportunities 

Although everyone is a Forex investor, the majority are always losing.  They are losing slowly through the rapid deterioration of the currency.  Many investors make up for this with high yield investments – but they are rare in a ZIRP and coming NIRP.

Forex provides a means to diversify this risk, for investment professionals, investors, quants, corporations, pension funds, and basically anyone – even for the retail investor who only has $1.  Yes, you can open an account with Oanda for only $1.  This is where we derived the name for our recent book “Splitting Pennies” – Currencies in normal markets don’t change too much.  Brexit was an exception.  So in order to profit from Currency trading, leverage is used, thus multiplying risks and profits too.  Forex trades are divided up so small, the smallest unit is called a “PIP” which is 1/10,000 th of a currency.

If you’re not already starting the move into Forex – don’t worry, it will happen with or without you.   If you want to give yourself a heads up, checkout Splitting Pennies – the pocket guide designed to instantly make you a Forex genius!

If you want to get started looking at investing, checkout Fortress Capital Forex

The post Everyone is a Forex investor appeared first on Forex IQ.

EES: Everyone is a Forex investor

Whether you know it or not, everyone is a Forex investor.  As we explain in Splitting Pennies - Understanding Forex - just by going grocery shopping, you're trading Forex.  If you use US Dollars, you are trading Forex.  If you have a savings account based in US Dollars, you are investing in Forex.
Brexit was a great example of FX being in focus, but there are many.  Every week there's an FX event, whether it be a coup or failed coup in Turkey, an NFP surprise, or cheif traders being arrested at JFK airport.
ANY global event is an FX event, ANY market event is an FX event, but NOT ALL market events are FX events.  FX is the superset of markets.  Remember, stocks are settled in US Dollars.  That's changing, with all the Bitcoin and blockchain proposals, but we're still years if not decades away from signficiant paradigm shift in that regard.
Investors are starting to take note of FX.  Forex is becoming part of a mainstream discussion on Wall St., although behind the scenes.  This is happening in parallel with a restructuring of the market dyamics on a technical level.
Solid reasons that any portfolio should include FX strategies:
  • Mainstream investments show a diminishing return
  • The stock market can't go up forever
  • FX provides opportunities not seen in other markets
  • Although there are risks, the risks have a different nature, and there are also more opportunities 
Although everyone is a Forex investor, the majority are always losing.  They are losing slowly through the rapid deterioration of the currency.  Many investors make up for this with high yield investments - but they are rare in a ZIRP and coming NIRP.
Forex provides a means to diversify this risk, for investment professionals, investors, quants, corporations, pension funds, and basically anyone - even for the retail investor who only has $1.  Yes, you can open an account with Oanda for only $1.  This is where we derived the name for our recent book "Splitting Pennies" - Currencies in normal markets don't change too much.  Brexit was an exception.  So in order to profit from Currency trading, leverage is used, thus multiplying risks and profits too.  Forex trades are divided up so small, the smallest unit is called a "PIP" which is 1/10,000 th of a currency.  
If you're not already starting the move into Forex - don't worry, it will happen with or without you.   If you want to give yourself a heads up, checkout Splitting Pennies - the pocket guide designed to instantly make you a Forex genius!
If you want to get started looking at investing, checkout Fortress Capital Forex

Friday Night Lights – Another Brexit moment for FX

globalintelhub (by JoeGelet), 2016

http://www.zerohedge.com/news/2016-07-16/friday-night-lights-another-brexit-moment-fx

It seems that such events are always planned for the weekend.  News of the attempted Turkish coup reached FX investors just hours before the close.

Turkey’s currency is an exotic currency, commonly traded against USD, EUR, and JPY.  Near the close, a huge spike in USD/TRY:

Just as FX traders were worried about not having another Brexit moment for a few more years, only weeks later here’s another.  But this time it happened just before Friday’s close at 5pm NYT so we’ll see how the market opens Sunday night.

EUR/USD sold off on the news as well, but only reached its channel lows.

From CNBC: 

The U.S. dollar gained as much as 5.5 percent against the Turkish lira after a group within Turkey’s military apparently attempted to overthrow the government on Friday.

The dollar was last up 4.72 percent against the lira.

It seems this FX event is a sign, that Europe is going to be full of “Brexit” moments in the coming years, and that FX is going to be the market defining this next epoch of investing.

For those who don’t understand Forex, the above chart represents the US Dollar against the Turkish Lira, that means when you see a spike UP, it means US Dollar going UP and Turkish Lira going DOWN.

So, here’s another boost to the good ol’ USD, who is now being accused of the coup itself.

FX traders patiently wait for markets to open, 24 hours from now.

To learn more about Forex, checkout Splitting Pennies – Understanding Forex the book

The post Friday Night Lights – Another Brexit moment for FX appeared first on Forex IQ.

Singapore Dollar And Other Emerging Markets Currencies May Have A Boost Post Brexit

Fortress Capital, (by JoeGelet), 2016

http://seekingalpha.com/article/3987199-singapore-dollar-emerging-markets-currencies-may-boost-post-brexit

Summary

While the world has been watching EUR, GBP, USD, and other majors, exotics remain in the periphery.

Emerging market currencies like Singapore Dollar SGD may benefit post Brexit.

Singapore is an interesting post Brexit Currency example because Singapore was part of Britain.

Singapore Dollar is offered as an ETF FXSG.

While the world watches Europe unravel, little attention is being paid to the rest of the world. In this case, that means countries who are not affected by Brexit or the European Union. This includes BRICs, Africa, Canada, most of Asia, Australia & New Zealand, Central and South America, and many other countries. An interesting one as an example is Singapore, because Singapore had the equivalent of a referendum in 1959 and decided to be independent.

Singapore now handles more FX volume than any other trading center in Asia (more than Japan). As a place of business, it has attracted westerners as an alternative to other offshore havens, competing with places like Dubai, Malta, and other emerging offshore havens.

The currency used by Singapore is the Singapore Dollar (SGD) and there’s an ETF that was launched a few years back, and announced here on Seeking Alpha. The name and ticker symbol is CurrencyShares Singapore Dollar Trust ETF (FXSG). Here’s a long term chart:

FXSG Chart

FXSG data by YCharts

Many traders would look at this and see a flat-line, a nothing. But remember, this ETF simply tracks SGD currency against a basket of currencies, mostly the US dollar. Take a look at the Forex pair, USD/SGD in comparison:

The post Singapore Dollar And Other Emerging Markets Currencies May Have A Boost Post Brexit appeared first on Forex IQ.

How Far Down Can Go The Great British Pound

Fortress Capital (by JoeGelet), 2016

http://seekingalpha.com/article/3986975-far-can-go-great-british-pound

Summary

GBP has sold off more after Brexit vote, and rumors it will go further.

Will GBP continue to slide, or is this a buying opportunity?

GBP can probably sell off a little more – but not below 1.25.

GBP should retrace, as all currencies usually do after a downturn.

A GBP recovery should be in the cards in the near future.

Brexit has come and passed, now what is to be the fate of the Great British Pound? (NYSEARCA:GBB) Look at the chart of the ETF:

GBB Chart

GBB data by YCharts

Wow – this looks like a death spiral. It seems as if it will go to zero, like a public company that has unpayable debts and will finally close. But this is FX, not stocks – it’s impossible the GBP will go to zero. In fact, historically speaking, currencies usually recover. Even during periods where currencies trend for a long time, if a currency has a sharp move in one direction, it’s likely followed by a partial retracement. Almost always, currencies retrace.

Now, considering that Brexit is a unique situation, and more of a macro / fundamental move – a retracement can take time. And like any trader who tries to guess the retracement, the first necessary point is to establish a bottom – which the Great British Pound hasn’t done yet. It’s still sliding.

How low can it go? Probably not below 1.25, certainly not below 1.20 – but this is FX, anything is possible.

Other analysts are suggesting it’s time to buy GBB (or at least, suggesting that soon it may be a good buy):

Chances of U.K. slipping into a recession are higher ahead due to weaker terms of trade and a likely flight of investments on uncertain economic policies. The likes of Goldman Sachs has forecast that the U.K. economy will likely see a “mild recession” by early 2017. Investors should note that the possibility of a slowdown in the economy may lead Bank of England to cut interest rates, leaving no scope for pound outperformance or stabilization in the near term. Definitely, the pound ETF is not a Buy at the current level. But investors having a strong stomach for risk may tap it with a long-term view. After all, all the downside movement in the fund will be capped in fast, in fact over the next few sessions, as investors are hurrying to price in the looming risk in pound. With this, the currency and the related fund may bottom out soon and give way to a reversal.

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