Trading System: USD & Gold Correlation
Exploring the correlation between the U.S. dollar index (major currencies) and Gold (iShares Comex Gold).
Theory
It is widely known that historically there is an inverse relationship between the price of Gold and the USD. So, what happens when one of the two does not respond as expected to a move in the others price?
How Currency Trading Works
Q. How Does Currency Trading Work
A. Currency is traded in pairs (for example AUD/USD), the cross rate refers to how much of one currency you can buy by selling the other. If the quote for the AUD/USD is 0.94, this means I can buy 0.94 USD (94 cents) for every $1 AUD I own.
Now, lets [...]
Expedia Currency
The main Expedia website has prices stated in USD. If you scroll to the very bottom on the website you can see the international sites Expedia has, these are currently;
- Australia
- Canada
- China
- Denmark
- France
- Germany
- Italy
- Japan
- Netherlands
- New Zealand
- Norway
- Spain
- Sweden
- United Kingdom
What is Currency Trading?
Currency trading on the Foreign Exchange (Forex) market is the simultaneous buying of one currency and selling of another one. The currency pair used for the trade is called a cross. The most commonly traded currencies are referred to as the “majors”, these are; EUR/USD, USD/JPY, USD/CHF and GBP/USD.
Read more »What Are The Forex Trading Hours?
The Forex market is open 24 hours a day 5 days a week. This provides traders the opportunity to place trades at any time of the day or night. As we cannot all stay up 24 hours a day to trade Forex there are certain hours of the day where the market is relatively quiet. [...]
Read more »Forex Investors price in 50 basis point cut
Gold has slipped a little lower as market players anticipate the Fed’s upcoming interest rate decision. Yesterday’s rally above $930 USD has no doubt caused some profit taking, with other investors positioning themselves in case the anticipated 50 basis point cut from the Fed does not eventuate. Investors remain uncertain as to how much assistance [...]
Read more »Forex Investors Reduce USD Holdings On FOMC Minutes Release
Expectations continue to build that the Federal Reserve will pause its rates tightening cycle in August, this will result in Forex traders cutting their long USD positions.
The latest release of minutes from the Federal Open Market Committee meeting (FOMC) revealed that Fed officials are uncertain about the future interest rate direction and are concerned about [...]
Forex – Dollar continues to suffer post-Fed fallout
The dollar (USD) continues to suffer from last week’s relatively dovish policy statement from the US Federal Reserve and a recovery in risk assets, such as equities.
Though the quarter point hike in the Fed funds rate to 5.25 pct was expected, the rate-setting Federal Open Market Committee cautioned about the outlook for growth. In response [...]
United Arab Emirates plan to convert 10% of Forex Reserve from Dollars to Euros
The United Arab Emirates central bank has made no decision yet on diversifying its foreign exchange reserves and the current USD ratio is appropriate, the bank’s Governor Sultan Nasser Al Suweidi said yesterday.
However, he told Reuters in an interview that a shift remains the bank’s long-term objective.
“The board is making the decision but it [...]
Dollar (USD) Gain on Euro, GBP, Yen…
The USD drifted higher against major rivals as dealers monitored the outlook for interest rates, while the GBP also weakened on news that a Bank of England policymaker had suddenly died.
The Euro fell to 1.2637 dollars in early European trading from 1.2659 dollars late on Wednesday in New York.
The USD climbed to 115.14 yen from [...]
NZ dollar slumps on Current Account Deficit
The New Zealand dollar NZD fell to a 10-week low against the USD on Thursday, after data showed the country’s current account deficit blew out to record levels in the first quarter.
Long standing concerns about the size and sustainability of New Zealand’s current account deficit were rekindled by the worse-than-expected data.
“The current account deficit is [...]
US Dollar extends losses even with supporting US CPI results.
The USD extended losses on Wednesday after a higher-than-expected reading of U.S. inflation for May did little to dispel uncertainty about interest rate increases beyond an expected hike in late June.
After seven consecutive sessions of gains in the dollar against the Euro, traders trimmed their positions after the Consumer Price Index data cemented the chances [...]
Russia Shifts Part of Its Forex Reserves from Dollars to Euros
On Thursday, June 8, Russia became the latest in the list of countries that shifted a part of its Central Bank reserves from the USD. Sergei Ignatyev, chairman of the Central Bank, said that only 50 percent of its reserves are now held in dollars, with 40 percent in Euro and the rest in [...]
Read more »US Dollar extends rebound on Bernanke’s comments
The USD extended a recovery on Tuesday from one-year lows against the Euro after Federal Reserve Chairman Ben Bernanke’s pledge to stay vigilant against inflation left the door open for another interest rate rise later in June.
Read more »Treasury Secretary Paulson: Not a Savior!
Yesterday, U.S. President George W. Bush named Paulson, a 60-year-old Wall Street veteran, to succeed John Snow, a former railroad executive who has led the department since February 2003. Hank Paulson’s nomination as Treasury Secretary may provide some temporary relief for the sliding USD owing to Paulson’s prominent status as a former of a top [...]
Read more »