Global Economy

Hi Traders,

It is always a good idea to keep the financial global climate in mind when you trade. Here is a list of current news and market events I keep in mind when analyzing the charts.

  1. USD – The Fed still wants to increase rates this year which means buck bullish.
  2. RBNZ already cut rates twice this year and will result in a weaker Nzd.
  3. Euro is weak, president Draghi of the ECB said rates should stay low for a while.
  4. Jpy takes fundamental news the hardest due to it’s weak value.
  5. OPEC didn’t stop any oil productivity yet and the result is over supply which means weaker oil prices.
  6. Canada exports oil so the chances of a stronger Cad look dim while oil is weak.

Basically there are 3 camps of traders:

  1. Fundamental Traders
  2. Technical Traders
  3. Both in one

I am the latter. Although I analyze the charts and do all my technical work to plan the trade, I do look at my economic calendar to get a broad perspective to what is going on in the markets now. It is foolish to play chicken with a train when you are on a bicycle and I believe by not looking at what the banks, governments and institutions want to do with their commodity or currency, you are doing just that!

Happy Trading!

Kobus