US Inflation Corrected, Euro Force-Try to Uphill

Forex News Update 18 May 2016 - US Inflation Corrected, Euro Force-Try to Uphill

US Inflation rising trend in a row close to the target of the Fed re-recorded in the survey this evening. However, amid optimism the results revealed data indicating the existence of a correction in the month of April. While in remote locations, the Euro gets "ball gag" the decline in US inflation by trying surging up.

US Inflation Corrected, Euro Force-Try to Uphill

Hefted Allegations

US CPI in April was recorded surged 0.4% MoM, higher than the previous 0.1%, exceeding the 0.3% forecast. While over the past year conditions, US Inflation has moved up to expectations many audiences by noting increased yield as much as 1.1 percent.

The increase in prices that occurred in April yesterday in the United States is still driven by the residential sector. Although there are also other sectors such as healthcare and transportation sectors that support. If traced over the past year housing sector calculations even exceeds the average of the overall inflation a year, which is 3.2 percent.

Energy and food sectors which have experienced a difference in the trend direction and tends to hold the inflation rate was already too began to show improvement. The price of fuel was observed to have started to lead to a trend reversal back towards the price of fifty dollars per barrel. So is the food sector, in the current survey showed again his passion with rose as much as 0.2 percent.

But the encouraging results in the areas of energy and food it is still not all uniform. There are still considerable in many sectors corrected, adding weight to the wheels of inflation. Sector household supplies, either new or used automotive and clothing among others, contributed to the negative in the situation.

Inequality performance of inflation can certainly be called into question for many parties. Is this the inflation rate will be stable until mid-year minimum? Moreover, the Federal Reserve in conducting monetary policy changes favored measure of inflation rate released by the commerce department, the PCE index, which has a tendency to differ greatly from the survey of the labor department.

US Inflation Corrected, Euro Force-Try to Uphill

Euro "Reaping the Wind"

Investors Euro again got momentum tonight even though the results of a survey of US inflation cursory look nice. Real world signal has emerged since yesterday with the emergence of bullish candle after considerable pressure in a few days earlier. Although the euro is still being corrected. Level 1.1320 is still strong enough to be used as a foothold. Until the end of this evening, the Euro back crawl up and broke the 1.1348's.

source : yahoo.com

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Spread in Forex & Indicator

Forex Trading - Spread & Indicator

Who didn't know the spread? Every day traders who trade in forex market will directly deal with the spread. But more broadly the use of spread and its influence on the overall trader few who review it. In this article we will examine the role of spread and calculations in forex trading as well as the correct definition of the spread.

If we look at forex quote or price, usually always followed by the value of the bid and ask prices. Spread is the difference between the selling price (bid) and the buy (ask) quotes or quotes, sell and buy. This is the revenue earned by the broker at each time we sell, the spread will be charged between 2 points to dozens of points depending on the currency pairs.

Size (Value) of spread may vary within each pair.  No forex broker that uses a fixed spread, the spread does not change in any market condition. However, some are using the spread floating system, which spreads fluctuate depending on market conditions.

 

Spread Forex

Usually forex spread (floating) has been pegged by each broker and will not undergo significant changes too except on further developments, forex broker feels the need to increase the spread. Although this spread can be said to remain or uncertain, but in the rules of each broker is usually added to the sentence that "will increase the spread when a very strong fundamental issues affecting the market", where the rate of movement of the currency pair is very fast.

For an experienced forex trader, this moment is a moment that they eagerly awaited, because it's not every time that trader could gain profit in a very short time. When there is a change in the spread, it wouldn't be a problem for the trader who already open position at the beginning. Because the effect is not going too big, unless the trader is in a loss position, the swelling spread it hurts. But for a trader who just entered the market, the swelling spreads will caused a deep impact, especially coupled with the presence of a very small margin, or arguably only able to withstand the movement below 100 points.

Since there're number of forex traders who also perform open position at the same time, sometimes there are delays in the open position and of course this is very detrimental to a trader. There is a possibility of spread borne already swollen and the desired points for their misses the delay. For that, consider the spread on the pair you used before transacting currency.

Spread MetaTrader indicator — displays current spread in the main window of the chart. You can modify the font parameters, indicator's position and the normalization of the spread value. The spread is redrawn after each tick, ensuring the most current and active spread value. This can be useful for brokers with variable spreads or with spreads that are widened often. The indicator is available for both MT4 and MT5.

Input parameters:

• font_color (default = Red) — color of the spread indicator.
• font_size (default = 14) — size of the spread indicator.
• font_face (default = "Arial") — font of the spread indicator.
• Corner (default = ANCHOR_LEFT_UPPER) — location for the spread indicator on the chart.
• spread_distance_x (default = 10) — horizontal distance from the corner to indicator.
• spread_distance_y (default = 130) — vertical distance from the corner to indicator.
• normalize (default = false) — if true, then the spread value is normalized and is given in conventional pips. If false, then the spread is given in the current pips as is. Can be useful for nonstandard quotes.
• AlertIfSpreadAbove (default = 0) — if greater than zero, then a sound alert will be issued if spread becomes greater than the given value.
• DrawTextAsBackground (default = false) — if true, the text label with the spread value will be drawn as background. It can be useful if you want to prevent the indicator from obscuring the chart.

Spread in Forex

Example 

This indicator cannot be used to generate trading signals. It can only assist you to make trading decisions, set proper stop-loss or take-profit levels and inform of the current market situation in a simple and fast manner.

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Market Starts to Rising the Risk Level, US Dollar Potential to Rise

Forex News Update - Market Starts to Rising the Risk Level, US Dollar Potential to Rise

The US dollar reached the level of a six week high against since Friday after the biggest gain in consumer spending this year, thus making the market speculated that traders will return raises the issue of the Fed's interest rate hikes this year to the surface.

Market Starts to Rising the Risk Level, US Dollar Potential to Rise

USD / JPY started trying to get even with the weakness climbing to a level of 108.91. The Chinese economy, on Sunday reported continued progress slowing growth in April, weighed down by overcapacity industries such as steel and coal. This makes the increase in demand for safe-haven currencies like the Japanese Yen.

The US currency rose against the yen ahead of the release of the minutes of the Fed's meeting last April on next Wednesday. The Australian dollar touched the lowest level in 10 weeks and New Zealand currencies slumped following a report from China that pointed to slowing growth in many parts of Asia, especially China, given the country is the largest market for exports of Australia and New Zealand.


Will the US Dollar Bullish This Week
"In our opinion, will be a slight rise in the dollar this month," said Joseph Capurso, senior strategist with the Commonwealth Bank of Australia in Sydney. Capurso added that the greenback will advance as the market will put a little more risk that the Fed interest rate will rise again in 2016.

AUD / USD rose 0.2 percent to 0.7285 figure after slumping to a low level of 0.7237, the weakest since March 2. While the NZD / USD fell slightly by 0.1 per cent towards the range 0.6766.

At the end of last week, the US dollar was boosted by a rebound in US retail sales. US retail sales in April surged by 1.3 percent, in contrast to the data in the previous period were down as much as -0.3 percent. Previously, the economists also predicted that retail sales in April will go down -0.3 percent, or in other words equal to the period of March.

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source : yahoo.com

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USD/JPY Struggles to Restore Strenght Post China's Data

USD/JPY Struggles to Restore Strenght Post China's Data

The yen had strengthened slightly against the US dollar and other currencies on Monday (16/05) morning after disappointment of economic news from China with impact in surplus in demand for safe-haven currencies like the Japanese Yen. Chinese investment, factory output and retail sales all missed estimates, raises further doubts about whether the country's economy grew steadily.

 USD/JPY Struggles to Restore Strenght Post China's Data

The greenback touched a low level of 108.46 yen, retreating from a high level two weeks ago in the range of 109.57 reached on Friday. But then, the USD / JPY started trying to get even with the weakness climbing to a level of 108.91 when the news was written.

The Chinese economy, on Sunday (15/05) yesterday reported continued progress slowing growth in April, weighed down by overcapacity industries such as steel and coal. Chinese industrial production rose 6 percent in April compared with a year earlier, down from 6.8 percent in May and missed estimates by economists at the rate of 6.5 percent.

China's retail sales, too deviated from predictions of analysts, where the increase that emerged was 10.1 percent, while fixed asset investment rose 10.5 percent in the period from January to April, when the prediction is 11 percent.

Japan PPI contracted
Meanwhile, from Japan itself reported, the producer price index (PPI) contracted to minus 4.2 percent year-on-year in April, deteriorated from minus 3.8 percent decline in March and weaker than expectations for a decline of 3.7 percent. Basically, PPI Japan had improved after a decline to very low levels of the year in January, but slipped back in April because although there is a jump high enough on the price of petroleum and chemical industry price batubaram and chemicals is still weak.

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Australian, NZ Dollars Gap Down After Chinese Data Disappoints

Talking Points

• AUD/USD and NZD/USD gapped lower at the beginning of this week
• Chinese Industrial Production missed expectations over the weekend
• DailyFX SSI remains net-long, implying further AUD/USD weakness

Having trouble trading the Australian Dollar? This may be why.

The sentiment-linked Australian and New Zealand Dollars gapped lower at the beginning of this week. Over the weekend, Chinese Industrial Production crossed the wires 6.0 percent year-over-year (YoY) versus 6.5% expected and 6.8% in March. The year-to-date (YTD) figures also disappointed coming in at 5.8% versus 6.1% expected and 5.8% prior. These readings can be important for the world’s second-largest economy as roughly 1/3 of its GDP is based on the manufacturing sector.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading of 2 for the AUD/USD following the announcement. This translates into 2 traders being long the AUD/USD for every 1 on the short side. The SSI is a contrarian indicator, implying further AUD/USD weakness ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Sumber : https://www.dailyfx.com

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