May 7, 2013 – The Plot

May 7
2013

CAD Climbs as Traders Search Higher Yield After RBA Decision

The Canadian dollar advanced today amid increasing demand for the currency from traders interested in high yield as continuous currency wars make it difficult to find. Carry trade is a practice of borrowing money in countries with low interest rates and investing them in economies where borrowing costs are higher. Such strategy was considered rather profitable, but is hard to perform in the current environment of aggressive monetary easing across […]

May 7
2013

German Data Helps Euro

Euro is heading higher today, receiving some help from the latest German economic data. Industrial orders for March beat estimates, and that has provided some support for the 17-nation currency. Germany, as the largest economy in the eurozone, has a great deal of influence over what happens with the euro on the Forex market. Germany tends to prop up the eurozone economy, and help the 17-nation currency. The news that German industrial orders rose […]

May 7
2013

Yen Gains on Comments from Taro Aso

Japanese yen is gaining ground today, thanks to the latest comments from Japan’s Finance Minister. Some Forex traders now believe that the recent yen weakness was overdone, and that some strength is in order. As a result, yen is gaining against many of its major counterparts. Japanese Finance Minister Taro Aso made some comments earlier that seemed to signal that the recent drops in the yen were […]

May 7
2013

Yuan Gains as China Plans Reforms

The Chinese yuan gained today on signs that the government is planning to ease control over the currency and allow capital to move more freely in and out of the country. The Peopleâs Bank of China set its reference rate up 0.05 percent to 6.2083 per dollar today. Premier Li Keqiang promised fiscal reforms, including regulations that will allow individuals to invest overseas. The pledge followed speculations that the central bank will […]

May 7
2013

Aussies Sinks as RBA Surprises FX Market

The Australian dollar slumped today as the Reserve Bank of Australia surprised Forex market participants by cutting its interest rates and suggesting that further rate cuts are possible. The RBA cut its main interest rate by 25 basis points to the record low 2.75 percent today. There was some negative fundamental data recently, but analysts did not expect such move nevertheless. The bank said in the accompanying statement: […]

May 7
2013

Backtesting Reversible Expert Advisor Based on Trend Persistence

Reading about such an interesting concept as Hurst exponent did not go without leaving a trace in my trader’s mind. Is it really so that we cannot use any information about the recent chart’s tendency to keep repeating previous bars or to keep reversing them? Being a man of practice, I have decided to build a working expert advisor and test it on some FX pairs. Contents 1 Backtest and Timeframes 1.1 […]

May 7
2013

Swiss Franc Weak on Signs SNB Wants to Preserve Ceiling

The Swiss franc fell on signs that the Swiss National Bank will preserve the cap on the currency as the economy does not recover fast enough to warrant changes to the current policies. The SNB was preserving the ceiling of 1.20 francs per euro and is not likely to drop it anytime soon. Jean-Pierre Danthine, the Vice Chairman of the SNB Governing Board, said that “the franc is still highly valued”. He also noted “as the economic […]

May 7
2013

CAD Firm vs. EUR & USD, Soft vs. JPY on Mixed Fundamentals

The Canadian dollar rose against the euro and erased losses against the US dollar yesterday and remained firm today. At the same time, the currency was soft versus the Japanese yen, paring yesterday’s rally. Fundamentals were mixed for the loonie. On one hand, building permits grew 8.6 percent in March from February, beating the forecast of 0.7 percent by a great margin. On the other, the Ivey Purchasing Managers’ Index slipped from 61.6 in March to 52.2 […]

Day: May 7, 2013