How the elections will affect the US dollar exchange rate, expectations and realities
Almost any political events have an impact on the dollar exchange rate, including presidential elections.
It is the presidential elections that exert the strongest pressure on the value of the national currency, and this is not surprising.
Indeed, as a result of a change of power, not only the ruling elite changes, but also the interests they lobby, and this cannot but affect the country’s economy.
Some presidents pursue social policy and thereby weaken the economy, which leads to increased inflation, while others, on the contrary, accelerate the pace of economic development, thereby strengthening the national currency.
How will the elections affect the dollar exchange rate this time?
First of all, it should be noted that the value of the American currency is also affected by the situation that is developing in the country - protests, rallies, riots.
The second wave of coronavirus and its impact on cryptocurrency rates
It seemed that everything was over this summer, and the Covid-19 epidemic was beginning to decline, but now it is clear that this impression was deceptive.
And with the beginning of autumn, the epidemiological situation began to deteriorate rapidly, and governments began to introduce new restrictions.
And this cannot but affect the economy and world markets, including the cryptocurrency market, which has just recovered after the first wave of the coronavirus.
Most investors are interested in how the new situation will affect the Bitcoin exchange rate and the value of other virtual currencies; is it worth selling existing assets or should they wait for a more favorable moment?
Let's consider the state of affairs using the example of everyone's favorite Bitcoin, since its rate is the best characteristic of the cryptocurrency market.
What will happen to the dollar exchange rate against other currencies in 2020
While Europe is slowly beginning to cope with the consequences of the coronavirus infection, the United States is increasingly breaking morbidity records.
This state of affairs cannot but cause a recession in the economy, the indicators of which are at a rather low level.
The unemployment rate continues to be quite high; it has decreased slightly over the past two months and is now around 11%.
But this is still quite a lot considering that on average, unemployment in the United States in previous years rarely exceeded 3.5%.
However, it should be noted that the industrial production indicator increased noticeably in June 2020, and this indicates the beginning of a positive trend, and that unemployment will soon decline.
Open ECN with a deposit of $10 or more
When trading forex, there are several types of accounts, each of which has its own trading conditions and initial deposit requirements.
The most attractive and comfortable conditions are usually offered on ECN accounts; they are intended for professional traders.
An ECN account is trading using an electronic system for conducting transactions; trading is carried out directly without unnecessary intermediaries.
This allows not only to reduce the execution time of transactions, but also to significantly reduce the costs of carrying them out.
It is not for nothing that brokers put forward the highest requirements for a deposit when opening such an account.
Oil market crash
It’s already become our custom that most of the troubles happen on Monday.
Important events accumulate over the weekend, and when the exchange starts operating, these events are reflected in prices.
Monday, March 9, was no exception; after the holidays, the oil market opened with a gap of simply enormous proportions.
The price of Brent crude oil simply collapsed from 45.35 on Friday to 35.22 on Monday, a drop of more than $10, or about 22%.
Such a huge collapse has not happened since 2015, and such a rapid one has not happened for several decades.
Euro prospects amid coronavirus
As expected, the coronavirus began to spread outside of China, capturing ever larger territories and infecting an increasing number of people.
A new source of spread has occurred in Europe, namely in Italy, where the number of infected people is growing rapidly.
Unsuccessful attempts to isolate cities in which the virus was discovered have not yielded much results, and reports of cases are already beginning to arrive from other European countries.
In Italy itself, store shelves are empty, schools and universities are closed for quarantine, and public events are cancelled.
People are starting to leave home less, use transport, and shop less. In fact, the Chinese scenario will be repeated.
What awaits Bitcoin in 2020
After a record collapse that occurred in 2017, demand for digital currency began to fall at a record pace.
Bitcoin owners who lost money abandoned this asset, and new investors were in no hurry to invest money for fear of repeating the experience of their predecessors.
As a result, the capitalization of both the entire cryptocurrency market and Bitcoin individually has rapidly decreased.
Within a year, the asset reached its bottom of three thousand dollars and many managers removed it from their investment portfolios.
But the situation of last 2019 again attracted attention to the digital currency market; Bitcoin showed itself in its own style, rapidly rising in price three times. At the same time, its capitalization has also improved.
New war and its impact on oil prices
Recent events in the Middle East have significantly revived the oil market; the price of this futures confidently continued to rise.
The situation around Iran is heating up and this cannot but affect the price of oil supplied to the market, because Iran is one of the largest suppliers of black gold.
The country has the largest oil reserves and ranks first in the rankings of production volumes.
Revenues from oil exports make up the lion's share of Iran's budget, so the country's government is interested in increasing the price of this energy carrier.
At the end of October, one of the representatives of the International Monetary Fund said that in order to balance the 2020 budget, Iran would need to sell oil at $194 per barrel.
Broker AMarkets has prepared New Year's gifts for traders!
There is probably no person who, even somewhere deep down, does not expect miracles, magic, pleasant surprises and an explosion of positive emotions from the New Year.
Children enjoy the holiday the most, of course, but adults have no reason to deny themselves real magic! Why?
Because AMarkets has prepared a lot of New Year's surprises for its beloved clients.
Age is not a reason not to receive gifts for the New Year.
Why do people give gifts on New Year's Day?
By the way, do you know why it is customary to give gifts on New Year’s Day?
Forex trading and parliamentary elections in the UK
Elections of the President or Parliament are one of the main fundamental factors that can have a strong impact on the exchange rate.
It is at this time that a sharp trend reversal or other troubles in the form of price gaps or volatility surges are possible.
At this moment, you can not only make good money by catching the beginning of a new trend, but also lose money if you incorrectly assess the situation.
This is why it is so important to be ready to react in time as the election date approaches.
Will the price of oil pull down the Russian ruble?
A few days ago, namely on November 18, the price of oil began its decline, which continues to this day.
In just a few days, the price of BRENT fell from $63.30 per barrel to $60.70, which is more than 4%.
The main reasons for the decline were the failure of trade negotiations between the United States and China and the failure to make a decision to reduce production by major oil exporters.
The latter has led to an oversupply of black gold in the energy market; according to some estimates, this surplus is about 1 million barrels at daily trading.
There is no breakthrough on this issue yet, so there are all the prerequisites for a further fall in the price of BRENT oil below $60 per barrel.
Trading in time for Brexit
The influence of fundamental factors is maximally enhanced during the formation of historical events.
At the moment, such a significant historical event is the planned meeting of the British Parliament on the issue of the future of Brexit.
Since this event will take place on Saturday, a day when most trading is not carried out, the market will fully feel its impact on Monday, October 21, 2019.
Moreover, this impact will extend not only to currency pairs that include the British pound, but will also affect other assets.
The main troubles that await a trader on Monday, October 21 can be a significant widening of spreads, the occurrence of slippage, the formation of price gaps, and high volatility .
Three promising crypto currencies
The recent growth of Bitcoin has once again spurred interest in cryptocurrencies, since most investors like to buy and hold, and only professional traders make money on the fall.
Over the past few months, Bitcoin has shown excellent growth, but this does not mean that this particular asset should be bought.
It is better to pay attention to other virtual currencies that have good prospects, but have not yet grown that much.
Thanks to the actively developing crypto market, the choice is really wide, but we will try to focus on the more liquid ones.
At the same time, it is desirable that it be possible to open transactions in the trader’s trading terminal, rather than contact specialized exchanges.
The main criterion for assessing the prospects for growth is the maximum price that was once reached by the analyzed crypto currency. At the same time, we pay attention to how actively this currency has been growing recently.
How long will Bitcoin continue to grow?
The fall in the Bitcoin rate from 19,000 to almost $3,000 per unit was the reason why many investors decided to abandon this currency.
No one expected that in a few months the Bitcoin rate would rise several times and the price would again begin to approach the $10,000 mark.
More precisely, we can say that the growth was natural, but the most daring forecasts limited it to $5,000 per bitcoin.
Why did such growth occur?
Experts name several reasons for this phenomenon, the first of which is a correction after a sharp drop, and then the rate of the digital currency began to move upward due to economic and political news.
Not the least role was played in this by the growing support for cryptocurrencies on the part of states and mega companies, so they started talking about the imminent creation of their own currency on Facebook, and talk about the release of a Russian cryptocurrency by the Central Bank of Russia continues.
Accurate financial forecast from Vladimir Kravchenko
Vladimir Kravchenko is a financial consultant with serious theoretical training, as well as practical skills.
He studied at Ball State University with a degree in MBA (Master of Business Administration).
Additionally, he received a FINRA (Financial Services Industry Regulatory Authority) license. From 2011 to 2013, Vladimir Kravchenko worked as a financial analyst as part of Hold Brothers Capital, LLC.
In the period from 2013 to 2017, the specialist advised clients of Morgan Stanley (USA) on various issues.
His responsibilities included consulting on mergers and acquisitions, stock and bond offerings, and in addition he was involved in asset management.
In November 2017, Vladimir Kravchenko moved to the LBLV LTD team. The main direction of his work remains the same - financial advice in the field of investments in the stock market.
Why traders choose AMarkets
Brokerage company AMarkets is one of the most popular in the Forex market.
The company offers high-level service around the clock.
The broker has been operating successfully for 11 years. AMarkets is one of those organizations for which the primary goal is the quality of work and the well-being of their clients.
The company is a member of The Financial Commission.
Great importance is attached to the issue of safe placement of funds of its clients. AMarkets became one of the first organizations to receive category “A” membership in the Self-Regulatory Organization in Financial Markets - The Financial Commission.
Forex holidays in 2019
2018 is coming to an end and, as always, we warn our readers about holidays on which the Forex exchange will not work or will work with restrictions.
Such information is important for several reasons, firstly, on holidays, liquidity for all trading assets decreases significantly, and this leads to a widening of the spread.
And secondly, for unclosed transactions, a swap is charged for transferring positions within a day, and since there can be many days off, the amount of the commission will be significant.
And so the New Year holidays 2019 and the associated changes in Forex trading.
12/24/2018 - before Christmas day, trading in some assets may be stopped before 12:30, so it is advisable to close all transactions before this time.
Why can't you buy Bitcoin anymore?
Why is it too late to buy Bitcoin and miners can throw the farms in a landfill?
Bitcoin is a cryptocurrency that is just a set of encrypted information about the holders of this asset and its transactions.
In 2018, the Bitcoin price fell significantly (from $20,000 to $6,500) and, most likely, this trend will continue.
Why does this happen?
The thing is that the world's largest powers have introduced a number of restrictions regarding the use and mining of cryptocurrency in general: 1. The United States is preparing legislative changes to tighten control over cryptocurrencies;
New trading opportunities from a leading broker
The market for providing trading services on the stock exchange does not stand still, but is developing every day, creating more and more new services that can significantly simplify the trading process.
However, let's face the truth, in fact, a trader only needs favorable trading conditions and a guarantee of full withdrawal of funds.
However, there is another important aspect that the pros must pay their attention to, namely the variety of trading assets.
The fact is that in today's conditions, Forex is not just a foreign exchange market where a number of currency pairs are collected, but it is primarily a storehouse of speculative assets that are directly related to stocks, futures, indices and even cryptocurrency.
Consequently, the larger the set of trading assets, the more complex investment schemes a trader can build.
Black Tuesday of cryptocurrencies or why Bitcoin went into a peak
Such a new investment direction as cryptocurrencies has caused a huge stir among traders, investors and ordinary people.
An unknown electronic currency like Bitcoin reached its maximum in 2017 and cost about 20 thousand dollars.
Agree, for an asset that was worth nothing five years ago, the growth to the 20 thousand mark was simply phenomenal, moreover, none of the investors will remember such growth in such a short time.
Why did this happen? Because Bitcoin offers an alternative to the existing monetary system, complete confidentiality, tax protection and, most importantly, an uncontrolled flight of the exchange rate, which cannot be influenced by any bank or government in the world.
But how justified is the exchange rate of this crypto currency today?
New currency pairs for cryptocurrencies
Cryptocurrencies are among the most unpredictable instruments in terms of fundamental analysis.
But at the same time, technical analysis of the behavior of the crowd, major players and, in general, graphical patterns in this young market demonstrate unprecedented efficiency.
In addition to the effectiveness of technical analysis, you can add unprecedented rates of growth and decline of a given asset, namely, overcoming 10 percent in one direction or another in the price during the day is not a problem.
However, despite the huge number of cryptocurrencies and pairs with them on specialized exchanges, Forex brokers are in no hurry to introduce a huge number of them into their platforms.
Bitcoin futures.
Bitcoin trading is gaining more and more popularity, the crypto currency is not only the most liquid, but also has huge volatility.
You can make money on fluctuations in the Bitcoin exchange rate without even using leverage, but how much earnings increase with its use can not be said.
Until recently, there were two options for trading Bitcoin:
• Exchange on specialized exchanges – is a classic purchase (sale) of crypto currency for a dollar or another equally liquid currency.
It has a number of disadvantages that prevent speculative trading with maximum comfort.
Open your own Forex business with NewBroker
NewBroker specialists will talk about opening a Forex business, the scheme of work and the intricacies of registering a brokerage company.
Register a company
To register your business, it is better to choose an unregulated jurisdiction. Large brokerage companies are also registered in unregulated jurisdictions, because there is no Forex legislation there.
New level for Bitcoin – 6000.
After a dizzying fall, the crypto currency confidently reached $5,000 per 1 bitcoin and continues to move further.
As usual, analysts' opinions are divided, but the majority still argues about the possibility of the price reaching $6,000.
How realistic are the prospects of reaching a new level?
What gives hope to those who are betting on the increase:
• Growing interest - more and more banks and entire states are recognizing crypto currency, some are even trying to use it as payments for obtaining citizenship, as the island nation of Vanuatu did.
RAMM – minimum risk, maximum profit
At the beginning of June this year, the brokerage company RoboForex launched a new trading and investment service, which allows the trader to receive additional benefits by also acting as an investor or manager of a RAMM account.
RAMM (Risk Allocation Management Model) is a completely new unique investment model based on modern risk management and incorporating all the best from PAMM accounts and auto signal copying services.
At the same time, in comparison with them, RAMM has a number of significant differences and advantages.
This service allows, using just one RAMM account, to simultaneously:
New rules of exchange trading in Europe - “On the markets of financial instruments.”
As reported by foreign agencies, from January 3, 2018, changes are expected in the rules of exchange trading in European markets.
The greatest influence in the law will be given to trading operations using bonds and derivatives, but the stock market has not been left without attention.
If we highlight the main areas of innovation, we can note:
• Regular payments from brokerage companies for information on market research. That is, you can expect an increase in commissions when opening transactions.
• Stock trading will become more open by reducing the volume of hidden transactions.
The British pound is one of the most promising world currencies.
Currently, it is quite difficult to find a liquid asset prone to growth, most currencies are not stable, and precious metals are less liquid and are not suitable for all investors.
Until recently, the Swiss franc was the ideal option, but after its decoupling from the euro and subsequent drawdown, many investors lost confidence in this currency.
But even in modern realities, there is a currency that has simply fantastic growth prospects - the British pound sterling.
To believe this statement, just look at the graph of the pound/dollar currency pair over ten years.
At its peak in 2008, 1 pound was worth 2.11 cents; the current rate is only $1.32 per pound.
What kind of grandiose event caused the British currency to fall by almost 40 percent?
Resumption of production in Libya and the price of oil.
Libya has always been one of the largest oil producers; its reserves are estimated to be among the largest on the African continent.
Over the past few years, it was Libya that was one of the obstacles to increasing oil prices, because the country did not sign an agreement to limit production.
This is a bonus, so to speak, due to the unfavorable political and economic situation within the country.
And now another news from Libya makes OPEC countries worry again - oil production at one of the largest fields, Sharara, has been resumed since September 6, 2017.
While the market has not reacted to the news, perhaps a reaction will follow after an increase in production volumes.
Yuan's prospects based on economic growth.
In recent decades, China's economy has been developing rapidly; in fact, it is one of the most dynamic economies in the world.
True, since 2011 there has been a slowdown in economic development; the global crisis has reached the Middle Kingdom.
Not to say that braking is critical, but still compared to other years - in 2010-10.4%, 2011-9.4%, 2012-7.8%, 2013-7.7%, 2014-7.4 , 2016-6.7%, as you can see the trend is obvious.
Analysts' forecasts for 2017 have so far been fully confirmed; according to preliminary data, China's economic growth this year will be around 6.2-6.5%.
There are many reasons for this decline, the most significant being the decline in the export of Chinese goods to foreign markets.
How does the slowdown in economic development affect the exchange rate of the Chinese currency?
Popularity of Bitcoin. Cause and effect.
The Bitcoin cryptocurrency has shown unprecedented growth over the past few years; the rate of the virtual currency has increased thousands of times.
How did it happen that data in computer memory turned into real money, and its value surpassed the value of gold?
This happened for two obvious reasons - the conditional anonymity of the crypto currency and the massive advertising campaign launched by those who release new crypto currencies.
The advertisement is engine of the trade.
Recently, not a single day goes by without news about crypto currencies, either a large company decided to use this instrument in its calculations, or another state recognized crypto as a means of payment.
Why are most binary options brokers located offshore?
When coming to work on the stock exchange, not many people wonder why most binary options brokers are located offshore. We are, of course, talking about the legal address and registration of the company. There are several reasons for brokerage companies to do this.
Offshore regulators
The popularity of binary options is undeniable. But not everyone can understand the intricacies of brokers’ work in order to choose the most reliable company for cooperation.
You can find your way around this issue by reading the information on the website. http://brokersbinaryoption.com/.
The presence of certificates and licenses means that companies are checked and regulated by auditing financial associations and commissions, which, if violations are detected, can revoke or not issue a license.
Inspections of such organizations can be carried out secretly, by registering an inspector under the guise of an ordinary trader. Most organizations are located in offshore economic zones.
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