Forex Trading News

Can the US or any country run out of money? Technically, the government doesn’t have money. A government is just a collection of individuals. Everything in an economy comes down to productivity.  Governments collect tax revenue from what boils down to underlying productivity at the most fundamental level. It can use a combination of those […]

Currency markets today are now shaped not just by interest rates and macro data, but by algorithms that learn, adapt, and react faster than any human can. What was once experimental is now routine, embedded in the architecture of both institutional trading desks and central bank research units. In the past, AI and automation merely […]

Tariffs are government-imposed taxes on imported goods that serve as both a revenue source and a strategic policy tool to influence trade balances, protect domestic industries, and respond to geopolitical tensions. In our current times, tariffs, debt cycles, monetary imbalances, geopolitical distrust, domestic political polarization, and deglobalization are converging to reshape capital flows, inflation dynamics, […]

A situation where the S&P 500 and USD are down simultaneously is rare and potentially profitable if you know how to trade it.  This environment upends the usual risk-off playbook (long USD, long Treasuries, short risk), and that opens the door to some creative derivatives trades that capitalize on correlation shifts, macro shifts, and mispriced […]

Purchasing Power Parity (PPP) is a lens through which we can understand the real value of money across borders. Imagine walking into a bakery in Tokyo and buying a loaf of bread for ¥500, then doing the same in New York for $5. At first glance, comparing these prices seems pointless. But PPP asks: How […]

Currency valuations are heavily determined by yield differentials. They shape the dynamics of foreign exchange (forex) markets, capital flows, and trader decisions. This article looks at yield differentials as a currency valuation driver, looking at their mechanisms, implications, and nuances in markets.   Key Takeaways – Currency Valuations vs. Yield Differentials Yield Differentials Drive Currency […]

Certain currencies and commodities correlate due to the economic structure and trade dependencies of their associated countries or regions.  For example, the Canadian Dollar (CAD) is positively correlated with crude oil because Canada is a major oil exporter, and rising oil prices increase export revenues, strengthening the CAD.  Similarly, the Japanese Yen (JPY) often inversely […]

Welcome to a comprehensive guide on currency trading and macroeconomic relationships. Currencies are a macro asset class. In a previous article, we looked at currency valuation models. In this article, we’ll delve more specifically into dozens of concepts that are critical to understanding how macroeconomic factors affect currency values and how to use this knowledge […]

Different traders have different ways of determining a currency’s fair value price. Clearly, different expectations and different motivations are what make a market. While many traders have their own decision rules and proprietary systems, there are currency valuation models and ways of looking at the currency markets that are the most common.   Key Takeaways […]

Negative carry is a situation where holding an investment or trade costs you more than the income it generates. This concept is important for investors and traders to understand as it can hugely impact their overall returns and portfolio performance. It’s especially relevant in futures and margin trading, but has various other applications as well. […]