Forex Trading News

The yen is typically thought of as the most notable safe haven in the FX market. That’s one of the first things an FX trader learns about the market. There are a few main arguments why the Japanese yen is considered a safe haven: i) Japan has a positive net foreign asset position. This means […]

A currency defense is an economic policy implemented by a government in order to protect its currency’s value from speculators in the foreign exchange market. A currency defense can take many different forms, but typically involves intervention in the foreign exchange market to buy or sell the currency in order to keep its value within […]

In this article, we’re going to look at cases of countries in the 20th century where there were full wipeouts, and near-wipeouts, of financial wealth. This is based on 60/40 portfolios (i.e., 60 percent stocks, 40 percent government bonds) and based on real (inflation-adjusted returns). A 60/40 stock-bond mix is often taken as a fairly […]

Relative value is a concept that refers to the value of an asset in relation to the value of other assets. It is often used to compare the value of investments or to determine the fair value of an asset. In trading, relative value is used to identify opportunities to buy or sell assets based […]

In this article, we cover various systematic and discretionary trading and investing strategies, covering a wide range of approaches, asset classes, and time horizons, along with brief descriptions of each. Please note that many strategies are really a mix of both in the real world. However, they may tend to be more commonly used in […]

In September 2022, the UK imposed a tax cut as an attempt to stimulate the economy. In this article, we cover the broad-level impact of this fiscal proposal on financial markets.   Financial Market Impacts That led to the plunge or UK currency, bonds, and financial assets because the tax cuts were unfunded (i.e., they […]

A current account in macroeconomics is a country’s net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net current transfers such as foreign aid. It is the sum of the balance of trade (exports minus imports of goods and services), net primary income (earnings on foreign investments minus […]

Spread trading is a trading strategy that involves buying and selling two related financial instruments in order to profit from the difference between their prices. This difference is known as the “spread.” Spread traders aim to make money by betting on the direction in which the spread between two instruments will move (e.g., convergence, divergence), […]

Investing in Africa can be a lucrative opportunity for investors looking to diversify their portfolios. The continent boasts abundant natural resources, a growing middle class, and a youthful population, creating a favorable investment climate for foreign investors. However, investing in Africa comes with unique challenges, including political and foreign exchange risks that require careful consideration. […]

The Marshall-Lerner condition is a fundamental concept in international economics. It relates to the price elasticity of imports and exports. The condition states that a currency devaluation will only improve a country’s trade balance if the sum of the price elasticities of imports and exports is greater than one.   Key Takeaways – Marshall-Lerner Condition […]