Markets Daily: Asian Equities Set to Open Steady After US Record

Markets Daily: Asian Equities Set to Open Steady After US Record

Equity futures rose in Australia, Japan and Hong Kong amid curbs. Tuesday saw the Nasdaq rose by 0.2%. The S&P 500 and the Dow Jones both rose less than 0.1% backed by the tech and retail sector, with financials lagging behind. Asian shares are set to open steady after investor optimism on the economy grows and signs that Moderna vaccines can counter the highly contagious delta strain. Treasuries were flat overnight. The US 10-year yields were steady near 1.475% and short-term US 2-year yields were near 0.25%. Forex trading saw the US dollar firmer against other major currencies. According to ZERO Markets’ Meta...

A Volatility indicator: Bollinger Bands

A Volatility indicator: Bollinger Bands

Volatility is the measure of the fluctuation in trading prices. How large the upswings and downswings are for a currency pair can become useful information when on the lookout for trading opportunities. Volatility indicators basically tell us whether the market is noisy with big swings or quiet and not moving much. There are multiple volatility indicators out there, but we will focus on one specific indicator – Bollinger Bands, to give a basic insight in this blog.    Bollinger Bands Bollinger Bands is an indicator that is overlayed on the chart and comes with three sections or bands, the upper...

Bitcoin Forms ‘Death Cross’ and Price Pressure Shows No Sign of Easing

Bitcoin Forms ‘Death Cross’ and Price Pressure Shows No Sign of Easing

Analysts are turning to technical signals are a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff. The recent downturn has seen the coin lose 40% over the past two months, forming the grim-sounding pattern, The technical analysis has formed a death cross, with its average price over the last 50 days crossing below its 200-day moving average. This indicator is typically seen as a closely-watched technical measure that could be a hint to downward pressure to come. According to Matt Maley, chief market strategist for Miller Tabak + Co., the current formation this time around...

What is Forex Volume?

What is Forex Volume?

Unlike exchanges that process stocks via a clearinghouse, the forex market is comprised of several commercial banks, proprietary trading firms, hedge funds, and individual traders. The fragmented nature sees forex transactions operate via electronic platforms in the absence of clearinghouse and a primary exchange. The foreign exchange market is decentralized and processed over-the-counter (OTC), which is an off-exchange transaction between two parties. This makes measuring the overall forex volume impossible. As a result, the volume data investors see on MetaTrader 5 (MT5) and MetaTrader 4 (MT4)platforms are fed by the broker. This means the volume reflects the trading activity of the broker’s clients and not the...

The Dollar Gains 6% Against Yen Year to Date, What’s Next for Yen?

The Dollar Gains 6% Against Yen Year to Date, What’s Next for Yen?

Notwithstanding the global economic recovery from the pandemic, Japan remains to be standing still, with its currency value eroding. The year 2021 saw the yen performing the worst among Group-of-10 currencies, slumped almost 6% against the dollar. Japan is the only economy that hasn’t shown signs of a rising interest rate. According to ZERO Markets’ Meta Trader 5 platform, the yen has already slumped almost 6% against the dollar this year, the worst performance among Group-of-10 currencies, as global markets prepare for interest rates to begin creeping higher almost everywhere except Japan. The Japanese economy has had structural differences compared to most countries. A...

Where To Invest $10,000 Dollar Right Now?

Where To Invest $10,000 Dollar Right Now?

Value With Momentum — according to Feifei Li (Head of Equities, Research Affiliates) Value stocks are translated into momentum stocks in recent times as the vaccine rollout had fuelled a new prospect of growth that favors stocks that are value-oriented. Value investing refers to buying stocks that are valued cheaper relative to their fundamentals. On a quantitative investing basis, the factors of value and momentum are negatively correlated over the long term. However, when the factors converge and move in together, it can translate to a very bullish signal. The recent pull-back in value stocks has seen the current price multiple moved off its...

Commodities Hit New High on Positive Oil Demand Outlook

Commodities Hit New High on Positive Oil Demand Outlook

The recent economic recovery has raised expectations on renewed energy demand, this prompted commodities prices to make new highs. The Bloomberg Commodity Spot Index is at the highest level since 2012. The index tracks price movements for 23 raw materials. The retreat in the greenback has spurred buying of precious metals including gold and silver. With spot gold current trading near US$1791 an ounce and silver near US$26.8. Global oil prices rose on optimism over European Union proposed easing travel restrictions. According to ZERO Markets’ Metatrader, 4 platform Brent crude is currently trading near 67.5 a barrel.  According to Enterprise Products Partners, a full recovery from...