31 / 08 / 2018 | Technical Analysis

Technical Analysis 31.08.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument has broken down Tenkan-sen and Kijun-sen lines. The closest support level is the upper border of the cloud (128.45). The closest resistance level is Kijun-sen line (129.82).




On the daily chart Tenkan-sen line has crossed Kijun-sen from below, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from below, current cloud is going to reverse from descending to ascending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (128.30). The closest resistance level is the lower border of the cloud (129.85).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.

 
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30 / 08 / 2018 | Technical Analysis

Technical Analysis 30.08.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (81.192). The closest resistance level is Tenkan-sen line (81.424).




On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (81.184). The closest resistance level is Kijun-sen line (81.480).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.

 
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30 / 08 / 2018 | Market News

Eurozone CPI inflation likely to have remained stable in August 2018

The European Union’s (EU) economy will be in the spotlight on Friday August 31st 2018. On that day Eurostat, which is the official statistical office of the EU, will be publishing preliminary data regarding the Eurozone’s Consumer Price Index (CPI) inflation in August 2018. Even though the data is preliminary, it plays a great role in how economists form their opinions on the Euro bloc’s economy. 

The CPI is an indicator used to measure the rate at which the prices of goods and services bought by households rise or fall, which is the rate of inflation, referred to as the CPI inflation. Eurostat will also include core CPI inflation data in the release, which measures price movements excluding the ones of volatile components such as food, energy, alcohol and tobacco.

Economists expect the preliminary data to show that the CPI inflation stood at 2.1% on an annualised basis during August 2018. If confirmed the figure will be the same as July’s 2018 and the highest recorded reading since December 2012. Inflation in the Eurozone picked up during the summer months of 2018, giving the highest readings in the last five and a half years. Market analysts that scrutinised the data provided by Eurostat said that the reasons behind the inflation’s rise were the surge of prices in the energy and services sector while food prices rose at a softer pace.

Eurostat will also release data regarding the Eurozone’s core CPI inflation. Some market analysts suggest that the core CPI inflation figure provides a better presentation of inflation in the economy. According to the forecast, the Euro bloc’s core CPI inflation is expected to come in at 1.1%, unchanged from July 2018. Core CPI inflation in the Euro bloc also rose during the summer months from 0.9% in June 2018 to 1.1% in July 2018. 

Danske Bank released a report on Friday August 24th 2018 in which it informed its clients that Eurozone’s headline inflation is set to tick lower in August 2018, while underlying inflation continues to move upwards. “In July 2018, headline inflation reached 2.14% y/y, the highest level since 2012 and just above the ECB’s target. We expect the August print to decrease slightly to 2.08% y/y as the positive contribution from energy prices has peaked. Core inflation remains muted at 1.07% year-on-year in July 2018 – a level it has been fluctuating around since the beginning of 2017. We expect the August 2018 figure to edge up marginally to 1.12% year-on-year,” said the Danske Bank’s report.

An Internationale Nederlanden Groep (ING) report published on Monday August 27th 2018 said that investors will be looking to leading Eurozone economic indicators to gauge the European Central Bank’s mood at the mid-September 2018 monetary policy meeting. “The flash August EZ CPI data (Friday August 31st 2018) will be closely watched to see if inflation remains sticky above 2%. Political risks remain a short-term limiting factor for the Euro,” was noted in the report. 

As said in the ING report, investors and traders will have the opportunity to scrutinise the inflation reports coming from France and Italy. On Friday August 31st 2018, the INSEE, which is the official French statistical office, will publish the preliminary CPI inflation data for August 2018. Market analysts suggest that the report will show a modest pick up of 0.5% in inflation, on a month-to-month basis. In Italy, the report to be released by the Istituto Nazionale di Statistica, which is the official Italian statistical office, is expected to show an inflation drop during August 2018, from 1.5% to 1.4% on a yearly basis. 

Trade the Euro on STO

STO offers its clients over 30 currency pairs to choose from for a bespoke trading experience, including major, minor and exotic ones. A daily technical and fundamental analysis is also available to STO clients in order to help them execute their trading strategies.

Trading Forex and CFDs, which are leveraged products, are high risk investments and puts your capital at risk. You may sustain a loss of some or all of your invested capital. Only speculate with money you can afford to lose.
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29 / 08 / 2018 | Technical Analysis

Technical Analysis 29.08.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (129.71). One of the previous maximums of Chikou Span line is expected to be a resistance level (130.27).




On the daily chart Tenkan-sen line is crossing Kijun-sen from below, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (129.61). One of the previous maximums of Chikou Span line is expected to be a resistance level (130.25).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
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29 / 08 / 2018 | Market News

Advantages and disadvantages of social trading

The influence of the social media has been transmitted to the world of trading and investing. The leaders of the investment and trading sectors saw the potential of using the new technologies to improve their skills and benefit as much as possible. The result of these efforts is the commonly known online as social trading which aims to transform trading in ways that couldn’t be done until now.

According to a KPMG report published on September 2016 ‘the idea of using social platforms for trading was introduced to the market shortly after the 2008 crisis, offering the possibility for everyone (nearly) to join and to trade in the same way as the trader(s) you were following. The easy registration and low (nearly free) service fees have positioned these offerings as strong alternatives to traditional fund managers who are fighting against decreasing industry returns themselves.’

Social trading works by giving people with limited financial knowledge insight into the stock exchange by allowing a real-time analysis of individual trader performance. Seen as one of the most significant shifts in trading, social trading has the potential to open up opportunities for those interested in stock markets.

Advantages of social trading

Quick access to trading information

Beginner traders have the opportunity to cut down on the research for useful trading information. The reason is because, thanks to the social trading network they are a part of, they can get information from experienced professional traders from across the world. The interaction with skilled traders allows them to enhance their trading capabilities and increase their chances for success. 

Easiness

Trading isn’t an easy task since traders have to plan their strategies and execute them, taking into consideration numerous factors. Being a part of a social trading network enables the more inexperienced traders to monitor and follow other traders, evading the need to conduct a technical or fundamental analysis. 

Avoiding personal biases in trading

Belonging to a social trading community or group means that it becomes easier for traders to view the market fluctuations from a more unbiased perspective. Traders that work together will find it easier to discuss and analyse market activity, making decisions which won’t be affected by personal biases. 

Disadvantages of social trading

Poor risk management

Some people involved in trading start investing money on social trading platforms without even knowing the fundamentals of trading. Sometimes traders don’t focus on learning what the basic terms of trading mean and become exposed to dangers such as losing their capital. 

No diversification

Financial advisors stress the need for diversification. Sometimes beginner traders tend to trust a trader that they believe has devised the right strategy which can bring the right results. Believing that they are doing the right thing, they invest all their funds in one trader and follow his strategy. If the market moves in their favour, there is a chance of getting the result they want, but if the market moves against them they may lose their capital.

Trading with STO

STO has set as a goal to offer an optimal trading experience to its clients. STO pays special attention to its clients’ education by arranging educational courses such as webinars and providing its clients with the latest market news reports. STO account owners are able to trade on the most active shares in the US, German and Italian stock markets

Trading Forex and CFDs (Contracts for Difference), which are leveraged products, are high risk investments and puts your capital at risk. You may sustain a loss of some or all of your invested capital. Only speculate with money you can afford to lose.
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28 / 08 / 2018 | Technical Analysis

Technical Analysis 28.08.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (81.46). One of the previous maximums of Chikou Span line is expected to be a resistance level (81.73).




On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument has broken through Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (81.47). The closest resistance level is the upper border of the cloud (82.38).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
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28 / 08 / 2018 | Market News

Economists to scrutinise US GDP growth data

On Wednesday August 29th 2018, the financial news is going to be dominated by data coming from the United States (US) economy. On that day, the US Bureau of Economic Analysis (BEA) will publish its preliminary report regarding the growth of the country’s Gross Domestic Product during the second quarter of 2018. Data such as this attract the attention of economists because it is related to one of the largest economies in the world and its effect could make markets fluctuate. 

Market analysts will be expecting to scrutinise the report regarding the US GDP growth in the March-May 2018. This will be the second estimate published by the US BEA. The GDP shows the monetary value of all the goods, services and structures produced within a country’s economy in a given period of time. The GDP reading is an indicator of market activity because it shows the pace at which a country’s economy is expanding or shrinking. In general, a high reading could help the US Dollar’s value surge while a low reading could be negative for the US currency.

According to the analysts’ forecast, the US GDP grew by 4.0%, on an annualised basis, during the second quarter of 2018, 0.1% lower than the previous estimate. Market analysts also expect data to show that the US GDP increased by 3.0%, on a month-to-month basis, in the same time period. If the figure is confirmed, it will be in line with the previous estimate. On August 17th 2018, Nomura’s economists published a report in which they said that the weaker than expected housing starts in July 2018 had an effect on GDP growth. “Weaker-than-expected housing starts in July 2018 and downward revisions to previous months suggest more drag from residential investment on real GDP growth in Q2 2018 and Q3 2018. After rounding, however, our tracking estimates remain at 3.9% quarter on quarter for Q2 and 3.1% for Q3,” said the report. 

Fed monitors US GDP growth

The first US GDP growth estimate published by the BEA at the beginning of August 2018 had shown a growth rate of 4.1% on an annualised basis, which was the fastest rate recorded in the last four years. President Donald Trump capitalised on this, saying that the result is due to his actions. Some economists stressed that the elevated growth rate was the outcome of Chinese importers rushing to buy US made products before the Chinese administration imposed its own tariffs on them. 

Economists suggest that if exports have played a substantial role in the US GDP growth case, markets may think that it will be a one-off since the “tariff effect” will probably evaporate by the end of the second quarter of 2018 and there is a high probability that the growth during the third quarter of the year will be dragged down by exports. The US Federal Reserve (Fed) monitors the GDP growth closely and adjusts its policies accordingly. Market analysts believe that the Fed’s board will probably proceed in raising borrowing costs in its upcoming meeting at the end of September 2018. 

The consensus among economists is that if the second GDP growth estimate for the second quarter of 2018 exceeds expectations, the US Dollar’s value will jump. A reading below 4% could cause disappointment in the markets and could be a blow to President Donald Trump since he was one of the first to talk about the robust rate of growth when the first estimate was published. 

STO and trading the US Dollar

The US Dollar against the Euro, the US Dollar against the British Pound and the US Dollar against the Japanese Yen are just three of the major currency pairs that you can trade with on the STO platform. STO provides its clients with all the necessary educational material such as webinars to help them with preparing the suitable trading strategy. 

Trading Forex and CFDs, which are leveraged products, are high risk investments and puts your capital at risk. You may sustain a loss of some or all of your invested capital. Only speculate with money you can afford to lose.


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27 / 08 / 2018 | Technical Analysis

Technical Analysis 27.08.2018 – EUR/JPY Ichimoku Clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (128.094). The closest resistance level is Tenkan-sen line (128.964).




On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading around lower border of the cloud. The closest support level is the lower border of the cloud (128.303). The closest resistance level is the lower border of the cloud (130.043).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
 
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24 / 08 / 2018 | Technical Analysis

Technical Analysis 24.08.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span is crossing the price chart from above, current cloud is ascending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. The closest support level is the lower border of the cloud (80.58). The closest resistance level is Tenkan-sen line (80.96).




On the daily chart Tenkan-sen line is below Kijun-sen, both lines are directed downwards. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (80.58). The closest resistance level is the upper border of the cloud (81.05).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
...
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23 / 08 / 2018 | Technical Analysis

Technical Analysis 23.08.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (127.80). One of the previous maximums of Chikou Span line is expected to be a resistance level (128.20).




On the daily chart Tenkan-sen line is below Kijun-sen, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (126.58). The closest resistance level is Kijun-sen line (128.22).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
...
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