Wednesday, June 29, 2016

Why do CURRENCY values change?

So why do currency values change?


There are three apparent reasons for this.

1. Currencies react to political and economic news. The #Brexit issue is the most recent political mania. Such issue is affecting the currencies specifically pound. In my recent blogpost I showed the immediate effect of votation. Please scroll down to the previous posts to check it.

2. Speculators drive the market such as the technical analysts who takes advantage of either bearish or bullish market.

3. Of course there's the international business flows. The law of supply and demand affects the currency fluctuation. For instance, oil drives the market fluctuation. 




Tuesday, June 28, 2016

What is a FOREX Spread?

A SPREAD in Forex Trading is the difference between the bid and the ask price. Otherwise knows as the variance between the buying and selling prices. Normally, the proceeds go to the broker/specialist that handles the transaction.

So what is a bid and ask price?
Selling price is the BID price and buying price is the ASK price.

Let's look at below image:
We have here an example of AUDUSD, below the currency name you will see that the spread is 16. Such is the difference between 0.74017, the selling price and 0.74033, the buying price.

Note that the closer the spread to zero means the better it will be to trade because reaching break-even point is not going to be very difficult to achieve.

Find out more on how to understand FOREX market, visit us at www.forexcebu.com

Friday, June 24, 2016

#Brexit Mania!

Today, hot as pancake, in the news UK speak up! UK voted to leave European Union in landmark referendum.

The news is followed by UK Prime Minister David Cameron to step down his post.

So what's the effect of this scenario to the big 5 currencies? Let's take a look one by one.

USDCHF 
Hi: 0.9800
Lo: 0.9531
Variance: 269 pips

AUDUSD
Hi: 0.7644
Lo: 0.7300
Variance: 344 pips


USDJPY 
Hi: 106.79
Lo: 98.92
Variance: 787 pips


EURUSD 
Hi: 1.1425
Lo: 1.0909
Variance: 516 pips

GBPUSD 
Hi: 1.5015
Lo: 1.3223
Variance: 1,792 pips

Today we had extreme movements of the market. Since 1985, UK touched an ultime low. It seems to be finding a good bouncing point towards a potential ultime high. My bet is next year the soonest.

Happy trading everyone!