Forex Quotes
USD/CAD has been one of my favorites because of its persistent long-term trend. The relationship between this currency pair and the price of oil is strong, as the Canadian dollar often gains ground as energy prices rise, and falls when energy prices weaken. Canada and Japan are at opposite ends of the spectrum regarding the production and consumption of oil, and this is reflected in the CAD/JPY exchange rate. [2007] - Ed Ponsi
The Australian dollar often rises and falls along with the price of gold. [2007] - Ed Ponsi
Since we know that the London session has the highest volume, we’ll consider breakouts that occur during this session to be legitimate. We would especially consider these breakouts to be significant if they occur early in the session, as this is the time of day that normally generates the highest volume and the greatest liquidity. [2007] - Ed Ponsi
The forex market’s tendency to break out after a period of consolidation, holds true in both long and short time frames. [2007] - Ed Ponsi
Round numbers come into play quite often in the USD/CAD and Great Britain pound/U.S. dollar (GBP/USD) pairs. I’ve also seen round number support/resistance occur frequently in some of the Yen pairs, particularly euro/Japanese yen (EUR/JPY) and USD/JPY. On those pairs, the midway point between round numbers (for example 114.50, or 137.50) can also act as support or resistance. [2007] - Ed Ponsi
Most major currencies generally move less than 1% daily. [2007] - Grace Cheng
At least 80 percent of foreign exchange transactions have a dollar leg. [2007] - Grace Cheng
The London market accounts for almost one-third of the global total daily forex turnover. [2007] - Grace Cheng
Liquidity of major currency pairs: High - EUR/USD, EUR/JPY, USD/JPY; Medium - USD/CHF, GBP/USD, USD/CAD; Low - NZD/USD, AUD/USD. [2007] - Grace Cheng
Relative volatility of some currency pairs from low (daily 60 pips) to high (daily > 130 pips): AUD/USD, NZD/USD, USD/CAD, USD/JPY, EUR/USD, USD/CHF, GBP/USD. [2007] - Grace Cheng
The COT report allows you to gauge market sentiment in the currency futures market, which also influences the spot forex market. When it comes to analyzing information pertaining to currency futures in the COT report, it is generally more relevant for traders to focus on the non-commercial participants. [2007] - Grace Cheng
Independent traders may also apply leverage (preferably not more than 10 times) for carry trades so as to potentially increase their rate of return. [2007] - Grace Cheng
I have found that certain currency pairs among the majors tend to respond better than others when it comes to trading major news releases. Out of the four majors, EUR/USD, USD/CHF and GBP/USD tend to be better candidates than USD/JPY as the European markets are normally still open during the time of US news releases. GBP/USD moved the most in terms of pips with a 60-pip move; USD/CHF and the EUR/USD moved nearly the same amount with a move of 45 pips, and the USD/JPY moved the least with a move of 30 pips. [2007] - Grace Cheng
90 percent of daily trading volume is derived from speculation (meaning, commercial or investment-based FX trades account for less than 10 percent of daily global volume). [2007] - Mark Galant
According to a 2004 survey, currency trading volumes in the Asia-Pacific session account for about 21 percent of total daily global volume; European financial centers and London account for over 50 percent of total daily global trading volume, with London alone accounting for about one-third of total daily global volume; the North American trading session accounts for roughly the same share of global trading volume as the Asia-Pacific market, or about 22 percent of global daily trading volume. [2007] - Mark Galant
In some less liquid, non-regional currencies, like GBP/USD or USD/CAD, price movements may be more erratic or nonexistent, depending on the environment. [2007] - Mark Galant
On most days, market liquidity and interest fall off significantly in the New York afternoon, which can make for challenging trading conditions. [2007] - Mark Galant
It’s always important to be aware of what’s going on in other financial markets. But it’s also essential to view each market in its own perspective and to trade each market individually. [2007] - Mark Galant
As currency traders, you definitely need to keep an eye on the yields of the benchmark government bonds of the major-currency countries to better monitor the expectations of the interest rate market. [2007] - Mark Galant
Rollovers can earn you money if you’re long the currency with the higher interest rate and short the currency with the lower interest rate. Rollovers cost you money if you’re short the currency with the higher interest rate and long the currency with the lower interest rates. [2007] - Mark Galant