USDJPY Fundamentals (based on dailyfx article)
Fundamental Forecast for Japanese Yen: Neutral
Understanding Forex Trade Sizes (based on this article)
A micro lot is the term used for a 1,000 unit trade,
which on most major pairs come out to about $0.10 of risk per pip. This
is the smallest trade size available and is a great size for traders
that don’t have much capital to trade. You won’t make a fortune, but you
won’t lose too much either trading micros, that’s why it’s a great
place to cut your teeth in Forex.
A mini lot is the term used for a 10,000 unit trade,
which on most major pairs means we are trading $1 a pip. We recommend having at
least $1,000 deposited into your account for each mini lot you plan to
have open simultaneously. It’s a good trade size for a serious part-time
forex trader that has the capital or a full-time trader wanting to
start with a smaller lot size.
A standard lot is the term used for a 100,000 unit
trade, which on most major pairs means we are trading $10 per pip. Gains/losses could reach
$1000-$2000 or more per standard lot on a fairly common day in the forex
market, so having a larger account size is mandatory to trade them
seriously. Our account should have at least $10,000 per standard lot we
are looking to trade, which normally means you are very serious trader
in the FX market, part-time or full-time.
In the image above, we can see what each trade size
translates to in an actual currency pair, the EUR/USD. Notice the trade
size refers to the first
currency in the currency pair, in this case Euros for the EURUSD pair.
So a micro lot, mini lot, and standard lot means €1,000, €10,000, and
EURUSD Fundamentals (based on dailyfx article)
Fundamental Forecast for Euro: Bullish
GBPUSD Fundamentals (based on dailyfx article)
Fundamental Forecast for the British Pound: Bearish
Forex Fundamentals February 10 - 14
1. Janet Yellen speaks: Tuesday, 15:00. New Fed chair Janet
Yellen will testify before the U.S. senate. This will be her first
public comments on monetary policy after taking the reins at the U.S.
central bank. Her first appearance was at her Senate confirmation
hearing on November 14, before the Fed announced the tapering of its
bond-buying program. Yellen will have to face the continuation of the
taper plan, raise rates and reduce the Fed’s balance sheet.
2. Mark Carney speaks: Wednesday, 10:30. Bank of England
Governor Mark Carney will speak about the Inflation Report, in London.
Economists believe Mark Carney will raise the benchmark from 0.5% in
light of the recent growth trend in the UK economy and domestic
recovery. It is estimated that the BOE will be the first to raise rates,
followed by the Fed. With lower UK unemployment, the pressure for
faster action rises.
3. Mario Draghi speaks: Wednesday, 10:30. ECB President Mario Draghi will speak in Brussels. He
may talk about the ECB’s recent decision to maintain rates and
monetary policy in light of the slow inflation. Market volatility is
expected. The central bank did say incoming information in March is
4. US Federal Budget Balance: Wednesday, 19:00. The U.S.
government deficit continued to shrink in December posting a surplus of
$53.2 billion following a deficit of 135.2 billion in Novwmber. The
government hopes to achieve an operational balance by 2015 after the
U.S. federal budget deficit surged above 9% of GDP reaching $1.4
trillion in 2009. The improvement in GDP growth since late 2009 and
stronger consumer confidence strengthened economic activity, constantly
increasing tax revenues. Meanwhile federal government expenditure was
very low in the past two years, enabling deficit reduction. A deficit of
$28.2 billion is expected this time.
5. Australian Employment data: Thursday, 0:30. Australia’s
unemployment remained at 5.8% in December while the Job force narrowed
by 22,600 positions to 11,629,500. The main reduction occurred in
full-time employment dropping 31,600 while part-time employment
increased by 9,000. Nevertheless, economists forecast growth in the
Australian job market during this year. The Australian economy is
expected to add 15,300 jobs, while unemployment rate is predicted to
rise to 5.9%.
6. US Retail sales: Thursday, 13:30. US retail sales increased
in December amid a pick-up in sales for clothing and online
acquisitions. However almost everywhere else, proved to be
disappointing in the holiday shopping season. Retail sales increased by
a mere 0.2%, following a 0.4% gain in November. Automobiles and trucks
declined 1.8% due to the unusually cold weather and other retail
spending showed general weakness. However, Core sales, excluding
volatile categories such as autos, gas and building supplies, edged up
0.7% and may give a more reliable and positive estimate on the true
state of the US economy. With the ongoing improvement in the job
market, household spending is bound to strengthen more rapidly in 2014.
US retail sales are projected to remain unchanged, while Core sales
are expected to climb 0.2%.
7. US Unemployment claims: Thursday, 13:30. The number of people
filing initial claims for unemployment benefits dropped more than
expected last week, down 20,000 to 331,000, indicating fewer layoffs
and improved working conditions. The four-week average, ticked up 250
to 334,000, remaining in the pre-recession levels. However severe
weather conditions may bring further volatility to the job market in
the coming weeks. The number of new claims is expected to reach 331,000.
8. US UoM Consumer Sentiment: Friday, 14:55. The preliminary
estimate for consumer sentiment in January dropped to 80.4, following
82.5 in December. The final survey numbers were later revised to 81.2.
The preliminary figure was lower than the 83.4 projected by analysts
and was closely related to disappointing job growth in December.
Consumer sentiment is expected to rise to 80.6.
*All times are GMT.