In this week focus will shift to major central banks. You’ll actively engage in understanding their thinking and how they move price. You’ll use this knowledge to evaluate your recaps, for the first time you’ll analyse the information you read instead of taking it for face value. Based on your knowledge of bonds and central banks, you can asses how long current themes will effect market, and if they are in line with major themes. This stage of your training is very exciting as you are at the forefront of financial markets, working with the same information that multi billion dollar hedgefunds, institutions and private investors have access to. Week 3 opens doors to a game changing platform to you. More reason to feel excited about your recaps and keep an eye on @SpecsTrading twitter feed to ensure all market moving themes are captured correctly.
Research: FED, ECB and BOJ current MONPOL
Weekly research tasks are designed to put you in charge of your own education. This week focus is 3 major central banks. United States Federal reserve or commonly known as the FED. Europes European Central Bank or known as ECB. Japan’s Bank of Japan also known as BOJ. These central banks agendas and their respected heads and presidents speeches has market moving forces. For traders their monetary policy (MONPOL) is key in understanding their current concerns and future moves, which will reflect in the price of USD, EURO, YEN and their crosses. Understand in what cycles these central banks are, are they hiking which means they are hawkish or are they cutting rates which means they are dovish. Where are they in the QE cycle?(quantitative easing). It helps to track the history of action of these Central Banks and how they impacted currencies. Credible sources are investopedia, babypips, fxstreet and Wikipedia. The list is not exhaustive, feel free to explore and discuss your findings with me on Twitter @specstrading
Here are links to start you off.