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11 / 07 / 2018 | Technical Analysis

Technical Analysis 11.07.2018 – 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 between Tenkan-sen and Kijun-sen lines. The closest support level is the upper border of the cloud (129.99). The closest resistance level is Tenkan-sen line (130.35).


On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span has crossed the price chart from below, current cloud is going to reverse from descending to 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 (129.20). One of the previous maximums of Chikou Span line is expected to be a resistance level (130.35).


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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11 / 07 / 2018 | Market News

US CPI inflation likely to have risen in June 2018

On Thursday July 12th  2018 the United States Department of Labour Statistics is going to publish data regarding the US Consumer Price Index (CPI) and the core CPI inflation during June 2018. 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. The CPI inflation figure is taken into consideration by the US Federal Reserve (Fed) board when it evaluates its monetary policy.

Economists polled by the Wall Street Journal (WSJ) on July 3rd 2018 said they expect the data to show that the US CPI inflation rose to 2.9% in June 2018, on an annualised basis. The CPI inflation stood at 2.8% in May 2018. On a month-to-month basis, they anticipate that CPI inflation increased by 0.2% matching May’s 2018 reading. The US Bureau of Labour Statistics is also going to release data regarding the core CPI inflation. According to the majority of economists polled by the WSJ, core CPI inflation will likely tick higher, coming in at 2.3% on an annualised basis. The reading is expected to be slightly higher than the 2.2% figure recorded in May 2018. The core CPI inflation measures the price movements by the comparison between the retail prices of a representative shopping basket of goods and services. In order to measure the core CPI inflation, analysts are excluding the prices of volatile products such as food and energy to capture an accurate calculation. 

The 2.8% CPI inflation figure recorded by the US Department of Labour Statistics in May 2018 was the highest reading since February 2012. The report that accompanied the data said that rising prices for gasoline and shelter led the inflation rate upwards. More specific analysts noted that “the indexes for gasoline and shelter were the largest factors in the seasonally adjusted increase in the all items index, as they were in April 2018. The gasoline index increased 1.7%, more than offsetting declines in some of the other energy component indexes and led to a 0.9% rise in the energy index.” 

Nomura, which is one of the largest financial services group headquartered in Asia, released a report on July 9th 2018 regarding the US CPI inflation. Economists at Nomura suggested that core CPI inflation increased by 0.2% on a month-to-month basis in June 2018, slightly above the 0.17% pace in May 2018, but essentially the same as its six-month average. Regarding the US headline inflation rate in June 2018, Nomura’s analysts noted that “the US June headline CPI to rise by 0.2% (0.212%) m-o-m, pushing up its 12-month change to 2.9% (2.94%) from 2.80% previously. Some of the negative payback from unusually large increases of certain components in May, such as prescription drug and lodging-away-from-home prices, will likely be offset by higher airline fares and a smaller decline in used vehicle prices.”

STO and 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 a 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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10 / 07 / 2018 | Technical Analysis

Technical Analysis 10.07.2018 – AUD/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 above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (82.53). One of the previous maximums of Chikou Span line is expected to be a resistance level (83.18).


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 crossing the price chart from below, current cloud is going to reverse from descending to ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is the upper border of the cloud (82.57). One of the previous maximums of Chikou Span line is expected to be a resistance level (83.54).


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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09 / 07 / 2018 | Technical Analysis

Technical Analysis 09.07.2018 – 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 (129.53). One of the previous maximums of Chikou Span line is expected to be a resistance level (129.83).


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 (126.70). The closest resistance level is the lower border of the cloud (128.38).


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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06 / 07 / 2018 | Technical Analysis

Technical Analysis 06.07.2018 – 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 crossing the price chart from below, 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 (81.62). One of the previous maximums of Chikou Span line is expected to be a resistance level (82.04).


Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is approaching the price chart from below, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (81.40). The closest resistance level is the upper border of the cloud (82.04).


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.
...
read more
06 / 07 / 2018 | Market News

All you need to know about financial derivatives

Financial products are defined as instruments that help people save or invest as well as getting insurance or getting a mortgage. These are issued by various financial institutions such as banks, stock brokerages, insurance providers, credit card agencies and government sponsored entities. Financial products are categorised in terms of their type or underlying asset class, volatility, risk and return.
 
A derivative is a type of a financial product. A derivative is financial security with a value that is reliant upon or derived from an underlying asset or group of assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its price is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.
 
Derivatives are complicated financial instruments. They can be great tools for leveraging a trader’s portfolio and give a lot of flexibility to traders that would like to change strategies depending on the market’s moves. Traders use derivatives to hedge, speculate or increase their leverage, with the available number of instruments continuously growing. However, derivatives and the fluctuations of their prices could be quite dangerous for traders which means that it’s crucial that traders know the risks derivatives can pose for their portfolios.
 
Advantages of derivatives
 
• All transactions related to derivatives take place in the future. It provides individuals with better opportunities because an individual who would like to short some stock for long time can do it only in futures or options. This means that the biggest benefit of this is that it gives numerous options to an investor or trader to execute all sorts of strategies.
• In derivatives market people can make large transactions with small amounts of capital and therefore it gives the benefit of leverage. This enables people who have less  money to enter the market.
• Intraday traders get the benefit of liquidity as these contracts are very liquid and also the costs, such as basis expense and brokerage, are less as compared to the cash market.
• Financial engineering is an entire field based off of derivatives. They make it possible to create complex investment strategies that investors can use to their advantage.
 
Disadvantages of derivatives
 
• Most derivatives are traded on the open market. This is problematic for traders and investors because securities fluctuate in value. Due to this volatility, it is possible for them to lose their entire value overnight if the market moves against their interests. 
• Derivatives are also very difficult to value because they are based off other securities. Since it’s already difficult to price the value of a share of stock, it becomes much more difficult to price a derivative based on that stock accurately.
• Possibly one of the most important reasons derivatives are risky for investors is that they have a specified contract life. After they expire, they become worthless. If your trading strategy doesn’t work out within the specified time frame, you may have to face substantial capital losses.
 
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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