We are extremely excited to share a number of updates regarding FX Market Leaders. We are listening to your feedback and are making the site more accessible to improve your experience. On that note, we will be making a few updates for your convenience.
Trading Signals on New Instruments – Commodities and Indices
First things first, we are diversifying our portfolio by introducing a few more instruments to provide trading signals, striving to enhance your profitability. The new instruments are commodities & indices. Particularly, our focus is on gold and crude Oil. With regard to the index, we will begin with the Nikkei. We will continue providing high quality signals on the Forex pairs that we have been until now.
Same Services, Easier, Snappier URL – FXLeaders.com
Secondly, we are excited to share that we have shortened the URL for an easier and snappier one – www.FXLeaders.com.
We are dedicated to your trading experience and success. Therefore, none of the functionality will change. However, we will be adding additional features that will assist you in your trading needs. Stay tuned for the new site!
New and Improved Site
We will be unveiling our new and improved website soon giving you the opportunity to improve your trading using our new dashboards and reading our excellent market updates. Stay tuned…
Updates – Critical Information when trading Gold, Oil & the Nikkei
This precious metal is one of the most heavily traded commodity in the world. It is not only used in jewelry but also used in the manufacturing of several electronic and medical devices. Afterwards, we will go into some of the more essential points to keep in mind while trading gold.
Correlation: There is a negative correlation between gold and the U.S Dollar. This means that a bullish Dollar leads to bearish gold and vice versa.
Due to the fact that Australia is one of the largest miners and producers of gold, there is a positive correlation between the two. This means that fluctuations in gold prices impact the Australian Dollar and visa versa.
Safe Haven Asset: the most important characteristic about gold is that it's considered as a safe haven asset.
Due to the intrinsic value of gold and it's wide acceptability around the globe, the investors consider it as the safest investment in the market. However, at the time, with any sort of uncertainty and risk in the market, investors usually withdraw their investments from the stock markets and move them towards commodities, particularly towards gold. This fuels the demand for gold and ultimately increases the price.
For instance, during Brexit and the U.S presidential elections, gold remained supported before the actual outcomes.
Moreover, the principal players in global gold mining involve China, South Africa, the United States, Australia, the Russian Federation, and Peru. Any news from these economies relevant to gold mining and its demand and supply is likely to effect gold prices.
WTI Crude Oil
WTI is an abbreviation of West Texas Intermediate, also known as Texas Light Sweet, and is used as a benchmark in oil pricing. Another name for oil is "Black Gold".
As per the U.S Energy Information Administration of 2016, the top oil producers are Russia, Saudi Arabia, the United States, Iraq, China, Canada, Iran, UAE, Kuwait, and Venezuela.
Apart from this, we also have to remember the factors that move the oil prices. An essential factor is the demand and supply of oil in the market.
If you are wondering how to measure the demand and supply, it's not that difficult.
What we have to do is focus on the weekly crude oil inventory reports released by the U.S EIA (Energy Information Administration). An increase in supplies represents a lower demand and a lower supply amount represents a higher demand.
The economic events from major consumers, including the United States, China, and Japan, are worth noting to predict oil prices.
The Nikkei Index
In addition to forex and commodities, let's discuss the Nikkei. Basically, the Nikkei 225 index is the stock exchange of Japan and is traded as a derivative asset, particularly as a contract for difference (CFD) with a ticker symbol "JPN225".
Now let's talk about how it operates and the fundamentals that move the Nikkei. To learn how the Nikkei 225 operates, let me highlight some points regarding the Japanese economy.
Japan, being an export-oriented economy, has huge export volumes in the United States. Therefore, the Japanese economy is highly influenced by the performance of the U.S economy. That's why the Nikkei 225 index moves mostly in total correlation to the U.S stock markets.
Nevertheless, the historical study of charts and fundamentals will confirm that the Nikkei 225 mirrors the performance of the DJIA (Dow Jones Industrial Average) and the U.S stock market index. In order to determine the price action on the Nikkei, we need to keep an eye on a number of economic releases from the U.S, specifically the Manufacturing Data Report, Non-Farm Payrolls Report, US Retail Sales, Consumer Sentiment Reports and the US GDP Report.