China – 70 years of economic development

The People’s Republic of China (PRC, China) was established on October 1, 1949 – 70 years ago. Since the proclamation of the People’s Republic of China in 1949, the ruling party has been the Chinese Communist Party (CCP). At present, the President of China is Xi Jinping (since 2013).

China's GDP growth

To date, China is:

  • the largest state in the world in terms of population (over 1.395 mln. people);
  • ranks third in the world in territory, yielding to Russia and Canada;
  •  the first economy in the world in terms of GDP (PPP);
  • It is a world leader in the production of most types of industrial products, including car manufacturing and consumer demand.
  • the largest world exporter (“factory of the world”);
  • It has the world’s largest gold and currency reserves.

And all this was achieved in 40 years of economic reform. Let’s take a look together at the main stages of the recent history of China.

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Defining Forex Supply / Demand Zones (continued)

In this article, we continue to study the trading methodology from the demand/supply zones of Sam Seyden and his followers. You can familiarize yourself with the first article at the link – “Forex Trading from Supply and Demand Zones“.

USDJPYH4 -supply and demand zones

The trading strategy in supply / demand zones is quite simple and methodologically fundamentally not particularly different from trading at support / resistance levels. Continue reading

What is the meaning of negative yield bonds

Trade wars and a slowdown in the global economy have significantly increased international investors’ demand for government bonds as a safe asset. Inversion of the US bond yield curve, as a statistically strong signal of a probable future recession in the USA, gave an additional impetus to this trend.

Comparison of the value and yield of German bonds

Demand for government bonds led to a significant decrease in their yield. However, in the world, a huge amount of bonds has a negative yield. What makes investors buy these assets? Indeed, negative rates from the point of view of common sense and the basic of economic theory are nonsense. Continue reading

Libra will replace the dollar?

In his speech at the Central Banks economic symposium these days in Jackson Hole, the Governor of the Bank of England made some extremely curious statements.

libra-facebook

Mark Carney said that dollar dominance in the global financial system increases the risks of the global liquidity trap, and that currencies like Libra will end dollar dominance. So what is the currency of the future Libra? And what is its threat to the modern financial system? Continue reading

The key to understanding the current situation in the Forex

Take a look at the 4-hour dollar index (USDX) futures chart. We see very strong consolidation in a narrow range (blue rectangle).

USDXH4-130819
Traders are in a state of uncertainty about the future prospects of the US dollar. Continue reading

Forex trading from supply and demand zones

Trading in financial markets from levels (or zones) of supply and demand is traditionally associated with the methodology developed by Sam Seiden and his colleagues.

ping-pong from demand and supply

This methodology is extremely interesting for traders for several reasons. First of all, it is quite simple to understand and based on the basic principles of market interaction of supply and demand. It does not use complex technical indicators and, according to many traders, it provides significant advantages in the real trading of any financial instruments. Let’s delve into this methodology together. Continue reading

US dollar – change of the long-term trend? Do not hurry…

The week before last week was marked by the most significant weekly decline in the US dollar index (USDX) for the entire last period of its growth. And this is more than one year.

USDX Weekly-290619

During the entire last year, investors and speculators bought the US dollar at all its falls and were in profit. Continue reading

How real is the global recession?

Trade wars, inversion of the US and Eurozone yield curves, slowdown of world economic growth provoked a new round of active discussion of the likelihood of a downturn in the global economy.

An avalanche of risks

An avalanche of recession is ready to embark on its deadly path. So how real is the recession in the global economy? Continue reading

Can the market correctly predict the change in interest rates?

The US economy added only 75,000 jobs in May, which is more than 100,000 less than experts predicted.

A sharp slowdown in the growth of the number of jobs in May provoked a rise in traders’ expectations that the Fed would start lowering rates in July, lowering them an additional two times before the end of the year.

roller-coaster on financial markets

However, are the experts able to correctly predict the actions of the Fed in the future? Continue reading

European Commission presented a plan to strengthen the role of the euro in world markets

The European Commission published on Wednesday, December 5, a plan to reduce the eurozone’s dependence on the dollar.

eu-vs-us-fight

The fact that such a plan is being prepared, we wrote on our website – “Europe challenges dollar dominance”. Continue reading

Recession in the USA on the threshold – inversion of the US yield curve

The fall in yields on benchmark US government bonds (10-year) in the past few days has pulled down the entire long edge of the yield curve.

US10Y

This led to the inversion of the yield curve for a plot of 2 to 5 years. What does this mean and when should we expect a recession in the USA? Continue reading

Europe challenges dollar dominance

Trade wars and an endless stream of US sanctions force even America’s close allies to work out measures to protect their own financial systems and business.

EURvsUSD

The European Commission plans in the near future to submit its proposals for replacing the dollar in European financial transactions. Continue reading

Brexit deal under attack – what awaits us next?

The last two trading days were marked by events on the front of the British exit process from the European Union. The Brexit deal is prepared and agreed by the parties. What awaits us next?

Theresa May dance

The UK is due to leave the European Union at 23:00 GMT on Friday 29 March, 2019, after people voted by 51.9% to 48.1% for Leave in the 2016 referendum. Continue reading

EURUSD technical analysis – a delicate balance in the market

The last five months, the EURUSD currency pair has been trading in a fairly wide range on the forex market.

EURUSDMonthly-171018

On the pair chart, this range is highlighted with a blue rectangle and is limited to 1.13000 -1.18500. Continue reading

Structure of the world forex market by country

Reuters agency published an interesting survey about the structure of the world forex market. The article refers to the fact that the UK, despite problems with withdrawal from the EU, has increased its share in international currency transactions in the Forex market.

Forex market structure by country

However, if we analyze the data specified in the article, we can derive an approximate structure of the entire world forex market. Continue reading

The dollar fell after another statement by Trump (continued)

This post continues the previous article on Trump Trading. Read it on the link “Can Trump stop the growth of the dollar on forex?“.

The fall of the dollar after a statement by Trump (USDXDaily)

In an interview with Reuters on Monday, President Trump touched on the topic of US monetary policy. Continue reading

Can Trump stop the growth of the dollar on Forex?

On August 8, 2018, the Bloomberg news agency published a very entertaining material entitled “JPMorgan Says Trump May Sell Dollars as Weapon in U.S. Trade War“. Trump-dollar This article (oddly enough) came out on the eve of the fact that the dollar (USDX index) broke through the mirror resistance at 95.00 and left the medium-term consolidation zone. Continue reading

China stopped the growth of the US dollar

The last three weeks, the US dollar index (USDX) is in consolidation.

USDX-Weekly-040718

The dollar index was never able to overcome the key resistance at the long-term level of 95.00. Continue reading

Mysteries of the forex economic calendar

The economic calendar is one of the most important information tools in trading. Numbers that appear in it depend on the actions of a huge number of traders, which leads prices for financial assets (currencies, stocks, etc.) to very volatile movements.

rabbit in the headlights

Do we understand where this data comes from and who provides it? Continue reading

“Risk Off” in the markets – an overview of the current situation on Forex.

Technical analysis in trading is very important for the opening and monitoring of trading positions. However, fundamental factors and investor sentiment are extremely important for understanding the general picture on the market.

Correction on S&P500-080618

And here everything is not so unambiguous. Yesterday we saw the beginning of the process of running traders and investors from risks. Continue reading