US-China Trade Impacts Aussie Dollar

U.S. equity indexes have hit historic highs, but the price action included periods of drawdowns throughout last year. Some drawdowns were related to negative U.S.-China trade war headlines, a major macro theme that will continue to roil the markets this year. That leaves no escape from the headlines for Australian currency.  The Australian “Aussie” dollar … Continued

2020 Foresight

January’s the time to gauge macro themes that will shape trading and investing in the coming year. “Why bother?” some ask. Unforeseen news and updated data will change investor sentiment as the year unfolds, they protest. Nonetheless, traders should look ahead to identify major macro themes and event risks to know what to track to … Continued

Take a look at the Krona

 The U.S. dollar(USD), the world’s most traded currency, is followed in trading volume respectively by the euro (EUR) and the Japanese yen (JPY), according to the The Bank of International Settlements (BIS) Triennial Central Bank Survey on Foreign Exchange Turnover (April 2019).  The world recognizes those three currencies as the powerhouses of developed market, or … Continued

5 Tips for Choppy Markets

These markets are untradeable—there’s too much uncertainty. I’m getting chopped up.” Does that sound familiar? It might. Portfolio managers and traders have been expressing those sentiments on financial television most of this year.  Trader frustration seemed to boil over in late September when House Speaker Nancy Pelosi announced a formal impeachment inquiry of President Donald … Continued

Risk-Off FAANG Trades

Opportunities in global market directional trends FAANG, an acronym for a collection of tech and communication companies that have changed the way most people live, is comprised of Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL). These companies, with the exception of Netflix, rank among the Top 10 most-valuable publicly traded companies in … Continued

Trading Around Uncertainty

Some financial media experts say that all trading and investing is uncertain by nature. Therefore, why should uncertainty in the markets matter? Well, while there’s some truth to this sentiment, it’s too simplistic. Specific types of uncertainty can directly affect market conditions. While they’re not always easy to anticipate, traders can remain vigilant to help … Continued

Unresolved Macro Themes Forecast Forward Volatility

Global directional trends lobal macro trading benefits from volatility because moving markets create opportunities to trade. It’s also true that macro themes tend to simmer in the background and then come into play suddenly, spiking volatility and creating large, directional moves in assets. In one example, U.S. equity indexes remained relatively stable in early spring … Continued

An Aussie Currency Trade

The Bank of International Settlements (BIS) operates as a bank for central banks, offering financial services to help central banks manage foreign reserves. It’s also known for its Triennial Survey of Foreign Exchange and OTC Derivatives Trading. That survey tracks foreign exchange turnover— total and by currency. The BIS released the latest full survey in … Continued

Don’t Fear a Market’s Uncertainty; Manage It

“The most important thing is never certainty. Certainty comes when it is ready. The most important thing is having a clear and healthy framework for dealing with uncertainty, which is what most of life turns out to be.”

– Ethan Nichtern, Buddhist teacher