LIVE TRADING EVENT: Interest Rate Decision by the FED (FOMC)

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Daily Trading Strategy For Traders of the Foreign Currency Exchange (FOREX)

May the pips be with you!

– Wayne McDonell
Chief FX Market Strategist
TradersWay Is A Global Trading ECN

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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Seek education and gain experience before risking real money, but please always remember, your past performance does not guarantee future results.

What Is Forex?
The foreign exchange market (or “forex” for short) is the biggest financial market in the world, with over $4 trillion worth of transactions occurring every day. Simply, forex is the market in which currencies, or money, are traded in the interbanking system.

Forex Tutorial: What is Forex Trading?
By Investopedia Staff

What Is Forex?
The foreign exchange market is the “place” where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can’t pay in euros to see the pyramids because it’s not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.

What is the spot market?
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a “spot deal”. It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.

Note that you’ll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market.


Tom Moore says:

An economist with a Ph.D. wearing a propeller cap or a financial dude doesn't matter, the FED is the market's bitch.

Roger Worrell says:

thanks wayne!

Alex Godonoga says:

thank you, i think over the past 4 or 5 years, this has been the most interesting video that I've seen on this channel, so, if it's true that a lot of people were expecting (and likely still are) more than a 25 points cut, it means that Fed is perceived to be wanting to put more dollars into the system, one thing I'm not sure I understand though, is Why is it presumed that the MD-line is sloped negative? I'm guessing, it (MD) is an approximation of some scatter plot of survey data etc. so if interest rates are expected lower yet dollar is up, perhaps Money Supply is less than would be expected given an unchanged demand curve, and so, it means that the dollar money demand curve is flattening and, going back to the scatter-plot nature of MD it means that it getting harder for banks to sell bonds to the Fed for dollars made up of zeros and ones, which means that the MD curve is shifting left, so i'm getting long audusd and short euraud


Thanks Wayne for your wonderful insight🙌🙌🙌

Andrew smart says:

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Chuck Duck says:

Thanks again Wayne, good stuff….

Jim says:

thanks Wayne, very insightful stuff!

simon robert says:

nice 1 coach .can you please cover gold for next lecture .i hail oo

Wade Zwane says:

Thank you Wayne great coverage and insights much appreciated.

Rameez Fredericks says:

Thanks Wayne – please can you cover more in terms of fundamental analysis

Simon King says:

Hi Wayne. Missed this session but reviewed the playback. Wished I was there.

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Ross says:

Where does the FED get the cash to buy the bonds?

leo i says:

Powell said, that american companies are having problems to sell overseas. I think many dropped stocks, and dollar went up.

Ron J says:

Thx for the special Live webinar Wayne!!!

Gareth Roberts says:

Just a great educational FX resource. Thanx Wayne.

leo i says:

if someone is buying bond and giving away money, then no demand for money, then dollar should go down. Why it went up? Everyone was talking about a dollar is too expensive. Now it is even more.
EUR, based on chart went down, when they lower the rate. I think something is wrong with that US lowering.

Margaret Marques says:

Thanks for your time and lesson

Nakedi Mochemi says:

thanks i watch this till it sinks in

Legacy Crypto says:

Sweet! Two videos in one day!

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