The weekly figures on traders' futures commitments obtained from the Chicago Mercantile Exchange's International Monetary Market shed valuable light on the developing flows pursuing one currency versus another.
Rather than simply comparing currencies' overnight interest rates, FX traders pay close attention to differentials in 10-year yields for the market's assessment of longer term interest/inflation rate horizons. The relationship is straight forward.
Interest rates are the single most important fundamental driver in Forex and the direction of monetary policy is essential in shaping developments in currencies. This direction is determined by the vast array of economic reports, central bank rhetoric and movements in equity and bond markets.
Ashraf's interview with Sylvain Asimus of Market Tutors on trading markets and the importance of learning. Full interview.
Latest Hot-Chart - Oct 18
Clinton-Trump Spread & Stocks
The chart below suggests that US stock indices are tend to be more negatively impacted by declines in Clinton's lead in opinion polls vs Trump, than boosted by improvements in her lead over...