EUR/JPY Weekly Update

Please notice that the voulme is still very strong and there is no sigh of any divergence.

Seb

Fundamental Analyzes? Relationship between Unemployment, Currency Rate and Inflation

In my last posts Fundamental Analyzes? FactorsInfluencing the Pricing On the Forex Market and Fundamental Analyzes? InflationIn Connection to Interest Rate and wage I have been writing about fundamental analyzes and some of the factors that affects the Forex market.

In this post I will illustrate how the unemployment rate affects the currency curve. The relationship is a macroeconomic relationship and is based on the last two posts and the articles Relationship Between Inflation & Unemployment Rate and the article NegativeRelationship Between Inflation & Unemployment 

In this post are overviews of the affects if the unemployment rate are low and high. The relationship between inflation and unemployment is also illustrated. Arguments why the relationship is as illustrated is in writing with videos in the last two posts and the mentioned articles.

If the unemployment is low 

If the unemployment is low the wages will rise. The prices and the inflation will also rise. Interest rates will fall and the currency will be weaker. 

If the unemployment is high 

If the unemployment is high the wages will fall. The prices and the inflation will also fall. Interest rates will rise and the currency will be stronger. 

The relationship between inflation and unemployment 

If inflation is high demand for goods will fall as wages is less worth. As demand for goods are less unemployment will start to rise.

If inflation is low demand for goods will rise as the wages value is worth more. As demand for goods are rising unemployment will start to fall.

USD/JPY H4 Update

Some people were prepared for this rally and benefit nicely.

Seb


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Social Investment Network: An Illustration of a Trading Platform

In my previous posts I have been writing about Forex Social Trading Networks.

I was on YouTube and found a video from eToro; in the video they illustrate how their Web Trader is working and how to open a trade on the Web Trader. In the video they show how the social network is integrated with the web trader and how to make a copy trade.

They also talk about why social investment network is unique. The first part of the video (the first 20 minutes) is an illustration of the Web Trader; the last part (the last 26 minutes) is about the OpenBook platform and a fellow who tells about his trading strategies.

More video information about the social trading platform is on my Forex website.

DAX30 Futures H1 Update

Some people were prepare to trade the recent wave down.

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Fundamental Analyzes? Inflation In Connection to Interest Rate and wage

In the last post I wrote about the article “The 8 Economic Factors that Affect the ForexMarket”  by Justin Stewart. One of the factors he mentioned in his article was inflation. But what is inflation and how does it affect the economy?

I found some videos on YouTube explaining what inflation is and how inflation affects the interest rate; the videos could be helpful in understanding fundamental analyzes.

The first video explains how inflation works in connection to wage and price changes

The second video explains how inflation works in connection with the interest rate. The interest rate is as mentioned in my last post one of the tropic the focus often is on as it is influenced by the monetary policy in the currencies countries.

The third video explains why inflation cannot be 0%