π INFLATION 101
β’ Inflation measures the buying power of the dollar
β’ The higher the inflation, the less buying power
β’ Inflation helps measure a currency's direction in the long term
β’ It is also a key component in measuring an economy's health
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β’ Inflation measures the buying power of the dollar
β’ The higher the inflation, the less buying power
β’ Inflation helps measure a currency's direction in the long term
β’ It is also a key component in measuring an economy's health
πInflation data available with the EdgeFinder! Access inflation data with your EdgeFinder access
π‘ 10% OFF CODE: TGVIP
https://a1trading.com/edgefinder
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π GDP GROWTH 101
β’ GDP is short for Gross Domestic Product which measures the value of all goods and services produced in an economy. GDP is one of the most common ways of measuring economic outlook and its effect on any currency.
β’ It is a very common indicator for fundamental analysis
β’ Traders can use change in growth of GDP to help them in their trading
β’ A growth or decline in GDP can indicate the long term trend of a currency pair
π Access GDP Data with the EdgeFinder!
Easily compare GDP growth of different currencies with the EdgeFinder's GDP Growth Data page.
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β’ GDP is short for Gross Domestic Product which measures the value of all goods and services produced in an economy. GDP is one of the most common ways of measuring economic outlook and its effect on any currency.
β’ It is a very common indicator for fundamental analysis
β’ Traders can use change in growth of GDP to help them in their trading
β’ A growth or decline in GDP can indicate the long term trend of a currency pair
π Access GDP Data with the EdgeFinder!
Easily compare GDP growth of different currencies with the EdgeFinder's GDP Growth Data page.
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π¨ NEW TRADE SIGNAL! XAUUSD
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With seasonality and trend readings on its side, USDCAD is now the strongest bullish pair reading on the EdgeFinder. For the last four months, this pair has historically struggled, but it is now starting off the month of August with a gain of over 1%.
USD CPI and Core CPI is expected to remain unchanged from last month at 0.2%. If these rates stay where they are at, it may suggest that the Fed needs to do more to monetary policy than expected. This could be also boosting confidence in the dollar over the CAD for now.
USD CPI and Core CPI is expected to remain unchanged from last month at 0.2%. If these rates stay where they are at, it may suggest that the Fed needs to do more to monetary policy than expected. This could be also boosting confidence in the dollar over the CAD for now.
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USOil is sitting at a bullish reading, but there are a few factors to consider as we go in to China's inflation on Tuesday. Year-over-year, prices are expected to have declined into the negatives. Usually, lower inflation points to lower oil prices.
On the 1D timeframe, price is up against a double top and is hesitating to push higher. If price pulls back on a potential lower CPI, we could see price test support around 78.78 and 77.36. However, if price breaks higher, we could watch it test into the 85s.
On the 1D timeframe, price is up against a double top and is hesitating to push higher. If price pulls back on a potential lower CPI, we could see price test support around 78.78 and 77.36. However, if price breaks higher, we could watch it test into the 85s.
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AU is now the EF's strongest bearish reading. As we come off the month of July, sentiment has essentially flipped on the seasonality side. The trend projection is lower as well. Retail is mostly long while smart money is leaning more towards the USD.
At a -6, the pair is losing to the USD in almost every category except unemployment and inflation. Although Australia suffers from double the rate of inflation, but GDP growth and interest rate are weaker than the US's overall.
At a -6, the pair is losing to the USD in almost every category except unemployment and inflation. Although Australia suffers from double the rate of inflation, but GDP growth and interest rate are weaker than the US's overall.
USOil
As we approach Chinaβs inflation later today, oil has seen a considerable pullback from the triple top on the 1D timeframe. Analysts are expecting a drop in inflation y/y which could suggest falling demand in the economy and oil prices. However, a tightening supply of the commodity and demand from smart money last week could suggest higher oil prices. Price hit support on the 4H timeframe on a rising trend line while showing rejection from the lows. This higher low could suggest another test at the triple top.
As we approach Chinaβs inflation later today, oil has seen a considerable pullback from the triple top on the 1D timeframe. Analysts are expecting a drop in inflation y/y which could suggest falling demand in the economy and oil prices. However, a tightening supply of the commodity and demand from smart money last week could suggest higher oil prices. Price hit support on the 4H timeframe on a rising trend line while showing rejection from the lows. This higher low could suggest another test at the triple top.
NZD/JPY
NZD struggles with high inflation which could prompt the RBNZ to continue to be aggressive on interest rates. Right now, smart money is buying NZD while getting rid of the long and short contracts on the yen. On the 1D timeframe, the candle is currently in the red, but may find support along the rising trend line if price falls lower. Todayβs candle will be important on where price could move, but it seems that today might be mixed overall.
NZD struggles with high inflation which could prompt the RBNZ to continue to be aggressive on interest rates. Right now, smart money is buying NZD while getting rid of the long and short contracts on the yen. On the 1D timeframe, the candle is currently in the red, but may find support along the rising trend line if price falls lower. Todayβs candle will be important on where price could move, but it seems that today might be mixed overall.
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