"Trump’s 2024 Victory and the Yen: What Lies Ahead for Japan’s Currency" #topicdiscussion Donald Trump’s 2024 re-election could have significant implications for the Japanese yen (JPY), as Japan’s economy and currency tend to be influenced by U.S. policy decisions and global investor sentiment. Following Trump’s win, investors are already preparing for possible market volatility and shifts in trade policies, both of which have previously impacted the yen. Trump’s “America First” stance may lead to trade tensions, particularly with China, which often causes investors to seek safer assets like the yen. Known for its status as a “safe haven” currency, the yen could appreciate if market uncertainty rises, as investors may look to the stability of the JPY during turbulent times. This was a trend seen during Trump’s first term, where geopolitical tensions periodically strengthened the yen. In addition, Trump’s potential fiscal policies, like tax cuts and increased government spending, could lead to a stronger dollar in the near term if they spur U.S. growth. This would likely pressure the yen, making Japanese exports more competitive. However, a stronger dollar could also increase inflation, possibly prompting the U.S. to raise interest rates. Higher U.S. rates would typically favor the dollar over the yen, leading to a weaker JPY relative to the USD.

"Trump’s 2024 Victory and the Yen: What Lies Ahead for Japan’s Currency" #topicdiscussion Donald Trump’s 2024 re-election could have significant implications for the Japanese yen (JPY), as Japan’s economy and currency tend to be influenced by U.S. policy decisions and global investor sentiment. Following Trump’s win, investors are already preparing for possible market volatility and shifts in trade policies, both of which have previously impacted the yen. Trump’s “America First” stance may lead to trade tensions, particularly with China, which often causes investors to seek safer assets like the yen. Known for its status as a “safe haven” currency, the yen could appreciate if market uncertainty rises, as investors may look to the stability of the JPY during turbulent times. This was a trend seen during Trump’s first term, where geopolitical tensions periodically strengthened the yen. In addition, Trump’s potential fiscal policies, like tax cuts and increased government spending, could lead to a stronger dollar in the near term if they spur U.S. growth. This would likely pressure the yen, making Japanese exports more competitive. However, a stronger dollar could also increase inflation, possibly prompting the U.S. to raise interest rates. Higher U.S. rates would typically favor the dollar over the yen, leading to a weaker JPY relative to the USD.

GBPJPY retreats after several attempts to touch the 200.00 round number, but the short-term bias remains positive. From a technical perspective, there is a growing risk of a negative correction. The stochastic oscillator is pointing south, ready to post a bearish crossover, while the RSI is ticking down near the neutral threshold of 50. If GBPUSD extends its rally above the 199.70 resistance, the 200.00 is the first point of call, after which attention would turn to the 202.00 handle.

GBPJPY retreats after several attempts to touch the 200.00 round number, but the short-term bias remains positive. From a technical perspective, there is a growing risk of a negative correction. The stochastic oscillator is pointing south, ready to post a bearish crossover, while the RSI is ticking down near the neutral threshold of 50. If GBPUSD extends its rally above the 199.70 resistance, the 200.00 is the first point of call, after which attention would turn to the 202.00 handle.

XAUUSD and Brent experienced fluctuations on Friday, influenced by the Federal Reserve's decision to lower interest rates and the impending impact of the new presidential administration. The value of gold hovers just under $2,700 per ounce, following the Fed's announcement of a quarter-point rate reduction, bringing the federal funds target range to 4.50%-4.75%.This marks the second decrease this year, as policymakers acknowledged signs of a slowing labor market and inflation nearing the central bank's 2% target, albeit still slightly elevated. According to CME FedWatch Tool, the markets imply a 74.7% probability for a 0.25% cut in December. Brent crude oil dipped below $75 per barrel yet remained poised for a weekly gain. Investors weighed the potential effects of the new administration on crude prices, including the possibility of increased U.S. production and tariffs that could dampen China's economy, the world's largest oil importer. The projected path of Hurricane Rafael, which had disrupted U.S. crude production, was expected to shift westward over the Gulf of Mexico, reducing its impact on oil fields. The Federal Reserve's rate cut, aimed at sustaining economic growth, may provide support for oil prices.

XAUUSD and Brent experienced fluctuations on Friday, influenced by the Federal Reserve's decision to lower interest rates and the impending impact of the new presidential administration. The value of gold hovers just under $2,700 per ounce, following the Fed's announcement of a quarter-point rate reduction, bringing the federal funds target range to 4.50%-4.75%.This marks the second decrease this year, as policymakers acknowledged signs of a slowing labor market and inflation nearing the central bank's 2% target, albeit still slightly elevated. According to CME FedWatch Tool, the markets imply a 74.7% probability for a 0.25% cut in December. Brent crude oil dipped below $75 per barrel yet remained poised for a weekly gain. Investors weighed the potential effects of the new administration on crude prices, including the possibility of increased U.S. production and tariffs that could dampen China's economy, the world's largest oil importer. The projected path of Hurricane Rafael, which had disrupted U.S. crude production, was expected to shift westward over the Gulf of Mexico, reducing its impact on oil fields. The Federal Reserve's rate cut, aimed at sustaining economic growth, may provide support for oil prices.

#topicdiscussion The election of Donald Trump in 2024 has generated fresh waves of uncertainty and opportunity for the Canadian dollar (CAD) against the U.S. dollar (USD). With Trump’s return to the White House, investors are preparing for potential changes in U.S.-Canada trade relations, as Trump has a history of re-negotiating trade deals and focusing on "America First" policies. These moves often affect the strength of the CAD, especially since the Canadian economy relies heavily on exports to the U.S. In the short term, Trump’s pro-oil stance has provided a slight lift to the CAD, as Canada is a major oil exporter and the market expects an increase in U.S. oil demand. However, any new tariffs or protectionist policies could weigh on the CAD by impacting cross-border trade and creating pressure on sectors like manufacturing and agriculture, which depend on open access to the U.S. market. Investors in the CAD are also closely watching for Trump’s approach to monetary policy and interest rates. If the U.S. Federal Reserve opts for lower rates to stimulate growth under Trump, the USD might weaken, which could strengthen the CAD in comparison. On the other hand, if inflationary pressures mount in the U.S., a strong dollar could put downward pressure on the CAD. Overall, Trump’s 2024 election win introduces a mixed outlook for the CAD, with short-term boosts from energy expectations and longer-term risks tied to possible trade disruptions and shifts in the U.S. economy.

#topicdiscussion The election of Donald Trump in 2024 has generated fresh waves of uncertainty and opportunity for the Canadian dollar (CAD) against the U.S. dollar (USD). With Trump’s return to the White House, investors are preparing for potential changes in U.S.-Canada trade relations, as Trump has a history of re-negotiating trade deals and focusing on "America First" policies. These moves often affect the strength of the CAD, especially since the Canadian economy relies heavily on exports to the U.S. In the short term, Trump’s pro-oil stance has provided a slight lift to the CAD, as Canada is a major oil exporter and the market expects an increase in U.S. oil demand. However, any new tariffs or protectionist policies could weigh on the CAD by impacting cross-border trade and creating pressure on sectors like manufacturing and agriculture, which depend on open access to the U.S. market. Investors in the CAD are also closely watching for Trump’s approach to monetary policy and interest rates. If the U.S. Federal Reserve opts for lower rates to stimulate growth under Trump, the USD might weaken, which could strengthen the CAD in comparison. On the other hand, if inflationary pressures mount in the U.S., a strong dollar could put downward pressure on the CAD. Overall, Trump’s 2024 election win introduces a mixed outlook for the CAD, with short-term boosts from energy expectations and longer-term risks tied to possible trade disruptions and shifts in the U.S. economy.

The dollar index has sharply increased following Trump’s election victory, with the USD appreciating notably against other major currencies like the euro, yen, and pound. Investors are moving towards dollar-denominated assets, anticipating policies that favor U.S. growth, such as tax cuts and deregulation. This "Trump Trade" effect is making the dollar more attractive as a safe-haven currency, while the euro, yen, and pound lose ground in comparison. These shifts reflect market expectations of stronger economic performance in the U.S., combined with inflationary pressures that could drive further increases in U.S. interest rates. #topicdiscussion

The dollar index has sharply increased following Trump’s election victory, with the USD appreciating notably against other major currencies like the euro, yen, and pound. Investors are moving towards dollar-denominated assets, anticipating policies that favor U.S. growth, such as tax cuts and deregulation. This "Trump Trade" effect is making the dollar more attractive as a safe-haven currency, while the euro, yen, and pound lose ground in comparison. These shifts reflect market expectations of stronger economic performance in the U.S., combined with inflationary pressures that could drive further increases in U.S. interest rates. #topicdiscussion

That's the trader's dream! A smooth, efficient session with everything aligning perfectly and ending the day with profit before most people even start their work. Trading like this really shows the appeal of the job—freedom, efficiency, and those precise moments when you press the button and watch the market hit your target. Enjoy the rest of your day, it sounds well-deserved!

That's the trader's dream! A smooth, efficient session with everything aligning perfectly and ending the day with profit before most people even start their work. Trading like this really shows the appeal of the job—freedom, efficiency, and those precise moments when you press the button and watch the market hit your target. Enjoy the rest of your day, it sounds well-deserved!

The return of Donald Trump to the White House in 2024 has already begun to influence the stock market, sparking a mix of excitement and caution among investors. In the wake of his victory, markets have responded with moderate gains, especially in sectors that historically benefited from his pro-business policies. Financial, energy, and industrial stocks have seen a boost, reflecting expectations of a regulatory rollback and support for traditional energy resources. Investors are closely watching Trump’s promises to cut taxes and streamline regulations. If he follows through on these pledges, it could lead to a more business-friendly environment, potentially boosting corporate profits and market confidence, similar to the rally observed after his 2016 win. However, investors are also cautious. Trump's past approach to trade, particularly with China, caused volatility in the markets, and any signs of renewed trade tensions or tariffs could impact tech and manufacturing stocks. Additionally, his controversial style and unpredictable policy shifts could introduce periods of short-term market turbulence. Overall, Trump’s 2024 election win has brought renewed optimism to certain sectors, but it’s a mixed bag for the broader market as it balances the potential for growth with the risks of policy-driven volatility.

The return of Donald Trump to the White House in 2024 has already begun to influence the stock market, sparking a mix of excitement and caution among investors. In the wake of his victory, markets have responded with moderate gains, especially in sectors that historically benefited from his pro-business policies. Financial, energy, and industrial stocks have seen a boost, reflecting expectations of a regulatory rollback and support for traditional energy resources. Investors are closely watching Trump’s promises to cut taxes and streamline regulations. If he follows through on these pledges, it could lead to a more business-friendly environment, potentially boosting corporate profits and market confidence, similar to the rally observed after his 2016 win. However, investors are also cautious. Trump's past approach to trade, particularly with China, caused volatility in the markets, and any signs of renewed trade tensions or tariffs could impact tech and manufacturing stocks. Additionally, his controversial style and unpredictable policy shifts could introduce periods of short-term market turbulence. Overall, Trump’s 2024 election win has brought renewed optimism to certain sectors, but it’s a mixed bag for the broader market as it balances the potential for growth with the risks of policy-driven volatility.

In the financial markets, the term "Trump Trade" refers to the expected strengthening of the dollar following Trump’s victory in the election. #topicdiscussion

In the financial markets, the term "Trump Trade" refers to the expected strengthening of the dollar following Trump’s victory in the election. #topicdiscussion

EUR/USD is settling around 1.0785, assessing the market impact of this week’s events. With Donald Trump’s return as US President, the market is recalibrating expectations around inflation and economic policies that his administration may reintroduce. Trump’s protectionist stance could stir inflationary pressures, prompting the Federal Reserve to maintain higher interest rates than anticipated. This potential for elevated rates is boosting the dollar’s appeal. Yesterday, the Federal Reserve cut interest rates by 25 basis points to 4.75% in line with market predictions. The Fed’s commentary suggested no deviations from its planned rate trajectory, hinting at continued easing.

EUR/USD is settling around 1.0785, assessing the market impact of this week’s events. With Donald Trump’s return as US President, the market is recalibrating expectations around inflation and economic policies that his administration may reintroduce. Trump’s protectionist stance could stir inflationary pressures, prompting the Federal Reserve to maintain higher interest rates than anticipated. This potential for elevated rates is boosting the dollar’s appeal. Yesterday, the Federal Reserve cut interest rates by 25 basis points to 4.75% in line with market predictions. The Fed’s commentary suggested no deviations from its planned rate trajectory, hinting at continued easing.

EUR/USD trades near the monthly low (1.0683) as it gives back the advance following the Federal Reserve rate-cut.US Dollar Outlook: EUR/USD EUR/USD trades near the monthly low (1.0683) as it gives back the advance following the Federal Reserve rate-cut, and developments coming out of the US may continue to sway the exchange rate as the Consumer Price Index (CPI) is anticipated to show sticky inflation. US Dollar Forecast: EUR/USD Opening Range in Focus Ahead of US CPI EUR/USD struggles to retrace the decline following the US election even though Fed Chairman Jerome Powell insists that ‘in the near term, the election will have no effects on our policy decisions,’ and it seems as though the central bank will continue to switch gears over the coming months as ‘we think that even with today's cut policy is still restrictive.’However, the update to the US CPI may put pressure on the Federal Open Market Committee (FOMC) to further combat inflation as the headline reading is projected to increase to 2.6% in October from 2.4% per annum the month prior, while the core index is anticipated to hold steady at 3.3% during the same period. With that said, signs of persistent inflation may keep EUR/USD under pressure as it curbs speculation for a Fed rate-cut in December, but a softer-than-expected US CPI report may produce headwinds for the Greenback as it encourages the FOMC to further unwind its restrictive policy. EUR/USD Chart – DailyEUR/USD may threaten the opening range for November as it struggles to hold above 1.0770 (38.2% Fibonacci retracement), with a breach below the weekly low (1.0683) raising the scope for a test of the June low (1.0666). Failure to defend the May low (1.0650) may push EUR/USD towards the 1.0610 (38.2% Fibonacci retracement) to 1.0640 (23.6% Fibonacci retracement) region but EUR/USD may attempt to retrace the decline from earlier this month if it defends the week low (1.0683). Need a move back above the 1.0860 (50% Fibonacci retracement) and 1.0880 (23.6% Fibonacci extension) area to bring the monthly high (1.0937) on the radar, with a break/close above the 1.0940 (50% Fibonacci retracement) to 1.0960 (61.8% Fibonacci retracement) zone opening up the 1.1070 (23.6% Fibonacci retracement) to 1.1100 (78.6% Fibonacci retracement) region.

EUR/USD trades near the monthly low (1.0683) as it gives back the advance following the Federal Reserve rate-cut.US Dollar Outlook: EUR/USD EUR/USD trades near the monthly low (1.0683) as it gives back the advance following the Federal Reserve rate-cut, and developments coming out of the US may continue to sway the exchange rate as the Consumer Price Index (CPI) is anticipated to show sticky inflation. US Dollar Forecast: EUR/USD Opening Range in Focus Ahead of US CPI EUR/USD struggles to retrace the decline following the US election even though Fed Chairman Jerome Powell insists that ‘in the near term, the election will have no effects on our policy decisions,’ and it seems as though the central bank will continue to switch gears over the coming months as ‘we think that even with today's cut policy is still restrictive.’However, the update to the US CPI may put pressure on the Federal Open Market Committee (FOMC) to further combat inflation as the headline reading is projected to increase to 2.6% in October from 2.4% per annum the month prior, while the core index is anticipated to hold steady at 3.3% during the same period. With that said, signs of persistent inflation may keep EUR/USD under pressure as it curbs speculation for a Fed rate-cut in December, but a softer-than-expected US CPI report may produce headwinds for the Greenback as it encourages the FOMC to further unwind its restrictive policy. EUR/USD Chart – DailyEUR/USD may threaten the opening range for November as it struggles to hold above 1.0770 (38.2% Fibonacci retracement), with a breach below the weekly low (1.0683) raising the scope for a test of the June low (1.0666). Failure to defend the May low (1.0650) may push EUR/USD towards the 1.0610 (38.2% Fibonacci retracement) to 1.0640 (23.6% Fibonacci retracement) region but EUR/USD may attempt to retrace the decline from earlier this month if it defends the week low (1.0683). Need a move back above the 1.0860 (50% Fibonacci retracement) and 1.0880 (23.6% Fibonacci extension) area to bring the monthly high (1.0937) on the radar, with a break/close above the 1.0940 (50% Fibonacci retracement) to 1.0960 (61.8% Fibonacci retracement) zone opening up the 1.1070 (23.6% Fibonacci retracement) to 1.1100 (78.6% Fibonacci retracement) region.

Technical analysis, while proven to be one of the most reliable ways to make informed trading decisions, can be time consuming and often requires multiple indicators and other tools. In order to simplify chart analysis and ensure a higher percentage of profitable trades among our clients, OctaFX has partnered with Autochartist, one of the leading providers of chart pattern recognition tools. The Autochartist Metatrader plugin delivers real-time trading opportunities straight to your terminal. See chart patterns and trends in just one click. You’ll also receive daily Market Reports on each session direct to your inbox.

Technical analysis, while proven to be one of the most reliable ways to make informed trading decisions, can be time consuming and often requires multiple indicators and other tools. In order to simplify chart analysis and ensure a higher percentage of profitable trades among our clients, OctaFX has partnered with Autochartist, one of the leading providers of chart pattern recognition tools. The Autochartist Metatrader plugin delivers real-time trading opportunities straight to your terminal. See chart patterns and trends in just one click. You’ll also receive daily Market Reports on each session direct to your inbox.

USD/CAD snapped a five-week winning streak with the November opening-range now poised for a breakout post-US elections. Battle lines drawn on the weekly technical chart.Canadian Dollar Technical Forecast: USD/CAD Weekly Trade Levels USD/CAD snaps five-week winning streak- Trump election rally closes well-off weekly low November opening-range breakout in focus- US inflation data on tap Resistance 1.3984/90 (key), 1.4115, 1.4189– Support ~1.3820, 1.3753/73 (key), 1.3611/53 The US Dollar snapped a five-week winning streak against the Canadian Dollar on Friday with USD/CAD off just 0.3% despite a weekly range of 1%. The mid-week election rally takes price back above a key pivot zone with the November opening-range now set just above uptrend support. Battle lines drawn on the USD/CAD weekly technical chart.Canadian Dollar Price Chart – USD/CAD WeeklyIn my last Canadian Dollar Technical Forecast we noted that USD/CAD was approaching key technical resistance, “into the 1.39-handle and the focus is on a weekly close above this threshold. From a trading standpoint, a good zone to reduce portions of long-exposure / raise protective stops- losses should be limited to the 1.3745 IF price is heading higher on this stretch with a close above this pivot zone needed to keep the focus on a rally towards 1.3990- an area of interest for possible topside exhaustion / price inflection If reached.” USD/CAD ripped higher later that week with a close above the 1.39-handle exhausting into uptrend resistance. Price was on the defensive into the start of this week with the median-line catching the intraweek losses. The post-election US Dollar rally fueled a reversal of more than 0.9% with USD/CAD poised to close the week back above the 1.3881/99 pivot zone - a region defined by the 2022 high-week close (HWC) and the April high-close (HC). Note that the November opening-range is now defined by this week’s candle with key resistance still within striking distance just higher at the 2020 March reversal close / 100% extension of the 2023 advance at 1.3984/99- look for a larger reaction there IF reached. Support rests along the median-line and is backed by the 38.2% retracement of the September rally / April high-close (HC) at 1.3753/73. A break / close below this threshold would be needed to suggest a more significant high was registered with key support / broader bullish invalidation at 1.3612/53- a region defined by the 52-week moving average, the 61.8% Fibonacci retracement and the 2023 high-week close (HWC). A topside breach / close above the 75% parallel would be needed to mark uptrend resumption towards subsequent resistance objectives at the 2016 HWC at 1.4115 and the 100% extension of the December rally at 1.4189- both levels of interest for possible topside exhaustion / price inflection IF reached.Bottom line: USD/CAD has broken above a major pivot zone with the monthly opening-range now set just above slope support- look for the breakout. From a trading standpoint, losses should be limited to this week’s low IF price is heading higher on this stretch with a breach / close above 1.3990 needed to fuel the next major leg of the advance. Review my latest Canadian Dollar Short-term Outlook for a closer look at the near-term USD/CAD technical trade levels.

USD/CAD snapped a five-week winning streak with the November opening-range now poised for a breakout post-US elections. Battle lines drawn on the weekly technical chart.Canadian Dollar Technical Forecast: USD/CAD Weekly Trade Levels USD/CAD snaps five-week winning streak- Trump election rally closes well-off weekly low November opening-range breakout in focus- US inflation data on tap Resistance 1.3984/90 (key), 1.4115, 1.4189– Support ~1.3820, 1.3753/73 (key), 1.3611/53 The US Dollar snapped a five-week winning streak against the Canadian Dollar on Friday with USD/CAD off just 0.3% despite a weekly range of 1%. The mid-week election rally takes price back above a key pivot zone with the November opening-range now set just above uptrend support. Battle lines drawn on the USD/CAD weekly technical chart.Canadian Dollar Price Chart – USD/CAD WeeklyIn my last Canadian Dollar Technical Forecast we noted that USD/CAD was approaching key technical resistance, “into the 1.39-handle and the focus is on a weekly close above this threshold. From a trading standpoint, a good zone to reduce portions of long-exposure / raise protective stops- losses should be limited to the 1.3745 IF price is heading higher on this stretch with a close above this pivot zone needed to keep the focus on a rally towards 1.3990- an area of interest for possible topside exhaustion / price inflection If reached.” USD/CAD ripped higher later that week with a close above the 1.39-handle exhausting into uptrend resistance. Price was on the defensive into the start of this week with the median-line catching the intraweek losses. The post-election US Dollar rally fueled a reversal of more than 0.9% with USD/CAD poised to close the week back above the 1.3881/99 pivot zone - a region defined by the 2022 high-week close (HWC) and the April high-close (HC). Note that the November opening-range is now defined by this week’s candle with key resistance still within striking distance just higher at the 2020 March reversal close / 100% extension of the 2023 advance at 1.3984/99- look for a larger reaction there IF reached. Support rests along the median-line and is backed by the 38.2% retracement of the September rally / April high-close (HC) at 1.3753/73. A break / close below this threshold would be needed to suggest a more significant high was registered with key support / broader bullish invalidation at 1.3612/53- a region defined by the 52-week moving average, the 61.8% Fibonacci retracement and the 2023 high-week close (HWC). A topside breach / close above the 75% parallel would be needed to mark uptrend resumption towards subsequent resistance objectives at the 2016 HWC at 1.4115 and the 100% extension of the December rally at 1.4189- both levels of interest for possible topside exhaustion / price inflection IF reached.Bottom line: USD/CAD has broken above a major pivot zone with the monthly opening-range now set just above slope support- look for the breakout. From a trading standpoint, losses should be limited to this week’s low IF price is heading higher on this stretch with a breach / close above 1.3990 needed to fuel the next major leg of the advance. Review my latest Canadian Dollar Short-term Outlook for a closer look at the near-term USD/CAD technical trade levels.

AUD/USD snapped a 5-week losing streak with a marginal 0.3% gain. But it was the most volatile week since April thanks to the US election, and volatility is expected to remain elevated.With Donald Trump set to return to the Whitehouse, he will likely remain a key driver for sentiment and therefor AUD/USD. It also means AUD/USD will likely retain its strong positive correlation with the Chinese yuan, which will make it sensitive to headline risk surrounding US and China relations. We have a host of Fed members speaking, who now have even less reason to be overly dovish given Trump 2.0 on the horizon. I doubt Australia’s wage price index will tell us anything more than the hotter-then-expected CPI and PPI reports haven’t already, but it is the biggest domestic economic figure released this week. Also note that the RBA governor speaks this week at the ASIC annual forum.US CPI is the biggest release from the US, with some headlines suggesting it will move sideways in this month’s report. And that will do little to move the needle for the Fed, and it remains up in the air as to whether we can expect another cut in December. Of course, a hot report likely weighs on AUD/USD on bets of a more hawkish Fed, or sends it higher should it come in soft. US retails sales warrants a look, but overall economic data remains strong outside of the NFP report. AUD/USD seems to have the tightest relationship with iron ore, given its strong positive readings across the 20, 10 and 3-day timeframes The USD index is the next best, with strong negative correlations across the 60 and 3-day correlations The CRB is then the next in line, with strong positive correlations across the 10 and 3-day timeframes AUD/USD futures – market positioning from the COT report:Large speculators increased their net-long exposure to a 4-week high However, they trimmed longs by -2.3% (2.2k contracts) and also reduced longs by -8.5% (-5.7k contracts) Asset managers trimmed net-short exposure for the first week in four, by -8.5k contracts They marginally increased longs by 3.1% (1.5k contracts) and reduced shorts by -9.5% (-7k contracts)AUD/USD technical analysisAUD/USD snapped its five-week losing streak as I suspect it would. Even if it only increased by a mere 0.34% for the week. It was, however, its most volatile week in 13 with a high-to-low range of 175 pips, or 2.6%. The direction of AUD/USD also alternated between bullish and bearish for the last four days and remains elevated, with Friday’s -1.34% selloff almost erasing Thursday’s 1.65% gain. I’m now entering this week without much conviction for where it is headed next. If I had to make an assumption, it is that volatility will recede somewhat, yet prices could remain contained within last week’s range. If so, it could see bulls seeking dips around lows and bears fading into rallies towards the highs. But until we get a clear idea of whether a Trump presidency is good or bad for international trade, price action might remain twitchy and vulnerable to headlines.

AUD/USD snapped a 5-week losing streak with a marginal 0.3% gain. But it was the most volatile week since April thanks to the US election, and volatility is expected to remain elevated.With Donald Trump set to return to the Whitehouse, he will likely remain a key driver for sentiment and therefor AUD/USD. It also means AUD/USD will likely retain its strong positive correlation with the Chinese yuan, which will make it sensitive to headline risk surrounding US and China relations. We have a host of Fed members speaking, who now have even less reason to be overly dovish given Trump 2.0 on the horizon. I doubt Australia’s wage price index will tell us anything more than the hotter-then-expected CPI and PPI reports haven’t already, but it is the biggest domestic economic figure released this week. Also note that the RBA governor speaks this week at the ASIC annual forum.US CPI is the biggest release from the US, with some headlines suggesting it will move sideways in this month’s report. And that will do little to move the needle for the Fed, and it remains up in the air as to whether we can expect another cut in December. Of course, a hot report likely weighs on AUD/USD on bets of a more hawkish Fed, or sends it higher should it come in soft. US retails sales warrants a look, but overall economic data remains strong outside of the NFP report. AUD/USD seems to have the tightest relationship with iron ore, given its strong positive readings across the 20, 10 and 3-day timeframes The USD index is the next best, with strong negative correlations across the 60 and 3-day correlations The CRB is then the next in line, with strong positive correlations across the 10 and 3-day timeframes AUD/USD futures – market positioning from the COT report:Large speculators increased their net-long exposure to a 4-week high However, they trimmed longs by -2.3% (2.2k contracts) and also reduced longs by -8.5% (-5.7k contracts) Asset managers trimmed net-short exposure for the first week in four, by -8.5k contracts They marginally increased longs by 3.1% (1.5k contracts) and reduced shorts by -9.5% (-7k contracts)AUD/USD technical analysisAUD/USD snapped its five-week losing streak as I suspect it would. Even if it only increased by a mere 0.34% for the week. It was, however, its most volatile week in 13 with a high-to-low range of 175 pips, or 2.6%. The direction of AUD/USD also alternated between bullish and bearish for the last four days and remains elevated, with Friday’s -1.34% selloff almost erasing Thursday’s 1.65% gain. I’m now entering this week without much conviction for where it is headed next. If I had to make an assumption, it is that volatility will recede somewhat, yet prices could remain contained within last week’s range. If so, it could see bulls seeking dips around lows and bears fading into rallies towards the highs. But until we get a clear idea of whether a Trump presidency is good or bad for international trade, price action might remain twitchy and vulnerable to headlines.

The US dollar rebounded strongly on Friday, especially against the commodity dollars on the back of disappointment from China’s latest stimulus announcement. The euro and pound drifted lower throughout the day, with the EUR/USD testing a multi-month low beneath the 1.07 handle. The pound, which had rallied following the Bank of England’s decision to cut interest rates on Thursday, remained on the front foot against the euro, sending the EUR/GBP pair to near a 2-year low of around 0.8300 by Friday’s European close. But the cable was held back by the US dollar, which despite giving a big chunk of its post-election gains on Thursday, rebounded strongly on Friday, giving a bearish GBP/USD forecast for the week ahead.US dollar rebounds amid growth optimism The greenback found support on the back of a stronger UoM Consumer Sentiment data, which showed an improvement to 73.0 from an upwardly revised 70.5 reading the month before. Meanwhile, investors were still digesting the impact of Trump’s victory and the Fed’s decision to cut rates by 25 basis points on Thursday. The Fed Chair Powell was tight-lipped about whether it would slow down the pace of rate cuts in light of the Republican’s clean sweep victory and what that might mean in terms of fiscal policy. But despite Thursday’s selling, investors refused to turn bearish on the dollar meaningfully, amid expectations of increased spending and tax cuts under Trump. This, together with stronger data on Friday (Consumer Sentiment), helped to push the dollar higher again and sent the GBP/USD back below 1.29 handle. BoE’s “gradual” tightening not enough to lift GBP/USD forecastIn as far as the Bank of England’s rate decision was concerned, well they too cut rates by 25 basis points, but warned that it can’t lower rates “too quickly or by too much.” Governor Bailey refrained from defining what “gradual” would mean for the pace of future cuts, something the central bank had mentioned in the rate statement. This helped to push the GBP/USD higher on Thursday, which was aided by a sharp drop in the US dollar amid profit-taking from the Trump victory gains. By Friday, however, it was business as usual as the pair resumed lower thanks to a rebounding US dollar. Week ahead: UK GDP and US CPI coming up The focus is now turning to CPI data from both the UK and US in the week ahead.Last month saw CPI come in slightly ahead of expectations, printing 2.4% y/y for September versus 2.3% expected, albeit it was down from 2.5% the month before. This helped to keep the dollar on the front foot leading up to the US presidential election. With Trump’s resounding victory and his plans for tariffs and tax cuts set for 2025, inflation may remain elevated in the US and prevent the Fed from loosening its belt further. In light of that risk, the Fed and the markets may again start paying closer attention to US inflation data. A stronger data could help pressurise the likes of EUR/USD and other currencies subject to tariffs under Trump. The GBP/USD could also drop, should CPI provide US dollar find more reason to rally.As mentioned, the Bank of England lowered rates by 25 basis points to 4.75% last week, and Governor Bailey refrained from defining what “gradual” would mean for the pace of future cuts. It is clear a lot will now depend on incoming data, putting this week’s data dump into a sharp focus. As well as monthly and quarterly GDP estimates, we will have various other economic indicators released at the same time. The UK growth data will be watched closely by GBP traders. The recent budget is expected to lift inflation slightly, adding around 0.5% to CPI at its peak according to the BoE. However, the BoE isn’t expecting significant economic growth from this budget. As it stands, the Bank intends to continue cutting rates gradually over the coming months. This should keep the GBP under pressure. But if we see improvement in UK data, then this could support the GBP/USD forecast.Last week, the GBP/USD held below the key 1.30 handle after breaking below it. For as long as it now holds below this level, the path of least resistance will remain to the downside, unless we see a major reversal pattern at lower levels first to help turn the technical GBP/USD forecast bullish. Incidentally, the 1.30 handle is also where the backside of the broken trend line that had been in place since rates bottomed in September 20222, when Liz Truss’s mini budget debacle had sent the GBP plunging. In terms of potential support levels to watch, well, as before, the area between 1.2780 to 1.2870 is now quite important for this pair. Here, old support and resistance converge with the technically important 200-day moving average. Below this zone, this’s year’s opening level of 1.2731 comes into focus, followed by the August low at 1.2665.

The US dollar rebounded strongly on Friday, especially against the commodity dollars on the back of disappointment from China’s latest stimulus announcement. The euro and pound drifted lower throughout the day, with the EUR/USD testing a multi-month low beneath the 1.07 handle. The pound, which had rallied following the Bank of England’s decision to cut interest rates on Thursday, remained on the front foot against the euro, sending the EUR/GBP pair to near a 2-year low of around 0.8300 by Friday’s European close. But the cable was held back by the US dollar, which despite giving a big chunk of its post-election gains on Thursday, rebounded strongly on Friday, giving a bearish GBP/USD forecast for the week ahead.US dollar rebounds amid growth optimism The greenback found support on the back of a stronger UoM Consumer Sentiment data, which showed an improvement to 73.0 from an upwardly revised 70.5 reading the month before. Meanwhile, investors were still digesting the impact of Trump’s victory and the Fed’s decision to cut rates by 25 basis points on Thursday. The Fed Chair Powell was tight-lipped about whether it would slow down the pace of rate cuts in light of the Republican’s clean sweep victory and what that might mean in terms of fiscal policy. But despite Thursday’s selling, investors refused to turn bearish on the dollar meaningfully, amid expectations of increased spending and tax cuts under Trump. This, together with stronger data on Friday (Consumer Sentiment), helped to push the dollar higher again and sent the GBP/USD back below 1.29 handle. BoE’s “gradual” tightening not enough to lift GBP/USD forecastIn as far as the Bank of England’s rate decision was concerned, well they too cut rates by 25 basis points, but warned that it can’t lower rates “too quickly or by too much.” Governor Bailey refrained from defining what “gradual” would mean for the pace of future cuts, something the central bank had mentioned in the rate statement. This helped to push the GBP/USD higher on Thursday, which was aided by a sharp drop in the US dollar amid profit-taking from the Trump victory gains. By Friday, however, it was business as usual as the pair resumed lower thanks to a rebounding US dollar. Week ahead: UK GDP and US CPI coming up The focus is now turning to CPI data from both the UK and US in the week ahead.Last month saw CPI come in slightly ahead of expectations, printing 2.4% y/y for September versus 2.3% expected, albeit it was down from 2.5% the month before. This helped to keep the dollar on the front foot leading up to the US presidential election. With Trump’s resounding victory and his plans for tariffs and tax cuts set for 2025, inflation may remain elevated in the US and prevent the Fed from loosening its belt further. In light of that risk, the Fed and the markets may again start paying closer attention to US inflation data. A stronger data could help pressurise the likes of EUR/USD and other currencies subject to tariffs under Trump. The GBP/USD could also drop, should CPI provide US dollar find more reason to rally.As mentioned, the Bank of England lowered rates by 25 basis points to 4.75% last week, and Governor Bailey refrained from defining what “gradual” would mean for the pace of future cuts. It is clear a lot will now depend on incoming data, putting this week’s data dump into a sharp focus. As well as monthly and quarterly GDP estimates, we will have various other economic indicators released at the same time. The UK growth data will be watched closely by GBP traders. The recent budget is expected to lift inflation slightly, adding around 0.5% to CPI at its peak according to the BoE. However, the BoE isn’t expecting significant economic growth from this budget. As it stands, the Bank intends to continue cutting rates gradually over the coming months. This should keep the GBP under pressure. But if we see improvement in UK data, then this could support the GBP/USD forecast.Last week, the GBP/USD held below the key 1.30 handle after breaking below it. For as long as it now holds below this level, the path of least resistance will remain to the downside, unless we see a major reversal pattern at lower levels first to help turn the technical GBP/USD forecast bullish. Incidentally, the 1.30 handle is also where the backside of the broken trend line that had been in place since rates bottomed in September 20222, when Liz Truss’s mini budget debacle had sent the GBP plunging. In terms of potential support levels to watch, well, as before, the area between 1.2780 to 1.2870 is now quite important for this pair. Here, old support and resistance converge with the technically important 200-day moving average. Below this zone, this’s year’s opening level of 1.2731 comes into focus, followed by the August low at 1.2665.

The dollar was on track to end a volatile week with a slight gain, as markets weighed the impact of Donald Trump's return to the White House for the U.S. economy and the rate outlook. The U.S. dollar had lost ground in the previous session as traders closed out profitable bets on a Trump presidency following his election victory. "We need more clarity about U.S. policies," said Athanasios Vamvakidis, global head of forex strategy at BofA. "Until then, the greenback will be trading data and expectations for the Fed easing path," he added, arguing that tariffs and tax cuts could be positive for the dollar in the short term but harmful in the long run, while all will depend on how the Federal Reserve reacts. Against a basket of currencies, the dollar ticked down 0.05% to 104.37, on track to gain about 0.07% for the week. It had rallied 1.53% on Wednesday as "Trump trades" picked up strongly. "The actual policy of the Trump administration is likely to lag behind its announcements, said Ulrich Leuchtmann, head of forex research at Commerzbank. How Chinese authorities stimulate a struggling economy has been a key focus in recent months for antipodean currencies, and also for the euro as the bloc's economy is quite dependent on Chinese demand. China's yuan traded offshore weakened slightly after Beijing unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease local government financing strains and stabilise flagging economic growth. China's growth outlook also affects global risk sentiment, but market reaction was muted. "Markets may have been hoping for a larger-than-expected stimulus," said Lynn Song, chief economist for Greater China at ING. "There may be more to come once policymakers have more clarity on what a new Trump administration may do next year." The offshore yuan was last 0.35% lower at 7.1737 per dollar. It was at 7.189 before the press conference of the Standing Committee of the National People's Congress. The European single currency dropped 0.1% to $1.0792 and was headed for a 0.4% decline for the week, which saw the collapse of Germany's coalition government on Wednesday. George Saravelos, head of forex research at Deutsche Bank, said political instability in Germany could be positive for the euro in the longer term, but it was too early to price in. "The impact would run via the potential confidence effect boosts of a more stable government, and more importantly the direct economic effects of a potentially more pro-active fiscal stance," Saravelos said. German opposition parties and business groups are putting pressure on Chancellor Olaf Scholz to trigger a new election quickly to minimise political uncertainty. The U.S. Fed on Thursday cut interest rates by 25 basis points as widely expected and flagged a patient, cautious approach to further easing. The central bank's rate trajectory has been clouded by Trump's election victory as his plans for hefty import tariffs are widely expected to stoke inflation. Traders have reacted to the outcome of the election by trimming bets on rate cuts next year, as tariffs are more likely to fuel inflation. However, Fed Chair Jerome Powell said the results of Tuesday's presidential election would have no "near-term" impact on U.S. monetary policy. The yen rose 0.4% to 152.28 per dollar. "The yen cross against the dollar will trade U.S. data and the Fed," BofA's Vamvakidis argued. "It will not be affected as much by risk sentiment." The Australian dollar, often used as a liquid proxy for its Chinese counterpart, fell 0.60% to $0.6639.

The dollar was on track to end a volatile week with a slight gain, as markets weighed the impact of Donald Trump's return to the White House for the U.S. economy and the rate outlook. The U.S. dollar had lost ground in the previous session as traders closed out profitable bets on a Trump presidency following his election victory. "We need more clarity about U.S. policies," said Athanasios Vamvakidis, global head of forex strategy at BofA. "Until then, the greenback will be trading data and expectations for the Fed easing path," he added, arguing that tariffs and tax cuts could be positive for the dollar in the short term but harmful in the long run, while all will depend on how the Federal Reserve reacts. Against a basket of currencies, the dollar ticked down 0.05% to 104.37, on track to gain about 0.07% for the week. It had rallied 1.53% on Wednesday as "Trump trades" picked up strongly. "The actual policy of the Trump administration is likely to lag behind its announcements, said Ulrich Leuchtmann, head of forex research at Commerzbank. How Chinese authorities stimulate a struggling economy has been a key focus in recent months for antipodean currencies, and also for the euro as the bloc's economy is quite dependent on Chinese demand. China's yuan traded offshore weakened slightly after Beijing unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease local government financing strains and stabilise flagging economic growth. China's growth outlook also affects global risk sentiment, but market reaction was muted. "Markets may have been hoping for a larger-than-expected stimulus," said Lynn Song, chief economist for Greater China at ING. "There may be more to come once policymakers have more clarity on what a new Trump administration may do next year." The offshore yuan was last 0.35% lower at 7.1737 per dollar. It was at 7.189 before the press conference of the Standing Committee of the National People's Congress. The European single currency dropped 0.1% to $1.0792 and was headed for a 0.4% decline for the week, which saw the collapse of Germany's coalition government on Wednesday. George Saravelos, head of forex research at Deutsche Bank, said political instability in Germany could be positive for the euro in the longer term, but it was too early to price in. "The impact would run via the potential confidence effect boosts of a more stable government, and more importantly the direct economic effects of a potentially more pro-active fiscal stance," Saravelos said. German opposition parties and business groups are putting pressure on Chancellor Olaf Scholz to trigger a new election quickly to minimise political uncertainty. The U.S. Fed on Thursday cut interest rates by 25 basis points as widely expected and flagged a patient, cautious approach to further easing. The central bank's rate trajectory has been clouded by Trump's election victory as his plans for hefty import tariffs are widely expected to stoke inflation. Traders have reacted to the outcome of the election by trimming bets on rate cuts next year, as tariffs are more likely to fuel inflation. However, Fed Chair Jerome Powell said the results of Tuesday's presidential election would have no "near-term" impact on U.S. monetary policy. The yen rose 0.4% to 152.28 per dollar. "The yen cross against the dollar will trade U.S. data and the Fed," BofA's Vamvakidis argued. "It will not be affected as much by risk sentiment." The Australian dollar, often used as a liquid proxy for its Chinese counterpart, fell 0.60% to $0.6639.

As things currently stand, there is no reason for the European Central Bank not to cut interest rates in December but the decision will be based on the data available then, ECB policymaker Robert Holzmann said in remarks published on Sunday. Last month the ECB cut interest rates for the third time this year and four sources close to the decision told Reuters a fourth cut was likely in December unless data turned around in the coming weeks. "As things look at the moment, it is possible (that there will be a cut in December). There is nothing at the moment that would argue against that but that does not mean it will automatically happen," Holzmann, who heads the Austrian National Bank, said in an interview with the Kleine Zeitung newspaper. "We do not have the latest forecasts and data. We will receive those in December. We will decide on that basis, yes or no," he said. Holzmann said last month a week after the latest rate cut that a cut of 25 basis points was possible in December while at the same time repeating that it would depend on the economic data available at the time.

As things currently stand, there is no reason for the European Central Bank not to cut interest rates in December but the decision will be based on the data available then, ECB policymaker Robert Holzmann said in remarks published on Sunday. Last month the ECB cut interest rates for the third time this year and four sources close to the decision told Reuters a fourth cut was likely in December unless data turned around in the coming weeks. "As things look at the moment, it is possible (that there will be a cut in December). There is nothing at the moment that would argue against that but that does not mean it will automatically happen," Holzmann, who heads the Austrian National Bank, said in an interview with the Kleine Zeitung newspaper. "We do not have the latest forecasts and data. We will receive those in December. We will decide on that basis, yes or no," he said. Holzmann said last month a week after the latest rate cut that a cut of 25 basis points was possible in December while at the same time repeating that it would depend on the economic data available at the time.

The Forex Food-chain Just as it can be easy to miss the deeper market trends when monitoring currency pairs at shorter time frames, it can also be easy to lose sight of the wider forex-trading ecosystem when you’re overly concerned with the minor price fluctuations of your open positions. The forex market is a world unto itself, with all manner of players, from individual traders like you, all the way up to the interbank network and central banks. As an individual retail trader you are the smallest fish, you have the ability to buy and sell the same currency pairs as other participants, but you are have to go through a longer transaction chain than others in order to get hold of liquidity, as such you don’t receive the same prices as participants further up the hierarchy. You are also unable to affect the market with your trades because you are far too small to make any waves. Your role is to react to what is going on in the wider market and to position yourself accordingly. While this may seem like a disadvantage; it also comes with its advantages as we will see further on. Learning about all the entities that are large enough to move the waters, as well as knowing how and why they do, will be important to you as a trader. Understanding the wider structure of the market allows you to make educated choices and reduce the degree of randomness in you

The Forex Food-chain Just as it can be easy to miss the deeper market trends when monitoring currency pairs at shorter time frames, it can also be easy to lose sight of the wider forex-trading ecosystem when you’re overly concerned with the minor price fluctuations of your open positions. The forex market is a world unto itself, with all manner of players, from individual traders like you, all the way up to the interbank network and central banks. As an individual retail trader you are the smallest fish, you have the ability to buy and sell the same currency pairs as other participants, but you are have to go through a longer transaction chain than others in order to get hold of liquidity, as such you don’t receive the same prices as participants further up the hierarchy. You are also unable to affect the market with your trades because you are far too small to make any waves. Your role is to react to what is going on in the wider market and to position yourself accordingly. While this may seem like a disadvantage; it also comes with its advantages as we will see further on. Learning about all the entities that are large enough to move the waters, as well as knowing how and why they do, will be important to you as a trader. Understanding the wider structure of the market allows you to make educated choices and reduce the degree of randomness in you

A typical week in the currency markets kicks off on Monday morning in Wellington, New Zealand. This is the first financial centre in the world to see the dawn of a new trading day. When Wellington opens for business it is very early Monday morning in Asia, while still being Sunday evening in Europe, and Sunday afternoon in North America. The exact opening times of each market will vary depending on whether your country observes daylight savings or not. Wellington is where the currency markets resume trading after the North American close on Friday evening. Unlike other markets they will remain open for business all the way through to 5 p.m. Eastern time on the following Friday. Open your trading platform; choose a currency pair and using either a bar or candlestick chart try to find the most recent Monday opening with a distinct break in price action. If you have trouble finding one try viewing the data at a shorter duration. In many cases you will see a gap in the chart between where the market closed on Friday evening in New York and where it opened in Wellington on Monday morning. You will be able to find a particularly pronounced break on all USD pairs between the 13th and 15th of September 2013. Over this weekend Larry Summers withdrew from running as the next chairman of the Federal Reserve. This news caused the dollar to trade much lower when the markets re-opened on Monday.

A typical week in the currency markets kicks off on Monday morning in Wellington, New Zealand. This is the first financial centre in the world to see the dawn of a new trading day. When Wellington opens for business it is very early Monday morning in Asia, while still being Sunday evening in Europe, and Sunday afternoon in North America. The exact opening times of each market will vary depending on whether your country observes daylight savings or not. Wellington is where the currency markets resume trading after the North American close on Friday evening. Unlike other markets they will remain open for business all the way through to 5 p.m. Eastern time on the following Friday. Open your trading platform; choose a currency pair and using either a bar or candlestick chart try to find the most recent Monday opening with a distinct break in price action. If you have trouble finding one try viewing the data at a shorter duration. In many cases you will see a gap in the chart between where the market closed on Friday evening in New York and where it opened in Wellington on Monday morning. You will be able to find a particularly pronounced break on all USD pairs between the 13th and 15th of September 2013. Over this weekend Larry Summers withdrew from running as the next chairman of the Federal Reserve. This news caused the dollar to trade much lower when the markets re-opened on Monday.

What follows is a brief rundown of some of the major historical developments that have led to the Forex market you are now preparing yourself to trade on. Bretton Woods 1944. USD Becomes the World’s Reserve Currency. In July 1944, with the Second World War still raging in Europe and South East Asia, 730 representatives from the 44 Allied nations convened at the Mount Washington Hotel in Bretton, New Hampshire, USA, for the United Nations Monetary and Financial Conference. Bretton Woods was an attempt to reach a consensus on how to govern the international economy in the aftermath of the war, as well as to address the isolationist policies of economic discrimination and trade warfare, which many believed had contributed to both World Wars, as well as to the Great Depression. As such, eradicating what had come to be known as “beggar thy neighbour policies” (policies that alleviate a country’s economic woes at the expense of other countries), and encouraging a freer flow of trade between nations, became a focal point for the conference. Essential to the agreement was an international system of payments to facilitate trade with safeguards in place to prevent large fluctuations in currency value or competitive devaluations. For all these reasons Bretton Woods was a major milestone in the development of the foreign exchange market, and indeed the global financial system we have today.

What follows is a brief rundown of some of the major historical developments that have led to the Forex market you are now preparing yourself to trade on. Bretton Woods 1944. USD Becomes the World’s Reserve Currency. In July 1944, with the Second World War still raging in Europe and South East Asia, 730 representatives from the 44 Allied nations convened at the Mount Washington Hotel in Bretton, New Hampshire, USA, for the United Nations Monetary and Financial Conference. Bretton Woods was an attempt to reach a consensus on how to govern the international economy in the aftermath of the war, as well as to address the isolationist policies of economic discrimination and trade warfare, which many believed had contributed to both World Wars, as well as to the Great Depression. As such, eradicating what had come to be known as “beggar thy neighbour policies” (policies that alleviate a country’s economic woes at the expense of other countries), and encouraging a freer flow of trade between nations, became a focal point for the conference. Essential to the agreement was an international system of payments to facilitate trade with safeguards in place to prevent large fluctuations in currency value or competitive devaluations. For all these reasons Bretton Woods was a major milestone in the development of the foreign exchange market, and indeed the global financial system we have today.

If you think you are finally ready to make the transition from demo trading to having a live account, then you should also be psychologically prepared for it. Not only will you have real money on the line, your emotions might also have a bigger impact on your trading decisions. A good rule of thumb to remember before going from demo to live is to ensure that you have had a good trading run for at least three months. Of course this time frame can vary depending on how much time you spent learning about trading but it is a reasonable length of time to make sure that you have had a strong grasp of basic trading concepts and are able to make consistent profits. This can also ensure that you’ve spent a considerable amount of time getting in sync with market movements and that you can hold your own even when real money is at risk.

If you think you are finally ready to make the transition from demo trading to having a live account, then you should also be psychologically prepared for it. Not only will you have real money on the line, your emotions might also have a bigger impact on your trading decisions. A good rule of thumb to remember before going from demo to live is to ensure that you have had a good trading run for at least three months. Of course this time frame can vary depending on how much time you spent learning about trading but it is a reasonable length of time to make sure that you have had a strong grasp of basic trading concepts and are able to make consistent profits. This can also ensure that you’ve spent a considerable amount of time getting in sync with market movements and that you can hold your own even when real money is at risk.