Edge Forex

Tag: dollar

  • WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    When an NFT (non-fungible token) is sold, the buyer is not acquiring the underlying digital picture. Instead, the buyer acquires a crypto token that serves as proof of ownership of the digital picture in question. 

    You might as well have given your money to a random individual on the internet if you didn’t have the valid token. This explains the entire premise of these tokens’ “non-fungibility.” Furthermore, because it is kept and accessible through the blockchain, its uniqueness can be easily verified, and no two identical non-fungible tokens may exist. 

    Having said that, many people have attempted to manufacture an NFT, but false or forged NFTs are easily identified since they can always be tracked back to the original creator’s address.

    You could try to counterfeit the token by making your own, but it would be far too simple to detect a fabrication. Why? Because it cannot be traced back to the address of the original developer. 

    NFT

    Can non-fungible tokens be readily replicated or falsified if they are in picture or video format? The straightforward answer is no, and here’s why. 

    All information about the original picture associated to the token is contained inside the metadata of each token. The connected picture cannot be switched since the metadata is unchangeable.

    Minting an NFT

    Assume you wish to acquire one of the well-known Bored Ape Yacht Club (BAYC) NFTs. BAYC is a collection of 10,000 ape NFTs, each with its own token on the Ethereum network. In addition, each ape has a unique Token ID that ranges from #1 to #10,000. 

    Back on subject, if you want to buy a BAYC NFT and make millions of strangers on the internet jealous, the first step is to create an account on OpenSea using a browser plug-in called Metamask. 

    To buy a BAYC token, you must first have an Ethereum wallet, which also serves as your “account number”. Once you pay for the token, the unique bored ape token is transferred to your Ethereum wallet, presuming you have enough ETH in your wallet.

    Having said that, anyone on the blockchain can simply verify that you hold the token because it is in your wallet. 

    To check if the BAYC token you want to buy is genuine, you can simply read the specifics of each NFT on OpenSea, including the “Contract Address” and the token ID. 

    Every NFT project on the Ethereum blockchain has a Contract Address, which is the wallet address of the original developer. For those who are interested, here is BAYC’s original address: 

    That being stated, if the item you wish to buy does not come from the Contact Address shown above, you are dealing with a forgery of a BAYC NFT. 

    Meanwhile, you may use the blockchain explorer “Etherscan” to determine whether an NFT is genuine.

  • Forex News January 24, 2022

    Forex News January 24, 2022

    #edgeforex #trading #market #money #forex #countries #dollar #currencies #trade #america #nasdaq #high #low #dollar #futures #crypto #bitcoin futures

    US futures 

    The S&P 500 futures are down 0.2 percent, the Nasdaq futures are down 0.3 percent, and the Dow futures are down 0.1 percent for the day. 

    That didn’t take long, since the risk-averse mood from last week persists. The charts for US stocks are now looking bad, which is a difficult one to overcome. The real concern today is that this correction will have to run many deeper legs before stabilising. One may argue that it was long overdue.

    Dollar 

    • The dollar continues its gains as risk sentiment begins to deteriorate. 
    • The dollar extends its lead over riskier currencies. 
    • The AUD/USD is currently down about 0.7 percent to 0.7135, closing in on the 7 January low of 0.7130. A break below there opens the way to some modest support at 0.7100, followed by a possibly sharper loss back to 0.7000. 
    • Elsewhere, the USD/CAD is regaining ground over 1.2600, as oil trades down for the day, with WTI currently trading below $85. Meanwhile, GBP/USD is closing in on 1.3500 after breaking over its 100-day moving average.
    • Once the figure level loses way, the slide in cable may accelerate into the 50.0 retracement level @ 1.3455.
    • NZD/USD falls to its lowest level since November 2020. 
    • The pair is presently trading below 0.6700, down 0.4 percent. 
    • Sellers are attempting to breach critical support at the 0.6700 level, which helped to halt the first drop in December. The 38.2 retracement level at 0.6702 adds to the support layer, but both look to be losing way today as the price falls to 0.6690. Of course, the daily/weekly close will still decide the alleged breakdown, but given the current risk mood, a comeback may be difficult to foresee. The next realistic objective on any dip from here would be 0.6500, followed by the 50.0 retracement level at 0.6467.
    • Those will be critical levels to monitor if we do see a break to the negative extend deeper in the sessions ahead. 
    • For the time being, it’s all about risk sentiment, and there has been a distinct trend of dip buyers failing to increase confidence since last week. That indicates a lot about the potential for this correction to continue, especially because the technicals confirm it.

    Bitcoin

    Bitcoin’s price has now dropped by more than half of its all-time high.

    Bitcoin is down more than 7% on the day to below $34,000 

    Bitcoin’s all-time high was $69,000 in November, and its value has dropped by more than half since then. The 7% decrease today extends the bearish trend that began with the $40,000 break last week. It’s not looking good, and as previously stated, essential support is closer to $30,000 to $32,000. The former, in particular, will be a critical point of interest in determining what happens next for Bitcoin and virtually all other cryptocurrencies.

  • Let’s talk EUR/USD

    #edgeforex #forex #trading #market #stocks #bond #dollar #inflation #euros #eur #prices #dollar #hike #covid-19 #cryptocurrency #oil #japan #bitcoin

    The Euro (EUR) is a relatively new currency, having been introduced in 1999. The European Union’s single currency has supplanted a slew of national currencies, including the German mark, the French franc, the Italian lira, and others.

    As a result, one of the euro’s characteristics is its vulnerability to macroeconomic figures for the entire Eurozone as well as those for individual EU members.

    On January 1, 1999, the European currency was formally launched into non-cash circulation, and on January 1, 2002, banknotes and coins were placed into cash circulation.

    The euro is second only to the US dollar in terms of volume of use in international payments. It is also the world’s second most popular reserve currency (behind the US dollar). The EUR/USD currency was in the 1.1800 range at the time of the official start of trade.

    The EUR/USD pair has changed dramatically since 1999. The euro’s prospects were still hazy in the first two years, and the quote was falling, hitting a low of roughly 0.8200. After then, the pair rose for seven years, hitting an all-time high of 1.6000 in 2008.

    The pair corrected dramatically in later years as a result of the financial crisis’s effect and several challenges in the Eurozone.

    The EUR/USD pair is now trading at $1.12823.
    Perhaps under President Biden, the path of the dollar will become a bit simpler to anticipate. To begin with, financial markets expect the incoming US president to run less overseas and deal with trade conflicts more politely.

    This brings more peace and stability to the financial markets, lessening the demand for a safe haven like the dollar.

    2020 has been a highly illuminating year in terms of market mood. The market was unpleasantly startled by the intensity, scale, and effect of the coronavirus pandemic during the first coronavirus wave in March, forcing investors to run to the dollar as a safe haven.

    Coronavirus support was “suddenly” viewed favorably by the market. According to investors, the ECB demonstrated that it was doing all possible to prevent enterprises from collapsing and to protect people’s employment.

    Because of the existence of unanticipated market situations and the sometimes-surprising market reaction to them, our starting point is those price projections should always be taken with a grain of salt.

    Many market participants predicted a lower dollar at the end of 2018, but the dollar strengthened in 2019 as a result of the US-China trade dispute. This produced a great deal of uncertainty, forcing capital to rush to safe havens such as the US dollar.

    Such occurrences are impossible to imagine, and this has been especially true in recent years in the United States, with a volatile figure like Donald Trump at the helm.

    All of this suggests that capital flows to developing markets and currencies will continue to flow at the cost of the US dollar. Countries such as Indonesia and Mexico have aggressively decreased their interest rates. But these rates remain far higher than those in the United States.

  • Forex Trading News -November 23, 2021

    Trading the JPY

    The Bank of Japan is heavily bearish. With Japan battling with deflationary pressures for years and a huge QE program. The Bank of Japan’s prognosis remains bleak.

    The fact that the Bank of Japan is projected to keep interest rates on hold while the rest of the globe is expected to raise rates has lately resulted in some heavy selling from asset managers and leveraged funds.

    With the BoJ so pessimistic, rate differentials between the Japanese 10y and the US 10y are normally only seen in the ebbs and flows of the US 10 y. Keep in mind that the Bank of Japan has yield curve control over its bond yields. So, here’s what you need to know:

    A dropping US 10-year yield equals a rising JPY. And a rising US 10-year yield equals a dropping JPY. 

    This correlation is not always ideal because it may ebb and flow, but it is something to keep in mind while trading the JPY, particularly the USDJPY. Take a look at the USDJPY chart below to see how it relates to the US10y. 

    Rising oil prices are negative for the JPY because higher-priced petroleum draws JPY out of Japan. Japan imports the majority of its oil from other countries. And a weak Yen will make those imports more expensive. If oil begins to rise in price, keep an eye on it since this might weaken the JPY.

    Eurostoxx

    Eurostoxx futures are down 0.7% in early European trade, early deals had softer tones.

    German DAX futures are down 0.6 percent; UK FTSE futures are down 0.4 percent. And Spanish IBEX futures are down 0.5 percent. This comes after a more modest performance yesterday, all before US markets took a knock as rates rose in response to Powell’s re-election as Fed chair, so there is some catching up to do ahead of the open today. 

    So far, the mood music isn’t as gloomy as European futures predict, but the risk is still slightly on the cautious side. As we seek to get things rolling, the S&P 500 futures are down 0.1 percent, the Nasdaq futures are down 0.2 percent, and the Dow futures are down 0.1 percent.

    Kaisa bondholders 

    According to a source with firsthand knowledge of the situation, certain Kaisa offshore bondholders who did not receive coupon payments this month have contacted investment bank Moelis & Company for advice on how to handle the situation. 

    For context, Kaisa has not paid coupons totaling more than $59 million that were due on November 11 and 12 (both having a 30-day grace period) and is facing another $400 million dollar bond maturity on December 7.

    An earlier Bloomberg article said that an ad hoc group of offshore bondholders had also sought legal counsel from Kirkland & Ellis. 

    As much as Evergrande is a household brand. It is important to remember that other Chinese property developers are also suffering similar challenges, and Kaisa is the business with the greatest offshore debt after Evergrande.

    Germany

    The situation with COVID-19 is “extremely, very serious” in various German states. No steps, including lockdown, can be ruled out. 

    This reflects last Friday’s viewpoint and simply underlines that local authorities are obviously being stretched to their limits in attempting to get a handle on the newest COVID-19 crisis.

    EUR/USD is approaching 1.1200, while USD/JPY is threatening to break over 115.00. The latter, in particular, is worth watching since it highlights the technical potential for the greenback and maybe yen pairings (if the mood is right) in the coming weeks. 

    jpy

    Looking at other markets, gold’s drop on Powell’s re-election is a significant setback to the recent technical breakthrough, but it was not unexpected. 

    The important daily moving averages around $1,792-93 are a place to monitor, although gold may drop down around $1,750 before any buying interest emerges.

    Aside from that, oil is one that one needs to continue to keep an eye on, and all this discussion of a coordinated SPR release, , is simply begging for a ‘buy the dips’ or ‘buy the fact’ play – even though there may be a kneejerk reaction lower initially.

  • AUD/USD update for October 20th, 2021

    The Australian dollar has resumed its recovery against the US dollar. AUD/USD has risen to 0.7471, up 0.80% on the day. The pair is at its highest level over last 4 months.

    The RBA minutes reiterated the old familiar message from the central bank that the economic conditions for a rate hike will not be met before 2024. The minutes also showed that the RBA expects the economy to grow in the fourth quarter, following a contraction in GDP in the third quarter. The minutes were relatively dovish, particularly with regard to the RBA’s interest rate policy.

    aud

    Although inflation is slightly below the RBA’s target, this could change as some Australian states have eased restrictions on covid related closures. In addition, major central banks, led by the BoE, are showing a tendency to tighten monetary policy and the RBA may have to follow suit and bring forward its plans to normalise monetary policy. The AUD has risen on the expectation that the RBA will change its rate outlook, perhaps as early as this week. If this is the case, AUD/USD could continue its rally and move towards the 0.76 line.

    The Aussie is also benefiting from improved risk sentiment on Tuesday as the US dollar trades broadly lower against Asian currencies as well as the euro and sterling. Higher coal prices have also boosted the Aussie dollar. China is turning to coal to ease energy shortages, which is good news for Australian coal producers.

  • Forex Trading: WHAT IS FOREX?

    Forex trading is a term used to describe people involved in the effective exchange of foreign currency, usually for the purpose of profit or financial gain. That could take the form of speculators, who want to buy or sell money for the purpose of profiting through the price movement of money; or it could be a fence aimed at protecting their accounts in the event of a breach of their financial position.


    The term ‘forex trader’ can refer to each trader in the trading platform, a bank trader using their institutional platform, or hedgers who may be carrying their own risk or withdrawing that activity from the bank or financial manager to manage the risk on them.

    The foreign exchange market, or forex (FX) for short, is a low-level market place that enables the buying and selling of various currencies. This happens over the counter (OTC) instead of the intermediate exchange.
    Unbeknownst to you, you may already be participating in the foreign exchange market by ordering imported goods such as clothing or shoes, or, more likely, by buying foreign currency while on vacation. Traders can be drawn into forex for a number of reasons, including:

    1. FX market size
    2. Different types of trading currencies
    3. A different level of flexibility
    4. Low transaction costs
    5. Trading 24 hours during the week

    TRADE OF PAIRS
    One unique feature of the Forex market is the way prices are quoted. Because money is the foundation of a financial system, the only way to extract money is through other currencies. This creates a harmonious equation metrics that may sound confusing at first.
    Forex trading in pairs gives the trader some flexibility, allowing the trader or investor to express his or her trading in the currency he or she feels most appropriate.

    Let’s take the Euro for example, and let’s say the trader has good intentions for the European economy and thus would like to make long money. But – let’s say this investor is also strong in the US economy, but bearish on the UK economy. Yes, in this example, the investor is not forced to buy the Euro against the US Dollar (which could be a long trade of EUR / USD); and, instead, they can buy the Euro against the British Pound (long EUR / GBP goes).

    forex

    This gives the investor or trader that extra flexibility, which allows them to avoid ‘missing’ the US Dollar to buy the Euro and, instead, allows them to buy the Euro while they are short of the British Pound.

    CHURCH TRADE: BASE V / S COUNTER CURRENCIES
    One important difference of the Forex rate is the meeting: The first currency listed in the rating list is known as the ‘basic’ currency of the two, and this is the quoted asset. The second coin is known as the ‘counter’, and this is the standard currency, or currency used to define the amount of the first coin for the two.

    LET’S TAKE EUR / USD AS AN EXAMPLE

    The Euro is the first currency on the scale, so the Euro will be the primary currency in the USD / EUR currency pair.

    The US Dollar is the second largest currency, and this is the currency used by the EUR / USD quote to define the Euro value.

    So, let’s say the EUR / USD average is 1.3000. That would mean 1 Euro costs $ 1.30. If the price goes up to $ 1.35 – then the Euro would go up in value and, basically, the US Dollar would go down in value.

    If an investor was bearish on the Euro but strengthened the US Dollar, they could choose to ‘shorten’ the two, expecting prices to fall; after that they could ‘cover’ the trade by buying it at a lower price, and then put the difference in the pocket.

    TRADE OF CHURCHES
    In short, the foreign exchange market works like many other markets because it is driven by supply and demand. Using a basic example, if there is a strong demand for the US Dollar for European citizens holding Euros, they will exchange their Euros for Dollars. The value of the US dollar will rise while the value of the Euro will decline. Keep in mind that this transaction only affects the EUR / USD currency pair and will not, for example, cause the USD to depreciate in the Japanese Yen.

  • Basics of Trading Psychology

    Whether it is forex trading or any other form of trading which involves highs and lows, the trader’s mindset plays a vital role in his moves. Abrupt and instinctive decisions may not be fruitful in the long run as it is not a lottery. Proper analysis and strategy are required to become a successful trader.

    Every move in the forex market will either benefit you or prove to be a loss for you. It can be quite stressful to handle all ups and downs but if you are really into trading and want to make it work, you should set up your mind in that way.

    Trading psychology involves all the emotions that a trader experiences when he is either about to make a crucial decision or when he has gained or lost in the market. The most prevalent emotions that every person dealing in trading will experience are fear, anxiety, nervousness, and greed.

    Fear is a constant feeling when you are trading either in forex or in shares. You don’t know what the coming time is going to bring you. You may make a decision and would be frightened about the results. This may keep you away from making the right decisions and giving all that you have learned a try. So, it is important to overcome your fears and make stable and sensible decisions. In our perspective, a person fears something he is not good at or something he is not completely aware of.

    We suggest you completely know about all the basics, the tools of technical analysis, and the various strategies that can be deployed in the forex market. Once you are aware of all the possibilities of your moves in the market, you will automatically observe that the fear recedes away.

    There are times in the trading market when you have to decide in a very short time. You don’t get to think for some hours, it is a matter of some minutes. In that case, you encounter feelings of nervousness and anxiety. When we have to make decisions in a very short duration of time, it is possible that we make decisions without thinking properly or maybe very instinctive decisions. We cannot completely avoid this situation and we need to get used to it.

    A trader should keep an eye on the market and the trends even when he is not placing an order. If you know what has been going on in the market before and you are already predicting some things for the near future, it becomes easier to make decisions in a short interval of time.

    trading

    Greed and excitement are the two emotions that will arise when you think things are going well and will continue to go on a high note for some time. You may want to make the most of the time and exceed your limits. This is a situation in which you need to handle your emotions and stop yourself from incurring huge losses. A trader tries to buy more and more in such a situation and forgets about the counter effects that can have on his account.

    To handle this emotion, a trader should put a limit on the number of pips he can afford to lose and stick to it. Whatever comes up, always stick to the strategy you have formed for the long run. Making huge profits at once is not a viable expectation and one should believe in shorter steps and consistent profit rather than abrupt and huge profits.

    Awareness of the pros and cons is very important for a good trader. Even an experienced trader loses money at some time or the other, these outcomes should not have an impact on the confidence of the trader. Uncertainty is an unavoidable part of the forex market. A good trader should be mentally ready to incur any loss.

    While you place an order, do the analysis and look at both sides of the coin. Estimate the amount of profit you may get and then estimate the amount of loss you may have to incur. Do not make instinctive decisions hoping that the things will turn in your favor only, the reverse can happen as well. So, it is better to prepare yourself for the loss and then make a move. Profits and losses are like the two sides of the coin in trading. A good trader remains mentally stable regardless of the outcomes of his trade.

    A trader who is new to the forex market is most likely to incur huge losses if they are not proceeding with caution. Prevention is always better than cure. Most of the people move into the trading area with the thinking that they will convert their $1000 into $1000000 anytime soon. Some may make the mistake of investing all the input they have at once. All this happens due to a lack of experience and ambiguity of the basics of forex trading. Blowing up all your account balance just to make one trade is a big no. Look for a reasonable and sensible strategy and its yields before you starting making purchases in the market.

    Along with the basics and trend analysis of the forex market, a trader should learn risk management as well. There are many risk management moves and strategies that one should know about and follow. Using stops and limits and familiarizing yourself with the concept of leverage may be a good start.

    If you are new to the forex market, we suggest you set up a demo account for a while and get a good grasp of the market before you start risking money. Stay updated about the news and events to make wise and informed decisions.