Get Started

 

Open an account now

 

 


 

New blog posts

The Advantage of Carry Trade
The Advantage of Carry Trade

Jun 24, 2015

The Advantage of Carry Trade  ...

What is Autochartist?
What is Autochartist?

Jun 23, 2015

MAKE YOUR INVESTMENTS COME TO LIFE WITH...

Market Sentiment
Market Sentiment

Jun 22, 2015

Reading and  understanding of Market...

View all blog entries

Client Funds and Regulated

Client Funds Segregated Accounts with National Australian Bank (NAB) and Westpac, Australian Banks.

Regulated by the Australian Securities and Investments Commission (ASIC). Australian Financial Services Number 335692.

 


 

Rebates Provider ® Partner

Official IB’s ® Partner of IC Markets ECN Broker

Partner: 3393 of IC Markets ECN

Want to upgrade your account yourself?

1.        Go Here - IC Markets Chat Support

2.        Request your Rebates Discount on chat.

3.        Provide Partner ID: 3393.

4.        Wait for account changes and save!

 


 

Live quotes

  

Here you can to find the the free live currency quotes in real-time. Live streaming  forex rates on every currency pair including daily changes and updates. Live forex quotes to find out exactly where currencies last traded in the interbank market. Live rates will help you trade the forex market in real-time or exchange currencies in the market place. Check the latest prices or use live forex charts to help you make trading decisions and take advantage of the liquidity in foreign exchange.For more  


Social Trading

Social trading is the newest, most exciting and most rewarding way for you to get access to the financial markets. For more


 

Monetary Policy and Central Banks

Posted on Jun 17, 2015

Monetary Policy and Central Banks

Monetary Policy and Central Banks

 

Monetary policy and interest rate expectations play a central role in fundamental analysis, as these determine the rate of return for holding a country’s assets and therefore the demand for its currency. As mentioned in the previous section, central banks’ decisions carry a major influence in this regard.

Of course these decisions are based on a number of economic factors, including overall growth, inflation, consumer spending and confidence, and trade activity among many others. These data can be found in economic databases online and fresh releases can be tracked using an economic calendar.

Generally speaking, consistent economic improvements and expectations of strong performance could lead a central bank to tighten monetary policy. This involves decreasing the amount of money in circulation, which then causes the value of the currency to go up, or increasing interest rates. These tools are employed in order to prevent the economy from overheating or inflation from spiking out of control.

When traders see consecutive improvements in economic data, interest rate hike expectations tend to build up and push the value of the currency higher even before the actual monetary policy decision is announced.

On the other hand, consecutive declines in economic performance could convince a central bank to ease monetary policy. They can either increase the amount of money in circulation, which then causes the value of the currency to drop, or by decreasing interest rates. Both of these moves are designed to encourage lending and spending, which eventually translate to stronger economic performance.

When traders see a prolonged weakness in economic data, interest rate cut expectations grow and push the value of the currency lower even before the actual policy decision is made.

 

 

Central Banks can also intervene in the foreign exchange market, as the Swiss National Bank has been notorious for doing. These are very rare occasions when the central bank thinks that the currency is overvalued and is starting to take its toll on the country’s export industry. After all, a higher currency value means that exports are relatively more expensive in the international market, which could then hurt demand. A central bank can conduct currency intervention by selling a large amount of its local currency in order to drive its value down.

Testimonies by central bank officials also tend to influence forex market price action as these contain clues on what their next monetary policy moves might be. This is why central bankers’ speeches are also marked on the economic calendar, usually as a top-tier event when it’s the central bank head speaking.

Minutes of policy meetings also carry weight in price action, as these also provide hints on how the other members of the board think the economy is faring and whether monetary policy adjustments are needed or not. Traders usually monitor when there is a change in bias and start pricing in potential policy tightening or easing ahead of time.

 

If you want to try demo trading during News   


 


MetaTrader 4 True ECN Account

·  True ECN spreads from 0.0 pips

· Deep Institutional Grade liquidity

·  Leverage of up to 500:1

·  Micro Lot trading, 0.01 lot size

·  $200 USD account opening minimum

·  Commission of $3.50 per 100k traded


 


 

cTrader ECN Account

          cTrader ECN Account

·True ECN spreads from -0.3 pips

· Servers in Equinix NY4

· Leverage of up to 500:1

· Micro Lot trading, 0.01 lot size

· $1000 USD account opening minimum

·Commission of $3.00 per 100k traded


 

 

Twitter


Economic Calendar

We delivery financial, business and  economic  related to your everyday trading needs. We especially focus on news that directly relates to forex and commodities trading. 

The world’s fastest Economic Calendar.

Whether you’re an individual new or advanced to trading or you’re an Money Manager, you can find all the information you need at  AbderaFinance.com/Calendar/


 

Open an account

If you are a beginner , we can to help you every step of the way and encourage you to contact us if you have questions.

We offer our clients easy way to open an account online