Category: Power Course Trading Tips

[embedded content] What is Economic Growth and Why is it So Important? Top news headlines are often dominated by the release of gross domestic product (GDP) figures and for good reason. The GDP release attracts a lot of attention from traders and market participants because of its signaling effect and ability to move financial markets. …

Economic Growth: What is GDP Growth?Read More

[embedded content] What is Inflation? Inflation is the rise in prices of goods and services in an economy over a period of time, and is often displayed in percentage form. For example, if inflation is 2%, this suggests that prices are (on average) 2% higher than the previous period. Therefore, if a bottle of water …

Understanding Inflation and its Global ImpactRead More

Quantitative Easing Explained: Main Talking Points With interest rates near zero, the Federal Reserve ventured another policy tool in quantitative easing After years of QE, the Bank of Japan has experienced diminishing economic and financial returns Similarly, the ECB has engaged in long-term refinancing operations (LTROs) as a form of quantitative easing, but their effectiveness …

Quantitative Easing (QE) Explained: Central Bank Tool for GrowthRead More

How Can Stock Markets Impact US Presidential Elections? How can returns in the Dow Jones, S&P 500 influence voters at the polls? This study analyzes the indices 1 year and 3 months before elections Do voters respond to stock performance as an election nears? Introduction Many factors can impact the outcome of US presidential elections, …

S&P 500, Dow Jones: Can Stock Markets Predict Presidential Elections?Read More

Does a Relationship Exist Between the S&P 500 and the US Election Outcome? Beyond policies and history, past data suggests that S&P 500 stock can be used to predict the winner of the US election. The S&P 500 Index has an 87% success rate when it comes to predicting the outcome of an election. As …

How Societal and Economic Crises Impact US Presidential ElectionsRead More

The US Presidential election has a historical tendency to influence financial markets as a change in leadership often brings a shift in fiscal policy. For the price of gold, there has been greater responsiveness to the macroeconomic landscape change since President Richard Nixon took steps to end the Bretton-Woods system starting in 1971. However, a …

Gold Price Implications Around US Presidential ElectionsRead More

How to Trade Geopolitical Risks The global economy is showing increasing weakness and fragility Eroding economic fortitude exposes markets to geopolitical risks Examples of political threats in Asia, Latin America and Europe See our free guide to learn how to use economic news in your trading strategy ! ANALYZING GEOPOLITICAL RISKS Against the backdrop of …

How to Trade the Impact of Politics on Global Financial MarketsRead More

How Do Politics and Central Banks Impact FX Markets How do monetary and fiscal policy measures impact currency markets? What is the Mundell-Fleming model and why does it matter for FX traders? How has policy from the Fed, ECB and BOC impacted USD, EUR and CAD? MARKETS HAVE PASSED THE POLITICAL EVENT HORIZON For foreign …

How Do Politics and Central Banks Impact FX Markets?Read More

Central Banks look at a variety of economic data and projections before setting policy. These datapoints are then applied to the central bank’s operating framework in order to determine if a policy change is needed. To actually set policy, central banks turn to their implementation divisions, which transact in financial markets to enact policy. How …

Central Banks and Monetary Policy: How Central Bankers Set PolicyRead More

Talking Points: The Nucleus of the Forex Market are Trade and Capital Flows This article shows why trade and capital flows, driven by currency spot prices, can be so impactful to an economy and a company operating inside of that economy. Below, we look at a hypothetical example using real prices and actual scenarios that …

The Nucleus of the Forex Market: Trade and Capital FlowsRead More