It’s all about the Fed this week, so we are likely to observe a more tense period in the lead up to the main event on 4 May.
The usual suspects are at it again with the dollar seen firmer across the board and Treasury yields also holding higher. USD/JPY is trading back above 130.00 for starters with EUR/USD inching closer back towards the 1.0500 level.
US futures
Futures
Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.
Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.
Read this Term are pointing higher but it comes after a rout on Friday so the light bounce today is hardly significant.
Powell & co. holds all the cards in trading this week so we can only wait and see if they will do anything to shake up the recent market themes.
Looking ahead today, we’ll have some light releases to glance upon but nothing that should tell us of anything new about the euro area and its economic state for the time being.
0600 GMT – Germany March retail sales
0715 GMT – Spain April manufacturing PMI
0730 GMT – Switzerland April manufacturing PMI
0745 GMT – Italy April manufacturing PMI
0750 GMT – France April final manufacturing PMI
0755 GMT – Germany April final manufacturing PMI
0800 GMT – Eurozone April final manufacturing PMI
0800 GMT – SNB total sight deposits w.e. 29 April
0900 GMT – Eurozone April final consumer confidence
0900 GMT – Eurozone April economic, industrial, services confidence
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
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