Todays Free Forex Signal 21 09 2022

LONDON (Reuters) –  FX Signals – The pound touched a new 37-year low against the dollar on Wednesday after Russian President Vladimir Putin’s accusation of “nuclear blackmail” by the West boosted the safe-haven dollar.

An expected interest rate hike by the U.S Federal Reserve (Fed) later in the day played into market sentiment, with eyes also on a Bank of England rate decision and a new government mini-budget this week.

By 1143 GMT, the pound was down 0.31% against the dollar at $1.13460 pence, having earlier hit $1.13040 – its lowest since 1985.

“This morning’s dip is primarily a function of the Russia news. Sterling also generally trades in line with risk appetite which is one reason it has been so weak this year,” Colin Asher, senior economist at Mizuho Corporate Bank, said.

The pound has lost 16% in value against the dollar so far this year, as fears of a global recession have mounted, alongside flaring geopolitical tensions and soaring inflation.

Sterling traders are looking ahead to an expected interest rate hike on Thursday by the Bank of England (BoE), which is struggling to protect the economy from a cost-of-living crisis, as well as the domestic fiscal policy implications of a planned mini-budget from the government of newly-installed Conservative Prime Minister Liz Truss.

“It’s a little bit tricky for the Bank of England because their current forecasting modus operandi suggests they will only take into account announced government policy,” Asher said.

Money markets are fully pricing in a 75-basis point increase by the BoE, with a 50-basis point rise a more distant possibility, in the face of red-hot consumer inflation and slowing growth.

After Thursday’s BoE meeting, new finance minister Kwasi Kwarteng will update parliament on his first “mini-budget” which will be aimed at supporting households and businesses through the coming winter and is likely to include tax cuts.

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“There are concerns about the sustainability of such an expansionary fiscal policy, in tandem with the news of plans to cap energy bills, it’s still a pretty bad combination for the pound at the moment because the market is not trusting that the measures are going to be effective or sustainable,” said Francesco Pesole, FX strategist at ING. today forex signals

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Britain’s budget deficit was bigger than expected in August, data published Wednesday showed, further bringing into focus the difficult financial backdrop in the UK. forex news today

The Office for National Statistics said public sector borrowing excluding state-owned banks stood at 11.82 billion pounds ($13.44 billion) last month. A Reuters poll of economists had pointed to borrowing of 8.45 billion pounds.

Todays Free Forex Signal 21 09 2022

Dollar Edges Lower Trend Points

Todays Free Forex Signal 21 09 2022

SELL XAUUSD Price 1675.5 SL 1683 TP 1662

This is a forex trading guide for beginners. I try to answer all questions about Forex trading.

How to understand forex trading

When you trade stocks, you can select how many stocks you want to buy or sell (if you plan to go short). With Forex you are trading a currency. You can’t select that you want to sell 7523 euros. Starting point is 1 lot which is 100,000 units of base currency. 1 lot for EUR/USD = 100,000 euros
2 lots for EUR/USD = 200,000 euros
0.1 lot for EUR/USD = 10,000 euros

That way you can decide how much base currency you want to invest. Of course, you do not have to have all that money in your account. Thanks to leverage you have only split of that amount.

In Forex, minimal movement is one pip. For standard basic 1 lot (100,000 units) move  of 1 pip is equal to 10$ change.

Why people are losing money in Forex

It is because they do not understand leverage. It is very powerful, yet very dangerous perk that you get when you decide to trade Forex. With only few hundred dollars you can open positions which are as big as 100,000 dollars or euros and larger. When you are right in your trade, then you make good money. When you are wrong… well, you can be out of funds very soon. That is why new traders should start from lower sizes – micro lots or even nano lots. This is similar to stock market. It is a bad idea to start investing in stock market and learn how to invest with real 100,000 or 500,000$. The risk is too big. It is easier to learn on smaller capital. Same is with Forex.

Start small – Nano, micro lots

You won’t get rich fast by trading micro and nano lots, but thanks to them you will stay in the game and you will have opportunity to learn from live trading. The reason why so many traders lose all their money in the Forex is because:
• their trading capital is too small • they open too big positions, because they do not understand leverage
So yeah, it is like in many ads you could see in the past – “you can open account with just 100$. Leverage even 1:500”. In the end, you need one or few positions of 1 lot size to blow up your account. You should remember that 1 lot is a base for calculating size of your position. 1 lot = 100,000 units of a currency