Sam Farrah

I am assuming this is looking at the USDCAD chart. However, while we have seen the USD strengthen against the CAD and continue today, I think technically yes there could be a pull back. But, on a macro level there is one main reason why we have seen the CAD weaken. it is due to the coronavirus. This has caused the Chinese economy to slow down significantly and as a result their oil purchases have fallen. Resulting in a big fall in oil prices. And as Canada is heavily reliant on oil for their economy it has mean the CAD has reduced in value. Now add to that the risk of the virus and the fact it has caused investors to pour money into safe havens like the dollar, it results in a massive rise in the USDCAD. So while we are due a retracement, we can only assume it will arrive when risk reduces.

I would say gold more than silver is definitely a good long term hold for an investment. Gold is an asset with various intrinsic qualities that make it unique and necessary for investors to hold in their portfolios. Again it is another risk off investment and provides a safe haven when there is risk to your portfolio. It also acts as an inflation hedge, and so when inflation rises, so does gold. Silver is also a safe haven although not as highly valued. And so I would say not as necessary to hold in your portfolio.

Ali, it's continued rise in value is down to market risks. In the last year of so there has been constant talk of market risks. From Brexit, Iran, Trade wars, coronavirus and a potential recession. This has fuelled safe haven currency flows. And, the US dollar is the safest of them all. Which means capital flows into the USD and there is an increase in its value.

That's difficult to say but I do doubt it. The city of London has a particular set of laws that provide advantages to large banks and financial institutions to thrive. it is whi these large banks and institutions are always so keen to have bases and invest heavily in London. I think it would be extremely difficult for the EU to change that, but they seem very willing to try everything to hurt London's banking dominance.

No there is still risk here. While it seems to have died down, there are still risks. if it were to escalate in terms of death rate then the risk to equities would rise once more. However, the risk does seem to be dying down and that is why we have seen a rise in equities again. It seems like nothing can halt the rise at the moment.

I think we can really only put this down to one reason only Ali. The initial fears of the coronavirus are subsiding. There is still an issue of the effect on the Chinese economy and knock on effect to the world economy but that initial panic is now gone and the virus hasn't sunk us into a recession. Traders now believe the stock market will continue to rise and the virus isn't as dangerous as initially feared and so we are seeing money flow into risk on assets again.

On a long term view I think you have to believe the pound will make some strong gains. The initial Brexit worries have subsided and although there is still a long way to go in terms of a trade deal there is a lot less risk in the UK economy. Since the latest election we have seen data recorded after the election pick up and there has even been whispers amongst investors of a possible rate rise. So I believe we will see a very strong £ this year.

It is. Silver tends to follow gold prices and so when there are risk off situations in the market, gold will rise and silver will too. Silver tends to be a reliable safe haven asset. When there is risk in the markets, investors will tend to move there money into assets such as gold and silver.

The Euro rise has mainly been against the GBP and I think we have to attribute this to GBP weakness more then EUR strength. This is because of some comments from the UK government surrounding the potential EU trade deal and alignment within the deal. There were some comments stating the UK would not adhere to EU rules which the EU have previously stated has to be part of the deal. This raised the chance of no trade deal meaning the GBP weakened heavily today.

This question of course can't be answered with 100% assurance. However, the way the markets have behaved as of late I would lean towards no (today has seen them gain back some losses). Despite the many previous reasons we may have seen a sustained sell off we still haven't. And so, I suspect we will see equities rise again. So far the markets have managed to fend off the coronavirus, the trade war, a potential conflict in the middle east and Brexit. So I'm not too sure what will eventually see a recession period.

It does seem to be that way Mohammed and the AUD has been selling off quite heavily as of late due to a few factors (China, Fires, Possible rate cut etc). There is definitely a flag forming. However, you may want to be wary selling right now. There is an Aussie interest rate decision due tonight with traders and investors pricing in about 50% chance of a rate cut. So the direction of the AUD in the short term all hinges on the rate decision tonight. It may be a case of holding off here and waiting for another entry point, regardless of which way the decision goes.

Hi Ali. There are a couple of things you can do. Firstly you can check online reviews to see what other customers have said regarding the company. There will also be many reviews available for you to check over from other websites. Although you may want to check on here first as there are many reviews of brokers also. Finally check if they are regulated by the relevant conduct authority. If they aren't, then I would advice you to find another broker.

In my opinion yes, the affect on the Chinese economy seems as though it could be rather large. This will have a knock on affect to the rest of the world economy and especially the EU as there is a lot of trade between the 2. This could mean a weakened Euro. However, due to the Euro becoming more of a safe haven currency in recent times, it may not weaken as much as normal.

Hi Mohammed. Yes there are some I have come across. I would recommend checking out... For macroeconomics I would suggest looking into Macrodesiac. They will help you to understand the reasoning behind market moves and learn in depth fundamental analysis. if you want a mix of fundamentals and technicals I would check out top traders on youtube. They provide a good mix of both fundamentals and technical analysis. Amplify trading is also a great course for a mix of both as well. Then if you wanted an options trading course I would suggest checking out Macrohedged, they can be found on Twitter or Youtube.

Hi Ali. I would say it really depends on a few factors. One that I always seem to advise on, on here is risks. So essentially what are the macro risks to your position over the weekend.If you feel there are none then by all means hold over the weekend. If there is one or more then I would say it's best not to, especially if you are new to trading. Another thing to be aware of is your SL. Make sure it is far from the current market price. As Sunday evenings will be low volatility and the spreads will be large, meaning you could get stopped out. IG is a broker to be wary of in this instance, as they open there trading hours at 9pm which is an hour earlier than most. Which means even less volatility and a nice excuse for an even wider spread. It's quite a clever move from them, Im not sure if they trade against their clients but if they do then by doing this they are more likely to stop clients out and they can book profits. Just consider the above before holding over the weekend. If all bases are covered then you can definitely hold a position over that period.

Mohammed, I wouldn't necessarily agree that it is due for a sell off. I think the current risks in the market will keep gold prices elevated. There seems to be risks from all angles at the moment, even if they aren't at the forefront of media reports. I would point to the coronavirus as the main worry right now, and even if a vaccination is created or the spread is contained and reduced, I would then look at the slowdown in the Chinese economy as another risk to markets. We then of course have the trade war and phase 2 negotiations, Iran and the US potential conflict and the massive amounts of debt in the global economy. Now, Im not saying there will be a crazy selloff and we will plunge into a recession. However, I think the current risks are enough to keep gold elevated, for now.

Hi Jon. Technically Uranium stocks and Uranium itself is extremely undervalued in my opinion. Especially when we consider the fundamentals and macros behind the commodity itself. I believe I am right in saying that China is building new power plants that require Uranium at a rate of once a week. And nuclear energy as a whole is making strides forward which is increasing the demand for uranium. There are other factors at hand here but these are the main ones I would be looking at. Now if we combine those fundamentals with the technical analysis we can assume that uranium is extremely undervalued. However, there may be some other underlying factors as to why it is valued so low currently. While it's my opinion that i am expecting a rise in the price at some point this year, I would urge you to look deeper into the fundamentals behind the commodity to come to your own conclusions.

Hi Nigel. This answer may be way too late but try out Pepperstone in Australia.

We certainly could. This is a pair that normally acts as a risk proxy. for example when risk is on the pair will rise and when risk is off it will fall. Right now it seems that the risks in the environment are fading somewhat with the coronavirus seemingly not causing too much panic, so, in that case I would expect a rise in the UJ. When it comes to targets, I would look towards 109.60 initially before then looking towards the 110 level. Remember, if risks escalate anywhere in the market then you could see the pair drop further. but as of now we are heading towards a risk on environment.

Obviously there are the obvious answers such as Forex Factory or Trading Economics websites. But, my suggestion would be to sign up to twitter and follow the various trading news companies there. It is normally the fastest place to receive market moving news as journalists and squawk boxes will Tweet them very quickly.

Hi Djamel. When it comes to trading strategies I would say it is best to look for one that suits you best as how I trade may not be a good way of trading for you. However, my recommendation would be to look more towards the fundamentals/macro side of trading. You can use this to help give you a directional bias and then use another technical strategy to help you to pinpoint entries. I wouldn't suggest using purely technical analysis as in my opinion it isn't the best, but as I said every trader is different and you may find that pure technicals are for you. I hope this helps.

I just explained it in another question but we have just seen what appears to be a US airforce plane shot down, with theTaliban claiming responsibility. Now, I still think it won't strengthen yet, but if this were to escalate further then we will definitely see oil prices jump in response to a potential issue in production. However, for now I am going to hold off to see if we get any response or reaction. Just to add, Ali. I am not one for technical analysis. So although I would buy at that level, I would have to wait for a macroeconomic or fundamental trigger before I entered.

I just explained it in another question but we have just seen what appears to be a US airforce plane shot down, with theTaliban claiming responsibility. Now, I still think it won't strengthen yet, but if this were to escalate further then we will definitely see oil prices jump in response to a potential issue in production. However, for now I am going to hold off to see if we get any response or reaction.

This depends on a few factors. Firstly we need to assess the current market risks, with number one being the coronavirus that has been spread from China. If this continues to escalate and affect the Chinese economy then we can be sure that the Aussie dollar will be affected also. Secondly, we have today just seen another potential risk off scenario with a downing of what seems to be a US air force plane. If the US reacts reacts then we will see a risk off scenario once more. However, in my opinion I feel like the coronavirus panic may slowdown slightly here. There hasn't been any major escalations at the start of the week and they also seem to be looking at different treatments to cure the virus. So I am cautiously turning risk on (I would buy the AUD in a risk on environment) although, I won't be opening any risk positions just yet. In regard to the US plane, I don't believe Donald will react, he won't want to escalate the situation into a possible war and go against his previous election pledges. So again, this would take more risk off the table. So, right now I think we may see a slight bit of strength come into the AUD, for now. If I do see any escalations in risk though, you can be sure I will be buying into safe havens...besides, the markets can change in an instant!

Hi Jon. The main difference between the two types of accounts is that spread-betting accounts are free from capital gains taxes. Another thing to note is that you are only able to open a spread betting account if you are based in the UK or Ireland. One last thing to add is that with CFD trading, you are normally charged a commission fee when you execute an order.