Headlines:

• Gold and oil fall back as safety flows unwind again after the weekend
• Bond yields nudge a little higher on the day
• ECB’s Kazimir: Additional tightening could come if incoming data forces us to
• ECB’s Simkus: Unless there are data surprises, current level of restriction is sufficient
• Spain October preliminary CPI +3.5% vs +3.5% y/y prior
• Germany Q3 preliminary GDP -0.1% vs -0.3% q/q expected
• Saxony October CPI +4.5% vs +5.4% y/y prior
• Bavaria October CPI +3.7% vs +4.1% y/y prior
• Eurozone October final consumer confidence -17.9 vs -17.9 prelim
• UK September mortgage approvals 43.33k vs 45.00k expected
• Switzerland October KOF leading indicator index 95.8 vs 95.0 expected
• SNB announces changes to remuneration of sight deposits
• Reminder: The clocks went back in Europe on Sunday

Markets:

• AUD leads, CHF lags on the day
• European equities higher; S&P 500 futures up 0.7%
• US 10-year yields up 4.7 bps to 4.892%
• Gold down 0.7% to $1,992.40
• WTI crude down 1.3% to $84.41
• Bitcoin up 2.1% to $34,576

It is shaping up to be a bit of a mixed start to the new week but it seems like the most dominant theme is the easing of safety bets from the end of last week. The Israel-Hamas conflict continues to rage on in the background but mostly centered around the Gaza Strip. While doleful, it isn’t really impacting global markets all too much for now at least.

And for the third Monday in a row, both gold and oil look set for a drop to start the week. Meanwhile, equities are catching a relief bid but could still face struggles later when Wall Street enters the fray. In the bond market, yields are higher but that hasn’t been of much help to the dollar today.

EUR/USD moved up slightly from 1.0550 to 1.0590 levels now, helped out by a slight better German Q3 GDP reading. USD/JPY while now little changed at 149.70 did see a drop earlier to 149.30, before finding some near-term support at the level.

The greenback is trading marginally lower as it trails against the commodity currencies on the back of a better risk mood overall. AUD/USD is up 0.7% to 0.6377 but the pair is still largely caught in a downwards channel as pointed out here.

As we look to the day ahead and to tomorrow, month-end flows will also be a consideration and that could keep the waters a little murkier before we get a better picture of things come November.

This article was written by Justin Low at www.forexlive.com.

A position trader
is a type of trader who holds a position in an asset for a long period,
typically from months to years. Unlike day traders who make numerous trades
every day, or swing traders who hold onto positions for days or weeks, position
traders are more interested in the long-term performance of an asset.

Position
trading is often associated with „buy and hold“ investing,
but there’s a significant difference. While buy-and-hold investors will stick
with their positions no matter how the market moves, position traders aim to
profit from directional trends and will exit their positions if they believe
the trend is about to reverse. They rely heavily on fundamental analysis to
make their trading decisions, looking at factors such as a company’s overall
financial health, industry conditions, and macroeconomic indicators.

One of the
main advantages of position trading is that it doesn’t require constant
monitoring of the markets. Since position traders are not concerned with minor
price fluctuations, they don’t need to be glued to their screens all day. This
makes position trading a good choice for people who want to trade actively but
have other commitments.

However,
position trading also comes with risks. It requires a substantial amount of
capital since trades are held for a long time and can experience large
drawdowns. Also, because position traders are exposed to overnight and weekend
market risk, sudden market changes can lead to significant losses.

Here are
some tips for successful position trading:

1.
Patience
is key: Position
trading is a waiting game. You need to be patient enough to wait for the right
trading opportunity and for your trades to yield profits.

2.
Have
a solid understanding of fundamental analysis: As a position trader, you should be
able to analyze economic indicators, industry conditions, and company
financials to predict long-term market trends.

3.
Use
technical analysis to time your trades: While fundamental analysis is crucial for identifying
trading opportunities, technical analysis can help you decide when to enter and
exit trades.

4.
Diversify
your portfolio:
Don’t put all your eggs in one basket. Diversification can help you manage risk
and increase your chances of long-term success.

5.
Have
a clear trading plan and stick to it: Your trading plan should include your risk tolerance,
profit target, and criteria for entering and exiting trades. Once you have a
plan, stick to it. Emotional decision-making can lead to costly mistakes.

6.
Keep
learning: The
financial markets are constantly changing, and successful traders are those who
keep learning and adapting. Stay updated with market news, learn from your
trading experiences, and don’t be afraid to experiment with different
strategies.

In
conclusion, position trading can be a profitable strategy if done correctly. It
requires patience, a good understanding of fundamental analysis, and a
disciplined approach to risk management. With the right skills and mindset,
anyone can become a successful position trader.

This article was written by FL Contributors at www.forexlive.com.

In the world of finance, two types of currencies dominate
the scene – traditional currencies and cryptocurrencies. Both have their unique features, advantages, and
disadvantages. This article aims to provide a comprehensive comparison between
these two types of currencies, shedding light on their similarities,
differences, and offering tips for potential users.

Traditional Currencies

Traditional currencies, also known as fiat currencies, are issued and regulated by
governments around the world. Examples include the US Dollar, Euro, Japanese
Yen, British Pound, among others. They exist in both physical form (cash and
coins) and digital form (bank account balances).

Tip: When dealing
with traditional currencies, it’s crucial to understand the economic policies
of the issuing government as they can significantly impact the value of the
currency.

Cryptocurrencies

Cryptocurrencies are digital or virtual currencies that use
cryptography for security. Bitcoin, Ethereum, and Ripple are some popular
examples. Unlike traditional currencies, cryptocurrencies operate on
decentralized platforms.

Tip: Investing in
cryptocurrencies requires a good understanding of the technology behind them
and readiness to withstand high volatility.

Similarities

1. Medium of Exchange: Both traditional currencies and cryptocurrencies serve
   as a medium of exchange, enabling the purchase of goods and services.
2. Store of Value: Both can be used to store value over time, although
   the value of cryptocurrencies can be highly volatile.
3. Unit of Account: Both serve as a unit of account, providing a standard
   measure for pricing goods and services.

Tip: Regardless of
the type of currency, always consider its acceptance and stability before using
it as a medium of exchange or store of value.

Differences

1. Centralization: Traditional currencies are centralized, controlled by
   governments or central banks. In contrast, cryptocurrencies are
   decentralized, operating on a peer-to-peer network.
2. Regulation: Traditional currencies are subject to government
   regulations, while cryptocurrencies, due to their decentralized nature,
   are not regulated in the same way.
3. Anonymity: Cryptocurrencies offer a higher level of privacy and
   anonymity compared to traditional currencies.
4. Volatility: Cryptocurrencies are known for their high volatility,
   with prices often experiencing significant fluctuations. Traditional
   currencies are generally more stable.

Tip: When choosing
between traditional and cryptocurrencies, consider factors such as your risk
tolerance, need for anonymity, and understanding of the currency’s operation.

Conclusion

In conclusion, both traditional currencies and
cryptocurrencies have their place in the financial world. Traditional
currencies, being regulated and centralized, offer stability and wide
acceptance. On the other hand, cryptocurrencies, with their decentralized
nature and high volatility, offer opportunities for high returns (and losses),
privacy, and freedom from government control. The choice between the two
depends on individual preferences, risk tolerance, and understanding of each
currency type.

This article was written by FL Contributors at www.forexlive.com.

Since the Israel-Hamas conflict escalated earlier this month, gold and oil have been the two assets that are arguably impacted the most. And heading into every weekend since, we have seen both commodities gain ground only to fall back again on the following Monday. And with today’s decline, they look set for a third straight fall on the opening day of the new week.

Gold in particular is an interesting spot to watch after an attempted break above $2,000 on Friday. It is now down 0.6% to $1,993 and that could invalidate the breakout and put pressure back on the downside.

The Israel-Hamas conflict continues to be mostly centered around Gaza only and that is perhaps a cause for relief in broader markets. Equities are catching a bid today and that is translating elsewhere too, as we see in the price action in the commodities space.

Meanwhile, oil is down over 1% today tying in with a slight opening gap lower although price action in WTI crude continues to hold around $82 and $90 for now:

This article was written by Justin Low at www.forexlive.com.

The back and forth continues in the bond market, as yields are trickling higher to start the new week. The more tentative mood on Friday might be caused by safety flows but we are seeing that unwind all across the board with both gold and oil sitting lower while equities are higher today.

That in turn is seeing 10-year Treasury yields be up nearly 5 bps to 4.892% in European trading. Still, it isn’t doing much to provide any help for the dollar as the greenback is marginally softer on the day. USD/JPY is able to recover slightly to 149.73 at least, up from a low of 149.30 earlier here. It’s still all to play for later in US trading, with month-end flows also a consideration in the coming day.

This article was written by Justin Low at www.forexlive.com.