{"id":20249,"date":"2022-10-25T17:00:07","date_gmt":"2022-10-25T21:00:07","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20249"},"modified":"2022-10-25T17:00:07","modified_gmt":"2022-10-25T21:00:07","slug":"heres-a-sneak-peek-at-my-new-forex-strategy","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heres-a-sneak-peek-at-my-new-forex-strategy\/","title":{"rendered":"Here\u2019s a Sneak Peek at My New Forex Strategy"},"content":{"rendered":"

Imre’s Note:<\/strong> Recently, I sat down with Chris Lowe, head editor at Legacy Research Group<\/em> for a special interview on the release of my new forex service \u2013 Currency Trader<\/a><\/em>.<\/p>\n

Chris and I talked about why forex is such an incredible opportunity… especially now when stocks and bonds are turbulent, and cryptocurrencies are doing nothing.<\/p>\n

If you’re looking for a way to potentially collect gains of $2,440, $1,694, and $2,145 in as little as one day… my strategy is a “must”<\/a> in your portfolio. Currently, my beta test results show 13 winners from 13 trades.<\/p>\n

Now, the full interview is reserved for Legacy Research Group<\/em> subscribers. But I believe these insights are so eye-opening, I had to share some of it with you. So today, I’ve provided a sneak peek…<\/p>\n

\n

Chris: <\/strong>There’s a lot of buzz about your new currency trading advisory. It’s the first of its kind we’ve published. Why should folks be looking at currency markets now as a source of potential profits?<\/p>\n

Imre: <\/strong>Currency trading is uncorrelated to stocks. They move independently from one another. So, it doesn’t matter if stocks are falling, you can still find a currency going up or down against another currency.<\/p>\n

Currency markets are also highly liquid, meaning it’s easy for traders to buy and sell.<\/p>\n

The New York Stock Exchange is open five days a week, from 9:30 a.m. ET to 4 p.m. ET. That’s nearly eight hours a day.<\/p>\n

Currency markets are open from Sunday at 5 p.m. ET to Friday 5 p.m. ET. And they trade 24 hours a day.<\/p>\n

That’s a lot more time to trade \u2013 and to profit. And because you can trade currencies around the world, there’s always volatility to capitalize on.<\/p>\n

The other reason currency trading is so attractive right now is the big move in interest rates we’re seeing around the world. Those moves are causing a huge amount of movement in currency markets.<\/p>\n

And that’s what we look for as traders. We profit from currency moves. The more movement, the bigger the opportunity.<\/p>\n

Chris:<\/strong> Can you unpack that for readers who may not be up to speed on what’s happening with interest rates?<\/p>\n

Imre:<\/strong> Sure. Currency trading died as an exciting market to trade in the wake of the 2008 financial crisis.<\/p>\n

One reason for that was the Dodd-Frank banking reform rules. They stopped banks from using their own capital to trade markets. And a lot of their trading was in the currency markets.<\/p>\n

But the more important reason was the coordinated move by global central banks to drop interest rates to zero. The idea was to pump up bonds’ prices and push down yields, which move opposite prices.<\/p>\n

That started what traders call a race to the bottom for global currencies. There was an incentive for all these central banks to devalue their currencies as much as possible.<\/p>\n

It means people are more likely to go out and spend… or swap their dollars for stocks and bonds.<\/p>\n

The way I think about it is that low interest rates mean low energy and low volatility in currency markets. Higher interest rates mean higher energy, and higher volatility.<\/p>\n

And now, 14 years after the 2008 crash, we’re going from low to high energy. Central banks are strengthening currencies instead of weakening them. That’s to combat the inflationary pressure we’re seeing around the world.<\/p>\n

Chris:<\/strong> The Fed has been leading the charge on raising rates to combat inflation. Can you talk about the pressure this creates for other central banks and other currencies?<\/p>\n

Imre:<\/strong> This is where it gets really interesting. The U.S. government issues the world’s reserve currency \u2013 the U.S. dollar. About 60% of foreign exchange reserves governments around the world hold are in U.S. dollars.<\/p>\n

So, every central bank around the world is holding U.S. dollars in reserve. They use these dollars to buy commodities, which are priced in dollars. They also use them for trade.<\/p>\n

A lot of countries also hold U.S.-dollar-denominated debt. So, if the Fed is making the dollar stronger by raising interest rates, there will be a lot of added pressure on these countries to repay those debts.<\/p>\n

That means they have to raise interest rates to strengthen their own currencies, just to defend themselves.<\/p>\n

That’s what we’re seeing in Europe. It’s what we’re seeing in Australia and Canada, too, to an extent.<\/p>\n

The Fed is bullying other central banks into submission. I don’t think the U.S. cares if the European Central Bank (ECB) increases rates or not. But the ECB will have to increase rates to stay economically competitive.<\/p>\n

Chris:<\/strong> Talk to me a bit about why raising interest rates strengthens a currency against another currency in a country with lower rates.<\/p>\n

Imre:<\/strong> The British pound is the most recent example of wild currency market volatility. After the country’s former prime minister, Liz Truss, announced about $50 billion in unfunded tax cuts, the pound crashed to its lowest level ever against the dollar.<\/p>\n

This led to a rout in British government bonds… It frightened the life out of pension fund managers, who own a lot of those bonds… And it led to Truss resigning as prime minster after just six weeks in the position.<\/p>\n

We can point to the unfunded tax cuts… or the lack of confidence in Truss’s ability to manage the British pound. But thanks to the big moves in interest rates in the U.S., the market didn’t know how to value the British currency properly anymore. So, we see these volatile swings.<\/p>\n

Chris:<\/strong> What determines who wins the tug of war [in the forex market]?<\/p>\n

Imre:<\/strong> I show you everything you need to know in this interview I did with Jeff Clark<\/a>.<\/p>\n

If readers are looking for a way to pull in thousands of dollars a month in today’s volatile market, I recommend they check it out<\/a>.<\/p>\n

The volatility in the foreign exchange market is on fire right now.<\/p>\n

Many countries are trapped with inflationary pressures, forcing them to raise interest rates… Which can create extreme volatility in currencies.<\/p>\n

As a result, multiple major currencies are trading at levels no one has seen in decades.<\/p>\n

This is the beginning of the biggest shift in monetary policy the world has seen in over 14 years. These shifts tend to create long-lasting trends, making currency trading an extremely attractive market for years to come.<\/p>\n

And I believe the profits we’ve seen so far are just a shadow of bigger things to come.<\/p>\n

Chris:<\/strong> Thanks Imre.<\/p>\n

Imre:<\/strong> Anytime. It’s my pleasure.<\/p>\n

\n

P.S.<\/strong> I hope you enjoyed this sneak peek of my interview with Chris Lowe. If you missed my forex briefing last Saturday, there’s still time to watch the replay<\/a>. But open enrollment for my new currency trading service closes today, so click right here to sign up<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

I believe the profits we\u2019ve seen so far are just a shadow of bigger things to come\u2026<\/p>\n","protected":false},"author":31,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20249","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20249"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20249\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20249"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20249"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20249"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20249"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}