Richard Cox

Richard Cox
Published articles: 11

About Richard Cox

Richard Cox is a university teacher in international trade and finance, and his lessons include macroeconomics and price behavior in equity markets. He also writes for various financial publications across the web, and his investing strategies are based on technical and fundamental analysis of all the major asset classes (stock indices, currencies, and commodities).

Latest 10 Articles

So far this month, some of the biggest moves in the forex markets have been tied to the Euro. The EUR/USD had previously posted a steady advance toward the 1.40 mark but changing central bank expectations led to sharp bearish reversals.

When we look at the forex markets as a whole, some interesting trends have developed in the first half of this year. Most of the activity as focused on the US Dollar, which is not entirely surprising given the fact that the greenback tends to define many of the larger trends that are present in the market.

In currency markets, the driving factor continues to be the changing policy stance that we have seen in the US Federal Reserve. Broad economic data in most regions of the world (with China and the Eurozone being notable exceptions) has been positive and stable.

After the massive price declines we have seen in precious metals over the last 12 months, it will be critical for commodities investors to watch the ways the broader market reacts to short term economic data.

Once we become familiar with the trading tools that are most common in the financial markets, it is important to start thinking about the ways these tools can be used.

Into the end of last year, the Euro was one of the market’s best performing currencies. There were a few different reasons for this but whether or not this strength is ultimately sustainable is an entirely different story.

Into the end of 2013, financial markets were broadly influenced by widespread weakness in the US Dollar. A significant portion of these Dollar declines were driven by changing central bank expectations as the US Federal Reserve delayed its plans to start making monthly reductions in quantitative easing stimulus.

One of the most common technical indicators that is used by day traders in the financial markets can be seen in the Moving Average Convergence Divergence -- more commonly referred to as the MACD.

Since market conditions are always changing, traders will not only be able to implement a single trading strategy on each daily occasion. There will be many instances where no breakouts are visible and markets are caught in familiar ranges without any major impulsive moves. So, what should traders do in these instances?

These days, technical analysis is all the rage for day traders, but this trend does not mean trading news events should be avoided entirely. Instead, traders should wait for these events to occur so that the rest of the market has time to respond to these events in a clearly defined fashion.