Regardless of whether you are simply decentralized finance news playing around in Forex or doing a full-blown Forex trading situation, it is critical that you remain on top of the Forex news around the globe that could potentially effect your investments. As a matter of fact, some of the day traders around the globe say that following the news throughout the world can be somewhat addictive. With the globalization and decentralization of the news each and every day, it appears there is constantly something of interest that is happening.
Just to give you a few examples that are interesting from recent Forex news stories that FX day traders have encountered. Forex currencies are always traded in a pairs type of situation, so stories typically refer to two different currencies. These forex news stories directly are correlated to finance and currency.
– A recent story that indicated that traders had just tipped to a net short position right on the same day that the British pound increased to a 200 plus point rally.
– Forex trader carefully monitors the U.S. housing slump, trying to estimate the market for the mortgage futures.
– When the United States federal reserve made it’s latest rate cut, one Forex news service indicated that the overall expectations for the U.S. Dollar were “falling like a rock”.
– Fears of a recession within the United States might drive the
US dollar even lower than it already it is. (In Forex tradig, the reality that the dollar falls is not thought of as a negative, provided that the trader leverages the fall when making a trade for higher priced, higher value currencies around the world).
Financial and currency news are not just the only stories of news of interests to Forex traders as well as investors. Forex traders also have a lot of interest in political news that may have an impact on different countries currencies.
– Events that are tragic such as a political leader getting assassinated can effect the currency futures in the nation where the events happen and can also have a trickle down effect to the surrounding areas; for instance, the assassination of Benazir Bhutto in Pakistan.
– Disasters of the natural kind, such as a hurricane or typhoon or even an earthquake has the capability of consuming a great deal of a nations resources. Hence, Forex traders watch news of these types of natural disasters.
– Political events, such as the U.S. presidential election cycle has substantial consequences on the valuation of currency; hence, Forex news incorporates updates on presidential candidates, general elections, primary elections.
Impacted by the digital revolution, the world of finance has deeply evolved these past 20 years and is changing faster than ever before. Reduction of storage costs and the explosion of computing power have made possible finance applications that a decade ago, people only dreamed about. In this fast and complex environment, banks are in strategic need of recruiting young talents with skills that were not necessarily associated with finance in the past. Choosing to prepare for some of the key positions of tomorrow means you will be sought after by top banks when entering the professional world at the end of your studies.
Blockchain is the technology that was introduced by the Bitcoin. It was originally designed as a decentralized digital currency. The key behind blockchain technology is that it allows reliable transactions of value between several parties without the need for a central authority. The potential applications to the banking industry are still uncertain. We could see it replace the current system for transferring money between local and global banking entities. The strengths of such a peer-to-peer system could also be used to propagate, between financial institutions, details on each economic agent.That would allow a bank to know very quickly if a particular client can be trusted, and thus greatly reducing compliance costs.
One thing is certain however, this technology will have a huge impact on the industry in the decades to come. Most major banks have invested in research on this technology. As Simon McNamara from RBS has said “I don’t know what’s going to succeed. What I’m certain of is that we are going to see blockchain solutions and peer-to-peer solutions emerging in our industry and we want to be close to that development.” Blockchain specialists will have a strong interest in both computer science and economy.
This one may be the most obvious. Banks are already recruiting loads of data scientists, and giving them some of the best paid positions in the industry. However, this is only the beginning of the revolution. As the algorithms get more and more sophisticated, the mission of computers will slowly move from applying a strategy to finding strategies by surfing huge amount of data.
Data scientists will design systems that will explore huge databases containing all kinds of data; historical prices, news, and even personal information on clients.; All of which will uncover invisible correlations and unknown relations between objects. It will then be able to run a strategy based on these new findings.
Ultimately, banks will have computers that will learn on their own how to make money from a huge compilation of diverse data. The focus of the competition will be to attain the best data and input it into these computers. This will be the application of machine learning to finance.
A data scientist is a specialist in statistics that also has an interest in computer science.
The most experienced bankers will tell you, short term moves in price are explained in part by human psychology. In order to improve their decision-making process, banks will have to take these human parameters into account.Technical analysis can be seen as a precursor of this discipline, its goal being to capture some human behaviors by spotting recurring pattern in historical prices.
However, more recently, academics have taken a more scientific approach to these questions and interest is growing among bankers.
In the near future, banks will most likely be looking for people able to apply psychology and sociology, among other techniques, to the financial markets. Such “financial psychologists” will need to be specialists in human science and economy.