Improved Economic sentiment of Europe favors Euro

Euro zone economic sentiment improved more than expected in September, data showed on Tuesday, mainly thanks to a rise in optimism in the services sector despite concerns about a second wave of the COVID-19 pandemic. The European Commission’s monthly survey showed sentiment in the 19 countries sharing the euro rising to 91.1 points this month from 87.5 in August, beating market expectations of an improvement to 89.0 points.

The gains were mainly a result of sentiment in services, the euro zone economy’s biggest sector producing some two-thirds of gross domestic product, improving to -11.1 from -17.2. Economists polled by Reuters had expected a rise to only -15.7. Optimism in industry rose to -11.1 from -12.8, falling short of expectations of a rise to -10.0, and consumer sentiment was in line with expectations rising to -13.9 from -14.7. Inflation expectations in the industry improved to -0.6 from -2.1 but continued to fall among consumers, easing to 12.5 from 16.9 in August.

Meanwhile, the S&P 500 futures are up 0.30% and weighing over the safe-haven dollar. The stock futures seem to have picked up a bid in response to the better-than-expected China Manufacturing PMI released early Wednesday.

Adding to it, News is crossing the wires that the probability of President Trump retaining office following the Nov. 3 election has declined to 40% following the conclusion of his first debate with the Democrat candidate Joe Biden. According to the odds-maker market, the probability of Trump winning the election stood at 42% before the debate.

President Trump and Democrat candidate Biden sparred over the economy, law enforcement, climate change, and election integrity during the first Presidential debate. While Trump said that the US is witnessing a V-shaped recovery from the corona-virus crash, Biden talked about the uneven recovery, increasing the gap between the rich and the poor. Trump added that the election outcome might take months to come.

ECB’s President Lagarde is due to speak in the Institute for Monetary and Financial Stability, in Frankfurt. The US will publish several macroeconomic reports, although the most important will be the ADP survey on private jobs’ creation, foreseen at 648K from 428K in August.

EUR/USD 4 Hour Chart:

Support: 1.1687 (S1), 1.1632 (S2), 1.1603 (S3).

Resistance: 1.1771 (R1), 1.1800 (R2), 1.1856 (R3).

In the prevailing market condition in favor of Euro, we expect a bullish trend for EUR/USD.

The Brexit positive headlines support pound

The Brexit-positive headlines strengthen the pound whereas crucial departure talks in Brussels challenge it. European negotiators have indicated for the first time that they are prepared to start writing a joint legal text of a trade agreement with the UK before fresh talks begin today.”

The bloc not only shows readiness to alter the legal statement, while taking clues from Britain but also drops the previous tone of warnings. The news also ignores the UK Cabinet Minister Michel Gove’s rejection to remove the clauses in the Internal Market Bill (IMB) that confront the Brexit Withdrawal Agreement (WAB).

It should be noted that the BOE’s Deputy Governor Sir Dave Ramsden mentioned that “At present, negative policy rates would be less effective as a tool to stimulate the economy.” Should the BOE Governor, Andrew Bailey, drop his recently bearish bias at the Chief Executives’ Club at Queen’s, GBP/USD bulls will have an additional reason to cheer.

On the other hand, US Democrats’ readiness to alter the demands over the coronavirus (COVID-19) aid package also favor the market’s risk-tone sentiment and helps the US dollar index (USDX) to recover Monday’s losses.

Looking forward, the Brexit teams of the UK and the EU, led by David Frost and Michael Barmier respectively, will meet in Brussels today. The departure negotiations were last stuck over the IMB and hence the same will become an important issue. However, talks concerning fisheries, level playing field also can trigger the British anger the call back the guys, which in turn will harm the GBP/USD prices.

It has also to be mentioned that the US President Election debate is likely to use American President Donald Trump’s tax payments as a fresh issue and may challenge the US dollar run-up.

The relatively low (new) COVID-linked deaths mean investors are not showing too much concern towards rising virus cases. Instead, they remain optimistic over the potential approval of a vaccine soon, which together with ongoing central bank support will probably help accelerate the recovery, says one of the analysts.

GBP/USD 4 Hour Chart:

Support: 1.2744 (S1), 1.2658 (S2), 1.2565 (S3).

Resistance: 1.2922 (R1), 1.3015 (R2), 1.3101 (R3).

The Brexit positive headlines build the investor’s confidence; we expect a bullish trend for Cable.

Strict lock-down condition impacts Global Market

Global market players are in a dilemma as the key risk catalysts are flashing mixed signals off-late. Fears of strict lock-down conditions hampering the global economic growth seem to favor the bear. Additionally, catalysts likely allegations on US President Donald Trump and Brexit uncertainty are an extra burden on the market’s mood.

As gold bears no interest for holding and is largely priced in USD across the globe, it can be quite sensitive to movements in US government bonds and the Greenback. Further strength in the US Dollar may continue working against its favor, particularly if risk aversion picks up pace in financial markets. At the same time, a flight to safety in the form of buying Treasuries may cushion the downside potential for gold.

US House Speaker Nancy Pelosi believes that the COVID-19 aid package deal is possible considering the Democratic preparation for a new package. House Democrats are drafting a $2.4 trillion stimulus proposal that may pass in the chamber. President Donald Trump has entertained backing a larger stimulus deal than previously. It would also need the Senate’s blessing.

On the other hand, New York Times alleged American President Donald Trump over income tax returns of $750 for 2016 and 2017. However, the Democratic leader termed it as “fake news” while showing strong belief to have tremendous victory in the election.

All eyes at the end of the week turn to the US non-farm payrolls report. Data out of the world’s largest economy continues to outperform economists’ expectations, but this has been by a narrowing margin since the middle of July. Markets are forward-looking, threat over the timeliness of a fiscal package could cast a shadow of doubt over swift economic recovery expectations, undermining another solid NFP report.

Amid all these catalysts, S&P 500 Futures track Friday’s upbeat performance of Wall Street while rising 0.36% to 3,298 by the press time. The risk barometer seems to await clearer signals to extend the latest recovery.

In doing so, the economic calendar may prove to be less helpful, containing no major data/events, while headlines concerning Brexit, pandemic, and US Presidential Election may decide the direction.

XAU/USD 4 Hour Chart:

Support: 1853.0 (S1), 1841.1 (S2), 1830.1 (S3).

Resistance: 1875.9 (R1), 1886.9 (R2), 1898.8 (R3).

Amidst the prevailing risk-prone market sentiment we expect a mixed trend for XAU/USD.

Psychological advantages of set and forget Trading

The approach is precise as its name implies – a system in which you setup everything prior to trading and then leave all actions to be automated according to predefined parameters.

You have to understand that set and forget trading is not a strategy, it is a trading approach.

You chose your entry, stop losses, and profit targets to effectively control your trades without actually having to do the up to the minute work once the trade has begun.

As we push ahead in the article, we will center on the mental perspectives and advantages of the set and overlook approach and why it will help your exchanging execution. The goal should be to make trading complementary to your lifestyle, which is exceptionally significant in reducing your stress level and also beneficial to your trading account.

Set and forget it

Not everyone has the ability to sit down for hours a day building their trading skills. Many of you have full time jobs, families, etc., yet still want to participate in the market. If this is you, using set and forget trading approaches to trade the market is highly recommended. This is done by using rule based systems to find your entries, exits, stops, & take profit levels. The ‘rules’ save your valuable time as you just have to spot the conditions for a legitimate setup, then put in your order. “Set it and forget it” investing style is to set your trades and Perhaps a walk away to read a book, golfing, or hang out on the beach

The Advantages Of Set and Forget 

There are quite a few set-and-forget advantages while your trading, let’s break down the advantages:

1. Keep your emotions in control lead to Success in Your Trading

 Trading can be as unpleasant or as peaceful as you need it to be, everything relies upon what you do. In the event that you stay there gazing at the chart throughout the night when you ought to be snoozing, you are doing to drive-up your body’s pressure reaction and your cortisol (stretch hormone) levels will soar both from the absence of rest and from over-considering your trading. In the long run, you will be drained, irate, disappointed, very nearly tears and left with an unfilled trading account.

By utilizing  set and forget trading approach, you can dispose of this pressure, stress, and losing! When implemented and followed rigidly, a simple set and forget approach can boost your trading performance. 

2. Mental Preparation allows the trades to run It’s own way

The most immediate benefit is mental preparation. When you set and forget, you are accepting that a trade will go wherever it wishes to go and you will allow that to happen. Set and forget means you won’t sit and follow trades live and go up and down on an emotional rollercoaster. Let the market do the work and wander off somewhere and do something fun. Spend more time with your family, be more available to friends, set and forget will enable you to reclaim your social life.

3. Help Reduces your obsessive on the chart

After the obvious stress relief that set and forget can bring, it can also help traders who are addicted to chart watching. Let’s be clear on this – chart watching is a lot of time a negative behavior. Traders who obsess over charts are likely to Make bad trade decisions and lose money as well as sleep and enjoyment from their careers.

Successful set and forget position

It is better to trade higher timeframes like daily, weekly, or monthly timeframes. Most other types of timeframes are just a waste of time, and they are way too unstable. You might not be familiar with all these terminologies and ideas if you are a beginner, and that’s okay because, in due course, you will learn more about various terms and strategy. When you trade higher timeframes, you can check the charts once during the day and attend to other things instead of spending hours staring at the charts for no reason. Focusing on the right trades give enough time to be involved in other productive activities.

4. Trading daily routine

Along with reduced anxiety, set and forget can boost up self-discipline and reinforce positive routines. Once you implement a well researched and thought out plan, it will start to ingrain itself as a repetitive, positive daily routine, supplementing potentially negative past behavior. Once the stress is gone and the positive behaviors are reinforced, you’ll likely see your sleep improve. Fewer screen hours, lower blood pressure, and an attitude of letting go will make downtime much more enjoyable.

5. Investing and the lack of leverage

One thing that you should realize about most “set and forget trading approaches”, is that they are more appropriate for investors and less appropriate for speculators. It’s not that you can’t use them as a speculator, just that you need the proper amount of trading capital. When you invest, you assume that the price of the underlying asset is going to appreciate over the longer-term. The average investor isn’t concerned about a 1% drop in an asset that they own. For example, if you were to buy Microsoft stock and it was down 1% today, you wouldn’t be that surprised or necessarily that concerned. You are probably looking to own that particular stock for several weeks, perhaps even months or years. You know that over the longer-term, Microsoft is likely to appreciate, or at the very least pay dividends. You may have an emergency stop placed in the market, but that might be 10 or 15% below current pricing. This is because you are only risking 10 or 15% because there is no leverage.

6. An easy approach to the implement

One of the biggest advantages of Set & Forget is the simplicity of the trading approach. The rules are clear, there is no need for intervention in the process. Once you have set the entry criteria for your trade, all you have to do is wait to see if your trade will reach stop loss or take profit.

7. Trade From Any location – Just Relax

One of the significant advantages of this method is that it makes it possible to trade from any location and also to have enough time to pursue other desires. The goal should be to make trading complementary to your lifestyle, which is exceptionally significant in reducing your stress level and also beneficial to your trading account.

8. Second income

Many people work full-time or part-time, studying, have children to raise and live to manage. Not everyone has the time to follow the charts and the trades they have made.

Still, these people are often looking for extra income, and trading is not a bad solution for them. That’s exactly why the set and forget is a great trading approach for them. It lowers screen time and allows them to both trade and deal with other things in their lives.

Conclusion

Considering all the above advantages, We hope you now realize the benefits of the “set and forget” trading style. It will undoubtedly take a while for you to get used to it by doing less of checking the computer and keeping up with market movements. The main thing is to keep yourself occupied with other activities and keep being productive that way, so you don’t find yourself idle.

Obviously there will be times trades are balanced and there are times that no measure of mechanical cash administration can abrogate the normal human feeling of trading, yet we are not after flawlessness, we are subsequent to preparing and practicing the brain to have the capacity to relinquish the need to control the results and control the market, after all the market will do what it will do with or without us watching it or trading it.