In this week’s live session I tried to explain why the New Zealand dollar strengthened last week and caused havoc with many of our trades.
-New Zealand were going to raise interest rates
-Then said they weren’t…on twitter
-They then went into lockdown…because of one case of Covid.
-Last week they said they were ‘definitely’ on course to raise interest rates again.
-And this week they are coming out of a hard lockdown.
You are never going to know about these external factors before a government, bank or any large institution. The key is to have your risk management in place so that these losses are managed and don’t blow your account. Protect your capital and live to fight another day.
I also gave an update on the M2 and Earth & Sky setups for the week. (All 3 ‘pure’ E&S setups are with the NZD, so remember correlation).
Izhak has also posted a really really interesting fundamental article here called Babies Beating Wall Street´s Top Money Managers?