Forex -Glossary Of Technical Terms -2

(1) DEFLATION-Deflation is a drop in the average prices for goods and services generally tied to an increase in the value of the currency. More simply, your money buys you more now than it did previously.

This can be triggered by a drop in the availability of currency or credit and is tied to decreases in spending by individuals, companies, and the government. Since deflation means that currency will be worth more later, companies tend to further reduce spending, leading to less demand for materials and workers. This increased unemployment. Increased unemployment reduces consumer spending more. Decreased production and decreased employment reduce the amount of taxes collected by the government, thus decreasing government spending even more.

The most famous instance of deflation in modern times as during the Great Depression of the 1930's.

 

(2) DOVISH-Statements that give indications of weakness in a currency. Statements like "We expect a massive drop in both exports and industrial productivity during the next 3 quarters, so we may have to cut interest rates further to prevent a total economic collapse." would be dovish.

People trying to trade speeches often listen for hawkish and dovish comments.

 

(3) E.M.A- Exponential Moving Average. Similar to an SMA, except that exponential moving average give more weight to recent values and less weight to older values. This allows exponential moving averages to react more quickly than SMAs in the event of sudden shifts in a trend.

 

(4) FIB- Fib is short for Fibonacci.

 

(5) FIBER-Slang for the EURUSD pair.

 

(6) F.O.M.C-Federal Open Market Committee. Consists of the Fed Board of Governors plus 5 of the 12 Federal Reserve Bank presidents.

They set the key interest rates for the USA, and also control the money supply.

 

(7) FORTY TWO- Although 42 does not come before 1, according to both the Encyclopedia Galactica and the Hitchhiker's Guide to the Galaxy, it is the ultimate answer to the ultimate question of Life, the Universe, and Everything.

Some (for example, Cyclon) have claimed that since 42 does not come before 1, and is not one of the Fibonacci numbers, that it cannot be the true answer to the ultimate question of Life, the Universe, and Everything.

Although the point that 42 does not come before 1 must be conceded, there is no reason to believe that the true answer to the ultimate question of Life, the Universe, and Everything should specifically have to come before or after 1.

Also, although the most commonly used Fib sequence begins 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc. does not contain 42, there is no firm rule that a Fib sequence has to begin with 1, 1. Thus, the reader is invited to contemplate the following Fib sequence:
2, 2, 4, 6, 10, 16, 26, 42, 68, etc.

Therefor, 42 is a Fib number from a less commonly used, but equally valid Fib sequence.

 

(8) G.D.P- Gross Domestic Product. This is the total cash value of all finished goods and services produced inside a nation's borders during a specified time period. An increasing GDP is generally considered a good sign for a nation's economic health. If the released number for GDP is significantly greater than the forecast, this usually has a positive effect on the value of a nation's currency.

 

(9) HAWKISH-Statements that aggressively supporting a currency's value. Statements like "We are definitely increasing interest rates soon." would be hawkish.

People trying to trade speeches often listen for hawkish and dovish comments.

 

Loading