How To Identify Short/Long Term Market Expectations?

For day traders, it's best to research daily news flows and how they are influencing daily sentiment. For longer term traders it's best to study the current baseline factors that are driving each currency from a macro perspective.
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Identify Market Expectations – Long Term & Short Term

We just have a quick question here from Edmond, asking us how he can identify market expectations, and the current focus the market has, in both the short, medium, and the long-term.

So first of all, Edmond, thanks for the question. Now, there are a couple of our reports that I would advice you to use to find out exactly what the market is currently focusing on, and what the baseline expectations are for each of the major currencies.

RECOMMENDED READING: IDENTIFY MARKET EXPECTATIONS – LONG TERM & SHORT TERM

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Now from a very short-term, or day trading perspective, the best place to start each day is the Dominant Sentiment Theme reports, and now, that you can find in the Market Insights tab, and you’ll find that for every London session, as well as the New York session.

We offer a Dominant Currency Sentiment view that basically gives you exactly what we think is driving the currency markets right now, what the markets are focusing on for that particular session, and we do that for both the London, as well as the New York trading sessions.

Now then, there’s also the video commentary that’s also done on a daily basis, that basically gives you the current drivers, the current buyers for each of the major currencies on a daily basis, and obviously tracks that throughout the day.

Then turning to the Must Read section, we also have the Opening News sections, now there will be one for the Asia pack, for the London session, as well as the US session, that basically gives you a complete rundown of everything that has moved the markets recently, and what the markets are currently focusing on in terms of that particular day.

Now looking at the more medium to the longer term view, for finding those particular drivers, as well as the expectations, there are a couple of reports to use, as well.

The first one is the Sentiment Drivers Reports. Now that you can also find in the Market Insights tab. On a daily basis, if we scroll back we can see that we have the current Sentiment Drivers reports for all of the majors.

Now, what’s great about these reports, is they offer the primary drivers from the macro perspective, from the bigger picture fundamental view for each of the major currencies, the primary drivers, but they also provide you with the Future Sentiment Shifts section. Now that’ll give you the information that we are looking for, for providing the next possible shift in sentiment.

So what are the current expectations the market has for these things, and what are we waiting for to occur for offering the best tradable opportunities on these major currencies.

Then apart from the Current Sentiment Drivers report, you can also go to the Currency Research section, and from there you can open up the Fundamental Drivers reports.

What’s great about the Fundamental Drivers report, it basically give you the same information as the Sentiment Drivers report, but just from a more bigger macro theme view, giving you our current bias for each of the major currencies from a more macro perspective, as well as the reasoning for why that is currently moving the market, and why we take that particular bias on each of the major currencies.

So that is just a very quick rundown of what reports you can use to find that information in both the short, medium, and the longer-term, there Edmond. So I hope that helps. If there’s any other questions, please don’t hesitate to let us know.

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