U.S. Treasury Sec. Janet Yellen Speaks on Inflation Risks & U.S. Employment Rates

Following President Biden’s $1.9 trillion pandemic relief package being signed into law this past week, U.S. Treasury Secretary, Janet Yellen, has assured that U.S. inflation risks are reasonable and full employment is on track to be achieved by 2022.

Yellen has shared those same views in the past, but said they would only be achievable if President Biden’s stimulus package goes to plan. She also spoke about the possibility of the economy’s recovery and regaining full employment by next year when the pandemic is under control. Support from the stimulus package includes direct payments to eligible individuals, expansions of child tax credits, further funding and testing for vaccine distribution nationwide. 

Speaking on inflation risks, Yellen said that they weren’t “significant” but if they continue to materialise that they would be monitoring the situation and are capable of addressing it with the necessary tools. Recognising that a rise for the economy equals a price increase for consumers, Yellen stated that increases would not be extreme and that they are manageable. 

Although U.S. unemployment rates continue to climb, which is understandable when considering the amount of individuals who have had to drop out of labor jobs in the last 12 months, new job opportunities are gradually increasing. In February, 379,000 job roles were added by employers (March NFP). Applications for jobless benefits were lower than the forecasted value last week, dropping to values not seen since November 2020. 

Keeping a close eye on NFP numbers & the tone towards inflation will be critical in predicting USD trends in the coming months.

What a Treasury Secretary Janet Yellen would mean for markets

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Leverage

In terms of trading, leverage is borrowed capital that allows you to increase your potential profits or losses. In Forex a common leverage amount offered is 100:1, meaning that for every $1 you have you can control $100 in equity.

Margin

Margin is the collateral you must keep in your account to maintain a leveraged position.

Open A Forex Trading Account

Opening a trading account with an Australian Forex Broker is an easy process that can typically be completed within a matter of minutes. To open an account with a forex broker there are three main steps:

  1. Fill out personal information
  2. Verify account with documents
  3. Client Qualification questionnaire

To open an account, you will need to provide your full name, nationality, email and phone number. Once you’ve completed these and set up a password you will typically be asked to choose the type of account and the trading platform, as well as your base currency. You will also be asked for your country of tax residence and tax details (TFN for Australians). Typically, providing specific tax information such as TFN is not compulsory. Brokers will also ask if you are a politically exposed person. The final personal information you must provide is your contact information, including your full address and how you would prefer to be contacted

The next section is financial information. Here you must provide your employment status information, annual income bracket and liquid net worth. Once you are through this section, the broker will ask your about your trading experience (Years) on securities, options, commodities, futures, CFD’s and OTC Forex Exchange, and if you understand the risk of margined transactions.

The client questionnaire assesses whether your knowledge of CFD’s is suitable for opening an account.

Margin Call

A margin call is a demand from the broker for the client to deposit funds to meet margin requirements for open/closed positions.

Short Position

A short sell is a position where the trader anticipates the price of an instrument to decrease, and sells a borrowed asset to buy it back in the future.

Long Position

A long position is a buy position, where the trader anticipates the price of an instrument to increase.

Test2

This is a test, all systems go!

Indicator

An indicator is something that assists traders finding where to enter and exit trades. An indicator could be calculated like a moving average or RSI or a drawn support/resistance level.