S&P 500 down -0.43%Nasdaq down -0.39%Dow Jones down -0.62%Russell down -0.56%The US Department of Justice subpoenaed the Federal Reserve in an unprecedented move that escalated the ongoing conflict between the White House and the Federal Reserve.The DOJ is trying to find whether Powell made misleading or false statements to the Senate Banking Committee regarding the scale and costs of the Fed headquarters renovation project.This is of course just a political pretext to intimidate Fed Chair Powell given his resistance to lower interest rates quickly. This is the same thing that happened to Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.Given the strong hurdles to fire the Fed Chair or Fed Governors, this is still likely to be a short-lived episode for the market. Nonetheless, the uncertainty will still remain and traders will keep their focus on a potential indictment and the Fed's Cook case hearing on January 21.Tomorrow, the focus will turn to the US CPI report. Last month, we got a big downside surprise that triggered a rally in the stock market as lower inflation would give the Fed more conviction to keep cutting interest rates. The data was taken with a pinch of salt though given the shutdown related issues. A hot report could add pressure on the stock market in the short-term on a hawkish repricing, while soft data should give it a boost as it would keep the rate cuts on the table while the economy continues to strengthen. This article was written by Giuseppe Dellamotta at investinglive.com.

Headlines:Silver rallies to new all-time highs on renewed Fed independence worriesGold jumps to a new all-time high as the DOJ seeks a pretext to fire Fed Chair PowellDollar stays on the backfoot amid unease over Fed independenceThe dollar isn't the only major currency having a bad dayEuropean stocks pushed lower at the open, US futures a drag on threats to the FedThe market is telling Trump to stop interfering with Federal Reserve independenceFed rate cut calls get pushed back after the US jobs report on FridayEurozone investor morale clocks in better than expected to kick start the new yearMarkets:GBP leads, USD lags on the dayEuropean equities mixed; S&P 500 futures down 0.5%US 10-year yields up 3.2 bps to 4.203%Gold up 1.8% to $4,588.93WTI crude oil down 0.3% to $58.93Bitcoin up 0.1% to $90,708The main headlines to start the week is Trump's continued attack on Fed independence, as Powell is put under criminal investigation in a bid by the administration to try and bend the central bank to its will. Powell's press conference was quite something and if you watched it without context, you might even think it was scripted and AI-generated. It was powerful and sends a clear message of the kind of unprecedented situation we're seeing with the central bank.In any case, markets are already casting their vote early and quickly. And the bottom line is, the dollar and US stocks do not like it.The greenback suffered in European morning trade, though the larger moves came during Asia trading. EUR/USD stretched higher to close in on 1.1700 before sitting now around 1.1680, up 0.4% on the day. GBP/USD is also holding higher, up 0.5% to 1.3463 while USD/CHF is down 0.5% to 0.7975 currently.The one major currency that failed to take advantage of the dollar's plight is the Japanese yen. USD/JPY dipped a little to 157.60 but quickly climbed back up to near unchanged levels now at 157.88. That clearly shows the lack of appetite towards the yen as well even during a time when the dollar is struggling.The big winner of all of this? Precious metals. Gold delivered another push to fresh all-time highs and briefly clipped $4,600 while silver jumped up over 5% to keep above $84 on the day. Up, up, and away. No stopping the metals train. ?In the equities space, European indices followed US futures lower to open but investors managed to regain some composure after. The DAX is now trading higher again but there are still some light declines seen in the CAC 40 and IBEX. As for US futures though, the mood music is more pessimistic with S&P 500 futures keeping down 0.5% and Nasdaq futures down 0.7%.Now, it's about how Wall Street will take to the news in anticipation of some other key developments coming up later this week. We have the US CPI tomorrow, big banks kicking off earnings season, the potential Supreme Court ruling on tariffs, and of course more geopolitical headlines involving Trump and the likes of Greenland and Iran. This article was written by Justin Low at investinglive.com.

FUNDAMENTAL OVERVIEWSilver extended the gains into a new record high today following the news of the US Department of Justice subpoenaing the Federal Reserve. This is just another attack on Fed independence as the White House continues to seek pretext to fire Fed Chair Powell. We have already seen this kind of intimidation with Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.Silver rallied on the news because a potential loss of Fed independence increases the risk of higher inflation in the future and US Dollar debasement. The probability of the loss of Fed independence remains very low though as the consequences would be too big not only for the US but the global economy as a whole.Tomorrow, the focus will turn to the US CPI report. We got a good NFP report on Friday, with the unemployment rate falling to 4.4%. A January Fed rate cut is now out of the question, but the market still sees two rate cuts by the end of the year, with the first one expected in June. A hot inflation report might trigger a bit of a hawkish repricing and weigh on silver in the short term. On the other hand, soft data should keep on supporting the upside.In the bigger picture, silver should remain in an uptrend as real yields will likely continue to fall amid the Fed’s dovish reaction function. But in the short term, a hawkish repricing in interest rate expectations could weigh on the market.SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that silver bounced on the trendline and extended the rally into a new all-time high today following the DOJ news. There’s not much else we can glean from this timeframe as the best spot for longs in terms of risk/reward was around the trendline. We need to zoom in to see some more details.SILVER TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the break into new record highs today. The previous all-time high around the 82.68 could act as support now. We can expect the buyers to step in around these levels with a defined risk below the 82.68 level to keep targeting new highs. The sellers, on the other hand, will want to see the price falling back below the 82.68 level to position for a drop into the major trendline.SILVER TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we have a minor upward trendline defining the bullish momentum on this timeframe. From a risk management perspective, the buyers will have a better risk to reward setup around the trendline to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the major trendline next.UPCOMING CATALYSTSTomorrow we have the US CPI report. On Wednesday, we get the November US Retail Sales and US PPI reports, so it’s going to be old data. We also have a potential US Supreme Court decision on Trump’s tariffs. On Thursday, we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.

In a report on Monday, Goldman Sachs is expecting 10-year Treasury yields to rise to 4.40% by the end of 2026 citing a US economy which will continue to stay underpinned.The firm anticipates US economic growth to hit 2.3% and that will see it keep above the 2% long-term trend. Adding that more robust growth does tend to "steepen the yield curve because you have growth running above its trend rate and then while we do expect the Fed to be cutting, the objective of rate cuts is actually to stimulate the economy".Goldman Sachs goes on to note that it would "self-defeating" for the Fed to keep rates at "an abnormally low level" because that would get markets to just simply "steepen the yield curve".As a reminder, the steepening in which they are pointing out here is that long-term yields is outpacing short-term yields i.e. wider gap - which often sends a signal of expectation for stronger economic growth down the road.Well, rising fiscal risks and Trump's constant attack on Fed independence are also other factors to consider as that would see a premium in wanting to hold US debt. But more simply put, market expectations are also of the view that incumbent Fed chair Powell has already delivered his final rate cut back in December.It is now on Trump's appointed successor to Powell to take over and drive a narrative shift. Otherwise, market players don't seem to be thinking that rate cuts are coming any time soon just yet. So, there's that as well.Still, traders are pricing in at least two rate cuts for the whole of 2026. That being said, it's still early in the year and these odds tend to move around quickly based on macro developments. So, to say that the rate cuts priced in is a given would be a mistake. This article was written by Justin Low at investinglive.com.

FUNDAMENTAL OVERVIEWUSD:The greenback weakened across the board today following the news of the US Department of Justice subpoenaing the Federal Reserve in an unprecedented move that escalates the ongoing conflict between President Trump and Fed Chair Powell for not lowering interest rates faster. The official reason is that the DOJ is focusing on the Federal Reserve headquarters renovation to see whether Powell made misleading or false statements to the Senate Banking Committee regarding the scale, costs and luxury features of the project. In reality, everybody knows that this is just a political pretext to intimidate the Fed Chair and force him to cut interest rates faster. We have already seen this kind of intimidation with Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.The US Dollar sold off on the news because a potential loss of Fed independence increases the risk of uncontrolled inflation in the future leading to a debasement. The probability of the loss of Fed independence remains very low though as the consequences would be too big not only for the US but the global economy as a whole.Tomorrow, we have the US CPI report and that could be a major market-moving release. A hot report will likely trigger some hawkish repricing in interest rate expectations and support the US Dollar. On the other hand, soft data should keep the market on expecting at least two rate cuts by the end of the year potentially weighing on the greenback further. The outlook for the USD remains neutral/bearish.CAD:On the CAD side, the Canadian labour market report on Friday didn’t change anything for the BoC. In fact, despite the headline employment change beating expectations, wage growth moderated and the unemployment rate increased (although that came with an increase in the participation rate). Overall, it was a good report but not something that would change the BoC’s stance.As a reminder, the BoC held interest rates steady at the last policy meeting but didn't validate the market's rate hike bets just yet. In fact, the central bank kept a cautious tone and highlighted the weak details in the last GDP and employment reports despite acknowledging the improvements. The last Canadian inflation report saw the Trimmed Mean Y/Y falling to 2.8%, 0.1% lower than consensus and 0.2% than the prior month. That led to a slightly dovish repricing in interest rate expectations. The market now sees a total of 11 bps of tightening by year-end. The outlook for the CAD remains neutral/bullish.USDCAD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that USDCAD squeezed higher into the 1.39 handle and it’s now pulling back following the DOJ news. The sellers stepped in at the 1.39 resistance with a defined risk above it to position for a pullback to the 1.38 handle. The buyers, on the other hand, will have a better risk to reward setup around the 1.38 support to target the 1.41 level next.USDCAD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that we have an upward trendline defining the bullish momentum. The buyers will likely lean on the trendline with a defined risk below it to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 1.38 support next.USDCAD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we have another minor downward trendline defining the current pullback into the major trendline. The buyers will have a better risk to reward setup around the major trendline and will likely increase the bullish bets on a break above the minor counter-trendline. The sellers, on the other hand, will keep on leaning on the minor downward trendline to keep pushing into new lows targeting a break below the major trendline. The red lines define the average daily range for today. UPCOMING CATALYSTSTomorrow we have the US CPI report. On Wednesday, we get the November US Retail Sales and US PPI reports, so it’s going to be old data. We also have a potential US Supreme Court decision on Trump’s tariffs. On Thursday, we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.

Introduction: What Is Copy Trading?Copy trading is an online investment method that allows you to automatically follow and mimic the trades of experienced traders as they happen. Instead of having to study the markets or make decisions on your own, you can choose a professional trader (also known as a “signal provider”) to follow. Your investment account will then automatically match the trades they make, based on how much money you decide to invest.This method allows beginners to get involved in markets like forex (foreign exchange), equities, cryptocurrencies, and CFDs (contracts for difference) without needing to have a lot of technical knowledge or constantly check the market.Example:For example, if the trader you follow opens a trade worth $1,000 in EUR/USD, and you decide to invest $500, your account will automatically open a trade worth $500, which is half of what the trader is investing.Copy trading is popular on platforms like eToro, ZuluTrade, and NAGA because it combines social networking with investing. This means that newcomers can learn by watching how professionals trade and possibly earn returns at the same time.How Does Copy Trading Work?Copy trading links your investment account to a professional trader’s account, so every trade they make is automatically mirrored in your account in real-time and in proportion to the amount of money you have set aside for copying.Step-by-Step ProcessChoose a Copy Trading Platform: Use popular platforms like eToro, ZuluTrade, or NAGA. These platforms have networks of professional traders whose performance data, risk levels, and trading histories you can review.Select a Trader to Follow: Look at each trader’s profile, which includes their past performance, risk level, preferred markets (like forex, stocks, or crypto), and trading style.Allocate Funds: Decide how much money you want to invest in copying that trader. Your trades will then mirror theirs according to your investment amount.Example: If you invest $1,000 and the trader opens a $10,000 position, your account will automatically open a trade worth $1,000, which is proportional to your investment.Automatic Execution: When the investor enters or exits a position, your account will instantly and automatically do the same.Monitor and Adjust: You have the option to pause, stop copying, or change your allocated funds at any time.FeesMost platforms earn money through spreads (the difference between buying and selling prices), commissions, or a percentage of profits. Always check the fee structure before you start.Tip for beginners: Start with small amounts and consider copying more than one trader to spread out your risk.Types of Copy TradingThere are different ways to engage in copy trading, depending on your goals, risk tolerance, and the platform you choose.Automatic Copy Trading: This is the most common method where your account automatically mirrors every trade of the selected trader in real-time. It’s perfect for beginners who want a hands-off approach.Manual Copy Trading: You can follow seasoned professionals, but you have the choice of which trades to replicate and when. This gives you more control and a chance to learn market analysis.Social Trading: This combines trading with social networking. You can follow traders, share insights, comment on strategies, and copy trades directly from their posts or profiles.Signal Copying (Mirror Trading): You subscribe to trade signals from expert professionals or automated systems. When a signal is triggered, it automatically executes the same trade in your account.Beginner Tip: If you are completely new, start with automatic copy trading, and then try manual or social trading as you become more comfortable and knowledgeable about the market.Why Try Copy Trading? (Advantages)This method is gaining popularity due to its unique benefits for beginners and busy investors.Easy Access for Beginners: You can start trading without needing a lot of market knowledge or years of experience. By following expert investors, you can learn by observing their strategies while gaining market exposure.Time-Saving: There’s no need for constant research or monitoring of charts. Trades are executed automatically, making it ideal for those with limited time.Diversification: You can copy multiple traders across different markets like forex, stocks, and crypto, which helps spread your risk instead of relying on just one strategy.Transparency: Reputable platforms provide detailed statistics about investors, including their performance history, risk scores, and trading styles, helping you make informed choices about whom to follow.Flexible and Scalable: You can start with a small investment and increase or decrease the amount as you gain confidence. You can also stop copying at any time without penalties.Tip: While copy trading makes investing easier, your success still depends on choosing skilled traders and managing your risk carefully.Risks of Copy TradingWhile copy trading simplifies investing, it also comes with important risks that you should understand before getting started.Market Risk: Even skilled traders can lose money, which means if the trader you follow loses money, your account will also reflect those losses.Dependence on the Trader: Your success relies on the skills and decisions of the individual you choose to follow. If they change their strategy suddenly or experience a series of poor trades, your results will be impacted.Overconfidence: Because trades are automated, it’s easy to underestimate the risks or invest too much money. Relying too heavily on a single trader can lead to significant losses if their strategy doesn’t work.Platform Risk: If the copy trading platform has technical issues or isn’t regulated, it could affect your trades or funds. Always choose a regulated and reputable broker.Fees and Costs: Some platforms charge performance fees, spreads, or commissions, which can reduce your overall profits over time.Important: Diversify by copying multiple traders, start small, and regularly review your performance. Copy trading is simpler than manual trading, but it’s not without risks.Who Uses Copy Trading?Copy trading attracts a variety of participants, from beginners to experienced investors, each with different goals:Beginner Traders: New investors often use copy trading to learn by observing professionals while engaging in the markets without making all the decisions themselves.Busy Investors: Those who don’t have time to research or actively manage their investments rely on copy trading to gain exposure to forex, shares, cryptocurrencies, or CFDs while focusing on other commitments.Experienced Traders: Skilled investors sometimes follow other experts to diversify their strategies or learn about different markets or trading styles.Long-Term Investors: Some long-term investors allocate part of their portfolio to copy trading for short-term opportunities or to diversify beyond traditional investments like shares or ETFs.Whether you’re a complete beginner or an experienced investor looking for diversification, copy trading offers a flexible way to access global markets while benefiting from the expertise of seasoned traders.How to Start Copy TradingStarting with copy trading is straightforward if you follow these steps:Step 1 – Choose a Reputable PlatformSelect a trustworthy copy trading platform with strong security, transparent fees, and a good selection of traders to follow.Step 2 – Open and Verify Your AccountCreate an account and complete the platform’s KYC (Know Your Customer) verification process, which usually requires proof of identity and address.Step 3 – Explore and Research TradersBrowse the available traders and examine their:Performance historyRisk scoreTrading style (forex, stocks, crypto, etc.)Average trade durationLook for consistency rather than just high short-term returns.Step 4 – Allocate Your FundsDecide how much money you want to allocate to each trader.Example: If you allocate $1,000 to a professional and they open a $10,000 position, your account will automatically mirror the trade at the same ratio.Step 5 – Monitor and AdjustAlthough copy trading is mostly hands-off, it’s important to:Regularly review performanceAdjust allocations as necessaryStop copying if a trader’s risk level or results changeStep 6 – Manage Your RiskDiversify by following multiple investors instead of concentrating all your funds into one strategy. Start small and increase your allocation as you gain confidence. Set personal limits for your overall risk.Beginner Tip: Consider using a demo account first to practice and understand how copy trading works before investing real money.Quick Glossary of Copy Trading TermsCopy Trading: A method where your account automatically replicates the trades of a professional.Trader/Signal Provider: The experienced professional whose trades you replicate.Allocation: The amount of money you dedicate to copying a specific trader.Social Trading: A feature that combines trading with social networking, allowing you to follow, interact with, and copy traders.Risk Score: A rating that indicates how aggressive or conservative an individual's strategy is.Stop-Copy: A feature that allows you to stop following an individual and close all replicated positions immediately.Performance Fee: A percentage of profits that some platforms charge for successful trades copied from a professional trader.Diversification: Spreading your funds across multiple professionals or strategies to mitigate risk.Mirror Trading: Another term for copy trading, where your account automatically replicates another individual's strategy.Demo Account: A practice account where you can test copy trading with virtual money before risking real funds.Copy Trading ExamplesTo help you understand how this method works in real situations, here are two simple examples:Example 1: A Winning TradeSetup: You allocate $1,000 to copy a professional forex trader who invests 10% of their account in a EUR/USD buy trade.Action: Your account automatically opens a EUR/USD trade worth $100 (10% of your allocation).Outcome: The trader closes the position for a 5% gain, and your account mirrors the result.Result: You earn a $5 profit on that trade (minus any platform fees).Example 2: A Losing TradeSetup: You copy a crypto trader with the same $1,000 allocation. They invest 20% of their funds in Bitcoin.Action: Your account mirrors the trade with a $200 Bitcoin position.Outcome: Bitcoin drops by 8% before the trader closes the trade.Result: You lose $16 (8% of $200), proportional to your allocation.These examples show how your profits and losses are directly linked to the trader you copy and the amount you invest.Final Thoughts / Next StepsCopy trading provides a simple way to participate in financial markets by automatically mirroring the trades of experienced traders. It’s perfect for beginners who want to learn from professionals and for busy investors looking for a hands-off trading approach.If you’re ready to start, here’s a quick roadmap:Educate Yourself First: Understand how copy trading platforms work, including their fees, risk management, and how to evaluate trader performance.Start Small: Begin with a modest investment or use a demo account to practice before putting in larger amounts.Diversify Your Portfolio: Follow multiple traders with different strategies or markets (forex, crypto, stocks) to reduce risk.Monitor Performance: Even though it’s mostly hands-off, regularly review the traders you follow and make adjustments as necessary.Choose a Reputable Platform: Use regulated platforms for added security and transparency.Remember: This method is not without risks. Your success depends on the traders you choose to follow and how well you manage your investments. Focus on achieving consistent, long-term results rather than trying to make quick profits.With the right preparation, this strategy can be a powerful tool to grow your investment portfolio while learning from experienced traders.Continue Your Trading JourneyIf you’re interested in exploring other growing markets, check out our next guide, "What Is Prop Trading – A Beginner’s Guide," which explains how prop trading works, the risks involved, and how to get started safely.When you’re ready to begin this approach, be sure to choose the best platforms. Our "Best Copy Trading Platforms of 2025" page compares trusted platforms side by side to help you find one that suits your goals.Legal disclaimerThis content is for educational purposes only. It is not financial advice or a solicitation to buy or sell any security or derivative. Trading involves risk, and past performance does not guarantee future results. Always verify broker licensing with official regulatory authorities.FAQsWhat is copy trading in simple terms?Copy trading lets you automatically mirror the trades of experienced investors. When they buy or sell an asset, your account executes the same trade in real-time based on the funds you allocate.How does copy trading work?You select a trader on a platform like eToro or ZuluTrade, decide how much to invest, and the platform copies that trader’s moves into your account. Your profit or loss matches the trader’s performance, scaled to your investment amount.Is this approach illegal?No, copy trading is legal in most countries as long as you use a regulated broker or platform. Always check that the platform is licensed by a reputable authority to ensure compliance and safety.How profitable is copy trading?Profitability can vary. Some traders achieve consistent gains while others may incur losses. Your results depend on the skill of the traders you follow, market conditions, and how well you manage risk and diversification.What is an example of copy trading?For instance, if you allocate $1,000 to copy a trader who invests 10% of their account in a EUR/USD trade, your account will automatically open a $100 trade. If the trader earns a 5% profit, you also gain $5 (minus platform fees).Is this method good for beginners?Yes, it is beginner-friendly because it doesn’t require in-depth market analysis of the market. It’s a hands-off way to gain exposure to forex, stocks, or crypto while learning from experienced traders.Can I make money with copy trading?Yes, but profits are not guaranteed. Your success relies on the investors you choose to follow, their strategies, and overall market conditions. Diversifying across multiple traders can help reduce risk.How much do I need to start using this method?Most platforms allow you to start with as little as $100–$200, although some professional traders may require a higher minimum allocation.Is copy trading risky?Yes, all trading carries risk, and you can lose money if the traders you copy perform poorly. Market volatility, sudden strategy changes, or following just one trader without diversification can increase potential losses.Do I control my funds?Yes, you can stop copying a trader, adjust your allocation, or close individual trades at any time through your platform.What fees are involved?Common fees include the spread (the difference between buy and sell prices), performance fees, and sometimes small commissions. Review the platform’s fee structure before starting.Is copy trading legal?Yes, it’s legal in most regions, but always select a platform regulated by authorities to ensure compliance and security. This article was written by Itai Levitan at investinglive.com.

If there's one other takeaway from the backlash against the dollar amid Trump's attack against Fed independence, it is that the Japanese yen has all but lost its allure as a haven asset and place of shelter for investors. In any other time when risk aversion hits and the dollar credibility/confidence is shaken, it would be a perfect storm for the yen to surge higher. However, not at this moment it would seem.The yen has its own issues, not least with a government that is locking horns with its own central bank on policy setting. And that has created a lot of disdain for the currency alongside fiscal concerns as Japan's mounting debt keeps on ballooning up.USD/JPY has tried to push for a move lower twice today and in both times, sellers look to be coming up short. Now, Wall Street might still punish the dollar harder later in the day. But if there's anything to be said about the yen, it is that the currency is no longer what it used to be.The pair is now trading back up to near unchanged levels at 157.92 with the yen itself caught in a dogfight with the dollar for the worst performing major currency today - by some margin.If something can't go up on good news, then there's definitely going to be trouble ahead. I wouldn't be surprised to see markets step up bets for potential intervention if things continue down this path. And from the price action, it speaks a lot about the distaste in sentiment towards the yen currency at the moment. This article was written by Justin Low at investinglive.com.

FUNDAMENTAL OVERVIEWUSD:The greenback weakened across the board today following the news of the US Department of Justice subpoenaing the Federal Reserve in an unprecedented move that escalates the ongoing conflict between President Trump and Fed Chair Powell for not lowering interest rates faster. The official reason is that the DOJ is focusing on the Federal Reserve headquarters renovation to see whether Powell made misleading or false statements to the Senate Banking Committee regarding the scale, costs and luxury features of the project. In reality, everybody knows that this is just a political pretext to intimidate the Fed Chair and force him to cut interest rates faster. We have already seen this kind of intimidation with Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.The US Dollar sold off on the news because a potential loss of Fed independence increases the risk of uncontrolled inflation in the future leading to a debasement. The probability of the loss of Fed independence remains very low though as the consequences would be too big not only for the US but the global economy as a whole.Tomorrow, we have the US CPI report and that could be a major market-moving release. A hot report will likely trigger some hawkish repricing in interest rate expectations and support the US Dollar. On the other hand, soft data should keep the market on expecting at least two rate cuts by the end of the year potentially weighing on the greenback further. The outlook for the USD remains neutral to bearish.EUR:On the EUR side, the ECB remains in a neutral stance reaffirming its data-dependent and meeting-by-meeting approach to policy decisions. ECB members have repeatedly said that the current policy is appropriate, and they won’t respond to small or short-term deviations from their 2% target. Moreover, they added that the next moves could be either a cut or a hike. The data has been supporting the central bank’s neutral stance, with inflation data last week surprising to the downside. The outlook for the euro remains neutral.EURUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that EURUSD jumped today following the news of the US DOJ subpoenaing the Federal Reserve in relation to the Fed’s headquarters renovation. The price is approaching the key resistance around the 1.17 handle where we can also find the downward trendline for confluence. That’s where we can expect the sellers to step in with a defined risk above the trendline to position for a drop into new lows. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the 1.18 handle next.EURUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the reaction to the DOJ news with a strong rally that erased most of last week’s dollar gains. There’s not much else we can glean from this timeframe as the sellers will have a better risk to reward setup around these levels to keep targeting new lows, while the buyers will need a breakout to open the door for new highs.EURUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that the price is trading at the upper bound of the average daily range for today. In such instances, we can generally see some consolidation or a pullback before the next move. UPCOMING CATALYSTSTomorrow we have the US CPI report. On Wednesday, we get the November US Retail Sales and US PPI reports, so it’s going to be old data. We also have a potential US Supreme Court decision on Trump’s tariffs. On Thursday, we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.

Eurozone January Sentix investor confidence -1.8 vs -4.9 expectedPrior -6.2That marks the highest reading since July last year with a modest improvement seen especially in Germany. Sentiment towards Europe's largest economy nudged up by 6.3 points to -16.4, with the expectations component in particular sending a positive signal with an increase of 6.8 points.A quick summary infographic by Sentix:The commentary noted that private investors had been much more skeptical about the euro area economy even as professional investors were noticeably more positive. But the latest report now shows that private investors are now also coming on board, as the optimism continues at the start of the year.Inflation concerns were less pressing with investors expecting prices to ease slightly, thereby reducing the pressure on the bond market.Looking into detail, Germany showed a significant improvement in economic sentiment. However, the current situation index remains strongly recessive at -36.0 points. That indicates some doubt on whether the investment blockade will be lifted and Germany will regain its footing in 2026.As for the outlook of the US economy, investors remain calm. The overall index for the US rose from 9.7 to 13.2 points - the highest since February last year. That underscores the robustness of the US economy despite many political distractions. This article was written by Justin Low at investinglive.com.

The main news of the day today is the US Department of Justice subpoenaing the Federal Reserve in an unprecedented move that escalates the ongoing conflict between President Trump and Fed Chair Powell for not lowering interest rates faster.The official reason is that the DOJ is focusing on the renovation to see whether Powell made misleading or false statements to the Senate Banking Committee regarding the scale, costs and luxury features of the project.In reality, everybody knows that this is just a political pretext to intimidate the Fed Chair and force him to cut interest rates faster. We have already seen this kind of intimidation with Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.The market reaction to the news was pretty straightforward and a taste of what it could be if the Fed lost independence (I touched on the consequences here).A potential loss of Fed independence raises the risk of uncontrolled inflation and eventually stagflation. Gold, and precious metals in general, would be the best beneficiaries from such an event, while the US Dollar would be the obvious loser. The stock market would likely go into a bear market on growth fears, while long-term interest rates would increase (the opposite of what Trump wants).The negative consequences though would stretch to the global economy as a whole. The Federal Reserve is the anchor of the global financial system. The U.S. Treasuries are considered the benchmark "risk-free rate" and almost all global debt is priced as US Treasury rate + risk spread. If long term rates were to increase in the US, they would also influence long-term interest rates of other major economies. The initial reaction would highly likely be chaos and uncertainty in the global financial markets.The good news is that even if the DOJ were to officially indict Powell for "misleading Congress" or "misuse of funds", and Trump were to fire Powell "for cause", the Fed Chair has already signalled that he would fight any removal in court, much like what happened with Fed's Cook. The ultimate decision would likely rest with the US Supreme Court.Nevertheless, the initial reaction to the DOJ indictment would be similar to the one we saw today, but bigger in magnitude. This article was written by Giuseppe Dellamotta at investinglive.com.

Here's a look at the major indices in Europe after the opening tussle:Eurostoxx -0.3%Germany DAX flatFrance CAC 40 -0.5%UK FTSE -0.1%Spain IBEX -1.0%Italy FTSE MIB -0.7%And here's how US futures are shaping up as we get things going on the session:S&P 500 futures -0.7%Nasdaq futures -1.0%Dow futures -0.5%The big news so far today is Trump's DOJ being reported to have opened a criminal investigation probe against Fed chair Powell. All this as part of a pretext to gain political influence over the central bank in order to lower interest rates. It's an unprecedented move which renews concerns on Fed independence moving forward.Trump has already attacked Fed policymaker Lisa Cook with a lawsuit and with this latest move on Powell, there are big question marks on how this is all going to play out for the Fed. And I'm not talking about now or with the cases to Cook and Powell. But what about Fed independence in the future?If central bankers can be so easily hung for their views, is there really any one that would risk doing their job to their best abilities? Or more importantly, to really have an opinion that challenges the administration?What's worrying about all of this is the kind of precedence that Trump might set with regards to how the White House can control the Fed. It's a dangerous game to be playing as it opens up a can of worms on the directional path that Fed independence will take next.Markets are right to be worried. If Powell and Cook really do end up being unfairly indignified, there's going to be very serious concerns about the kind of policy motivations that the Fed will be adopting in the next few years. This article was written by Justin Low at investinglive.com.

KEY POINTS:US Department of Justice subpoenaed the Federal Reserve in relation to the headquarters renovation disputeThe DOJ move is actually a political pretext to try to fire Fed Chair Powell "for cause" given his reluctance to cut interest rates quicklyRisk of loss of Fed independence is a tailwind for gold given the repercussions on inflation and the US DollarGold jumped to a new all-time high following the newsFUNDAMENTAL OVERVIEWGold jumped into a new all-time high today following the news of the US Department of Justice subpoenaing the Federal Reserve in an unprecedented move that escalates the ongoing conflict between President Trump and Fed Chair Powell for not lowering interest rates faster. The official reason is that the DOJ is focusing on the Federal Reserve headquarters renovation to see whether Powell made misleading or false statements to the Senate Banking Committee regarding the scale, costs and luxury features of the project. In reality, everybody knows that this is just a political pretext to intimidate the Fed Chair and force him to cut interest rates faster. We have already seen this kind of intimidation with Fed Governor Cook last year when Trump tried to fire her for cause without success as we continue to await the US Supreme Court decision on that case.Gold rallied on the news because a potential loss of Fed independence increases the risk of higher inflation in the future and a much weaker US Dollar. The probability of the loss of Fed independence remains very low as the consequences would be too big not only for the US but the global economy as a whole.Tomorrow, the focus will turn to the US CPI report. We got a good NFP report on Friday, with the unemployment rate falling to 4.4%. A January Fed rate cut is now out of the question, but the market still sees two rate cuts by the end of the year with the first one expected in June. A hot inflation report might trigger a bit of a hawkish repricing and weigh on gold in the short term. On the other hand, soft data should keep on supporting the upside.In the bigger picture, gold should remain in an uptrend as real yields will likely continue to fall amid the Fed’s dovish reaction function. But in the short term, a hawkish repricing in interest rate expectations could weigh on the market.GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that gold rallied into a new all-time high today following the news of the DOJ subpoenaing the Federal Reserve. The price is now trading at the top trendline of a potential rising wedge. This is where we can expect the sellers to step in with a defined risk above the high to position for a drop into the bottom trendline. The buyers, on the other hand, will look for a break higher to increase the bullish bets into new record highs.GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the recent price action. Gold eventually bounced on the 4400 support zone and extended the rally into the 4600 level. From a risk management perspective, the buyers will have a better risk to reward setup around the minor upward trendline and the 4500 support. The sellers, on the other hand, will want to see the price breaking below the trendline to increase the bearish bets into the major bottom trendline.GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that the price has already extended into the upper bound of the average daily range for today. In such instances, we can generally see some consolidation or a pullback. A break below the 4561 low will likely see the sellers piling in with more conviction to target a pullback to the 4500 support. UPCOMING CATALYSTSTomorrow we have the US CPI report. On Wednesday, we get the November US Retail Sales and US PPI reports, so it’s going to be old data. We also have a potential US Supreme Court decision on Trump’s tariffs. On Thursday, we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.

This week starts quietly, with no significant scheduled economic events for the FX market on Monday. On Tuesday, Australia will release the Westpac consumer sentiment index. Inflation data will be the main highlight in the U.S., together with the ADP employment and new home sales figures. Wednesday will also bring several key U.S. releases, including PPI m/m, retail sales m/m, and existing home sales. The U.K. will publish its GDP m/m figures Thursday, while the U.S. will release data on unemployment claims, the Empire State manufacturing index and the Philly Fed manufacturing index. The week will conclude with the U.S. industrial production m/m print on Friday. Several FOMC members are expected to deliver remarks throughout the week. In the U.S., the consensus for core CPI is 0.3% m/m compared to 0.2% prior, while headline CPI is expected to rise 0.3% m/m, unchanged from the prior month. The year-over-year CPI rate is forecast to remain steady at 2.7%. Some analysts note that November inflation data were disrupted by the government shutdown, and this week’s release is expected to show firmer monthly gains as data collection normalizes. Despite this, annual inflation is still likely to trend lower overall. Core goods prices may face some upside pressure, largely because an unusually high share of holiday discounting was likely captured in the November data. At the same time, shelter inflation is expected to move back in line with its pre-shutdown pattern, with a meaningful pickup unlikely until spring, according to Wells Fargo analysts. October new home sales in the U.S. are forecast at 715K, with the September figures also scheduled for release at the same time. August data showed an unusually sharp rise in sales, driven largely by strength in the South, although the size of the increase is difficult to reconcile with mortgage rates that were still above 6%. While builders have been using incentives such as price reductions and mortgage rate buy-downs to offset affordability pressures, the growing reliance on these measures highlights ongoing demand challenges. As a result, analysts expect new home sales to have eased in October, falling back toward levels more consistent with the pace seen earlier in the summer. The consensus for retail sales m/m is 0.4% vs. 0.0% previously, while core retail sales m/m are also expected at 0.4% compared to 0.4% prior. The rebound is likely to be driven by a pickup in auto sales, which fell sharply in the previous month, while sales excluding autos are expected to rise by around 0.3%. Consumer spending has held up well over the past year, and high-frequency data suggest this resilience continued into November. However, the core measure of retail activity, which excludes autos, gasoline, food services, and building materials, is likely to have moderated following a strong gain in October. Affordability pressures and a cooling labor market remain key headwinds, although holiday spending is still expected to have met forecasts of roughly 3.5–4.0% y/y growth. Looking ahead, middle- to upper-middle-income households may see some relief from higher after-tax income and larger tax refunds, which could provide a modest boost to discretionary spending in early 2026, according to analysts at Wells Fargo. In the U.K., the consensus for GDP m/m is 0.0% compared with -0.1% previously. A modest improvement is expected in this week’s data, driven by a mild pickup in services activity. Industrial output is likely to be flat following a solid gain in October that was supported by a recovery in auto production. The broader outlook remains unconvincing as momentum is expected to slow down. Business surveys suggest the economy has largely lost steam, with renewed weakness in services and only modest improvement in manufacturing. That said, analysts note this may reflect a recurring pattern in which growth appears stronger in the first half of the year than later on, raising the possibility that some of the late-year softness is due to seasonal adjustment issues rather than a clear deterioration in underlying economic conditions. From a monetary policy perspective, the Bank of England is expected to continue cutting rates as inflation shows further signs of cooling and economic activity remains soft. This article was written by Gina Constantin at investinglive.com.

Again, in case you missed the headlines from earlier in the day:NYT: Federal prosecutors open probe into Fed chair Powell amid renovation scrutinyFed Chair Powell calls out Trump on his witch hunt, part of ongoing threats against central bankIt's another start of the week filled with more drama involving US president Trump's actions. A lively beginning to the 2026 year no doubt.In an unprecedented move, the probe on Fed chair Powell further raises threats to the central bank's independence. Now, this isn't anything new. However, it comes at a sensitive period with it being the transition to a new Fed chair in just a couple of months' time. As a reminder, Powell's term as Fed chair is due to end after May this year. And he is expected to step down from any other capacity at the central bank after.So with just a couple of months left, what's the goal here from Trump?It feels like this is mostly about sending a message. The next Fed chair is already likely going to be a Trump plant but this is a broader attack on the central bank and to any policymakers who try to get in the way of what Trump wants done; that being lower interest rates.As fiscal risks continue to grow in the US, this is one spot that Trump wants to micro manage to not look bad. The thing is, at what cost?The dollar is finding that out the hard way with the currency already losing much confidence last year. And the new year looks to be starting off in similar fashion, if this is anything but a reminder.The greenback is now lower across the board today with slight losses seen against the other major currencies. USD/CHF is down 0.5% to 0.7966 while EUR/USD is starting to see buyers wrestle back some near-term momentum on the day. The latter is up 0.3% to 1.1677 with price nudging back above its 100-hour moving average (red line):The pair has been on the descend since a rejection of 1.1800 but this feels like the first time that buyers are looking to make a play to win back some near-term control. Keep below the 100-hour moving average and the near-term bias stays more bearish. But break above, and the near-term bias turns more neutral instead.Elsewhere, USD/CAD is also down 0.3% to 1.3878 and AUD/USD up 0.3% to reclaim the 0.6700 mark once again.The big winners though? Precious metals once again. Gold is now up 1.7% to $4,585 after the strong jump on Friday with silver up another 5% to $84.11 currently. Fire. ? This article was written by Justin Low at investinglive.com.

EUROPEAN SESSIONIn the European session, we don't have much on the agenda other than a couple of low tier releases like the Eurozone Sentix index and the German Current Account balance. None of the data is going to change anything for the ECB or the market, so the reaction will likely be muted. The overnight news of the US Department of Justice subpoenaing the Federal Reserve is the main highlight of the day which caused the US Dollar to weaken across the board and gold to jump to new record highs. The lack of other catalysts might see the current moves extending throughout the day.AMERICAN SESSIONIn the American session, we don't have anything on the calendar other than the 10 year note auction. The focus has now turned to the US CPI report tomorrow. A Fed rate cut in January is now out of the question following the good US NFP report on Friday where the unemployment rate dropped to 4.4% vs 4.6% prior. The market continues to bet on two rate cuts this year with the first one expected in June. CENTRAL BANK SPEAKERS08:50 GMT/03:50 ET - ECB's de Guindos (neutral - voter)17:00 GMT/12:00 ET - ECB's Villeroy (dovish - voter)17:30 GMT/12:30 ET - Fed's Bostic (hawkish - non voter)17:45 GMT/12:45 ET - Fed's Barkin (hawkish - non voter) This article was written by Giuseppe Dellamotta at investinglive.com.

The December payrolls number was on the softer side but the unemployment rate dropped back a little to 4.4% (unrounded 4.375%). The latter seems to be enough to convince some market analysts that the labour market is at least holding up as we get into the new year, with the Fed likely not too much in a hurry to cut rates again next.You can check out the full non-farm payrolls report here in case you missed it.Barclays has now pushed back their Fed rate cut forecast from March and June previously to June and December instead. The firm expects the Fed to deliver a 25 bps rate cut in each of those two months.Meanwhile, Morgan Stanley also pushes back their forecast for rate cuts from January and April to June and September now. And JP Morgan, who had previously penciled in a 25 bps rate cut for January, now no longer expects the Fed to cut rates at all in 2026. They have even gone so far to put in an argument for a 25 bps rate hike come Q3 2027.So, that offers some glimpse of how the narrative might be slowly shifting or might shift when we get to the final quarter of this year. For now, rate cuts might still be needed as the Fed has to strike a balance between a softening labour market and inflation developments.However, how long more until before rate hikes start coming back into the picture again? And how will Trump's new mould of the Fed fit into all of this? Will politics outweigh independent thinking? There are plenty of questions that will need answering but for now, it seems that markets are convinced the Fed need not be rushing for the next rate cut again. This article was written by Justin Low at investinglive.com.

Introduction: What Is CFD Trading?CFD stands for Contract for Difference, which is a financial agreement that allows you to speculate on the price movements of various assets. It is a method that allows you to make predictions about the price changes of financial assets like stocks, currencies (forex), market indices, commodities, or cryptocurrencies without actually owning them.When you trade CFDs, you do not buy or sell the actual asset. Instead, you enter into a contract with a broker. This contract is based on the difference in the asset's price from when you start the trade to when you finish it.Example: For example, if you enter a contract to trade gold at $2,000 per ounce and later sell it at $2,050, you would make a profit of $50. Conversely, if the price drops to $1,950, you would lose $50 (not including any fees).This method is popular as it allows participants to buy (go long) or sell (go short), trade with borrowed funds (margin), and access many global markets all through a single platform. However, trading CFDs can be risky because using leverage can increase both your profits and your losses. Beginners should learn about how CFDs work and the risks involved before they start trading.How Does CFD Trading Work?This method enables speculation on an asset's price without actually owning it. You agree with your broker to exchange the difference between the asset’s opening price and its closing price.Key Features of CFD TradingGoing Long (Buy): You open a buy position if you think the price will increase. If the price goes up, you make a profit from the difference.Going Short (Sell): You open a sell position if you believe the price will decrease. If the market falls, you profit from that decline.Costs and FeesWhen trading CFDs, you usually need to pay:Spread: This is the difference between the price at which you can buy (ask price) and the price at which you can sell (bid price).Overnight Financing: This is a small daily fee charged for holding leveraged positions overnight.Commissions: Some brokers may charge a small fee for trading certain assets (like shares).Example Trade: You decide to buy 100 shares of Tesla at $200 using 10:1 leverage. This means you only need to deposit $2,000, which is 10% of the total trade value of $20,000, allowing you to control a larger position.If Tesla's price rises to $210, your profit would be $1,000 (100 shares × $10 increase), minus any fees.If Tesla's price falls to $190, you would lose $1,000.Tip for beginners: Always use stop-loss orders to help limit your losses and protect your capital when trading with leveraged products like CFDs.Types of CFD MarketsOne of the main benefits of CFD trading is that it gives you access to various global markets through a single trading account. Here are the main types of markets you can trade:Stock CFDs: You can speculate on the price changes of individual company shares without actually owning the stocks. Examples include Apple (AAPL), Amazon (AMZN), and Tesla (TSLA).Index CFDs: You can trade entire market indexes, which represent a collection of leading companies. This gives you exposure to an entire economy or sector. Examples include the S&P 500, NASDAQ 100, FTSE 100, and DAX 40.Forex (Currency Pair) CFDs: These CFDs are used for trading currency pairs, similar to traditional forex trading, allowing you to speculate on how one currency performs against another. Examples are EUR/USD, GBP/JPY, and USD/CHF.Commodity CFDs: You can trade raw materials like metals, energy sources, or agricultural products without needing to store the physical goods. Examples include Gold, Silver, Crude Oil, and Natural Gas.Cryptocurrency CFDs: You can speculate on the price of digital currencies without needing a crypto wallet. Examples include Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).Beginner Tip: It’s a good idea to start with one or two markets you are familiar with, like major stock indices or forex pairs, before trying more volatile assets like cryptocurrencies or commodities.Why Trade CFDs? (Advantages)This method has gained popularity for several reasons, providing unique benefits for both short-term traders and long-term investors. Here are the main advantages:Trade Rising and Falling Markets: With CFDs, you can buy if you think prices will rise or sell if you expect prices to fall. This flexibility allows you to make profits in both bullish (rising) and bearish (falling) markets.Leverage and Lower Capital Requirements: This method is traded on margin, meaning you only need a small portion of the total trade value to open a position. Leverage allows you to control larger trades while requiring a smaller initial investment. For instance, with 10:1 leverage, a $1,000 deposit allows you to control a $10,000 trade.Access to Global Markets: You can trade a wide variety of assets—stocks, indices, commodities, forex, and cryptocurrencies—all from one platform, without needing multiple accounts or exchanges.No Ownership of the Asset: Since you don’t own the underlying asset, you can trade in markets that might be difficult to access otherwise (like commodities or cryptocurrencies) and avoid costs like taxes or storage fees.Liquidity and Fast Execution: Well-known CFD markets, such as major forex pairs or large-cap stocks, usually have high liquidity. This means your trades can be executed quickly, often with narrow spreads.Important: While leverage and market access can be attractive, they also increase risk. Always combine these benefits with careful risk management.Risks of CFD TradingWhile Contracts for difference offer flexibility and access to global markets, but they come with significant risks that beginners should be aware of:Leverage Risk: Using leverage can amplify both profits and losses. Even a small unfavorable movement in the market can result in losses that exceed your initial deposit. For example, with 10:1 leverage, a 5% price movement against you might wipe out 50% of your margin.Market Volatility: Prices of CFDs can change rapidly due to news, economic reports, or political events. Sudden price swings can lead to quick losses if you don’t use stop-loss orders.Overnight Financing Costs: If you hold leveraged positions overnight, you will incur financing fees, which can accumulate and diminish your profits over time.Counterparty Risk: CFDs are traded through brokers rather than centralized exchanges. If your broker is not regulated or faces financial problems, your funds could be at risk.Emotional Trading: Due to the use of leverage and the fast pace of the markets, emotions like fear and greed can affect your decisions, leading to overtrading or holding onto losing positions for too long.Important: Always trade CFDs with money you can afford to lose, use stop-loss orders, and select a regulated broker to help reduce these risks.Who Trades CFDs?Trading contracts for difference attracts a wide variety of participants, from individual traders to large financial institutions, each utilizing these instruments for different reasons.Retail Traders: Everyday traders make up a large part of the CFD market. Many are attracted by the ability to trade global assets with less capital and to profit in both rising and falling markets.Active and Professional Traders: Day traders and swing traders often utilize contracts for difference for short-term opportunities. The leverage and variety of markets make CFDs appealing for those looking for quick opportunities.Institutional Investors: Hedge funds and investment firms may use CFDs to protect their existing portfolios, diversify their investments, or gain exposure to markets without directly holding the assets.Global Investors: These contracts offer access to international shares, indices, and commodities from a single account, making them appealing to traders looking to engage in markets outside their home country.Whether retail or institutional, all CFD traders share the same goal: to take advantage of price movements without owning the underlying asset, while managing risk through leverage and hedging strategies.How to Start Trading CFDsStarting with CFD trading is simple if you follow these steps:Step 1 – Choose a Regulated CFD BrokerChoose a regulated broker that is overseen by recognized authorities, such as the FCA, CySEC, or ASIC, to ensure your funds are protected. A regulated broker ensures that client funds are protected, offers clear pricing, and provides fair trading conditions.Step 2 – Open and Fund Your AccountSign up and complete the verification process (proving your identity and address). Deposit funds using a bank transfer, debit card, or another accepted payment method. Many brokers allow you to start with as little as $100 to $500.Step 3 – Learn the BasicsFamiliarize yourself with key terms such as margin, leverage, spread, and stop-loss orders. Many trading platforms provide demo accounts that allow you to practice trading with virtual money, helping you build confidence before risking real funds.Step 4 – Pick Your MarketChoose from stocks, forex, indices, commodities, or cryptocurrencies. Beginners often start with major forex pairs or stock indices because they are highly liquid and easier to understand.Step 5 – Place Your First TradeGo long (buy): If you believe the price will rise.Go short (sell): If you think the price will fall.Set the size of your trade and use a stop-loss order to help protect your capital.Step 6 – Manage Your RiskImplement stop-loss and take-profit orders to manage your risk effectively.Never risk more than 1-2% of your account on a single trade.Keep an eye on leverage to avoid large unexpected losses.Tip for beginners: Begin with small trades and keep a trading journal to record your decisions and outcomes, which will help you identify patterns and improve your strategy. This will help you identify patterns and improve your strategy over time.Quick Glossary of CFD Trading TermsCFD (Contract for Difference): A financial contract where you trade the price difference of an asset between the time you open and close the position, without owning the underlying asset.Leverage: Borrowed money that allows you to control a larger position with a smaller deposit. For example, 10:1 leverage means you can control $10,000 with just $1,000.Margin: The minimum deposit required to open a leveraged CFD trade.Spread: The difference between the bid (sell) and ask (buy) price. This is often the broker’s main fee.Long Position (Go Long): Buying a CFD when you expect the price of the underlying asset to rise.Short Position (Go Short): Selling a CFD when you expect the price of the underlying asset to fall.Stop-Loss Order: An automatic order to close a trade at a predetermined price to limit losses.Take-Profit Order: An order to close a trade once it reaches a specified profit level.Overnight Financing: A small daily fee charged for holding a leveraged position overnight.Lot Size / Contract Size: The quantity of the underlying asset a single CFD represents, e.g., one CFD contract might represent one share or a set amount of a commodity.Liquidity: How easily an asset can be bought or sold without causing significant price changes. Major forex pairs and top stocks usually have the highest liquidity.Volatility: The degree of price fluctuations in a market. Higher volatility means larger and faster price swings.Counterparty Risk: The risk that the CFD broker or provider might fail to meet their financial obligations.Index CFD: A CFD based on a stock market index such as the S&P 500 or FTSE 100.Hedging: Using CFDs to offset potential losses in another investment. For example, shorting a CFD on shares you already own to protect against a price drop.CFD Trading ExamplesLet’s look at two simple examples to understand how a CFD trade works in practice.Example 1: A Winning TradeEntry: You buy a CFD on Apple (AAPL) at $150 for 100 shares using 10:1 leverage.Margin Required: $1,500 (10% of $15,000 total).Outcome: Apple’s price rises to $160, and you close the position.Profit: $160 − $150 = $10 gain per share × 100 shares = $1,000 profit (minus spread and overnight fees).Example 2: A Losing TradeEntry: You sell (go short) a CFD on Gold at $2,000 per ounce, expecting the price to fall.Outcome: Instead, Gold’s price goes up to $2,050.Loss: $2,050 − $2,000 = $50 loss per ounce multiplied by your contract size = total loss proportional to your position size (plus any fees).These examples illustrate how contracts for difference enable you to benefit from both rising and declining markets, while also demonstrating how leverage can magnify both gains and losses.Final Thoughts / Next StepsContract for difference trading is a flexible way to access global markets, allowing you to trade shares, forex, indices, commodities, and cryptocurrencies without owning the assets themselves. The ability to go long or short and use leverage makes CFDs appealing to traders looking for opportunities in both rising and falling markets.If you’re new to CFDs, here’s how to get started:Learn the basics first: Understand how contracts, margin, leverage, and spreads work.Choose a regulated broker: Ensure your broker is licensed by a trusted authority like the FCA, CySEC, or ASIC.Start with a demo account: Practice trading without risking real money to build confidence.Trade small amounts: Begin with modest positions and manage risk using stop-loss orders.Keep a trading journal: Track your trades to learn what works and improve your strategy.Remember: This type of trading is not about chasing quick profits. It’s about discipline, risk management, and continuous learning. With the right preparation and careful strategy, these contracts can provide an exciting way to participate in the world’s most active financial markets while keeping your capital protected.Continue Your Trading JourneyIf you’re interested in learning about other trading strategies, our next guide, "What Is Copy Trading – A Beginner’s Guide," explains how copy trading works, the risks to consider, and how to get started safely.When you’re ready to start CFD trading, make sure to use the best platforms. Our "Best CFD Trading Platforms of 2025" page compares trusted platforms side by side to help you choose one that fits your trading strategy.Legal disclaimerThis content is for educational purposes only. Nothing on this page is financial advice or a solicitation to buy or sell any security or derivative. Trading involves risk. Past performance does not guarantee future results. Always verify broker licensing on official regulator registers.Beginner FAQWhat is CFD trading and how does it work?CFD trading (Contract for Difference) allows you to speculate on the price movement of assets like stocks, forex, or commodities without owning them. You open a trade with a broker and profit or lose based on the difference between the opening and closing prices. You can go long (buy) if you expect the price to rise or short (sell) if you expect it to fall.What is an example of a CFD trade?Suppose you open a long CFD on gold at $2,000 per ounce using 10:1 leverage. If the price rises to $2,050 and you close the position, your profit is $50 per ounce times your contract size (minus any fees). If the price falls to $1,950, you’d lose the same amount.Is CFD trading good for beginners?This type of trading can be suitable for beginners if approached with caution. It offers flexibility, access to global markets, and the ability to start with small amounts. However, the use of leverage makes it high-risk. New traders should begin with a demo account and use strict risk management.Is CFD better than stock?It depends on your goals. These instruments offer flexibility to profit from rising or falling prices and require less capital upfront due to leverage. Stocks are generally better for long-term investing and carry lower risk since you own the asset outright.Can I trade CFDs with $100?Yes. Many brokers allow you to start with as little as $100. However, small accounts are more vulnerable to losses, especially when using leverage, so risk management is crucial.Is CFD trading risky?Yes. Leverage amplifies both gains and losses, so you can lose more than your initial deposit if trades go against you. Market volatility and overnight financing costs also add to the risk.Do I own the asset when trading CFDs?No. You don’t own the underlying stock, currency, or commodity; you’re simply speculating on its price movement.Can I profit when markets fall?Yes. CFDs allow you to “go short,” meaning you can make a profit if the market price drops.What fees are involved in CFD trading?Typically, brokers charge a spread (the difference between buy and sell prices), overnight financing fees for holding leveraged positions, and sometimes a commission on contracts for difference on shares.Is trading with contracts for difference legal?Yes, in many regions including the UK, EU, and Australia. However, contracts for difference are restricted or banned in some countries like the U.S. Always check local regulations and use a regulated broker.What is leverage when trading with contracts for difference?Leverage allows you to control a larger position with a small deposit (margin). For example, with 10:1 leverage, a $1,000 margin allows you to control a $10,000 position, magnifying both profits and losses. This article was written by Itai Levitan at investinglive.com.

There are just a couple to take note of on the list for the day, as highlighted in bold below.The first ones are for EUR/USD, layered from 1.1650 through to 1.1700. The pair remains on a descending trend since the turn of the year and the expiries will add a layer to keep price action in check with that regard. The 100-hour moving average sits at 1.1675 currently and sellers are doing well to keep things below the key level since last week. So, the expiries layer will add to that with a secondary defense seen at 1.1700 - holding close by to the 200-hour moving average at 1.1705 at the moment.But amid Trump's attack on the Fed independence again, that might draw renewed pressure on the dollar after the currency escaped from further scrutiny following the US jobs report on Friday. So, just keep that in mind as we also build towards the crucial US CPI report tomorrow.Besides that, there is also one for USD/JPY at the 158.00 level. It isn't one that holds much technical significance but the expiries could just lock price action down a little amid a struggling dollar, raising questions about the potential breakout from Friday.The pair previously had held key resistance around 157.75-90 but pushed for a break at the end of last week, though falling short of closing above the 158.00 figure level. So, the expiries could yet keep things in check in European trading should the dollar keep under some slight pressure from the Trump vs Fed headlines.For more information on how to use this data, you may refer to this post here.Head on over to investingLive (formerly ForexLive) to get in on the know! This article was written by Justin Low at investinglive.com.

It's no wonder why precious metals continue to stay so bullish. Trump is making the headlines again to start the new week and in case you missed it:NYT: Federal prosecutors open probe into Fed chair Powell amid renovation scrutinyFed Chair Powell calls out Trump on his witch hunt, part of ongoing threats against the central bankThis just continues the episode from last year as Trump continues to take aim at the Fed independence amid his disdain for Powell. While it isn't new, it serves as a good reminder of how the situation is playing out. And markets are clearly responding with contempt as evident by the risk selling we're seeing to start the week now.S&P 500 futures are down 0.6% with Nasdaq futures down 0.9% and Dow futures down 0.5% as we look towards European morning trade today.The Fed will surely continue to do their job regardless of this investigation. However, it's just unnecessary drama for something that shouldn't even be an issue. Politics and central bank don't tend to mix in well together. Just take a look at what's happening with Japan now as another example.But essentially, Trump's continued attacks will just keep drawing flak and raises fears about credibility and independence at the Fed moving forward. And that is something that will keep chipping away at confidence in the central bank and the dollar in general.For now, risk trades are taking a step back amid the unprecedented attack on Powell. And it comes at a crucial time for US stocks as well. Earnings season is kicking off this week with the big banks set to report, but also keep an eye out on TSMC earnings. The latter is a bellwether for how chipmakers might fare and so that might be the biggest name to watch this week.Besides that, geopolitical risks are also still not completely out of the picture just yet. Trump continues to raise threats on Greenland and Iran, keeping a more nervous mood on the global stage after the situation in Venezuela. This article was written by Justin Low at investinglive.com.

Yuan’s rally lacks fundamental support despite 2025 gains, former SAFE regulator saysUS hosts G7 talks on rare earths to counter China’s supply dominanceUK hiring weakens again as wage growth stays firm, complicating BoE outlookTrump threatens to block Exxon from Venezuela after CEO calls country uninvestablePBOC sets USD/ CNY reference rate for today at 7.0108 (vs. estimate at 6.9849)Gold and silver surge, stocks & USD slammed on news of Trump's ongoing attacks on the FedFed Chair Powell calls out Trump on his witch hunt, part of ongoing threats against BankNYT: Federal prosecutors open probe into Fed chair Powell amid renovation scrutinyWall Street Journal: "U.S. Steps Up Planning for Possible Action in Iran"Globex trade is open for the week, US equity index futures with small gap downEUR wobbles - France budget at risk as confidence votes threaten government collapseICYMI: Japan's PM Takaichi is considering calling a snap election for mid-FebruaryMonday open indicative forex prices, 12 January 2026Weekend:Europe moves to boost NATO Arctic presence to counter Trump’s Greenland rhetoric/threatTrump orders special forces to draft Greenland invasion plan - UK Sunday Daily Mail reportNewsquawk Week Ahead: US Earnings, US CPI, US Retail Sales, UK GDP, and China TradeTrump floats one-year 10% credit-card rate cap, offers zero enforcement detail, just talkSummary:USD slides on Fed independence fears: Dollar fell sharply after Powell said the Justice Department issued grand jury subpoenas, reviving concerns over political pressure on the Federal Reserve.Markets turn defensive: Gold and silver surged, US equity futures fell, and risk sentiment weakened as institutional risk re-entered pricing.Senate pushback escalates: Senator Thom Tillis said he will block confirmation of any Fed nominee until the investigation into Powell is resolved, raising leadership uncertainty.Oil supported by Iran risks: Crude prices rose on fears protests in Iran could disrupt up to 1.9 mbpd of exports, though gains were capped by Venezuela uncertainty.Trump–Exxon tensions resurface: Trump said he may block Exxon from investing in Venezuela after the company’s CEO called the country “uninvestable.”The US dollar suffered its sharpest setback in almost three weeks after Federal Reserve Chair Jerome Powell disclosed that the central bank had received grand jury subpoenas from the Justice Department. Powell characterised the move as a politically motivated attempt by the Trump administration to influence monetary policy, reviving long-standing concerns around Federal Reserve independence.The remarks rattled markets. The Bloomberg Dollar Spot Index fell around 0.2%, US equity index futures moved lower, and strategists warned that renewed institutional risk could undermine the greenback. The dollar weakened broadly against G10 peers, though it later clawed back ground against a notably weak yen, while gold and silver surged sharply as investors sought protection from political and policy uncertainty.Political fallout intensified when Republican Senator Thom Tillis, a senior member of the Senate Banking Committee, said he would block confirmation of any Federal Reserve nominee, including the next Fed chair, until the legal maters are resolved. Tillis said the episode removed any doubt that efforts were under way to erode Fed independence, adding that the credibility of the Justice Department itself was now at stake. Note that if a successor is not confirmed, Powell would remain in the role beyond the end of his current term.In commodities, oil prices extended gains as rising protests in Iran stoked concerns over potential supply disruptions from the OPEC producer. Analysts noted calls for oil workers to down tools, warning that as much as 1.9 million barrels per day of Iranian exports could be at risk if unrest escalates. President Donald Trump added to the geopolitical backdrop, saying the US has “strong options” to respond to any Iranian attack with overwhelming force.Trump said he may block Exxon Mobil from investing in the country after the company’s CEO described Venezuela as “uninvestable,” underscoring the political and legal risks that continue to complicate any rapid recovery in Venezuelan oil output. Note the weekend news above, plenty of Arctic geopolitics! Asia-Pac stocks:Japan (Nikkei 225) +1.6%Hong Kong (Hang Seng) +0.86% Shanghai Composite +0.75%Australia (S&P/ASX 200) +0.41%This is real, Trump on his 'Truth' app: This article was written by Eamonn Sheridan at investinglive.com.