Hi there, traders and welcome to this very short video just demonstrating and summarizing the central bank news dot info website. By now you'll have seen and understood the importance of a central bank and how their stance will affect the relative strength or weakness of their local currency. Now, tuning into the central bank and knowing what their thoughts are a very, very important to you as an FX trader, and will help you massively in regards to devising your trading plans. And if you're trading in line with a central bank, you have the highest probability of success so in addition to the sections we've gone through already, this website will give you an abundance of additional information which will help you become very very savvy with knowing what each major central bank is thinking in regards to their overall stance on their economy. They're for their local currency.

So it's going to be massively massively beneficial for you to use this website on a regular basis to tune in, and to really have that information close to hand. So it can be part of your trading plan every single week. So it's not something that we use to trade off. It's just simply an information or resource site that we can go to, in order to find some more information on each of the major central banks. Now, if you find any information on this website, which relates to any of the central banks that I haven't already mentioned, you can simply ignore them. We're only concentrating on the central banks of the eight major developed nations.

So the likes of Bank of Canada, Bank of England, Bank of Japan, the Fed in America, the rbnz, fed in New Zealand, the RBA in Australia, those major central banks are what we're most focused in on because it's their currencies that we're going to be utilizing in our trading opportunities and our trading plan. So just a really Go through in a very summery, like fashion. Rather than go into too much detail. I just want to keep this video short and sweet because you can go through this website in your own time in a lot more detail. But I'm just going to go through the major tabs that I use and that I see are going to be of major benefit to you guys. So firstly, his latest news.

So this will just give you an overview of some of the latest news regarding central bank so you can tune in to what's most recently happened, what's fresh, and what's really what's really going to help you keep your your finger on the pulse is by just reading a few of these articles, which really relate to the central banks of the major developed nations. Then you've got a tab called this week. And this is simply giving you an update of all the major decisions coming out for the weekend. So we know that there's an Australian interest rate decision on the fourth of August so it's the third of August today. So this is tomorrow so this can help you choose To when the rate announcements are likely to take place, because rate announcements, remember, are very, very important. And when we get a shock and a surprise, cut or hike, this creates some fantastic trading opportunities.

So you want to be knowing when they're coming out, you've obviously got forex factory to help you with that. But this also identifies on a week by week basis, which particular nations have their interest rate decision. So on the fourth of August, we have Australia, we also have India but we're not interested in India, we're not interested in Romania, then we have United Kingdom, remember, that's one of our major central banks. So on the sixth of August, so in three days time, we have the Bank of England announcing their rate. And it also gives you a bit of information in terms of what the current rate is, as well. So what the current interest rate is in these particular nations, so that's a useful little tab.

It says top news this is really really useful. So rather than you having to go through Reuters individually Bloomberg individually Dow Jones individually, this will really They do all the work for you. And all it'll do is it'll publish articles by reputable names, which relate to the central bank. So you can go into those articles and read a little bit more about it. So this first one here fed expected to push ahead with rate hike plan. So click on that because you know, the Fed is one of the central banks you're interested in, do a little bit of reading, get a bit of information, get some expectations, and that can start to build up your your understanding of the current situation.

Again, if you see any articles that relate to a country or a central bank that you're not interested in, we ignore them. So I'm not interested in Brazil. So I don't read that particular article. This one here rbnz, which is a Reserve Bank of New Zealand. We are interested in that we'll assess further monetary policy easing like likely needed so that looks very, very interesting. Click on that digest the information it can really give you a picture of the kiwi on what's likely to be the state of play from the central bank.

Perspective going forward because remember, we want to know what the central bank stances so we can align our trades with that. We know recently just as an example, that the rbnz fed cut interest rates. So we've been very, very bearish on the kiwi dollar to be in line with the Central Bank of New Zealand. So that's just an example there. So really, really brilliant tab here, which can help filter the news for you, rather than you spending hours and hours and hours going on to the various different websites. so brilliant, brilliant tab, then we have interest rates.

This tab here is just giving you some information, some more granular information on the interest rates of all the major nations around the around the world and some of the smaller nations as well. It's given you the current rate, the change the date that the last rate was take the last rate took place, and any changes in the last 12 months what the rate was in 2014 2013 and 2012. So just give me a little bit more information a bit more meat on the bone in regards to the historical picture of the interest rate in the various different nations. Again, you're only interested in those particular nations that you're concentrating on, which is the major developed nations. This tab here is very, very useful as well easier or tighter. So what that means is is a central bank moving to easing monetary policy or tightening money monetary policy with regards to interest rates a central bank, if they want to stimulate the economy, they make monetary policy easier so they loosen and cut rates.

That's what we mean by easier monetary policy. So when a central bank like in New Zealand are cutting interest rates, they want monetary policy to be easier to stimulate the economy. When the economy started to really gather momentum, such as in America, such as in the UK, a central bank will become more tighter with their monetary policy, ie they will start to raise interest rates. So this gives a very different Interesting summary of what's been happening in terms of whether a central bank is bearish or easier with their monetary policy and cutting rates or tighter and more bullish with their outlook on the economy. So this is obviously very, very important because we want to know whether a central bank is bearish or easier with their monetary policy or bullish on their economy and getting into the position of becoming tighter on monetary policy, or they could indeed be in between and be completely neutral of which we're not interested because we want to have a directional bias.

And that means knowing what the central bank is doing and making sure that the central bank has a bias. So in New Zealand, they have a bearish bias. So we only want to sell the kiwi right now, as we speak, first of August 2015. In the US, they're heading towards a rate hike or tightening monetary policy. So they have a brighter outlook on the economy. So they're more bullish on their economy.

So we as traders want to be Be more bullish IE look to buy the US dollar. So this will give you a breakdown of all the countries that have recently, really in the last 12 months either cut or raised interest rates. So it won't give you any countries that haven't done anything for 12 months, such as the UK, but it will give you a bit of an understanding of the various countries that have taken action. The central bank has taken action by cutting rates or raising them in the last 12 months. So as we see here, Australia, because we're not interested in any of the countries unless they're one of the developed nations that we're interested in. Australia is one of those.

So on February 3 cash rate was cut 25 basis points to 2.25% to boost demand, economic growth and inflation. So as you've heard me speak quite a lot. You've seen me talk about how the Australian economy has been really struggling. Economic growth is slow because China slowed and Australia is one of the major trading partners with China. So if China slowed down, so does Australia. So in order for the central bank to help stimulate the economy, they cut interest rates.

And they did the same again in May, to boost household demand, but no guidance really issue but they've been very, very bearish. So on the whole last few months, we've been wanting to sell the Aussie dollar against stronger counterparts. So you can go through those and find those developed nations that you're concentrating on. And it just gives you a bit of information as to what they're currently doing. And this is in addition to doing your own daily work, but on a week by week basis, just check into central bank news, and just go through the various tabs because it will really tune you in and I can't stress enough how a little bit of work on your side, to get up to speed and to really tune into the pulse of the market and more importantly, the pulse of the central bank because they are the major player is massively important.

It's going to speed up your your development and you're learning massively. This one's quite interesting inflation targets because Inflation is a big, big economic data point, as you know, and a lot of the central banks will give themselves a target, so an annual target for inflation. If inflation is really low and heading towards deflation, a central bank will be pushed into a corner to cut interest rates to help inflation. If inflation spiraling too high on the flip side is just spiraling out of control, the central bank will raise interest rates to cool the inflation down. So by having an understanding of the inflation targets and where the nation currently is, in regards to hitting that target, will give you a good guide as to whether that central bank is more likely to cut rates or raise rates. Let me give you an example.

In January 2015, in the Eurozone, inflation was really really low. They were heading into deflationary times. So the central bank said we're not happy about this because we have a target of two 2% and it was actually a negative reading. So they said we need to cut interest rates and also do QE, because our our inflation is way off target. So inflation targets are really, really important because the central bank will determine whether they need to cut rates or raise rates based on that target. Now, that's not the be all and end all they won't just make a rate cut or a rate hike just on inflation, but it's one key criteria that they will be monitoring.

So by clicking on this, you'll get an idea based on alphabetically going through seeing what their target is. So in Australia, the RBA, the Central Bank of Australia have a target of between two to 3%. So if you're watching the next release of inflation, and they are way off their annual target, then that's obviously a concern for their central bank. And that's going to be very very bearish because it's pushing them closer to cutting rates to help stimulate their particular inflation readings, let's say, you come to the inflation reading, and it's over their target. So inflation is running at 4% per annum. What's the central bank going to be thinking all inflation starting to really gather momentum, I need to call that off.

One of the key tools that they used to do that is raising interest rates. So if target if they're over their inflation target, they will increase interest rates to call the inflation off to help consumers because essentially inflation when it spirals out of control, it hurts consumers, which hurts the economy. So that's a nice example there in the UK, because many of you are from the UK. Inflation is still pretty bad. And as you've heard me say, probably on several occasions, is the main reason why the Bank of England hasn't increased interest rates because the economy in the UK is pretty good, apart from inflation and the Bank of England have stressed we're a little bit concerned about inflation. So they've held off raising interest rates.

However, they have said that if inflation starts to improve, and starts to head closer to their target, they will increase interest rates because they obviously don't want that inflation to spiral out of control. So that's a nice example, closer to home for those guys who are in the UK like myself. So inflation targets has really good highlights. This is another nice one, it's just really giving you a highlight of a month by month basis. So in July 2015, total rate cuts 401 basis points across all of them. And it's showing you the nations that actually cut those rates.

So that's just a nice overall summary of what happened in the last month just to give you an idea what happened last month Oh, yes. New Zealand cut interest rates Canada cut interest rates, okay, so yeah, I need to be I need to remain bearish on those particular currency. So really, really nice summary of what happened in the last few months. And you can go back to these as well go back through these dates and see when a local local central bank cut their interest rates and See the knock on effect that that had the first time they did it so long as it was a shock, the the effect it would have had on that particular currency I if they could interest rates and it was a shock and a surprise, you'll no doubt see a lot of weakness at the time that that happened.

If a central bank raised interest rates, and it was a shock and a surprise, then vice versa. So that's a really nice summary of what's happened in terms of rate hikes or cuts in a month by month basis. We can review this quite nice. Just giving you an overview of what happened in the last week. The main issues regarding central banks. Obviously, if you're on the trader, transformation service, you're getting several trading reports each day so you get your morning, your lunchtime and your evening reports.

Plus, you get the video every single week. So you are tuning in very very well with myself giving you the information but if you're doing a little bit of information, information gathering yourself, that will be a little booster for you as well. So it gives you a an overall summary of what happened in the course of a week to really focus you in on what's fresh and what's new because the fresher the information, the more likely is to move the market. We also have central bank calendar, again, you'll get your calendar from your forex factory or via your FX Pro. Okay. Central Bank calendar is showing you what's happening in regards to an interest rate decision or when they're speaking for the month of August, so as you can see here, we're in August, so the month of August, it's giving us the 2015 Global central bank calendar.

So it's saying what's coming out the date, the currency effects and the central bank that is included in that. So for August, Australia, the RBA, the Reserve Bank of Australia will be speaking and announcing their interest rate on the six so this week again, the UK the Bank of England, the central bank of the UK will be speaking and announcing their interest rates. So it really focuses you in on a week by week basis as to which nations which central banks will be communicating this their overall view of their economy and potentially talking about their interest rates. Because we know that's important. Every single time we take a trade, we want to know the bigger picture of the currencies we're trading. Are they bullish?

Or are they bearish? How do we know that when we tune into what the central bank stances, and remember that that stance can change on a month by month basis or a meeting by meeting basis. So, for example, we are bullish on the pound, because the Bank of England have recently said in their meetings, we are heading towards a rate hike. However, and this is very, very unlikely. But if this did change, so if on the sixth of August, they came out and they cut interest rates, all of a sudden, we have to change our thought process. We have to become bearish on the pound.

So it's important that we know at any single point in time, what a central bank or the central banks were concentrating on, what they're thinking, what is their stance? Are they bullish, bearish or neutral? We obviously Morgan Send in those that are bullish or bearish because that gives us a directional bias on their local currency. Right now the Bank of England is very bullish on the outlook. They're heading towards a rate hike. So we as traders, will be looking to buy the pound against weaker currencies.

So that's a really, really nice view of the calendar regarding central bank specific events. Also, if you want a bit of information on who the governor of the central bank is, so sometimes you get governors that speak so you hear on run school, Mr. Mark Carney who was the governor of the Bank of England, he's speaking and even though you're not trading this now, because you're just trading the black and white news events later down the line, you absolutely can trade speeches, because often they can say things that are very bullish or bearish, that we can actually trade off the backup. So knowing who the governors are or the most important people is quite useful going forward. So again, it's alphabetical order you can go through we can see here, okay, in Australia, which is one of the nation's we focus in on the RBA. The head of The RBA is Mr. Glenn Stevens.

So if you ever see on forex factory that Mr. Stevens of the RBA speaking you know, that's going to be quite an important speech and the markets gonna be heavily focused in on that because he is the main decision maker. So whatever he says is very, very important for the local currency. Reserve ratios don't really need to know that central bank information is the final tab. And this is just really giving you some more news information news published on a week by week basis. And just giving you a little bit more information generally, on central banking and monetary policy, which get your head around takes a little bit time but is worthwhile, it would be good. I try and keep things as simple as possible in the course, because I want to try and take complex subjects and make them easy to understand, but having an understanding of what is the central bank, what is monetary policy, interest rates, all these things are really, really useful to understand and you will find the more The additional elements you add to your toolbox, the stronger you become in your thought process with building those all important trading plans.

And if you were then very, very, you become very, very good at building trading plans on on trading opportunities or trading events where where they have the highest probability of success that will naturally translate into consistency in your result. And this is going to help whether you trade the news or whether you're just an end of day trader, technically trading, having an understanding of what the central bank is thinking will help you massively irrelevant of what type of trader you are. So use this resource. Spend maybe 10 1520 minutes every weekend, just going through the major tabs that we've gone through tuning into the market. So you know, any single time exactly what the major central banks are thinking, and more importantly, doing cutting interest rates, raising interest rates, and this hopefully then really builds up and beefs up The very, very important topic of knowing what the central bank is thinking because that becomes so pivotal in your trade plans.

Okay, so I'm going to wrap up there. As always, if you have any questions in regards to this particular resource, let me know. But have some fun, enjoy it really build up a sound understanding of the central bank in the developed nations and I am very, very confident this will have a very positive effect on your trades going forward.