Market Updates – April 23

Federica D’Ambrosio

Senior Trader and CFO

Inflation Challenges for UK: BoE Expected to hike rates

The United Kingdom is facing higher inflation rates in comparison to other Western countries such as the United States, Germany, France, and Italy, which is putting additional pressure on the Bank of England (BoE). As a result, the BoE is expected to increase interest rates by 25 basis points next month. In contrast, the eurozone’s inflation rate has slightly decreased to 6.9% last month from 8.5%, according to the latest figures released on Wednesday.

Despite the global drop in wholesale food prices, UK supermarkets have not reduced their prices. Inflation was anticipated to fall below 10% last month, but it fell less than expected due to surging food prices. Inflation decreased to 10.1% in the year to March from 10.4% in February, driven by food prices rising at their fastest rate in 45 years. The war in Ukraine has driven up food prices worldwide, but the UK is also facing other challenges, including Brexit.

On Wednesday, British finance minister Jeremy Hunt stated that inflation running above 10% destabilizes the economy, and the government has a plan to bring it down.

Gold prices have remained elevated, possibly due to growing concerns about a potential economic recession, which may be enhancing the safe-haven appeal of bullion.

Additionally, there are indications in the Fed Beige Book that the Federal Reserve could consider halting its cycle of interest rate hikes after the May meeting. However, despite this, money market pricing suggests that expectations still point towards another rate hike in June.

The most recent minutes from the European Central Bank reveal that a significant majority of voting members were in agreement to increase rates by 50 basis points.

Looking towards the upcoming week, the direction of the single currency will be influenced by various data releases. Crucial information regarding employment, economic growth, and inflation from Germany will be made available throughout the week, each of which have the potential to significantly impact the market

Despite fluctuations, the EUR/USD has maintained an upward trend since March, gaining momentum from the dollar index weakness.

Remember to check your emails for any upcoming news events this week

Take the Challenge

Ability Challenge is a cutting-edge program designed for traders who are looking to get funded with us through a 2-step evaluation on a demo account. This is a opportunity to showcase your trading abilities in a less restricted and more dynamic environment.

Not only do you have the chance to demonstrate your proficiency, but you can take home a generous profit share of 75% on a monthly basis on the live stage. This is an ideal route to achieving success on a larger scale. So take the challenge and unlock your trading potential today!

Study the markets and start your career!

The Hidden Talents Program is developed to help guide and nurture curiosity into trading through an intensive one-to-one training with our fully qualified trading mentor. The program is not based upon previous experience or academic qualifications, but on the natural intellect and willingness to become a profitable trader.

With a careful selection process, the Hidden Talents Program is designed to help identify, recruit and develop the next generation of raw talent, who are eager to demonstrate their capability in investing and trading the financial markets.

Frequently Asked Questions

  • How can I apply to Ability?

    If you have a profitable strategy and good money management you can prove your trading ability, starting the challenge according to the account size you’re comfortable trading with.

    To start the challenge, choose the account size you’re comfortable trading with and proceed to the checkout, as soon as we receive your payment you’ll get an email with the login details and you can start trading.

  • I have successfully passed the challenge, now what?

    You now have two options. You can either continue managing the account size you signed in for and share profits 75-25 on a monthly basis or you can request to move onto the Funded Trader Program starting with the account size you passed the challenge on. (Note that if you move to the FTP you’ll need to respect its rules, parameters and premium account fees.)

  • Can I trade during the news?

    Yes, you can trade news events in the two phases of the challenge.

  • Which trading instruments can I trade on Ability?

    On ability, you can trade Forex and certain Commodities and Indices which are as follows: XAUUSD, GER30, US30, US500 and NAS100.

  • When can I withdraw my profits?

    On the Ability program, you can withdraw your share of profits on a monthly basis

  • What is the consistency rule on Ability Challenge?

    Traders will need to demonstrate consistency within their results in regards to trade length and lot size in order to pass the 7 minimum trading days. For example if a trader opens one position at 15 lots on one day, then 6 positions at 0.1 lot on 6 other trading days, this will result in failing the Ability Challenge. The aim of the Ability Challenge is to demonstrate consistency that can later be applied to a live account and not to reward a gambling mentality and style of trading. Please see our T&C’s regarding this clause.

  • What happens if I violate the rules?

    Breaking one of the rules will automatically invalidate the account and remove you from the challenge. You will receive an email informing you of the specific rule breach. You can also monitor your account progress within the traders dashboard.

  • What payment methods are available?

    You can process payment via Credit/Debit card, Paypal, Bank Transfer, Open Banking and Coinbase.

  • I paid for the Ability challenge, when will I get the account?

    As soon as we receive the payment you’ll receive your login details automatically via email.

  • Why do you charge fees?

    The fees will cover some of the trading and business costs and will also hold the traders accountable although they are operating on a demo account, simulating real-life trading conditions.

  • How do I get a refund on the Ability Challenge?

    You’re entitled to a refund after passing the two phases challenge when you become an Audacity Trader. Your refund will be processed together with your first payout.

  • Which broker do you use?

    We do not work with a retail broker. Even on the two phases challenge you’ll be working with a demo account which is a retail version linked to our Liquidity Provider

  • Do I need to close my positions overnight and over the weekend on the Ability Challenge?

    You can hold positions overnight and over the weekend during the two phases of the challenge.

Make smarter trades with our forex news and updates