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insight by wfx

Welcome to Wordwide FX's new enterprise!

Insight by WFX is a synthesis of our passion for languages and the financial markets. Here you will find technical and fundamental analyses from our clients, media partners and contributors in different languages, as well as discussions on languages and translation. And of course we will keep you updated on what is happening inside Wordwide FX Financial Translations. Hope you enjoy it! Greetings from the Wordwide FX team!


The English language is the world’s Achilles heel


By Wordwide FX Financial Translations

Via The Conversation

English has achieved prime status by becoming the most widely spoken language in the world – if one disregards proficiency – ahead of Mandarin Chinese and Spanish. English is spoken in 101 countries, while Arabic is spoken in 60, French in 51, Chinese in 33, and Spanish in 31. From one small island, English has gone on to acquire lingua franca status in international business, worldwide diplomacy, and science.

But the success of English – or indeed any language – as a “universal” language comes with a hefty price, in terms of vulnerability. Problems arise when English is a second language to either speakers, listeners, or both. No matter how proficient they are, their own understanding of English, and their first (or “native”) language can change what they believe is being said.

When someone uses their second language, they seem to operate slightly differently than when they function in their native language. This phenomenon has been referred to as the “foreign language effect”. Research from our group has shown that native speakers of Chinese, for example, tended to take more risks in a gambling game when they received positive feedback in their native language (wins), when compared to negative feedback (losses). But this trend disappeared – that is, they became less impulsive – when the same positive feedback was given to them in English. It was as if they are more rational in their second language. 

While reduced impulsiveness when dealing in a second language can be seen as a positive thing, the picture is potentially much darker when it comes to human interactions. In a second language, research has found that speakers are also likely to be less emotional and show less empathy and consideration for the emotional state of others.

For instance, we showed that Chinese-English bilinguals exposed to negative words in English unconsciously filtered out the mental impact of these words. And Polish-English bilinguals who are normally affected by sad statements in their native Polish appeared to be much less disturbed by the same statements in English.

In another recent study by our group, we found that second language use can even affect one’s inclination to believe the truth. Especially when conversations touch on culture and intimate beliefs.

Since second language speakers of English are a huge majority in the world today, native English speakers will frequently interact with non-native speakers in English, more so than any other language. And in an exchange between a native and a foreign speaker, the research suggests that the foreign speaker is more likely to be emotionally detached and can even show different moral judgements.

And there is more. While English provides a phenomenal opportunity for global communication, its prominence means that native speakers of English have low awareness of language diversity. This is a problem because there is good evidence that differences between languages go hand-in-hand with differences in conceptualisation of the world and even perception of it. 

In 2009, we were able to show that native speakers of Greek, who have two words for dark blue and light blue in their language, see the contrast between light and dark blue as more salient than native speakers of English. This effect was not simply due to the different environment in which people are brought up in either, because the native speakers of English showed similar sensitivity to blue contrasts and green contrasts, the latter being very common in the UK. 

On the one hand, operating in a second language is not the same as operating in a native language. But, on the other, language diversity has a big impact on perception and conceptions. This is bound to have implications on how information is accessed, how it is interpreted, and how it is used by second language speakers when they interact with others.

We can come to the conclusion that a balanced exchange of ideas, as well as consideration for others’ emotional states and beliefs, requires a proficient knowledge of each other’s native language. In other words, we need truly bilingual exchanges, in which all involved know the language of the other. So, it is just as important for English native speakers to be able to converse with others in their languages.

The US and the UK could do much more to engage in rectifying the world’s language balance, and foster mass learning of foreign languages. Unfortunately, the best way to achieve near-native foreign language proficiency is through immersion, by visiting other countries and interacting with local speakers of the language. Doing so might also have the effect of bridging some current political divides.


Right and wrong ways to spread languages around the globe


By Wordwide FX Financial Translations

Via The Economist

Emmanuel Macron’s plan to boost French-speaking puts means before motive

REMARKABLY, a French president had never addressed the Académie Française before. The French have a soft spot for authority, and the mighty presidency (atypical for Europe) and the academy (founded to guarantee the purity of the French language) are both symbols of that. So when Emmanuel Macron told the academicians—modestly known as les immortels—of his ambitions to revitalise French around the world, it was a very French affair indeed.

In some ways Mr Macron constitutes a break with Gallic tradition. He speaks English not only well but gladly, in contrast to his predecessors, François Hollande (whose ropy English was the butt of jokes) and Jacques Chirac (who often pointedly refused to talk in English, though he could). But in the best French tradition, Mr Macron spoke with passion about French and confidence in its future. He announced more money for the Alliance Française, for example, to teach the language, and more support for teaching French to refugees who have arrived in France. His aim is to see French go from being the world’s fifth-most-spoken language to its third.

It is very French to think that this can be accomplished by determined state action. Yet people don’t learn a language because somebody has built a fancy new school nearby. These days there are plenty of language-learning options, especially online. The cost of learning a language is mainly measured not in money but in time. You have to give someone a reason to do the work, before even bothering with the means and opportunity.

Think about the rivals to French. One is English. Americans and Britons might think foreigners learn English because their culture is appealing. But if that was ever true, it no longer is. Foreigners learn English simply because there are already a lot of people to speak it with—a majority of them, today, outside the chief Anglophone countries. A Swede learns English to do business in Brazil. This is why, despite the irony, English will probably still dominate the European Union after Brexit.

Or consider Chinese, a language of booming interest to foreign learners. It is in a way the opposite of English: the vast majority of its speakers live in just one country. But what a country. China’s economy will soon be the world’s largest, and its people still do not speak very good English. Learning Chinese is an obvious way to exploit an unrivalled economic opportunity.

Finally, take German. In the 19th century it was a posh language of science and scholarship, expected of all educated Europeans. Early Zionists pondered making it the national language of the Jewish state. But two wars, horrific atrocities and four decades of division wrecked its image. However, it has recovered. As Germany’s economy roared back from a long post-reunification slump, German-learning increased by 4% between 2010 and 2015 (a lot, in historical terms). Perhaps more surprisingly, a country once considered stolid and conservative has developed a reputation for cool. Berlin is seen as the hippest capital in Europe. German is both useful and attractive.

French could combine all these attributes. Like English, it is found around the world. Like Chinese, it is economically important: French-speaking countries account for 8.4% of global GDP. And like Germany recently, France has long had cultural cachet. How, then, to revive the optimism for the language itself?

Much of the work will be done outside France, and by growth in Africa in particular. Mr Macron knows this; after an initial announcement, in Burkina Faso, that he wanted to give new vigour to the French-speaking world, he was seen as neocolonialist. His speech at the Academy was better, conceding that French had “emancipated itself from France”. He told the Academy that it was high time French schools began teaching literature written in French outside France.

By one projection, in 2050 there will be 700m French-speakers—80% of them in Africa. To keep that forecast on track and keep Africans speaking French—not switching to English, as Rwanda did—France would be wise to continue this approach of fraternité rather than autorité with its African friends, by helping those countries develop economically. And the best thing Mr Macron could do at home is release the talents of the French people. Reforms that get the French economy growing as Germany’s has done would do more than all the shiny new French-teaching schools in the world.

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El EURUSD cae y rompe niveles técnicos


By Greg Michalowski @GregMikeFX, Director of Client Education at ForexLive. Translated by Wordwide FX Financial Translations

El EURUSD lleva todo el día operándose en ambos sentidos. Durante la sesión asiática, el precio cayó bajo la MM de 100 horas, luego cayó a la MM de 100 sesiones en el gráfico de 4 horas en 1,23855 (ver línea azul pronunciada), luego rebotó para atacar la MM de 100 horas (línea azul, ahora mismo en 1,24298).

Esta parada en la MM de 100 horas en la sesión de Londres, ha impreso más impulso bajista y ha conducido a una ruptura bajo la MM de 100 sesiones en el gráfico de 4 horas y el 50% de la subida que partió del mínimo del 9 de febrero en 1,23799. Sigue el tono bajista. EL precio ha registrado ahora un nuevo máximo de sesión en 1,23692.

¿Y ahora qué?

La zona de riesgo más cercana para los cortos es el nivel de 1,23855 (MM de 100 sesiones en el gráfico de 4 horas), una antigua zona de soporte que es ahora resistencia.

La MM de 200 horas (línea verde en el gráfico superior) es un objetivo bajista, ahora en 1,23519. Si se produce un ataque sobre esta zona, yo esperaría que el precio se estancara (stops por debajo).

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Mercado lateral para el EURUSD. Fuerte resistencia arriba


By Greg Michalowski @GregMikeFX, Director of Client Education at ForexLive. Translated by Wordwide FX Financial Translations

La semana pasada, el EURUSD perforó bajo estos niveles:

  • La MM de 100 días (ahora en 1,16873)
  • El mínimo del 6 de octubre en 1,16689
  • La MM de 200 días, que esta semana sigue en 1,1668
  • La clavícula del patrón hombro-cabeza-hombro en el gráfico diario


Todo ello indica un tono bajista. Mantenerse por debajo de esta zona es fundamental para que los cortos conserven el control del mercado. Si el precio escala sobre estos niveles, decepción para los cortos. Zona clave, muy importante.



Ayer, el precio del par tuvo una jornada con muchos altibajos, pero consiguió marcar un máximo de 1,16577, a 11 pips de los niveles inferiores de la zona de resistencia arriba. Hoy, el precio está más bajo en general, pero no va a ninguna parte. El rango es únicamente de 29 pips. El rango medio del último mes ha sido de 73 pips. Hay espacio para moverse, si el precio recibe un empujón en un sentido o en otro.

Si analizamos el gráfico de cinco minutos, veremos que el precio se mueve de manera errática alrededor de las MM de 100 y de 200 sesiones (líneas azul y verde), y está por debajo de una línea de tendencia superior en 1,1645 y por encima de una línea de tendencia inferior en 1,627. Todas estas líneas de tendencia se acercan cada vez y podrían converger. El mercado es claramente lateral, sin tendencia. Esperamos alguna clase de ruptura en algún momento. 

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¿Se está dando la vuelta el EURUSD? Lo intenta…


By Greg Michalowski @GregMikeFX, Director of Client Education at ForexLive. Translated by Wordwide FX Financial Translations

pero aún tiene mucho por hacer.

¿Se está dando la vuelta el EURUSD? Es decir, ¿da señales de agotamiento?

Seguro que los fans del RSI ya están viendo divergencias – bueno, confieso que les he echado un vistazo pero ya sabéis que no me gusta esta herramienta.

Estas otras pistas son más de mi estilo:

  • El EURUSD marcó ayer un nuevo máximo sobre 1,20694 (máximo del 29 de agosto y de enero de 2015), que se extendió a 1,2092. Pero resultó ser una falsa ruptura y ahora operamos lejos ya de ese nivel en 1,2045.
  • Si echamos un vistazo al gráfico de cinco minutos, veremos que el precio ha descendido bajo las MM de 100 y de 200 sesiones (líneas azul y verde) en 1,2958 y 1,29496, respectivamente. Si confirmamos bajo estas medias, las ventas pueden continuar.

¿Qué daría más confianza a los vendedores?

El 38,2% de la subida que partió del mínimo de ayer está en 1,2023. El cierre de ayer está en 1,1221. Siempre es tener una acción alcista fallida que salir en un día positivo y que acabe siendo negativo. Así pues, este es el próximo paso para seguir bajando.

Más allá, los traders tienen el soporte natural de los 1,2000, y también anda cerca el 50% de la misma acción alcista en 1,20025.

Así pues, sí que hay cierto retroceso en el EURUSD, pero en cada acción hay mucho quehacer para que siga la corrección. Por suerte, los técnicos hacen lo que tienen que hacer, no solo para definir el riesgo (no me sorprende) son también para definir los objetivos que harían una corrección más cómoda para los vendedores.

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Rápida maniobra del EURUSD


By Greg Michalowski @GregMikeFX, Director of Client Education at ForexLive. Translated by Wordwide FX Financial Translations

Rápida maniobra del EURUSD tras los comentarios de Draghi. El par empezó cayendo y atacando la MM de 200 horas en 1,1923, marcando un mínimo de 1,927 antes de darse la vuelta y recuperar posiciones con la misma celeridad.

Ahora, el par escala sobre el mínimo del swing de julio de 2012 en 1,2042. El máximo alcanzó 1,2052, por encima del cual tenemos el máximo de agosto y de todo el año de 1,20698- Si el precio escala sobre este nivel, estaríamos operando en los niveles más altos desde enero de 2014.

Si el precio confirma sobre este nivel, podríamos ver nuevas subidas. El siguiente objetivo estaría en 1,21661, que equivale al 50% de la bajada que arrancó del máximo de 2013.

Atención a la zona de 1,2000, pues es un nivel con riesgo de corrección para los largos. Si confirmamos arriba, la acción es más alcista. Si bajamos, los largos perderán fuerza.