The financial news out of the UK has been fairly dire as of late, with the weak pound putting pressure on consumers, the Bank of England holding its rates, and inflation continuing to outpace wage growth. But the advantage of trading on the Forex market is that you’re looking at all the world’s currencies.
Forex market developments
Since the Forex market is global, it offers traders the opportunity to make money both on their own local currency as well as on all the others. Bad news in the local markets can be leveraged by going short on your currency against another major foreign currency. Therefore, you need to keep an eye on Forex market developments.
The European Central Bank announced that interest rates would remain at zero per cent. Mario Draghi’s news conference will have a lot of people watching, and is sure to see some developments in the strength of the euro.
Bank of Japan cuts inflation forecast
Meanwhile, the Bank of Japan has trimmed its inflation forecast, saying inflation would reach 1.5 per cent by early 2019. This means its stimulus package is still in place, despite the trend by other central banks, like in the US and EU, who are leaving their stimulus plans behind.
US market continues to rise
Despite continuing controversy from Donald Trump’s White House, the US market goes from strength to strength, creeping up to all-time highs. However, news about the Republican Party’s failed health care bill did see the dollar drop slightly, so it’s worth keeping an eye on developments.
The Forex market is constantly moving
As our traders will testify to, the Forex market is an exciting place, as it ebbs and flows from the news and the release of different reports. If you want to learn how to read the markets and profit from these movements and Forex market developments, come along to one of our free Forex workshops.