With the election looming on the horizon, all eyes are on the pound. But what about the other Forex markets? What other opportunities are out there for the savvy trader?
Movements in Sterling
Before we move onto what’s happening in the other markets, it’s worth going over the pound. Despite the uncertainty and volatility in Sterling, it’s still edging towards an all-time high. This is most likely due to the FTSE 100’s current bias towards the US dollar.
However, analysts are on the fence as to what will happen tomorrow – The pound may break its all-time high and continue up, it could stabalise, or it could come crashing down.
US dollar strength
Since becoming the US President, Donald Trump has made several controversial decisions, the latest of which was pulling out of the Paris climate change agreement. Although his policies may be unpopular at home and abroad, many have directly benefited US businesses and therefore its economy.
This benefit has seen the dollar strengthen, reaching 5-year highs, holding a decent position against most trading partners.
Japan and other Forex markets
The Bank of Japan has been taking the lead in making sure that the Yen stays at a stable rate against its trading partners, having strengthened against the USD, the EUR and the GBP in the last few days.
However, the AUD and NZD are bucking this trend – one of our traders speculates that this may be due to all three currencies trading within the Asia/Pacific markets.
Trends in the Australian dollar
Our traders made note last week that the Australian dollar was weak across the board against its trading partners. This is despite recording 103 consecutive quarters recession-free. On a closer look though, there’s a distinct trend, and that is a slow but steady increase.
What these Forex patterns could mean for you
These trends are but a taste of all the movements that are presented to Forex traders day in and day out. Movements that offer the opportunity to make money by either going short or long on different elements within the Forex market.
The thing that separates the average trader from a Learn to Trade educated Forex trader is the ability to see these trends and recognise what it means for the markets.
You can learn how to make the Forex market work for you by attending one of our free 2-hour seminars. Click here to find a forex seminar near you now.