Over the past few trading weeks the British Pound has rallied and so has the Australian Dollar. The GBPUSD and the GBPJPY have seen very strong advances and so has the AUDNZD. Forex traders can look at fundamental factors which partially explain the price movements, but once taken a closer look one can spot a divergence between the reported data and the corresponding moves in the price of those currencies. This opens up great trading opportunities as a sharp rally in a currency which goes counter fundamental data will often be reversed...
Tomorrow will be a very interesting trading day especially for the US Dollar and for the Canadian Dollar. The US as well as Canada will report their employment figures for April which will make the USDCAD the most interesting currency pair to trade after he release of the data. Forex traders should expect an increase in volatility as well as trading volume and wide price swings as positions will be adjusted based on the released data. When will the US NFP report and the Canadian employment report be released? Both reports will be released at...
The Reserve Bank of Australia cut interest rates by 25 basis points to a historic low of 2.00%. This move was expected by forex traders may have surprised Glenn Stevens, the Governor of the RBA, and other central bankers as the Australian Dollar staged a rally despite the cut in interest rates. The RBA was hoping to push the Australian currency lower in order to make exports more attractive to major trading partners; a move which backfired. Several economic reports have been released out of Australia as well as China which support a...
Here are the key factors to keep in mind today for British Pound trades: British Markit Manufacturing PMI: Economists expect a slight increase in the UK manufacturing sector for April. The Markit Manufacturing PMI is called higher to 54.6 in April from the 54.4 reported in March. Given the overall global economic slowdown this would be a positive report. British Mortgage Approvals: The UK housing sector is expected to enjoy a little upswing in March with an increase in mortgage approvals to 62,500 from the 61,800 reported in February. This...
This week forex traders will have three different GDP reports, or Gross Domestic Product reports, which give an important look at economic developments. This can be viewed as a snapshot for the global economy and the first-quarter of 2015 is off to a much slower start than expected. Looking at what has been released forex traders may be surprised by which country performed the worst, but it does explain the movements in the currency market. What is a GDP report? A GDP report measures the economic performance and covers all important pillars...
