Roughly two weeks into 2019 and volatility is already rising across financial markets which impacts the forex market as well. Everything is connected in one way or another and successful forex traders understand that one needs to keep an eye out on developments in other sectors, such as equities, commodities and bonds, in order to get a complete picture. Understanding how they are connected can also offer great trading signals for currencies and improve overall profitability while it will decrease negative surprises.

The ripple effects of the US-Sino Trade War of 2018 are already being felt across industry groups. The US officially fired the first shot last week on Friday by imposing 25% tariffs on $34 billion worth of Chinese goods which are imported to the US, with another $16 billion set to receive the same treatment on July 16th.

Foreign exchange rates can change rapidly in response to any real-time economic and political events. This offers great opportunities for traders to make profits in the forex markets. However, volatility can be a double-edged sword, and losses can accumulate just as quickly. Volatility in the forex markets can bring ample opportunity to speculate and profit from forex price movements. However, there is always the possibility that your trades could go against you and this could net you a loss.

Summer is approaching and as most traders know this usually comes with a severe slowdown in trading activity also known as the ‘summer doldrums’. The reason being that most active players in the financial sector are operating with a skeleton crew as the majority of staff are around the globe enjoying summer. This doesn’t mean that trading will become boring or that there won’t be any opportunities. On the contrary, each development will have a magnified impact on price action due to the lack of volume.

Let’s backtrack a bit into forex history, not to long ago, the Swiss National Bank (SNB) had their currency pegged to the Euro with an exchange rate of 1.2000 in the EURCHF as a boundary. The SNB vowed to defend this level at all costs and interfere in the forex market with its vast currency reserves in order to prevent the exchange rate from dropping below the 1.2000 level.

With the Brexit mood souring again as EU President Donald Tusk is visiting the UK and the start of March ringing in the final twelve months of Brexit negotiations before the UK will leave the world’s largest trading bloc, the EU, some may not pay as much attention to what could move the Euro next: Italian elections. Italians will go the polls on Sunday, March 4th and many Italian voters are still undecided.

Volatility is regarded by forex traders as one of the most important informational indicators for decisions on opening or closure of currency positions. In reality actual price quotations change constantly at different pace: sometimes quickly, sometimes slowly.

As Christmas and the New Year are approaching, most traders usually start thinking about taking vacations, what kind of presents to give their family and friends, or looking forward to holiday parties. However, if you still want to trade the markets on holidays, understanding the inherent risks and dangers of after-hours trading may limit your risk exposure. There are a lot of reasons to avoid trading on holidays.

One of the most common situations, with which constantly has to deal any Forex trader is an unexpected and unpredictable movement of currencies prices that trigger market volatility.

If you want to invest in stocks, you first need to understand how the stock market works. For the investor it is particularly important to know what causes the quotes to vary. After all, the stock market prices fluctuate greatly, even for a second they may go up or down. Volatility is a probability of stock prices’ change.

The forex market is an international market, a market that knows no geographical boundaries and no local working hours as with the use of the internet and the trading platform as a trader you are extended the opportunity to trade 24/5 as the nature of the forex market does not allow it to sleep.