Top 3 Macroeconomic Trends for FX Traders to Watch in 2019

forexForex market participant is closed analyzing and reviewing global macroeconomic trends, and there are three critical areas of interest that currency traders should focus on. A forex trend is a propensity for prices to shift in a certain course over a specified period. The patterns can be long- or short-term, upward and downward or even sideways. The ability to trade and succeed in the market requires the trader to identify the trends when it’s profitable and when the risk is high for an exit. To fully understand Macroeconomic Trends for forex trading, the trader should follow live forex calendar and through various online forex webinars.

Why It’s Essential to Follow Forex News Calendar?

The forex business is ever-changing, and a trader need to be forward thinking, to have the potential to be successful. A successful forex trader or an experienced investor in the forex market will undoubtedly highlight their ability and knowledge to predict forex market macroeconomic trends.
The FX market goes in trends often compared to the stock or precious metal market. The stock market is made up of a collection of individual stocks that are profoundly affected by the micro-dynamics of a particular company. The FX market is highly controlled and moderated by macroeconomics trends that take long to play out, and best manifest themselves through the significant pairs such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
The FX market globally is affected by three critical macroeconomic trends which currency traders must focus on strictly.

Technology Advancement and The Rise of Algorithmic Trading

In the forex market adoption of algorithmic trading systems powered by technology advancement around the world are changing how trader approach the market. There is a massive boom for specially engineered computer programs that are looking to offer new ways of creating trade orders by automation coupled with improved speed and precision.

This expected to eliminate personal bias and human error that increase the risk of loss in a trade. On the other hand, the rise of algorithm trading will increase trend analysis that greatly helps beginners reduce risks of incurring succession losses. Automated trading cuts the time a trader spends on the computer, giving you more time to spend on the things.

Global Political Climate and Elections

In 2019 forex market experts believe the rise of populism linked to Brexit and Trumps trade wars is affecting globalization. The forex market feels battered by fiscal austerity attributed to perceived threats of foreigners threatens the core of Europe and many institutions in the Eurozone.

Brexit negotiations coupled with Dutch and German election later this year are the most significant threats and game changer in the Eurozone affecting Forex market. In most cases, the market is better prepared for any political risk events, and most traders survive.

The Monitory Policy in Major Economies

The US government is currently experiencing a swifter recovery cycle compared to the counties. This has created to minor interest rate increases in the Eurozone, Asia (Japan) and the UK. To stabilize the situation, ongoing quantities to ease the policies have been less successful and will remain in place for a few years. For example, the Trump pro-growth and pro-business policies are yet to be formulated, and they have kindled optimistic spirits in the US stock market. This is evident through the foreign saving increase and lifting of dollar gain all comers in the process.
The ISH market anticipates the dollar to continue to strengthen in the coming months, notably the pound and the Euro are gaining attraction in the half quota of 2019.

To Conclude

At the start of 2019, the future of FX markets wasn’t anticipating any rate hikes from the US federal reserves, but a slight rate cut expanding to 2020. The market is also expected to come out stronger later this year, due to an increase in regulation as well as transparency in forex prices. Exchange market is expected to continue the cooperation with regulatory bodies that advocate for transparency in the market by improving trading technology; the FX market will gain a positive trend that is stronger than a few years back. You can view more news on forex live calendar.

Join the discussion