FX trading is a business that is subject to rapid and dramatic changes. Such is the case of the recent plunge in the value of the USD. Today, the greenback is at its lowest value in 9 months, as the US Federal Reserve signaled a possible increase in interest rates. The EURUSD is also trading at session highs, as the lack of new ECB stimulus news lifted the common currency. The USDJPY, on the other hand, is weaker at the moment amid big US Treasury yields. The EURCAD is also in positive territory, as the pair continues to chop higher above its pivot level. The USDCHF and USDMXN are also moving higher, while the USDTRY is trading in tight range. The USDINR is the lone exception among the majors, as it continues to weaken on the back of rising global yields.
Latest European FX News
Spanish inflation soars to 2-year high of 4.9% in March
German inflation hits 2-year high of 3.1% in February
ECB may provide more stimulus at upcoming meeting
USDJPY remains under pressure as US Treasury yields rise
USD in the spotlight
The dollar sees biggest one-day slump in 9 months after Fed signals more rate hikes
USD continues to face strong headwinds from rising global yields
USDJPY trading range bound as risk appetite remains subdued
EUR in the spotlight
EURUSD is trading at session highs as ECB stimulus news is thin on the ground
EURCAD resumes its uptrend as the USDJPY is range-bound
CAD in the spotlight
CAD ends the day in positive territory as the USDJPY is range-bound
USDCHF continues to chop higher as investors turn cautious ahead of Fed decision
GBP in the spotlight
GBP posts small gains against the USD as investors take profits ahead of rate hike
No clear catalyst for GBP’s climb as Brexit uncertainty looms large
JPY in the spotlight
USDINR remains under pressure on the back of rising global yields
Gold prices inch lower on safe-haven demand and volatility worries
WTI crude oil prices edge up on signs of rising US oil production
US economic calendar
US non-farm payrolls report Friday, May 5
As we can see for ourselves, there are no shortage of opportunities for the savvy trader to make money in the foreign exchange market. With so many factors that can affect the price of a single currency, and so many ways to successfully trade that currency, finding opportunities is a cinch.
The volatility in the foreign exchange market is expected to continue, and the recent plunge in the USD has provided plenty of opportunity to make money. However, it’s important to remember that volatility is not a Permanent condition in the foreign exchange market, and it’s possible to make money trading even during periods of high volatility.
While the EUR is trading at session highs, as mentioned above, the USD is at its lowest value in 9 months, so there’s plenty of room for both pairs to continue to move higher. With that in mind, it’s important to keep a close eye on the USDJPY, as it could very well be the key to making money in the near term.