What to trade this week: Top Forex pairs
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Looking for what to trade this week? What’s hot and what’s not this week can make the difference between profit or loss in global markets, which are changing with every political shift, every volley of economic data releases, and every rally or decline in currencies.
If you’re a trader, chances are you’re examining an array of assets in search of insight into which ones you should consider buying or selling. Read on to get the low down on key assets and what strategies could work for you this week, from a pound rally to a euro bounce to major economic releases in the US and Japan.
What to Trade This Week: Currency Movements
The pound on Monday hit a three-week high against the euro, capitalizing on the recent French election, which produced a hung parliament. It leaves the eurozone’s second-largest economy with a paralyzed political system, beset by multiple scandals.
Trading the political fallout of the French election, and pricing in perhaps more volatility in the euro.
Sentix on Monday reported a sharp decline in investor sentiment in the eurozone in July, ending a run of eight months of improvement that had brought eurozone investors back to positive territory. The results were described as a “bitter setback.
Sentix’s eurozone index fell to -7.3 points in July from 0.3 points in June. As recently as May, the index was above zero, at 2.5 points. The July result was worse than the Reuters poll of analysts that had put it at a decline of 0.0.
The expectations index also slid, down to 1.5 in July from 10.0 in June. Sentix, a market research institute in Munich and operator of the survey, said forecasters had cause for concern.
‘The hoped-for recovery process, which has only just begun in Europe, has come to a sudden standstill,’ Sentix said. French elections later this month and state elections in Germany in September were prominent concerns for investors surveyed by Sentix, along with uncertainty surrounding the US presidential election in November later this year.
This decline was reflected in morale in Germany, the eurozone’s biggest economy, where the index for the current situation also fell, down to -32.3 in July from -26.3 in June, having risen in three straight months.
The survey, which interviewed 1,140 investors between July 4-6 with online and telephone polling, was conducted by Sentix.
What to Trade This Week: The Pound’s Strength
The newly installed UK Finance Minister Rachel Reeves, says her party’s ‘tough choices’ will unleash much-needed economic growth, and such rapid reforms designed to free up the gears of infrastructure and private investment could be key themes for traders looking to see what to trade this week.
Since Labour’s general election victory last Thursday, the pound has gained 0.5% against the euro, and this could be a strong contender to trade this week.
What to Trade This Week: U.S. Dollar Dynamics
A slide for the US dollar came in Friday’s wake, after a month of lofty jobs gains proved a mixed bag and could portend a Federal Reserve rate cut. That could help guide traders’ decisions on what to play this week. The USD fell sharply against the yen and all major currencies to offer opportunity.
What to Trade This Week: The Euro’s Reaction
Tamer than we might’ve expected, and yet the French election remains the primary question traders are trying to answer on Friday morning in the form of what to trade this week. The euro rose 0.04% to $1.0840 after climbing as high as $1.0852, its strongest since 12 June, pointing towards further upside ahead in spite of the political hangover.
What to Trade This Week: Yen Movements
The third consideration here is to consider trading the Japanese yen and it’s another interesting outlook for trade this week, simply because data revealed Japanese workers’ average base pay rose the most in 31 years. The belief of the Bank of Japan that it can achieve inflation targets could see interest rate increases, which highlighted the performance of the Yen.
What to Trade This Week: Sterling’s Gains
Sterling has been trading well against both the dollar and the euro, and this has been given added impetus since Labour’s landslide victory, which ended 14 years of a Conservative government. The political shift and the change from previous economic policies are going to be important considerations when selecting what to trade this week.
What to Trade This Week: Australian Dollar Insights
Despite slipping a little, the Aussie dollar could be an asset to keep an eye on this week, after yesterday hitting its best levels since 3 January.
What to Trade This Week: Cryptocurrency Trends
Attention is given to Bitcoin and other cryptocurrencies. Today, bitcoin goes up 1.44% reaching $57,166, its highest of the year. The incredible history is still developing.
What to Trade This Week: Inflation and Central Banks
As we approach August 1 and the next meeting of the Bank of England, traders should focus on the influence of inflation and macroeconomic signs. Because of low inflation and excellent macroeconomic performance, traders are assigning a 63% probability of a cut in the cash rate.
A lot of your trading schedules for this week could hinge on any such changes.
What to Trade This Week: Expert Insights
Fiscal prospects and political developments in the major economies continue to be of paramount importance to market experts. ‘Changes in the pipeline are likely not to make much of a difference for the pound,’ says ING strategist Francesco Pesole. ‘Still this week, at least, one must have French politics in mind, the respective releases of US macro data, and some additional information about what the Bank of England is looking at in terms of next steps.’
Before trading this week, you should research online reviews to find out about different trading platforms. An online review evaluates the reliability of the trading platform and its efficiency. It covers the quality of the user interface, the level of customer support, the range of fees, and the provision of advanced trading tools.
Another type of account that can help you achieve your goals and learn about the market as a couple or with friends or family is a joint trading account.
This account type requires multiple people and allows them to share a single account and trade together. Are you considering creating a joint trading account because you want to go through the experience of trading as a pair? Does figuring out the dynamics and logistics of a joint trading account influence your decision of what you want to trade this week?
What is Buying and Selling in Forex
Knowing what is (forex buying and selling) and what is not (forex buying and selling) is vital to effective trading. Forex trading involves buying one currency against the sale of another, exploiting fluctuations in exchange rates. For anyone deciding what to trade this week, the concepts covered in this lesson should be familiar.
Advanced trading is the practice of using complex strategies and tools to maximize profits. Technical analysis, algorithmic trading, and leverage are all examples of advanced trading techniques for traders who want to make money in the market. Those trying to determine what to trade this week might benefit from understanding advanced trading techniques.
Advanced Trading Tools
Beginners have to collect various numbers from their trading journal, which they have to input into a spreadsheet ready for the next trading day. Additionally, trading algorithms, online charting, and economic calendar software can greatly help trading by enabling traders to track price movements and eliminate large amounts of fatigue and stress.
A program like this can be of immense help in deciding what to trade the next week.
Advanced Trading Platform
Investors in the process can make use of an advanced trading platform that will help them to determine what to trade this week by providing them with additional features and functions necessary for executing and managing their portfolio, such as MetaTrader 4 or 5, NinjaTrader, and TradeStation. Make sure the platform you use meets your trading style and requirements.
Navigating Market Opportunities
Knowing what to trade this week requires a broad analysis of currency moves, political events, economic news, and expert insight. This week, the pound is strong, the euro meandering along amid political uncertainty, and key U.S. and Japanese economic indicators dominate the calendar. Stay connected and be nimble to make the most of the trading week.
