Oil is trading near its highest levels since October, 2018 but what does that mean for you? The production costs associated with producing goods and services are directly impacted by fluctuations in crude oil price changes which has an impact not only on suppliers’ profit margins but also on those who purchase these products such as consumers because they may find themselves paying higher prices at retail stores than before when there was lower demand due to low gas stations.
This means depending on where your country falls either way this could be good news or bad news!
Check out our economic calendar for details.
Giving you the latest updates and an overview of how the volatile market looks right now!
The market volatility provides numerous AMAZING money-making opportunities for investors that are looking for fast profits. That’s why having a close look at the volatile markets is one of the key factors to be profitable in your forex trading. Investing is inherently about risk, but risk works both ways.
Here we give you a quick look at what to look for and which currency pairs you should pay an extra attention for right now.
What to look for in the market right now?
Upcoming events on the Economic calendar.
Here are some of the main news right now:
- Asian markets are mixed this morning. While the Hong Kong market is up 1% at time of writing, both China and Japan have dropped in value so far today.
- Oil today may be affected by the OPEC+ meeting, which is happening throughout the day via satellite.
Rising and falling markets now
Understanding bullish and bearish terms in forex trading
Are you confused of the terms bullish and bearish when talking about the forex markets?
Bullishness is a sentiment or mindset adopted by a trader, thinking securities will move up in price.
The opposite of this is bearishness, which is the sentiment that securities and markets are likely to move down in price.
I may write for example that “I am bullish on EURUSD” in one article. It means that I noticed that EURUSD is moving up.
The terms bullish and bearish can also be used to describe a trend or movement that has already happened. For example, if EURUSD has made a drastic move down from 1.2160 to 1.1950 after some economic news, one may say that the pair has been bearish.
While the most common use of the term is in the forex market, these terms do not necessarily apply only to forex but also stocks. The terms can also be used when thinking about investments in the real estate sector, the commodity markets, and other investment arenas.
CADJPY: The Barchart Technical Opinion rating is a 100% Buy with a Strongest short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
A Bullish trend is one where there is an upward trend or rising direction in the market. Contracts listed as bullish are those whose standard deviation has risen over the specified time period.
Bullish pair right now: AUDJPY and NZDJPY are in a long-term bullish movement, as shown in The Market Movers below. You can also check out our target trading analysis for AUDUSD.
A Bearish trend is one where there is a downward trend or falling direction in the market. Contracts listed as Bearish are those whose standard deviation has fallen over the specified time period.
Bearish pair right now: USDNOK and USDZAR are in a long-term bearish movement, as shown in The Market Movers below. Check out our target trading analysis for USDNOK.
The Biggest Market Movers
We try to get you a feeling of which currency pairs are having the biggest moves and whether the strength/weakness is broad-based by having a quick glance at the currency pairs.
The overview below displays a graph showing Bullish Momentum as green bars (higher standard deviation), followed by Bearish Momentum as red bars (lowest standard deviation).
How to trade volatile currency pairs
There are categories of currencies that are typically more volatile and have larger percentage price changes than others.
Could the volatile market increase your earnings faster? Yes, but this depends on your entry point and if you are on the right side of the trade.
- Currencies with high volatility will normally move more pips over a certain period than currencies with low volatility. This leads to an increased risk when trading currency pairs with high volatility.
- Currencies with high volatility are more prone to slippage than currency pairs with low volatility. Slippage refers to all situations in which a market participant receives a different trade execution price than intended.
- Due to high-volatility currency pairs making bigger moves, you should determine the correct position size to take when trading them.
The currency markets are capable of a range of factors that affect their volatility, and many traders look to tailor their strategies to capitalize on the most volatile currency pairs.
Volatility, usually measured using how much the difference of a currency pair changes in value, gives traders an expectation of how much a currency can turn aside from its current price over a certain period.
The higher the volatility of the currency, the higher the risk. Volatility and risk are usually used as interchangeable terms. Never risk more money than you can afford in forex trading, and it’s valid also for trading with volatile currency pairs.
4 factors that decide the market movers
Market movers are all those news that give direction and increase short-term volatility. The 4 strategic market movers you need to know about are:
- Interest rates: The Central Bank Decision deals with the quarterly meetings of the central bank, where interest rates are decided. If the interest rates of a given country increase, its currency will rise in the short term and therefore it would be good to buy it, otherwise it’s better to sell it.
- The NFP (non-farm payrolls) provides a report on the US labor market, which is released every first Friday of the month.
This data is very important as it shows how many jobs have been created. If jobs are higher than expected we can invest by buying dollars, or if instead, jobs are less than expected you can invest by selling dollars.
It’s interesting to invest in currencies related to the dollar which are mostly not influenced by other ongoing news and trends.
The release of the NFP generally occurs on the first Friday of every month at 8:30 a.m. Eastern time. This news release creates a favorable environment for active traders because it provides a near guarantee of a tradable move following the announcement.
- The consumer price index (CPI) indicates inflation or the deflation of a country. Inflation indicates a considerable rise in prices, while deflation indicates a contraction.
From a trading point of view, the CPI released with values higher than analysts’ expectations is an indication that the currency the data is related to will rise and therefore a good time to buy it. On the other hand, depreciation signals a good selling opportunity.
On the European side, it’s important to avoid following the data of individual countries which don’t affect the common currency, except for Germany, which could have an impact on the Euro.
- Gross domestic product (GDP) is another indicator of the health of a country. A country’s GDP measures the percentage increase in production over a period of time. A GDP growth of a nation suggests economic growth.
Three consecutive negative GDP results indicate that the country is in economic recession: an opposite result would indicate an economic expansion. The following macroeconomic news impacts not only the currency market but also the stock and bond markets.
We provide these charts daily and let you know the latest trends in the forex market today. Check out updated charts on Barchart.com.
Check out target updated trading ideas for other hot currency pairs: USD MXN Analysis
Are there any news that can have an impact on the live market today? Check out our economic calendar here.
Our Forex Heat Map will completely change your perception of the market. You’ll understand how and why specific currency pairs move. You will have no problems recognizing the strong and weak currency, so that you can open only those transactions with high probability of success.
Disclaimer: Forexandprofits.com would like to remind you that the data contained in this website is not necessarily real-time nor accurate.
All CFDs (stocks, indexes, futures), cryptocurrencies, and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
Therefore Forexandprofits.com doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
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