2016 Forex Trading Trends

As the year 2016 approaches, the Forex market’s trends are also shifting. Traders will need to be updated with what is happening in the Forex market if they want to avoid having any losses and reap a big profit this year. If you are a beginner who wants to start Forex trading, then now would definitely be a good time to hire a Forex broker or ride on an online Forex platform like CMC markets and start trading.

2016 Forex Trading Trends

The Rising Interest Rates of the US

It has been reported in various Forex news that the US Federal Reserve will be raising its interest rates in the year 2016. While the dollar is still staying steady as of now, we can expect the dollar to go a bit shaky once the interest rates go up. With this, the US Federal Reserves stated that they will not shoot up the interest rates in one go. They will increase it slowly and gradually so as not to shock the Forex market and lead to a sudden decline. Due to this certain strategy, we can expect the dollar to go up slowly. Though right now there has been no sudden increase in the value of the dollar, it would be wise for traders to keep on monitoring the progress of the dollar and see how it moves. Now is a very crucial time for the dollar so it would be best to really monitor each move it makes. It is advisable to always have your Forex charts ready so that you won’t have a hard time with the monitoring.

The Euro’s Strategy

The European Central Bank recently decided to cut its interest rates by 0.1 percent this year. This strategy is quite a bold one and was able to bring the value of the Euro quite close to the dollar. Although the Euro has been going up due to this strategy, this may not ensure stability for the currency in the year 2016. Many Forex experts would recommend traders to invest while it is still not going up and wait for it to soar. Of course, there is the risk of instability since the strategy may make the Euro go a bit out of control. Traders will just have to monitor the Euro from time to time.

The Asian Market

Although we expect big Asian countries like Japan and China to be very strong financially, it seems that Asian currencies have been becoming a bit unstable starting this year. Asian currencies have recently become weak against the dollar during the start of 2016 and still continue to wane. This may be a good opportunity to invest in Asian currencies and wait for it to go up. However, if you are doing short term trading, it is better to avoid trading Asian currencies against Western currencies. This waning may be due to most people converting to online trading platforms instead of brokerage firms. While this may bring Asian currencies down in the long term, we might see a big shift in trends.