Forex trading is a huge investment, and it seems it will become even more prominent in 2019. The forex market is continuously growing as more people keep on joining the forex ship. We’ve seen significant shifts in prices and trends in 2018, and 2019 these shifts are set to go even higher. As a forex trader, there are three key areas you can focus on when analyzing and reviewing top trends in the forex market in 2019. These areas include macroeconomic trends, prices and an online forex calendar.
In the macroeconomic trends, you can focus on the propensity for the prices to shift in a given period. The shift in prices can either by short or long term and falling or rising. For a forex trader looking to succeed in the market, needs to identify which macro trends are profitable as well which macro trends offer a high risk. All these can be accomplished by always following the online forex calendar. So, what trends should you focus on in the forex market in 2019?
Advancements in technology
The progress in technology has paved the way for the use of algorithmic trading systems used in the forex market. These systems are changing a trader’s approach to trading by offering new methods of creating trade orders through automation coupled with precision and improved speed.
The advanced trading systems will also help eliminate human error and personal bias that commonly lead to the risk of making losses in a trade. Additionally, algorithmic trading will enable beginners to perform trend analysis, which is useful in the reduction of succession losses. Automated trading will also reduce the amount of time spent by a trader on the computer.
In addition to the algorithmic trading systems, there are trading apps that are popping up and becoming common among forex traders. With everything having its app, forex trading apps have become an inevitable trend in 2019. This is especially seen by the millennials who were born with a mobile phone on their hands. The trading apps are also making it easy for anyone to trade, mainly when using the MT4 mobile trading app.
Brexit negotiations and Political climate
The rise of populism related to Brexit and Trump’s trade “issues” is believed to affect globalization in 2019. The two are perceived by forex market experts to be a source of threat to the forex market that may lead to prices falling. For instance, the Brexit negotiations, which are scheduled to take place later this year can be a game changer to the forex markets in the Europe zone.
It was one of the most significant trends in 2018 and is set to continue into 2019. Social trading provides an online social environment that forex traders can use to interact in real-time. Through the interaction, they can share knowledge from more experienced forex traders. Beginners can then use this knowledge to improve their performance.
When comparing the recovery cycle between the US government and other countries, it seems the US is experiencing a fast recovery cycle. Due to this, there has been an increase in the minor interest rates in the Eurozone, the UK, and Japan. There have been efforts placed to come up with policies to stabilize the situation; however, none of them bore fruit and likely to be there for a few years to come.
The pro-business and Trump’s pro-growth policies are not yet formulated. The delay seems to be beneficial as foreign saving is increasing. Through that, it creates room for the dollar to continue strengthening as well as the pound and Euro gaining attraction in 2019 in the forex market.
As 2019 begun, the forex market never expected price hikes mainly from the US federal reserves. What many experts anticipated was a slight rate cut that could go into 2020. Increase in transparency and regulation in forex prices later in the year is also expected to boost the market. Remember to keep tabs with your online forex calendar to ensure you don’t miss out on any trend.