Today saw the monthly report from the Bank of England, which often has a big effect upon the British Pound.
I opened this week by talking about the escalating trade dispute that threatened to increase import tariffs between major trading blocs such as the United States, the European Union, and China, and how this was tending to strengthen the U.S. Dollar and weaken commodity currencies such as the Canadian Dollar.
t turned out that the most dramatic event of last week was not the FOMC release and rate hike, but instead it was the European Central Bank’s announcement of the effective end of its quantitative easing (QE) program late in 2018.
Yesterday we had the keenly awaited FOMC releases from the U.S. Federal Reserve, which is usually expected to have a strong impact on the U.S. Dollar.
It’s been obvious that this week is going to see a lot of important things happening which are likely to affect the Forex market and produce some big price movements.
Last week saw a very quiet market, with Forex, commodities and stocks changing very little in value, with the exceptions of the Mexican Peso and South African Rand.
A great method to use to put the odds of achieving a long-term profit in Forex in your favor is to try to trade in the direction of whichever currency is the strongest against the weakest.
At the start of this week, in my “pairs in focus” item, I highlighted some potential trading opportunities I saw as likely to come along this week, including long USD/MXN (shorting the Mexican Peso).