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This article mainly focuses on the key aspects to consider before trading as well as predicting movements of different currency pairs. So all those Fx traders who are new to this venture, refer to the information properly.
There are numerous currency pairs which are traded around the globe. Each has its own characteristic in terms of its behaviour to political and economic aspects. So for a trader who is dealing with a particular currency pair, it is of utmost importance that they understand the considerations properly.
There are numerous websites which give you accurate readings on various currency pairs in the form of EUR USD forecast or any other currency pairs.
But if you want to do it yourself, then the next section will discuss about the aspects which you have to need to watch closely.
In the world of economy, the two largest currency poles are undoubtedly the European Union as well as the United States of America.
EUR USD pair
EUR denotes the European Union and the American Dollar is known as the USD, and they are the most popularly traded currency in the world. Traders looking for Forex forecasts should always check for EUR USD forecast
- Experts state that EUR USD prediction is made by the comparative strengths of their economies.
Example- If US economy experiences a growth then USD will also experience a rise in contrast to the weak EUR, and if the European economy experiences growth, then EUR will rise against the USD.
- Another thing to know when calculating EUR USD estimate is that both of them are strongly influenced by their respective political instabilities.
Example- If rate of interest for EUR is higher, USD drops and vice-versa.
Experts suggest that with the use of Forex forecast software, you will be able to trade easily.
Hard core technical analysis is needed for knowing EUR USD prediction and it would be advisable to check online for some of the top tools around.
Other currencies paired up with USD:
USD JPY pair
The Japanese Yen which is symbolically denoted by the JPY is one of the most influent Asian currencies.
- In fact USD JPY forecast is something which American and Canadian fx traders use to earn profits at night time.
- Usually, USD JPY forecast is looked by traders who prefer making their trade with the fundamental analysis.
- Some things which traders should look for when calculating USD JPY prediction is the price of commodities in Japan. When the price of commodities increases, this currency pair strengthens.
- Statistically speaking this currency pair also comprises of a wonderful resistance level of 146 and support level of 76 and for that, it is the ranked 3rd in all currency pairs of the world.
Interested traders can check online for accurate USD JPY behaviour.
CAD USD pair
Canadian dollar also denoted by CAD, when paired up with the US dollar is referred to as ‘Loonie’ or at times just ‘Funds.'
- This currency pair is very liquid, and that is mainly because of its large scale trading.
- For a new trader who calculates or checks for USD CAD forecast, must know that their value will differ as per the different rate of interest fixed by Bank of Canada and Federal Reserve.
- Example- If the Feds intervene for the purpose of strengthening the American dollar, its USD CAD forecast will display an upsurge in its value.
- One unique thing for new Fx trader when checking for USD CAD prediction is that US dollar, when paired with Canadian Dollar, is considered to be the base currency while in other cases it is usually the quote currency.
AUD and USD pair
This pair is commonly referred to as the ‘Aussie’ and is considered suitable for traders fresh to forex trading. It is very sensitive to adverse conditions and to the price of metals. When the price of metals fall, the price of the currency decline and vice versa!
Also when weather conditions are not suitable, or whenever this country gets affected by flood, hurricanes or droughts, the currency falls. On normal weather conditions, it remains nearly constant.
- Young Fx traders looking for AUD to USD forecast should know that the Australian currency or AUD is mostly dependent on commodities, Australian exports and economic data of China.
- News and events influence the pair substantially.
- The important thing about this currency pair is, it moves quite a lot during the Asian session. However, in New York or London, it moves normally.
- Traders checking out AUD to USD forecast should know that it is a risk off-risk on currency meaning with price-possibility upsurges and vice versa.
GBP and USD pair
For Fx-ers around the world, this currency pair is referred to as ‘Cable.’ The pair is one of the oldest trading pairs around the globe and is very sensitive to political events taking place in the UK, non-farm payroll feeds and news which influence the EUR USD currency pair.
- If you are new to Fx and check for GBP USD forecast, you should know that its regular price range is very high.
- News and events impact this currency pair heavily. In fact, its market can be lifeless till the point when its related news and events aren’t complete out.
- Traders looking for GBP USD forecast should keep in their mind that this pair retraces Fibonacci limits such as 78.6 and 88.6.
- Another thing for those who check GBP USD prediction is its price challenges resistance and support.
- This pair gives out strong signals right before the start of a trend and this proves to be quite adequate for traders doing short term trades.
NZD and USD pair
This currency pair is also denoted as the Kiwi pair where the US dollar is the quote currency, and the New Zealand is the base currency. If you are into fx trading and want to get accurate NZD USD forecast, then here are some characteristics which you need to consider.
- This pair is also very sensitive and is influenced greatly by the rate of interests set by the Federal Reserve as well as the Reserve Bank of New Zealand.
An example- if there is an intervention from the Reserve Bank of New Zealand aiming to strengthen the NZ dollar would probably lead to a rise in value of NZD and USD currency pair.
Contrariwise, if Federal Reserve tries to intervene the US dollar with the aim to strengthen it, then value of NZD and USD currency pair.
- This currency is also sensitive to the price of metal prices and weather conditions. Whenever the country experiences severe metal (gold and silver) conditions as well as certain unavoidable circumstances like fire, flood, hurricanes and drought, the price of the currency falls.
Experts state that this currency pair is best suited for technical analysis mainly because of its calm movements.
These currency facts are important for Forex forecasts and will help you read the market better.
Now that you have learned about them set up a subscription with a trustworthy website which offers regular feeds on currency GBP USD estimates, NZD USD forecast, EUR USD prediction, latest Fx market analysis, free chats and other kinds of bonuses.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.