The foreign exchange market, or Forex market for short, is the marketplace of the world’s currencies. While stocks are traded at physical exchanges, Forex is a decentralized market in which currencies are traded during various trading sessions in large financial centers around the world. Sydney, Tokyo, London and New York
Currencies are an effective way to store value and are around in one form or another for thousands of years. While in the prehistoric times people had to directly trade one product for another, such as sheep for sheep or wheat for wheat, the invention of currencies and currency exchange,
Event wise we are at the start of a quiet week, but developments in the global trade war, could trigger volatility. US tariffs on Chinese imports have been announced by Donald Trump but according to reports, the US is having “very productive” discussions with China, on fair trade.
Don’t miss out today on the extensive data to be released in the UK today, especially the Monetary Policy Summary and BoE Minutes. Across the pond, Donald Trump is widely expected to announce today tariffs on Chinese goods. How will China retaliate? The EU is thought to be next in the firing line.
Employment data is the major concern of GBP traders today as the markets await the UK’s Average Earnings and Employment Rate data this morning. Traders are also cautious this morning, pending the FOMC rate decision. A rate hike is expected today, but the question is, how many such increases will we face this year?
Sterling is going strong this morning the announcement of a transition deal with the EU. Traders are now keenly waiting for the extensive economic data out today in the UK, including the Consumer Price Index and the Producer Price Index and don’t miss the German ZEW Economic Sentiment. EUR traders beware.