Article source: Nasdaq.com
Investors today are placing much emphasis on the forex trading business. Over the years, the industry has grown to become a multi-trillion business around the world. Many traders in various countries are jostling to put their trading skills to good use in an effort of making sustainable profits. Some companies are making every effort possible to assist traders who trade on a daily basis with the necessary tools and information that can help them to succeed.
As 2014 begun, the forex market found itself in a deep freeze because of low volatility records causing a nosedive in trading volumes. However, the market bounced back strongly in September to a high of $5.9 trillion thus making it reach a record high in comparison to August 2013 and August 2014.
It was because of the US and Eurozone economic and monetary changes that took place, which caused further changes in major currencies to occur. Since strategic long-term plans were already underway where currency exchanges were concerned, the policy shift came as a shakeup to major currency trading.
However, since May of 2014, the European Central Bank relieved their monetary policy; thus, making the Federal Reserve take the initiative to move forward and end the dwindling slide of the dollar. This move by the Federal Reserve in turn triggered a rise in US interest rates. Although the volatility of the trading market might be a shock for policy makers, still the move put forex traders, managers and companies in a much better position to generate returns much easier.
During trading yesterday, the Great Britain and Canadian currencies stood at 1.7845 to 1.7952 and both ended at 1.7900. Today at GMT, Great Britain and Canada were at 3% in a single day and both of them ended trading at 1.7906.
In regards to the central pivot points, both countries steadied at 1.7899. Resistance level remained at 1.7953 and if both countries manage to break through they still have to reach the test level of 1.8006. If they should go to the first key level support of 1.7846 and manage a break through, then they must move downward to test 1.7792. For the second priority level to reach, they have to go up a notch higher to 1.8060.
As the US economy grew, the US dollar increase in strength and as a result the forex market got a boost as well. Forex investors therefore are looking for good results when they trade in the market.
While in Asia, the dollar made a downward plunge against the yen; thus, stimulating a decision to be made causing the Federal Reserve to stop its regular bond buying of other mixed currencies in international trading. The US dollar and the Japanese Yen ended trading at 108.79, which is a dropdown by 0.10%. However, the US dollar index eventually rose to 0.02% at 86.10 to make much speculation in the forex market among investors and other key players voices to rise.
As forex trading increase sharply, investors are getting ready to take as much advantage of any progress made in the industry and forex companies on a whole are watching to see how they can benefit from much trading taking place in the market. As the saying goes, “the sky is the limit,” forex trading will constantly play a leading role in the exchange of mixed currencies taking place around the world.