简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Having said goodbye to 2019, the forex market soon entered the first trading day in 2020. Due to the long holiday, the market has not been very liquid at the start of a new year. USD may be largely affected by political factors, while the move of other currencies this week has been signaling further trend. Let’s take a look on the forex market in the first week of 2020.
Having said goodbye to 2019, the forex market soon entered the first trading day in 2020. Due to the long holiday, the market has not been very liquid at the start of a new year. USD may be largely affected by political factors, while the move of other currencies this week has been signaling further trend. Lets take a look on the forex market in the first week of 2020.
EUR/USD
With little doubt, USD remains the most followed currency on the market. 2020 is the election year in the US and whether President Trump will remain in office will largely affect the market. From rewriting the North America free-trade agreement to starting a trade war and posting high tariffs on other countries, Trumps economic policies during his presidency have significantly reshaped the global economy, and to certain extent are responsible for its slowdown. Trump has been the third US president in history that faces an impeachment, and market views the impeachment result to be a determining factor for his re-election. As for the election, historical data suggests the dollar usually fares well in the election year, falling only twice in all election years during the past 40 years, while what seemed to be a sell-off in 2012 turned out different than it appeared to be. Though history does not always repeat itself, past experience suggests 2020 may be a good year for the dollar.
USD/JPY
In analysis at the end of 2019, we mentioned that the sluggish US economic indicators could mean the dollar may experience a down period before the economy rallies in 2020, and this has been proved by the decline of USD/JPY in the past week. Since the beginning of trading session in the new year, USD/JPY has been jittering down-slope, and on January 2nd (EST) the pair further dropped to breach the previous low-point support, suggesting that a even worse situation is imminent. Its estimated that the exchange rate can be moving toward the low-point during October and early November last year.
AUD/USD
AUD/USD stayed bullish near the end of 2019, closing at its highest level since July on Boxing Day, and again climbed 90 basis points at the end of the year, pushing the rate of AUD against USD above 70 cents. Much in line with previous estimation, the Australian dollar is a first choice for profit-taking. For the first week in 2020, AUD has breached the previous doji low, which signals a reverse of the trend. But the market is still looking for evidence that a low-point higher than the previous one has formed, expecting for another bullish trend. This can be a very psychologically challenging process.
As the new year starts with a fresh outlook, knowing the market trend will help you gain greater advantage in forex trading. Stay tuned as WikiFX brings you more forex updates.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Keep Silence to FX Scams? NO! EXPOSE Them on WikiFX!
A few months ago, a person from the trading solution provider company “PlatformsFx” contacted the victim for forex trading. According to the victim, the scammer and his so-called well-known gold trading platform took US$76,878 from her and put it into a presumably real forex account.
Archimendes said: “Give me a fulcrum, I can lift the whole earth”. This is the earliest appearance of the concept of leverage. The word leverage dates from 1724 and was originally used to describe the action of a lever. By 1824, by which time the Industrial Revolution was fully underway, the scope of the word had expanded to include the power of a lever and therefore the obtaining of a mechanical advantage. It is simple to say that if you want to invest $10,000 in the forex market, you can to it by leverage with small investment. Leverage is a financial tool, which can magnify the result of your investment, including gain or loss at a fixed ratio.
WikiFX News (6 Aug) - WTI crude oil embraced a steep rise in prices, up 4.5% to the high level of $43.68, compared to its low level of $41.76. It has recorded a fresh five-month high since March 6. Nevertheless, the outlook of oil remains uncertain because of the insufficient upward momentum in future oil prices resulted from the sluggish job growth in the United States.