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What should you expect from the currency market in October?

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While the US dollar was hovering at its lowest level in months against its peers in September, the USD quickly rebounded back to reach its highest level since the beginning of the year, according to the Bloomberg Dollar Index. This rise has weighed on its pairs like the AUD and JPY, as well as the GBP and EUR. For investors and traders wondering how to take advantage of price movements against major currencies like the EUR and the GBP, but also against smaller currencies, like the Nigerian Naira, CFD and Forex brokers are offering great ways to easily take advantage of bullish and bearish movements, allowing you to be profitable in all market conditions.

easyMarkets is one of the most popular regulated Forex brokers for trading currencies online in a secure and competitive environment. With easyMarkets, you can trade the Forex market with fixed spreads and no slippage, which allows you to know your trading fees in advance and get your trades executed at the exact stated price, not a cent under or over. You can also take advantage of free guaranteed stop-loss orders, as well as freeze rate and dealCancellation options, to better manage your risks and better protect your trading capital. All these features can help you maximize your profits, while minimizing your risk when trading the currency market.

Euro

The Euro Zone is facing growing concerns over rising inflation and potential action from the European Central Bank (ECB), as inflation might be more “structural” than previously expected, as declared by ECB’s Vice President de Guindos. This would mean that the ECB might have to respond quicker than expected to accomplish its mission of “price stability”. If the ECB were to increase interest rates or slow down its bond-buying programs, this would strongly impact the value of the single currency, which has been weakening against the USD. Investors should monitor any new updates on inflation and monetary policy decisions, press conferences, and declarations.

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Pound

The UK Pound suffered from the recent rise of the US Dollar, as well as the fuel crisis that has plagued the UK recently. Not to mention that the direction of inflation is also a worrying policy market, with the current inflation rate at 3.2% against a target of 2%, according to the Bank of England (BoE) figures. The rhetoric of the central bank has subtly changed recently, as it isn’t ruling out the possibility that current inflation could remain on the upside for longer than anticipated, which might force the BoE to act in order to maintain prices around the 2% target. Brexit and all the agreements required for the United Kingdom to go forward and cut its relationship with Europe are also affecting the value of the pound, while also exacerbating the fuel crisis. Investors will have to closely follow the evolution of the fuel crisis in the UK, along any developments regarding the status of Brexit, inflation figures, and any comments and decisions from the Bank of England.

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Akinola
Akinola
Akinola Olusegun is a blogger and publisher of this blog, money247.com.ng. You can also check out his other blogs : segtv.com.ng (videos & news), letgoonline.com.ng (e-commerce), letgoonline.com.ng/blog (news) among others. Follow him via any or all of his social media pages to get fresh posts update.
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