Today’s U.S. housing sales report unexpectedly showed that sales have decreased. This news caused the USD to weaken against a number of its major counterparts. Spectators now believe that the Federal Reserve may be forced to increase quantitative easing in order to aid the U.S. economy.
What about the Forex?
Unlike other trading markets, currency traders can still find trading opportunities, even when currencies weaken.
How it works:
Because currencies are sold and bought in pairs, at any given time, one currency is being compared to another. This means while one currency strengthens the other weakens. For traders, the weak market data for the U.S. increases the possibility for a third round of quantitative easing. This may cause the USD to weaken in value compared to the other currency in that given pair. It may sound negative, but in reality this simply tells traders whether to buy or sell that currency.
The USD is weakening. Your trades don’t have to be. Forex education gives you the tools you need to gain an edge on the currency market so you could take advantage of trading opportunities whenever they arise. To learn how you could stop sitting on the sidelines and get into the action! Click here to learn more.