Forex Trading in currency euro usd price analysis Brithis pound catalysts


Trading in currency


Because trading in shares can often involve large risks, an alternative currency is traded. Trading in currency is also called Forex, Forex is an abbreviation of Foreign Exchange.






Currency exchange rates do not fluctuate as heavily as equities and therefore involve a lesser risk.
Foreign exchange market

US Dollar (EUR - USD)



The euro is the official currency of a group of Member States in the European Union. The euro was introduced in giral in 1999. On January 1, 2002, the euro also became the currency of the euro zone countries and replaced the national currencies of the euro countries. The euro is now the official currency of 19 European states. Outside the euro zone, there are 23 countries that have linked their currencies to the euro. Euro coins are not all the same, but have a national symbol on one of the two sides. Banknotes in the euro zone have a uniform appearance. On the euro banknotes the Latin and Greek script is used to denote the euro. The euro has 15 denominations: 8 euro coins and 7 euro banknotes. Banknotes are available for 5 euros, 10 euros, 20 euros, 50 euros, 100 euros, 200 euros and 500 euros. There is discussion about the possible abolition of the 500 euro note.

The euro has become an important counterpart to the US dollar (US Dollar) through its widespread spread. But also for other currencies in the world, the euro is an important reference currency. After the dollar, the euro is the most important reserve currency in the world.

The monetary policy that determines how many euros are in circulation is determined by the European Central Banks. The euro is traded on international foreign exchange markets like other currencies. The price of the euro and other currencies is determined daily.


When dealing in currency, both a sale and a purchase take place: if a currency is purchased, another currency is sold. When buying a Dollar with Euros, the Euros are sold. The most traded currencies are the US Dollar, the Euro, Japanese Yen and British Pound. The currency trading focuses on four major cities; London, Tokyo, New York and Sidney. In contrast to the stock market, currency trading is possible 24 hours a day, the market opens on Sunday evening at 23:00 (opening in Sydney) and closes Friday evening 23:00 (closure New York). The trading of the currency goes completely online and therefore no physical money is involved.
In his work

But how is that trading of currency now in its work? Often we use so-called Forex Brokers, intermediaries who regulate trade between the market and the trader. Traders can buy and sell desired currencies via websites, apps and special programs. Because exchange rates can change quickly and respond strongly to the world news, it is possible to make a quick profit with the trade. Because transaction costs are often very low (around 0.1%), it is very attractive for starters to start trading in currencies.

Trading currency requires a lot of preparation and it is therefore good to read in before you start something. Keep an eye on the financial news and think logically. Many Brokers, however, offer the possibility to open a demo account so that you can practice with practice money in advance, for example at Plus500 with € 100, - fictitious capital. Note that there may be major risks in trading and so start with small amounts.


The GBP is constantly trading from Sunday evening to Friday afternoon in the time United States, with significant gains. Volume and volatility, however, vary greatly in each cycle, with spreads extending in quiet periods and narrowing in active periods. Although the ability to open and close positions at any time marks a forex advantage, the majority of trading strategies are unfolded during active periods.


Economic results



Most of the monthly economic data from the United Kingdom is released at 1.30 am Eastern Time in the United States, with most of the data on mainland Europe arriving at 2:00 am half an hour later. Thirty to sixty minutes prior to these releases and one to three hours thereafter mark one of the best time segments to trade the GBP, as the news stream affects at least three of the four most popular currency pairs.


U. S. economic releases centered at 8.30 am and 10.00 am Eastern Time also generate an extraordinary GBP trading volume, with high opportunities for strong trending price actions in multiple or all pairs. (For more information see GBP / USD, US 2-year yield rises after the GDP report.) Japanese releases receive less attention because they are directed at 4.30pm and 10am when Britain is in the middle of its sleep cycle Nevertheless, the trading volume with the GBP / JPY pair will fluctuate strongly around these time zones.

 

British pound and stock exchange times


The schemes for many USD and GBP traders roughly follow the exchange hours, concentrating their activity when the stock markets of Frankfurt and New York and the futures and options markets in Chicago are open to companies. This localization generates an increase in the trade volume around midnight on the east coast of the United States, continuously at night and in the American lunch hour, when the forex trading activity can fall sharply.

However, the agenda of central banks is shifting this activity cycle is very important with forex traders system around the world remaining at their office when the Federal Reserve (FOMC) releases an interest rate decision of 2:00 pm or the minutes of the previous meeting. Bank of England (BOE) issues its tariff decisions at 07.00, while the European Central Bank (ECB) follows at 7.45 am, with both releases taking place at the dead end of high-volume GBP activities.


The Bottom



The British pound sterling (GBP) stands high as the fourth most traded currency in the world, behind the US dollar (USD), euro (EUR) and Japanese yen (JPY), and scores third in reserves held worldwide. GBP traders speculate on strength and weakness via currency pairs that compare in real time




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