Good day forex traders.
As we approach the end of the 1st quarter of 2017, it is a good time to take stock of our forex performance. I hope that you are green with pips!
We took a cautious approach this year with our Koala Trading System. It is now up 319 pips. Not a spectualar performance but forex in our opinion is about being slow and steady! Excessive risk will often result in a margin call.
The EUR/USD currency pair is often exposed to sentiment swings. In the recent days, traders are apprehensive about the momentum of the US interest rate hike. Recent US Federal Reserve meeting minutes only adds oil to the speculation fire. BBC reports :
US central bank policymakers want to see proof the country’s economic slowdown is temporary before they raise interest rates, according to minutes of their latest meeting.
They said it would be “prudent to await additional evidence… that a recent slowdown in the pace of economic activity had been transitory”.
Markets have been expecting a rate rise at the Federal Reserve’s June meeting.
The dollar dipped following the release of the minutes.
It was down by nearly 0.2% against the Dollar Index, a basket of foreign currencies.
Most officials on the Federal Open Market Committee of rate setters still expect to raise interest rates “soon”.
Gus Faucher, economist at Pennsylvania-based PNC Financial Services, said he was surprised to see the dollar fall.
He thinks new economic reports since the meeting, including jobs, bolster the case for a rate rise. He’s calling for a June increase and a second one by the end of the year. ”
As mentioned always, currencies are influenced by the prospect of a hike or reduction of interest rates. Should the US economy slows further, we may see more US Dollar weakness.
The US Non Farm Payroll on Friday will be key to the outlook of the US dollar.