The trends influencing the FX Market.

As a new trader you may be wondering about the trends that has an influence in Forex currency trading.

These are the trends that do not go away.





1-The liberalization of trade in capital flow.
2-Financial innovation in securities and derivatives markets.
3-Technology and communication enhancements.
4-Maturing established product markets.
5-Globalization competition and disintermediation (elimination of a bank as a middleman)
6-Co-ordinated efforts on monetary policies ( As an example, the G-11 countries which are really the largest 11 western industrialized countries base on GDP ( Canada, USA, Germany, United Kingdom, Japan, France, Italy, The netherlands, Belgium, Sweden and Switzerland )
These countries coordinate currency intervention and synchronized interest rates moves to
secure low inflation, provide a steady growth potential, keep track of historic low interest rates and trying to ensure low volatility.

Investors are looking for comprehensive services package from their financial service providers.
Investors are also seeking independance from banks and are willing to open accounts to trade, customizing their portfolio on their own
using well known platforms such as EToro for example and look for trade opportunities.

In the last decade, the number of day traders have increased each one trying to get a solid grip on their financial freedom.

Emerging markets like South America and India have also contributed in providing new opportunities in a never ending global economy.

Asia is also a key player in this long list of Global participants representing consolidation in the short-term markets, but growth opportunities in longer term for fixed income and derivatives markets.


Stay tuned for my next article as I will be getting into how the rates of a currency is determined.


As always, thank you for stopping by !

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Self employed, market research. Former FX-MM risk control officer at BMO-Nesbitt Burns.

Foreign Exchange Study guide.
Foreign Exchange Study guide.

The objective of this guide is to provide an insight and a comprehensive overview of fx product line and markets for better account management. These principles can be applied to cryptocurrency trading.

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