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Euro Exchange Rate VS U.S Dollar Exchange Rate Advances

euro exchange rate against us dollar

In Forex, Euro exchange rate to dollar exchange rate pair is the world’s most traded currency pair and many traders prefer to deal in this particular currency trading pair based on latest exchange rate movements and forecast. When high volumes of EUR/USD pairs are traded it can have an impact on how the single currency performs against its other rivals.

Consider for example if the EUR/USD currency trading pair gains momentum then single currency might do well against currencies like British pound sterling, Kiwis, Australian dollar and so on. In past few years, this major pair has gone through unpredictable situation due to inception of global economic crisis moving from highs of 1.5975 to lows of 1.0485.

Euro Exchange Rate Versus Dollar

If we compare the trend of Euro exchange rate versus U.S dollar over past weeks then it is crystal clear that value of major currency pair has shifted downwards. US dollar remain under heavy pressure after the announcement made by Janet Yellen, Chair, Federal Reserve last week in which she stated that they are not expecting to change the interest rate until June.

Greenbacks remained weak after the consumer confidence index dropped to new a low of 89.7 even though it was anticipated by economist that this figure would raise to 92 from previous reading of 91. United States industrial production figures continued to be disappointment in the month March as industrial production declined by negative 0.6pc. However, it has been forecasted that decline rate will slow down to negative 0.1pc. As a result Euro exchange rate versus the dollar exchange rate advances further.

Jeroen Dijsselbloem, Finance Minster, Eurozone has said that IMF meeting conducted last week will not get anywhere on the Greek bailout and over the weekend this issue is not likely to get resolve. Although it is expected that meetings which will be held in Amsterdam this week could see more progress and get somewhere. Moreover, the complications on Greek bailout have lead to Euro exchange rate and US dollar exchange rate to slip.

At the moment, Eurozone creditors want a surplus Gross Domestic Product (GDP) of 3.5pc by 2018. On the other hand, IMF says GDP growth rate by 1.5pc sounds more doable. The fear of Greece leaving the Eurozone has put pressure on the Euro once again and if a deal is not struck between the Hellenic nation and Eurozone creditors then Greece could be forced to leave.

The official data released by China showed some positive results this year as the retail sales was seen to grow by 0.4pc to 10.5pc. Industrial production also went up from 1.4pc to 6.8pc as compared to the initial forecast of 5.9pc. Even though GDP declined by negative 0.1pc but it was already expected by the economists. Moreover, Foreign Direct Investment (FDI) was almost three times higher than the initial forecast and the figure rose from 1.8pc to 7.8pc. The official positive data released from China gave a small boost to US dollar. Furthermore, Federal Reserve can now divert its attention on developments in China to help control the direction US monetary policy.

Euro exchange rate floating near Six months high against the greenbacks

euro exchange rate against us dollar

Euro Exchange Rate vs Dollar

On Friday, Euro Exchange Rate went up to a new height against the US dollar and hitting six-months high as market sentiment remained volatile after the Federal Reserve meeting minutes were revealed to the general public. Moreover, Greenbacks continued to remain under pressure from the single currency due to the fact that FED’s policy regarding interest rate hike remained unchanged and interest rate changes are expected in the month of June as in the present scenario health of global economy is major concern for the FED.

Janet Yellen, Chair, Federal Reserve on Thursday said that United States economy should not be perceived as a bubble economy and labor market was also gaining grounds. Furthermore, she also clarified that the decision that was made earlier by Federal Reserve to increase the interest rate in the month of December last year was not a mistake. After her comments, the currency strengthened for a while against Euro exchange rate.

In addition to, policy makers at European Central Bank also pointed out the fact that if it is needed they are ready to inject more stimulus, and following the announcement of ECB market sentiment on Euro exchange rate remained fragile. Peter Praet, chief economist, European Central Bank also stated that ECB was prepared to take necessary steps if new shocks arises in the euro zone economy. Moreover, Vito Constancio, Vice-President, ECB also communicated to the European Parliament that ECB is ready to take actions in order to stabilize price objective.

Consequently, Euro exchange rate reached 1.1397 against the greenbacks during early North American session and the currency rate consolidated at 1.1395 gaining 0.15%. However, single currency went down against the British pound sterling by 0.19% to trade at 0.8079. On the other hand, US dollar also lost its ground against the pound by 0.28% to trade at 1.4097. United Kingdom’s office for National Statistics also reported that manufacturing production reduced by 1.1% in the month of February as compared to the anticipated figure of 0.2% reduction in production manufacturing.

Moreover, year-on-year production fell by 1.8% in UK and the data also showed that industrial production also went down by 0.3% in the same month even though it was predicted that production might go up by 0.1%. In a another report released in United Kingdom also pointed out that U.K trade deficit have been reduced to £11.96 billion in the month of February from a trade deficit of £12.16 billion in the previous month. In contrast, economists had earlier predicted that trade deficit will reduce to £10.20 billion.

The US dollar compared to the Safe heaven also went higher, the major currency pair traded at 108.53. Moreover, Japanese Yen also remained under pressure after the comments which were made by the Japanese Finance Minster regarding the aggressive currency steps that they are not feasible at this time.

U.S dollar index which measures the strength of Greenbacks against the major currency pairs such as Japanese yen, Euro exchange rate and so on remained at 94.31 and the index fell by almost 0.20%.

Top 5 Attributes you need to have in order to become a successful trader

five attributes of successful trader

Currency trading can be very a hectic and time consuming process, and if you are well equipped with proper information then you could end-up losing all your equity instead of profits. Successful traders from all over the world have shown certain traits in their personalities that have made them the best in the market. Success cannot be achieved by anyone overnight and it requires hard work and dedication. Moreover, if you are willing to invest your time and learn Forex currency trading then you can also succeed with flying colors. So let’s take a quick look at some of the personality traits of these great traders.

Be Disciplined

Most of you reading this article would think that you already have this trait but in reality that may not be the case. Many Forex beginners who start trading often faces a situation where they lose some of their initial investment, and then they are alarmed by the situation instead of maintaining their composure they take incorrect decisions. Moreover, discipline is extremely important when you are trading and even if you made a mistake whether it is big or small you can always recover from it. You need to consistently follow a proper currency trading plan that will help you in becoming a profitable trader.

Never over-react

Over reaction can be very treacherous when it comes to Forex, and if you take a fast decision in that state of mind it will always backfire and bring about more loss to your live account. Furthermore, you should always think before you act on it, if you’re entering into a trade then you should know the reason behind it otherwise you will exhaust all your investment for example if reward to risk ratio is greater than 1 so it makes sense to jump into a trade and capitalize on the opportunity present.

Realistic Goals

Setting smart and realistic goals in currency trading can even aid you when the market is extremely volatile moreover, a realistic profitable plan will always guide you to take the right decision at the right time. If you happen to be in a bad spot and you find yourself praying that somehow the trade will come around then you need to cut your losses and get out of that particular trade immediately. On the other hand, if it is a profitable one then you need to have patience and make the most out of it.

Remain Calm

Whenever you’re involved in currency trading always remain calm as most Forex beginners tend to get distracted very easily when the things are going in their favor but if the circumstances is reversed then remaining calm becomes even more important and it really defines a triumphant trader. Moreover, controlling your emotions during good or bad conditions can actually make you more alert to your environment and it increases the probability that you will make a right profitable move.

Non-stop Learning

The secret to becoming a successful trader is that you continuously update yourself, and attend webinars, and conferences conducted in your local areas which will give you more insight to Forex. In short, Forex is a very volatile market and market trends are continuously changing on a daily basis so it is always beneficial to stay ahead of the market, and become accustomed to new strategies that can work in your favor.

Five Rumors that keep Women from investing in Forex Currency Trading

rumors about female forex traders
One of the main issues that we have seen in Forex Currency Trading market is that females are not considered as good traders but this statement is too far from being true. Women can easily compete with their counterparts and they have ability to accept when they are incorrect and entered a bad trade however, men are often too stubborn to admit that they had made a wrong move or decision. If truth be told, an independent report was released which pointed out that more women traders are needed in order for a consistent growth of financial market.

Rumor 1: Women tend to be more risk averse to take a decision

It well known from female trading activities that they do not take unnecessary risk when they are trading currency. However, this does not mean that they are too afraid to invest or take a decision. Women can sometimes make the same mistakes as men like going after single currency trading pair and investing all their money instead of diversifying risk. Paying attention to market news can often make female traders hesitant towards entering into a trade too early or going big on a single trade.

Rumor 2: Women are not first-class investors as compared to Men

Again, this statement is totally inaccurate and does not represent true picture of female investors. Women are as good or better investors than their counterparts, and they do not have the tendency to be better than anyone else present in the room but they take a decision in Forex currency Trading market solely based upon if they are doing things correctly. On the other hand, males tend to compete with each other, and it’s all about keeping score to be on the top. Moreover, they enter into a lot of trades and make mistake that creates negative sentiment towards the market.

Rumor 3: Women are not good mathematician

This statement is totally false again, and there is no proper research conducted to back this claim. Some of the females in the past were great mathematician, and it cannot be generalized in any way that females are not good in mathematics. The origin of this claim can be traced back to societal pressures where it is considered men are better at each and everything.

Rumor 4: Women need more guidance to invest in Forex Currency Trading

Before investing into a particular currency trading pair, women tend to do their research work and they take formal education or informal learning through a proper financial organization. Like their male counterparts, females learn about financial market trends analysis and other factors that might affect trading activities in Forex currency trading market. If they made a wrong move, then they are not ashamed to ask for help in order to get out of trade.

Rumor 5: Women are not concerned with investing activities

Like all the rumors listed above, this claim is also irrelevant and it does paint the true picture. Females tend to be more enduring and tolerant than most men when it comes down to making long term investing decision. Trading results have shown women can make some excellent investing calls than most seasoned men.

Forex for Beginners: Why All Traders Dealing In Currency Trading Don’t Make It To Top

What it takes to be in the top of trading

Forex for beginners and experienced traders can be very attractive and lucrative in terms of making money but almost all of the traders don’t exactly win each and every trade. Previously we have seen that almost 91% of the traders don’t make it to the top and they tend to lose more money on a trade than they actually make profit from a win trade, and various reports have been released by different companies which points out the same thing that is almost 51% of the trade were win trades but they lost more money on a losing trade.

One of the main reasons behind failure for so many Forex for beginners is that they do not have a proper logical system or a Trading Plan that can guide them through ups and downs. You need to have a set of rules that you can follow easily and those rules should have worked for you in the past. For example if you decided to enter into a trade and it turns out be a bad trade as the price of that currency pair continues to fall it is wise to keep the risk at minimum instead of taking a bigger risk hoping that the trade will come around and turn into profitable one. Most people end-up losing great amount of money from a single trade as they cannot get out at the right time and instead of losing 12 pips or less they ultimately lose more than expected.

Next step for Forex for beginners is that before investing money in live trading accounts you should go through technical chart analysis and price action analysis. Set a schedule and give proper time to those charts moreover, look for patterns that can turn into your favor. Setup a risk reward ratio, if you decide to enter into a trade then your reward should be greater than your risk or it should equal but not less than one and this is the key to making profits consistently without losing a lot of your investment.

Once you have setup your own risk and reward ratio then you need to follow it, and do not make psychological or emotional mistake that is if you’re selling or buying too early or late. Most common blunders that are made by beginners are related to trade size as normally fresh traders do not have a perfect idea on trade size, sometimes they go for a bigger trade or a smaller trade size without any reason or logic. If they lose a trade then it creates a negative sentiment in the mind of traders.

One of the great things about currency trading is that you don’t need to have a large capital and Forex for beginners can just start trading with just few hundred dollars in their live accounts. However, before you can start trading it wise to take educational courses on Forex that will help you in reading charts, and all the basics related to currency markets.

Develop a Forex Currency Trading Plan for Making Profitable Trades

Currency Trading Plan for making profits

Most of the people who have just entered into Forex currency trading or they have been trading for a while now, one of the challenges that each trader face is making profits. Usually people before becoming a trader often take some sort of short course like technical analysis or price action or other similar type of course. One of the main problems that not profitable traders go through is that they don’t know what they are doing when they are trading.

Not profitable traders may have a decent understanding about support and resistance level. Moreover, they may be able to understand news related to this industry and its impact on the currency exchange market. However, as a matter of fact they generally don’t have any clue about what they are doing for example these traders are trading day in and day out but they usually don’t know why they have entered trade or why they have to go long or go short or why they closed a trade, and so on. These are some of the common mistakes that are made by inexperienced traders.

Firstly, you need a have sound Forex currency trading plan and follow logic instead of your emotions leading the way. Those traders who are making profits in this market do follow some type of trading plan. Once you have developed your own plan with specific set of rules that are profitable then you need to stick to it and follow the plan through Monday to Friday. In contrast, most people often find trading plan to be boring or not exciting but it is one of key factors that determine the success of traders in this market.

Secondly, by now most of you have must have read that around 91% of the people don’t make profits and to Be in the top 9% of Forex currency trading you need to follow a trading plan that has proven to be successful in the past. Moreover, you need to be comfortable when you are trading currency whether you are following price action or news or any other Forex indicators as long as it have proven to make money for you in past. Furthermore, one needs to give proper time and attention to learn about trading. Most people are not willing to learn the art of Forex currency trading instead they look for easy way to make some money.

Thirdly, you should give proper time to studying technical charts and at least give two to three hours on a daily basis. Additionally, you will be able to identify patterns and make better decisions based on it. The point to note here is that if you want be in top 9% then you need to commit time otherwise, you will wasting your resources and making bad choices.

Lastly, your mindset is an important element that would ultimately affect your trading activities. Whatever is going on your mind it will be reflected on your trading even profitable traders make mistakes but they don’t give up easily and they keep on looking for good trades that will make them money.

Common Currency Trading Strategy Mistakes To Avoid, And Be In the Top 9%

common currency trading mistakes to avoid
Trading currency in forex market is not a simple task and it is full of risks and challenges. Many forex beginners and experienced traders have lost loads of money due to adopting a currency trading strategy that does not take into account all factors and elements related to money management. Furthermore, not a single person can make profits at all times and whatever the strategy is adopted by the forex beginners it should always be able to manage losses since it is the part of trading. However, one needs to have a system or a mechanism that will give back more in future than the amount invested.

One of the common mistakes that traders often make is that they are unable to keep their emotions on a side. If a person has established a system then that individual needs to stick to with it, and be as logical as possible. Emotions can get in the way of making profits and most intelligent traders often take quick decision based on their gut feelings.

Consider for example a trader has developed a Currency Trading Strategy and based on his new systematic approach he decided to trade in the market. The first three trades were unsuccessful and on the fourth trade he made profits which covered the initial three losses. On the other hand, another trader made profits on first three trades, and then after that he decided to go big which did not pay off and the individual lost all the money on the fourth trade. The point to ponder here is that emotions can get the best of person and can lead high losses.

Mistakes made by Forex for beginners

Most of the common blunders made by forex beginners are related to trade size. When a trader starts trading in the currency market he does not a perfect idea about trading size and normally an individual go for a high trade size and if he incurs a loss then it also create a negative sentiment.

For example if a trader lost 15% on his initial trade then he would automatically go into defense mode and will try to recover his money that he lost due to trading. For the second trade, he will go for higher trade size, and will aim to get back to previous position as he sees himself as a lesser person. Moreover, this will also result in more pressure, and he will have a need to make 20% profit. However, if his currency trading strategy is not triumphant then he would again lose more money instead of earning.

In addition to, this recovery ladder concept is a never ending spiral cycle that keeps on going and it would eventually lead Forex beginners to very high losses and they end up with nothing in their accounts.

An ideal way to determine trade size without investing a single penny is to go for Demo Trading Account. Demo trading platform is an excellent learning tool which does not require any investment and forex beginners can determine their trading size personality without committing any real funds. It has all the characteristics of live trading account except real investment.

How to begin currency trading in United Kingdom & make profits?

Trading Currency in UK & make profits

Forex Currency Market is one of the largest financial hubs of the world where trillions of dollars are traded each day. It has become a safe haven for many investors and middle class people who are looking for additional household income in this though economical times but this market can be ruthless and it is full of hurdles and challenges. Successful currency trading in United Kingdom depends upon good trading strategy which is backed by proper research work.

Basic Concept of Currency trading In United Kingdom

Basically if you want to make some cash in the forex market, then you need to buy a currency at a lower price and then sell the same currency at a higher price to make some earnings, even though it sounds easy and simple but it is not the case. There are numerous factors involved which determine the success of trader in Forex currency market.

Let’s take an example, consider you have $1,000 in your pocket at the moment that you can spare, and you have decided to invest this amount in your live trading account. When you begin your trading activity EUR/USD is trading 1.35 which means that 1 Euro can buy 1 dollar and 35 cents. Furthermore, during forex market trading hours you forecast that Euro will rise against dollar during the day and based on this particular assumption you purchase 740 Euros against 1,000 dollars.

Moreover, your prediction about Euro rising comes true, and EUR/USD pair is at 1.36 which means a profit of 6 dollars. At the end of day you decided to trade 740 Euros for 1,006 dollars.

Concept Leverage to Increase Profits

Continuing with the above example, where you made only 6 dollars profit from your trade. A question which comes into the mind of most forex beginners is that “is there any way to maximize profits?” well there is a way to enhance profit potential by using leverage offered by the brokers.

Leverage is basically use of financial instruments or loan that AAFX trading provide to traders so that they can trade in forex currency market. Moreover, the size of borrowed capital can be different depending upon various online forex brokers but AAFX provide up to 2000:1 leverage ratio which means that two thousand times more fund than your original investment. By using leverage ratio you can also increase your profits by 2,000 times. However, you should also keep in mind that currency trading in United Kingdom by using leverage ratio can also enhance profit potential and risk as well, and you should be able to manage your risk.

How to use leverage Ratios

Consider you are currency trading in United Kingdom, and you have the same 1,000 dollar in your live trading account. Moreover, you predict that the Euro will rise against the US dollar. Therefore, you decided to use leverage ratios to get maximum borrowed capital. The current EUR/USD ratio is at 1.35, and you trade 2,000,000 dollar for 1,481,481 euro. At the end of day euro rises to 1.36 and you exchange euro for dollars which means that you will get $ 2,014,814. Furthermore, after returning the borrowed capital to the broker and subtracting the deposit your profit from this specific trade will be $ 13, 814 dollar.

In the above stated example your prediction about the Euros is correct however, incase if your prediction did not come true and instead of increasing the Euros would have decreased then what would have happen. In this scenario, your trade would remain open until your losses will be equal to initial deposit which is $ 1,000 at this stage your trade will be closed automatically and the online forex broker will take back the capital or loan.

In short, you can see how the leverage ratios can be helpful in increasing the net profits if you are able to take correct decisions. On the other hand, using incorrectly can result in heavy losses instead of increasing profits.

Why AAFX Trading?

AAFX Trading in an online forex that works towards increasing customer satisfaction and AAFX offers the best leverage ratios to all traders and it take the lowest spread from a trade giving you maximum profit potential.

Forex Market Hours: US Dollar Index hits 2 weeks highs after Consumer Price Index report is announced

US Dollar Index hits 2 weeks highs

AAFX Trading – Online Forex Broker, known for providing top notch customer service, deals in Forex currency trading and CFD trading by offering popular platform such as VertexFX 10, MT4 platform to its customers. For more than a decade, AAFX Trading has been continuously providing timely forex market information to its customers so that they can take the best decisions when they are trading in the market.

On Friday, 19, 2016, Greenbacks continued the pace of its growth against major currencies after the release of positive United States Inflation data during Forex market hours. Furthermore, the report showed that US economy is on a path to recovery, and strength of economy has improved which boosted the confidence of investors in dollars related to Forex currency trading.
Moreover, data indicated that the Consumer Price Index (CPI) was almost smooth in month of January however, it was expected that CPI might fall by 0.1% in January since in the previous month CPI was down by 0.1%. Year-on-Year, CPI had increased by 1.4% in the last month.

Furthermore, if we take a closer look at core CPI which does not include food and energy, it increased by 0.3% in the month January. Nevertheless, it was anticipated that core CPI would raise by 0.1% as compared to last month since CPI had already increased by 0.2%.

Japanese Yen gained almost 0.23% against the US Dollar, after the announcement was made by Energy Information Administration a day earlier during the Forex market hours that crude oil inventories have increased by more than two million barrels, to a new height of 504.1 million barrels. Moreover, on Friday it was also seen that oil prices downward trended had began again with USD/JYP pair traded at 112.99.

The single currency that is Euro lost 0.32% against its major rival in Forex currency trading, with EUR/USD pair to trade at 1.1067. Moreover, US Dollar also gained value against British Pound and Swiss Franc by 0.60% and 0.19% respectively. GBP/USD pair traded at 1.4250 and USD/CHF pair traded at 0.9947.
David Cameron, Prime Minster, United Kingdom said on Friday that there is still no deal related to reform packages. Market sentiments towards British Pound still remained uncertain as dialogue regarding United Kingdom’s EU membership continued in Brussels.

In addition to, a report that was published during Forex market hours in UK showed that public sector net borrowing declined by 11.81 billion in the month of January. Moreover, Britain’s National Statistics report also showed that retail sales have increased by 2.3% even though it was expected that retail sales figure would increase by 1.5%. The retail sales grew more than 0.8% in the month January, and core retail sales also increased by 2.3% as compared to expectation of 0.7%.
US dollar also gained against the loonies, after a report was released that showed Canadian retail sales went down by almost 2.2% in the month of December.

Meanwhile, US dollar also gained value against the Australian, New Zealand, and Canadian Dollar. Greenbacks gained almost 0.92% against the Australian Dollar to trade at 0.7091. On the other hand, New Zealand Dollar got weaker against the US Dollar to trade at 0.6590. US dollar gained against the loonies, after a report was released that showed Canadian retail sales went down by almost 2.2% in the month of December.

US dollar index which measures the relative strength of dollar against the six major currency pairs was up by 0.29% and it was at 97.11.

Dollar gains value as positive US retail sales data was released on Friday

Dollar gains value after US retail sales data is released
On Friday, Greenbacks gained value against its counterparts after the positive sales data was released. Retail Sales data indicated the strength of United States economy and also restored the confidence of the investors in the United States economy.
Janet Yellen, Chair of the Board of Governors, Federal Reserve System said on Wednesday in front of congressional committee that they might consider going back from its plan to increase interest rates by a total one percent in 2016. Moreover, before the meeting started she said that the United States economy is doing well, and it will continue to stay on a path of moderate growth rate. This will further allow the FED to make gradual adjustments in the monetary policy. However, she also acknowledged the risks associated with tightening financial policy that could have a negative impact and result in stock sell off.

Furthermore, Greenbacks gained almost 0.63% against the Japanese Yen after going through a 15 month low to trade at 113.95. Japan’s economic data that was released earlier also showed that the economy had contracted by 0.4% in the last three months. Japanese shares also soared as yen weakened against dollar.

On the other hand, Euro lost 0.44% against the dollar last week to trade at 1.1205. The single currency gained value by almost 0.16% against the Japanese yen, with EUR/JYP at 1.1375. Dollar gained against the Swiss Franc last week, with USD/CHF to trade at 0.9769. US dollar edged almost 0.47% as compared to the Swiss Franc.

Sterling pound compared to the Greenbacks remained steady and the pair traded at 1.4473. As US economy is seen on path of recovery but, World Bank forecasted that the United States GDP growth rate will be at 2.8% in 2016 instead of 3% GDP growth rate, whereas leaving the GDP growth rate of United Kingdom and EU were intact.

Elsewhere, Australian and New Zealand dollar also lost its ground against the US dollar. The Australian Dollar lost almost 0.44% to trade at 0.7076, while NZD/USD pair traded at 0.6619. Chinese trade data that was released earlier also showed that the second largest economy in the world had gone through a rough start in 2016 and its imports and exports had fallen beyond expectations. China’s exports fell by 11.2% and imports fell by 18.8%. US dollar counterpart that is the Canadian dollar also lost value by 0.14%. USD/CAD traded at 1.395.
US dollar Index which measures the collective strength of the Greenbacks against six major currency pair was at 96.37 and it went up by 0.40%. Moreover, the demand for the dollar was underpinned after the retail sales data was released and FED is likely to stay on tightening the monetary policy.

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