Archive : Forex Fundamentals

The GBP/USD can be a particularly volatile and unpredictable currency pair. For this reason, the many trading opportunities that such a mobile currency can gift to traders makes it an incredibly popular pair. In terms of its relationship to other major currency pairs it tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD. This means that any significant [...]

Stock markets rallied today and inevitably pushed the USD down from its demand-driven rally as the safe-haven for traders. Although this may be short-lived, it is interesting to look away from the EUR/USD to its alternative dollar-pairing. The USD-CHF is the fifth most traded currency pair in the world and it sits in the interesting position of consisting of two of the three global reserve currencies, [...]

Figures released by the US Commerce Department show that the US economy grew at an annualised rate of 2.5% – nearly twice the figure for Q2 of 1.3%. The figures imply that demand and growth have picked up in the second half of the year within the US economy. A closer look at the figures shows that the better performance was buoyed by better consumer and business spending; I was also helped by [...]

Well, it has been a long time coming and, it could be argued, should have happened months ago, but a deal has been done which should put a bottom under the sovereign debt crisis in Europe – for a while at least. European Union leaders have agreed a deal where the EU bailout fund will be extended to €1 trillion. This should be enough to restore confidence to the markets that a “domino style” [...]