The first half of the year is over. The situation generated in the markets by the global pandemic has been very serious. But now the economies and business and trade activity are recovering and it is time to assess the real economic situation of the countries in order to evaluate the strategy for the next six months.
Today we are going to review the main trends in Forex trading that are going to develop in these coming months. What you should do is also review if during these previous months of uncertainty, fear and high volatility, your broker has been up to the task. It is no longer just a matter of looking at what he charges you for his services, but of evaluating whether he has given you the information and analysis of news and data so that you can make the best decisions about your portfolio.
On the other hand, if you have had to trade during the pandemic, you will have seen if he could keep up with you, if his platform or his app was agile enough for you to trade up or down, entering or leaving the markets whenever you thought it was convenient for your investments. If not, before reading this article, you should think about finding yourself another investment partner.
Knowing what the next few months of Forex trading are coming up, it wouldn’t hurt to spend a few minutes a day learning how to trade Forex and improving your trading skills. This is the only way to maximize your profit with minimum risk.
Once you are able to trade on the best platform and know when and how to enter and exit the market, you will be able to take advantage of what is expected in the euro/usd or eur/gbp, which we are now telling you about.
Prepare for Dollar Weakness
One of the clearest ideas for investing in the coming months is the weakness of the US dollar against the euro. The forecast is for the eur/usd pair, which is currently trading at around 1.12 units, to move to 1.15 units.
The high US fiscal deficit, the loss of demand for dollars as a safe-haven asset in the face of the new normality and the strong support the euro has received from the European Central Bank (ECB) will seriously tip the balance towards the European currency and against the greenback.
Another clear investment idea is the Brexit in the eur/gbp pair. The UK has been unable to make any progress on the Brexit for several months, so it will not be in time at the end of the year and will have to ask Europe for a further extension.
But the pound has received a strong fiscal boost (about 6.7% of GDP) which, with other previous measures, would bring the deficit at the end of the year to 10.6%. Therefore, a good idea would be to take advantage of the political uncertainty in the country to raise the exposure to the pound above 0.90 eur/gbp and maintain the range 0.83 – 0.90 eur/gbp.