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Weekly Forex Forecast: EUR/USD, USD/CHF, AUD/JPY, Gold

2024-08-04 22:03:29.994000

The currency markets are experiencing mixed performance as the North American session begins. The New Zealand dollar (NZD) is showing strength, while the US dollar (USD) is relatively weaker [eb43ebd3]. The Japanese yen (JPY) is the strongest currency, while the Australian dollar (AUD) is the weakest [dc86699f]. US traders are back after the Thanksgiving holiday, and the US stock market will be open today but close early. US stocks are mixed, with retailers hoping to boost holiday sales despite challenges from high inflation and borrowing costs [eb43ebd3]. The US economic calendar is relatively quiet today, but Citigroup's CEO has initiated layoffs and organizational changes [eb43ebd3].

In Japan, core consumer inflation, excluding food, has increased, while the Bank of Japan has not provided a clear timeline for moving away from its current policy [eb43ebd3].

In New Zealand, retail sales have come in higher than expected [eb43ebd3].

In Germany, the final GDP reading is in line with expectations, while the ifo Business Climate index is weaker than estimated [eb43ebd3].

In Canada, retail sales data will be released [eb43ebd3].

Spot gold and silver prices are trading slightly up and down, respectively [eb43ebd3].

In the US stock market, major indices are trading with a mixed market [eb43ebd3]. US bond yields are up [eb43ebd3].

Foreign exchange trading carries a high level of risk [eb43ebd3].

The Forex market in Australia opens at 7am on Monday Australian Eastern Standard Time (AEST) and runs continuously until 7am on Saturday AEST. The market operates 24 hours a day, five days a week, providing uninterrupted trading opportunities. The four main Forex trading sessions in Australia are the Sydney Session (8am-4pm AEST), Tokyo Session (9am-6pm JST), London Session (8am-4pm GMT), and New York Session (8am-5pm EST). Each session has its own characteristics and overlaps with other sessions at certain times, creating periods of heightened market activity. The Sydney session offers relatively low volatility and is a good time for beginners or traders who rely on fundamental analysis. The Tokyo session is known for low volatility but presents opportunities for traders interested in news events from Australia, New Zealand, and Japan. The London session is highly liquid and volatile, especially during the overlap with the New York session, making it a crucial time for trading major currency pairs. The New York session is the busiest worldwide and provides opportunities for traders focusing on currency pairs involving the US Dollar. Daylight savings time affects Forex trading hours, requiring adjustments to trading schedules. Public holidays can lead to reduced market liquidity and altered trading hours. Forex trading is legal in Australia and regulated by the Australian Securities and Investments Commission (ASIC) [9d29a42a].

According to a recent article by Kathy Lien on Investing.com Australia, choosing the best forex pairs to trade requires careful consideration of various factors [3080807c]. Liquidity, volatility, and correlation are key factors to assess when selecting currency pairs. Liquidity refers to the ease of buying and selling a particular currency pair, and highly liquid pairs tend to have tighter spreads and lower transaction costs. Volatility is the measure of price fluctuations, and traders often seek pairs with higher volatility for trading opportunities. Correlation measures the relationship between two currency pairs, and understanding correlation can help diversify risk in a trading portfolio. Additionally, traders should consider economic fundamentals and geopolitical events that can impact currency pairs. It is essential to stay updated on news and events that can affect the forex market. Traders should also evaluate their trading style and risk tolerance when choosing forex pairs. The article provides a comprehensive guide for traders looking to make informed decisions in the forex market [3080807c].

Forex trading involves risk, and choosing the right currency pairs is crucial for success. A recent analysis by Chantal Fouad on Gulf News highlights the importance of selecting the top currency pairs to trade like a boss [c1e975d4]. The article emphasizes that liquidity, volatility, and market conditions are important factors to consider when choosing currency pairs. Highly liquid pairs, such as EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, and NZD/USD, tend to have tighter spreads and lower transaction costs. Traders often seek pairs with higher volatility for trading opportunities. Additionally, understanding market conditions and economic fundamentals can help traders make informed decisions. The profitability of forex trading depends on the trading strategy and discipline of the trader. Leverage in forex trading carries significant risks and should be used cautiously. The article provides steps to start forex trading and emphasizes the importance of staying updated on market news and events [c1e975d4].

In conclusion, choosing the best forex pairs to trade requires careful consideration of various factors, including liquidity, volatility, correlation, market conditions, and economic fundamentals. Traders should evaluate their trading style and risk tolerance and stay updated on news and events that can impact the forex market. By making informed decisions and following a disciplined trading strategy, traders can increase their chances of success in the forex market.

Moving on to the weekly forecast for major currency pairs and gold, an article on Forex Factory provides insights into the potential price levels and key support and resistance levels for the EUR/USD, USD/CHF, AUD/JPY, and Gold currency pairs [84b34043]. The author analyzes the technical and fundamental factors influencing each currency pair and discusses the impact of economic events and news on their performance. Traders can use this forecast as a guide to make informed trading decisions based on the author's analysis and opinion [84b34043].

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.