Traders are seeing some great reasons to trade as Q2 gets underway, and there are three currency pairs that stand out. Both the US and China saw economic leaps in March with six-month highs in stocks and trade. Many currencies did not fare so well. As a result, governments around the world continue to rally and implement damage control strategies to combat recession fears, and it seems it might be working. Global optimism is already on the rise.
Can we really dodge the future recession that fearmongers are throwing around? If you’re looking for economies and currency pairs that are showing positive sentiment in the forex market as well as popular news media, here’s three to consider first.
The American manufacturing industry showed remarkable highs recently, and with orders and job opportunities on the rise, Q2 seems to be on a good track. However, it’s still too soon to conclude that the US economy is safe and sound. A recent retail sales reports showed a drop of 0.2% in American spending, which might not sound like a lot, but consumer spending accounts for over 60% of the US economy. Don’t expect major movements from this currency until the conflicting good/bad messages have been resolved. Check out these popular USD pairs on your trading platform.
- USDCAD (US dollar vs Canadian dollar)
- USDCHF (US dollar vs Swiss franc)
- USDDKK (US dollar vs Danish krona)
- USDHKD (US dollar vs Hong Kong dollar)
- USDILS (US dollar vs New Israeli shekel)
Sterling has begun a bullish reversal against multiple currency pairs as the Brexit delay stirs hope. The B
- GBPAUD (Great Britain pound vs Australian dollar)
- GBPCAD (Great Britain pound vs Canadian dollar)
- GBPCHF (Great Britain Pound vs Swiss franc)
- GBPDKK (Great Britain pound vs Danish krona)
- GBPILS (Great Britain pound vs New Israeli shekel)
Some experts have billed 2019 as the year of CAD. The continuing strength of Canadian oil and a healthy Blow Off Value (BOV) supports the forecast of a strong Canadian dollar for the coming months. Elections and immigration reforms are on the horizon along with an (as yet) unratified but promising economic trade agreement. The CAD instruments may well become some of the most popular currency pairs of 2019 if forecasts prove accurate. Here’s a short-list of Canadian pairs to keep an eye on in Q2.
- CADCHF (Canadian dollar vs Swiss franc)
- CADJPY (Canadian dollar vs Japanese yen)
- CADMXN (Canadian dollar vs Mexican peso)
- CADNOK (Canadian dollar vs Norwegian krona)
- CADPLN (Canadian dollar vs zloty)
120+ currency pairs
FX News pointed a spotlight on these three currency pairs because they are the most recognized instruments of high liquidity right now, but there are many other opportunities that deserve your attention. If you’ve been thinking about becoming a forex trader, consider testing your trading eye with the Exness demo trading account. You’ll get a risk-free opportunity to trade on real market moves and see whether you’ve got what it takes to succeed.
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